In 1776, the notion that no one is above the law was popular during the founding of the United States. For example, Thomas Paine wrote in his pamphlet Common Sense that “in America, the law is king. For as in absolute governments the King is law, so in free countries the law ought to be king; and there ought to be no other.”
In 1780, John Adams enshrined this principle in the Massachusetts Constitution by seeking to establish “a government of laws and not of men.” However, it would appear there is an exception…
Trump ‘just realizes’ he can’t fire Federal Reserve Chairman Jerome Powell
Bloomberg reported Trump has talked privately about firing Powell many times over the past few days.
President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell as his frustration with the central bank chief intensified following this week’s interest-rate hike and months of stock-market losses, according to four people familiar with the matter.
However, that isn’t going to happen as the White House later determined that Trump “does not have the authority” to fire Powell.
Michael Snyder commented:
Of course firing Powell would not ultimately fix much of anything.
The core of the problem is the Federal Reserve system itself. It is a system that is literally designed to create booms and busts, to systematically debase our currency, and to create as much government debt as possible. It has been doing a great job at achieving all three of those goals, and if we ever want to reverse course then we need to shut down the Federal Reserve for good.
The Federal Reserve created the boom and bust cycle that resulted in the financial crisis of 2008, and now another boom is turning into a bust right in front of our eyes.
The design of the Federal Reserve system is fundamentally flawed, but this issue isn’t really on anyone’s political radar right now, and that is extremely unfortunate.
The Federal Reserve is Above the Law
The famous currency expert Dr. Franz Pick once stated,
“The destiny of the currency is, and always will be, the destiny of a nation.”
With the advent of rampant globalization, this concept can certainly be given a global context as well:
“The destiny of currencies are, and always will be, the destiny of the world.”
To understand Federal Reserve is to understand BIS, IMF, and the World Bank. Together these private entities control the global monetary affairs with impunity.
A quick summary of their immunity, explained further below, includes
- diplomatic immunity for persons and what they carry with them (i.e., diplomatic pouches)
- no taxation on any transactions, including salaries paid to employees
- embassy-type immunity for all buildings and/or offices operated by them
- no oversight or knowledge of operations by any government authority
- freedom from immigration restrictions
- freedom to encrypt any and all communications of any sort
- exempt from any legal jurisdiction
Further, members of their board of directors (for instance, Alan Greenspan) are individually granted special benefits:
“immunity from arrest or imprisonment and immunity from seizure of their personal baggage, save in flagrant cases of criminal offence”
“inviolability of all papers and documents”
“immunity from jurisdiction, even after their mission has been accomplished, for acts carried out in the discharge of their duties, including words spoken and writings”
“exemption for themselves, their spouses and children from any immigration restrictions, from any formalities concerning the registration of aliens and from any obligations relating to national service worldwide ”
“the right to use codes in official communications or to receive or send documents or correspondence by means of couriers or diplomatic bags”
For example, all remaining officials and employees of the BIS have the following immunities:
- “immunity from jurisdiction for acts accomplished in the discharge of their duties, including words spoken and writings, even after such persons have ceased to be Officials of the Bank”
- “exemption from all Federal, cantonal and communal taxes on salaries, fees and allowances paid to them by the Bank…”
- exempt from Swiss national obligations, freedom for spouses and family members from immigration restrictions, transfer assets and properties – including internationally – with the same degree of benefit as Officials of other international organizations.
On February 10, 1987, a more formal acknowledgement called the “Headquarters Agreement” was executed between the BIS and the Swiss Federal Council and basically clarified and reiterated what we already knew:
Article 2 Inviolability
The buildings or parts of buildings and surrounding land which, whoever may be the owner thereof, are used for the purposes of the Bank shall be inviolable.
No agent of the Swiss public authorities may enter therein without the express consent of the Bank. Only the President, the General Manager of the Bank, or their duly authorized representative shall be competent to waive such inviolability.
The archives of the Bank and, in general, all documents and any data media belonging to the Bank or in its possession, shall be inviolable at all times and in all places.
The Bank shall exercise supervision of and police power over its premises.
Article 4 Immunity from jurisdiction and execution
The Bank shall enjoy immunity from criminal and administrative jurisdiction, save to the extent that such immunity is formally waived in individual cases by the President, the General Manager of the Bank, or their duly authorized representative.
The assets of the Bank may be subject to measures of compulsory execution for enforcing monetary claims. On the other hand, all deposits entrusted to the Bank, all claims against the Bank and the shares issued by the Bank shall, without the prior agreement of the Bank, be immune from seizure or other measures of compulsory execution and sequestration, particularly of attachment within the meaning of Swiss law.
As you can see, the BIS, its directors and employees (past and present) can do virtually anything and everything they want, with complete secrecy, immunity and with no one looking over their shoulders.
