When you hear “drug cartel”, what comes to mind? There’s a negative connotation to it, right? How about a “sugar cartel”? You see, people can tie negative or positive connotations to phrases that are negatively or positively talked about on the news. At least thats how it was for me when I would hear “drug cartel” on TV… I would think it something negative.
But I want answer the question, What is a cartel? A cartel is a group of corporations who have made agreements with one another to similarly address mutual business concerns such as price fixing, supply limits, and sales quotas, all to stifle competition. Cartel agreements often create de facto monopolies. Since outlawed in the United States by antitrust laws, cartels can be mostly found in Europe where they now operate on international levels. (Definition reference: http://www.metropostcard.com/glossaryc.html)
When you think of a “banking cartel”, what comes to mind? Would you believe me if I told you that the Federal Reserve is an actual banking cartel? As G. Edward Griffin says in the video above, “Its a group of very large and powerful private banking interests, who have gotten together in a cartel arrangement. And they brought the Federal Government into it as a partner in order to use the force of Law to enforce the cartel agreement.”
Hmm, doesn’t that sound interesting. And the more you think about it, the more it makes sense.
Griffin goes on, “You see with most cartels, if a member of a cartel wants to break out or violate the agreement, if they fixed prices, for example, and one of the members of the cartel wants to raise the prices contrary to the agreement, there’s no way for them to discipline the member of the cartel and force him to stick with the agreements. But, if you bring the government into the arrangement and convert the agreement into law, now all members are required by law to keep the agreement or they go to jail.”
“So this is why cartels always throughout history, have always tried to form a partnership with the government, whatever government is in the local where they operate.”
“And so we come to the amazing conclusion that the Federal Reserve system is basically a cartel, a banking cartel, that has gone into partnership with the federal government of the United States so that the federal laws can be used to enforce the cartel agreement.”
“Now thats a real shock, it was to me, because you know, when I started in this process of research, I thought like most people that the Federal Reserve was an agency of the government and that it was formed to protect the people. To protect you and to protect me, and to stabilize the economy and to make sure we didn’t have much inflation or unemployment or all these bad things.”
“And you know when the chairman of the Federal Reserve comes before congress or before the television cameras and he’s asked to explain why they raised the interest rates or why they lowered them or whatever they did, the chairman always says, ‘Well we did it for you folks. We did it in order to cool down the economy, or to stimulate the economy, or to create more jobs’ or whatever. Its always expressed in terms of, ‘We did it for you folks’.”
“It wouldn’t go too well if they said, ‘Well we really did it because it helped the banks’. The people would say, ‘What? What did he say?’ But you can imagine the head of the banana cartel saying for, ‘Well why did you raise the price of bananas this month?’ ‘Well, we did it for you folks, to make sure that there would be enough stimulus in the economy that we would always have bananas’. You see?”
“Anyway, back to the question, What is the Federal Reserve system? It is a cartel… and its a hybrid organization. There are very few like it in existence. It seems to have some of the characteristics of a government agency because the government is involved. And it seems to have some characteristics of a private corporation because its actually owned by private banks. But its neither of the two; its a hybrid.”
“And when it comes to ownership, for example, the member banks actually own the Federal Reserve system. But those certificates of ownership do not carry the usual prerogatives of ownership. For example, the banks can’t sell the shares. If you can’t sell something, you don’t really own it. And they can’t even vote for their board of directors. You see?”
“So whats this ownership business? Its merely a facade. Its a name, its a word they give to it, ‘Well its owned by the banks’. But in reality, its really a hybrid; its a cartel that operates under the protection of the federal government. And the government has given it a monopoly – a virtual monopoly – to create the nation’s money supply.”
Did you catch that? The government has given the Federal Reserve a monopoly, and that is to create the nation’s money supply. So if the fedres (Federal Reserve) is a cartel, and the United States Government is part of the cartel and has one of its main interests in maintaining the well-being of the cartel, OF COURSE THE GOVERNMENT IS GOING TO BAIL OUT THE LARGE BANKS like it already did.
Let me explain more. When those banks were at a loss, and would have negatively impacted the nation if they failed, the fedres took the issue to congress (the government… a partner in the cartel) and said in effect, “The banks are in trouble. Now we don’t want the banks to fold because that would be bad for the economy, right? That would be bad for YOU folks.” See, they’re playing the nice big brother.
So the cartel partners talk how its in the best interest of the economy and the nation to bail out the banks by giving them money, so they can give more loans to the citizens… and make it easier to get loans and buy things. Now the people of America can get more loans, buy things, stimulate the economy and live a better life, right? Wrong.
But it gets even better. These banks buy debts from other countries, too, with the bailout money so the people in other countries now pay interest to the banks, so the banks don’t fail and keep making profits.
Basically, banks give loans and receive interest payments, late payments overdraft payments, ect. They also buy debt from other countries so those citizens pay interest, late payments and fees on the debts TO the banks in America.
You see, what really happened when the fedres and congress got together to bail out the banks was A TRANSFER OF LOSS from the banks to American taxpayers and foreign countries. (Ahh, I can see your eyes getting wider now.) The fedres packages these kinds of deals so congress thinks its in the best interest of the nation and its economy. Then congress accepts the deal, and the fedres hands out the money.
But WHERE does the money come from???????? You and me – the tax payers. We’re stuck with more taxes, more pressure to get loans, and no help if we’re stuck financially. The fedres can print as much money as they want, if congress says its ok to do it. And when Americans start losing jobs and can’t make
What a bunch of crooks! So if you want to learn more about the Federal Reserve cartel and how its negatively impacting the economy and stealing sucking your wallets dry, watch the video above. Thank you G. Edward Griffin for your insightful education!