Johnny Cash sang “Folsom Prison Blues” in 1957. The first verse is:
I hear the train a comin’
It’s rollin’ round the bend,
And I ain’t seen the sunshine
Since I don’t know when.
I’m stuck in Folsom Prison
And time keeps draggin’ on
But that train keeps a rollin’
On down to San Antone.
The Federal Reserve operates from The Eccles Building in D.C. Regarding the Fed I suggest changing “Folsom Prison Blues” to “Eccles Prison Blues.”
I see the crash a coming
It’s approaching like the wind,
And I ain’t seen real money
Since I don’t know when.
We’re stuck in Eccles prison
Their printing scam is moving on,
But the crash is a coming
And a financial reset will dawn.
One hundred years ago certificates backed by gold and silver as well as gold and silver coins circulated as real money. Sadly, today’s currencies are debts issued by central banks, not real money. The Fed (U.S. central bank) issues Federal Reserve Notes—debts of the Federal Reserve. These notes – we call them dollar bills—circulate along with digital dollars as currency (funny money). Nothing but faith, confidence, and the ability of the US government to tax its citizens backs these notes.
Their game, their rules. You can’t buy milk at Wal-Mart with Silver Eagles. They want you to use a credit card and increase your indebtedness to a bank. That bank takes a slice out of your transaction, plus they charge interest on the Federal Reserve Notes you must repay to the bank.
Their game, their rules. We are stuck in their debt-based fiat currency system. Fiat money apologists spout the nonsense that not enough gold exists to back these digital currencies because governments, commercial banks and central banks have created excessive debt. They pumped too many digital Federal Reserve Notes into economic circulation and pushed prices higher. The Federal Reserve makes the rules, and they want the price of gold to remain low and not parallel the rise in the number of currency units.
But there is trouble inside Eccles Prison. Those extra dollars were created from nothing and are backed by nothing. Funny money isn’t real like gold and silver, and it devalues. For over 100 years the government and banking cartel have devalued the dollar. Our mini-dollar today buys what a penny or two purchased before congress accepted payoffs to pass the Federal Reserve legislation.
Why devaluation? The political and financial elite prefer fiat currencies they control and print. They increase their wealth while the rest of us… you know the drill. (They get the gold, you pay the debts.)
Rules in the Eccles Prison: We must use their “funny money” as currency. We are stuck with continual devaluation of the currency. We pretend funny money is a store of value, which history contradicts.
Our dollars shrink in buying power. Can you imagine the chaos if measuring units shrunk like dollars? A man stood six feet tall in 1971, but today he stands 27 feet tall. A baseball home run traveled 450 feet, but today’s slugger can blast a home run over 3,000 feet. Chaos!
Yet inside the Eccles Prison we accept this nonsense. As in Chicago politics, “The fix is in.” The banking cartel owns or rents most members of congress. After receiving the necessary political “contributions” legislators guarantee banking profits.
However, a major crisis might threaten banker profits. Expect a bail-out or bail-in from the Fed, the government, and citizens. Yes, citizens protect banker profits. Really? The interest paid on your savings nearly dropped to zero, but did the banking cartel lower the interest rate on your credit card balances? Whose tax dollars pay interest on the national debt? Depositor funds are legal liabilities of the bank, not your assets.
Stuck in Eccles Prison… The Fed controls interest rates, which have been close to zero since the crisis ten years ago. So what?
When interest rates are low mal-investments expand, corporations borrow $trillions and buy back their stocks. It boosts share prices and CEO compensation.
General Motors bought back $13.9 billion of their stock instead of improving their business operations, and now they are closing plants. General Electric bought back $40 billion and is in financial trouble. The banking cartel created $trillions from thin air, but they demand debts be repaid with Federal Reserve Notes extracted from corporate profits and individual income.
When interest rates rise, the debt service expands and profits fall. The big squeeze begins.
Will GE and GM survive without government bailouts? I don’t know, but they would have been more viable without the massive debts they accumulated to buy back their stocks. The Fed enabled these and many other bad decisions by creating inexpensive interest rates. Debtors are stuck in Eccles Prison.
The U.S. government owes national debt of $21.7 trillion. The Fed enabled the Treasury to sell bonds that increased government debt to unsustainable levels. The Treasury is also stuck in Eccles Prison.
Criminals may be stuck in Folsom Prison, as we are locked in Eccles Prison, but we can prosper despite the restrictions imposed by the Federal Reserve “funny money” system.
HOW DO WE PROSPER DESPITE THE RESTRICTIONS IMPOSED BY THE ECCLES PRISON GUARDS?
- Recognize their scam for what it is—a means of extracting wealth from the populace and transferring that wealth to the financial and political elite.
- Recognize that unbacked fiat funny money systems end in disaster. The powers-that-be can’t resist over-printing… and the value of the currency eventually drops to zero. History shows hundreds of examples. A future list of failed currencies will include dollars and pounds.
- Global debt of $250 trillion will be extinguished with defaults and hyper-inflation. Central bankers will sacrifice the dollar rather than the bond market. Expect hyper-inflation someday.
- Gold and silver have held their value for several millennia. They were valuable long before bankers conjured central banks into our world.
- Central banks have created dollars, euros, yen, and pounds by the trillions. When currencies fail, gold and silver will remain.
- Silver prices have been pounded lower since 2011, while stocks have been levitated with easy money created from nothing by the banking cartel. Stocks are now correcting lower and silver will – someday – correct much higher. Slowly, then rapidly…
From Alasdair Macleod:
“Any attempt to rescue the finances of the U.S. government, banks and businesses by printing money [fiat dollars] will simply provide more fuel for the inflationary fire, but it is hard to see that there can be any other material response by the Fed.”
- Expect defaults and hyper-inflation.
- Expect ongoing devaluation of fiat currencies… slowly for now, then rapidly.
- Buy silver and gold. They are insurance and protection.