It was truly a banker’s dream come true, and it paved the international freeway for the rampant financial globalism that we see manifest today.
Carl Teichrib, World Research Library Senior Fellow, commented as follows: –
“Follow the money, follow the power.”
- The BIS is central bank to all major central banks in the world
- It is privately owned by central banks themselves, most of whom are also private
- It was founded under questionable circumstances by questionable people
- It is accountable to no one, especially government bodies
- It operates in complete secrecy and is inviolable
- Movement of money is obscured and hidden when routed through the BIS
- The BIS is targeting regional currency blocks and ultimately, a global currency
- It has been hugely successful at building the New International Economic Order, along with its attendant initiatives on global governance.
- As to “follow the power,” another paper will more fully explore the influence of power that the BIS exerts over other banks, nations and governments. For your own consideration in the meantime, Proverbs 22:7 provides a useful compass: “The rich rule over the poor, and the borrower is servant to the lender”.
The Federal Reserve System
The Fed’s “above the law” status is unique. When agencies like the EPA decide on a new policy, such as calling CO2 a form of pollution, the decision often ends up in the courts. But that’s not true of Fed monetary policy decisions.
Americans were told the Fed is created to manage crisis and control inflation. The reality is there were uncontrollable booms and busts.
The post-1965 orgy of money printing with the mid-1960s upswing in inflation – Prices rose 60% in 5 years. Unemployment also rose in 1980, and longer-term interest rates hit an all time record of around 15% in 1981.
Why do some people claim the Federal Reserve is unconstitutional?
Critics also argue the Federal Reserve Bank violates the Constitution by being too closely tied to the private sector, and it lacks transparency and accountability.
Article I, Section 8 of the U.S. Constitution lists most of what are commonly referred to as the Enumerated Powers of Congress. Among them are the power to borrow money on behalf of the United States and the power to coin money, establish currency and determine its value. Critics of the Federal Reserve point out that the Constitution makes no reference to a centralized bank to carry out these actions. The 10th Amendment also states the federal government is only to have those powers expressly granted to it. Therefore, it is argued the creation of the Federal Reserve itself was a violation of the Constitution.
Treasury Secretary Steven Mnuchin Scheduled An Emergency Call With The President’s Working Group On Financial Markets On Christmas Eve
Michael Snyder commented:
If the financial markets are going to be just fine, then why did Treasury Secretary Steven Mnuchin make emergency calls to the CEOs of the six biggest banks in America on Sunday? And if we don’t have anything to worry about, then why has he scheduled an emergency call with the Presidents Working Group on Financial Markets on Christmas Eve? Actions speak louder than words, and we haven’t seen these sorts of emergency moves since the last financial crisis. Last week was the worst week for the stock market in 10 years, and it is understandable that they would want to try to do something to ease the panic in the marketplace, but for many this is just going to confirm that a new financial crisis has now arrived. The following is from Secretary Mnuchin’s official statement: –
Washington — Secretary Mnuchin conducted a series of calls today with the CEOs of the nations six largest banks: Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase, James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.
Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to participate as well. These key regulators will discuss coordination efforts to assure normal market operations.
Apparently Mnuchin believes that the fact that he is taking action is going to “reassure” the markets. One anonymous source told CNN that Secretary Mnuchin is “being pre-emptive”,
“It’s being pre-emptive,” a person familiar with the matter told CNN. “It’s sending the proper message to the market so they can calculate the real picture into their Monday opening. They don’t have to wait until something happens to be reassured.”
But others believe that these moves could almost be akin to yelling “fire” in a crowded theater. If investors start having flashbacks to similar meetings during the crisis of 2008, that could cause them to panic even more, and that could create even bigger problems on Wall Street.
So far this month, investors have pulled more money out of U.S.-based stock funds than ever before in history. People are really starting to freak out, and Stephen Suttmeier of Bank of America-Merrill Lynch is warning that this market decline could extend “through the first half of 2019”,
Bank of America-Merrill Lynch sees stocks struggling through the first half of 2019.
Stephen Suttmeier, the firm’s chief equity technical strategist, is building his case with two S&P 500 charts. They suggest stocks are in the throes of a bear market and the correction is deepening.
“We are breaking through a massive support on the S&P between that 2,600 and 2,500 range,” he said Thursday on CNBC’s “Futures Now. ” “We could see the mid-2,300s on the S&P 500.”
Personally, I believe that Suttmeier is being way too optimistic.
The U.S. economy is already being strangled by higher interest rates, and the Federal Reserve has indicated that they intend to conduct even more rate hikes in 2019. President Trump can see what is happening, and he deeply regrets nominating Jerome Powell for the top spot at the Federal Reserve.