Federal Reserve Quotes

It is no coincidence that the century of total war coincided with the century of central banking.

I feel robbing a bank would be the highest form of performance art. No need to pay to see me work. The Federal Reserve is subsidizing it.

Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States

They should let my son be Federal Reserve chairman. At least he'll play with his toys and not ruin the economy.

The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation and foreign commerce. ... The powers reserved to the several States will extend to all the objects which in the ordinary course of affairs, concern the lives and liberties, and properties of the people, and the internal order, improvement and prosperity of the State.

This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill.

I was once asked if I had any ideas for a really scary reality TV show. I have one reality show that would really make your hair stand on end: "C-Students from Yale." George W. Bush has gathered around him upper-crust C-students who know no history or geography, plus not-so-closeted white supremacists, aka Christians, and plus, most frighteningly, psychopathic personalities, or PPs, the medical term for smart, personable people who have no consciences. To say somebody is a PP is to make a perfectly respectable diagnosis, like saying he or she has appendicitis or athlete's foot . . . PPs are presentable, they know full well the suffering their actions may cause others, but they do not care. They cannot care because they are nuts. They have a screw loose! . . . So many of these heartless PPs now hold big jobs in our federal government, as though they were leaders instead of sick. They have taken charge of communications and the schools, so we might as well be Poland under occupation. They might have felt that taking our country into an endless war was simply something decisive to do. What has allowed so many PPs to rise so high in corporations, and now in government, is that they are so decisive. They are going to do something every fuckin' day and they are not afraid. Unlike normal people, they are never filled with doubts, for the simple reasons that they don't give a fuck what happens next. Simply can't. Do this! Do that! Mobilize the reserves! Privatize the public schools! Attack Iraq! Cut health care! Tap everybody's telephone! Cut taxes on the rich! Build a trillion-dollar missile shield! Fuck habeas corpus and the Sierra Club and In These Times, and kiss my ass! There is a tragic flaw in our precious Constitution, and I don't know what can be done to fix it. This is it: Only nut cases want to be president.

I will feel no guilt on shutting my door to those who didn't listen.

Money is not an invention of the state. It is not the product of a legislative act. Even the sanction of political authority is not necessary for its existence. Certain commodities came to be money quite naturally, as the result of economic relationships that were independent of the power of the state.

Almost all of history is an unbroken trail of one conspiracy after another. Conspiracies are the norm, not the exception.

Though it has no intrinsic value – you cannot eat or drink a dollar bill – trust in the dollar and in the wisdom of the Federal Reserve is so firm that it is shared even by Islamic fundamentalists, Mexican drug lords and North Korean tyrants.

The financial system has been turned over to the Federal Reserve Board. That board administers the finance system by authority of a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money.

They call themselves conservatives but that’s not it, either. They don’t want to conserve what we now have. They’d rather take the country backwards – before the 1960s and 1970s, and the Environmental Protection Act, Medicare, and Medicaid; before the New Deal, and its provision for Social Security, unemployment insurance, the forty-hour workweek, and official recognition of trade unions; even before the Progressive Era, and the first national income tax, antitrust laws, and Federal Reserve. They’re not conservatives. They’re regressives. And the America they seek is the one we had in the Gilded Age of the late nineteenth century.

It is not enough to know what we are against. We must also know what we are for.

Can social progress be made without government? It's like saying 'can happiness be achieved without the initiation of violence? Can romance be achieved without rape? Can profitability be achieved without theft? Can economic growth be achieved without the mass indebted enslavement and counterfeiting of the federal reserve?'.

If the federal government is an addict, then the Federal Reserve System is its enabler.

I was reading in the paper today that Congress wants to replace the dollar bill with a coin. They’ve already done it. It’s called a nickel.

Von Pein’s family was a little known, but highly influential entity within American banking circles. Banking Royalty, some called it. His grandfather had been one of the chief orchestrators of the Federal Reserve Act of 1913, which effectively took ownership of the bank from the American people.

Knowledge by itself is not power, but it holds the potential for power if we use it a s a guide for action. Truth will always be defeated by tyranny unless the people are willing to step forward and put their lives into the battle. The future belongs, not to ideas, but to people who act on those ideas.

Our world isn’t about ideology anymore. It’s about complexity. We live in a complex bureaucratic state with complex laws and complex business practices, and the few organizations with the corporate willpower to master these complexities will inevitably own the political power. On the other hand, movements like the Tea Party more than anything else reflect a widespread longing for simpler times and simple solutions—just throw the U.S. Constitution at the whole mess and everything will be jake. For immigration, build a big fence. Abolish the Federal Reserve, the Department of Commerce, the Department of Education. At times the overt longing for simple answers that you get from Tea Party leaders is so earnest and touching, it almost makes you forget how insane most of them are.

Almost as an article of faith, some individuals believe that conspiracies are either kooky fantasies or unimportant aberrations. To be sure, wacko conspiracy theories do exist. There are people who believe that the United States has been invaded by a secret United Nations army equipped with black helicopters, or that the country is secretly controlled by Jews or gays or feminists or black nationalists or communists or extraterrestrial aliens. But it does not logically follow that all conspiracies are imaginary. Conspiracy is a legitimate concept in law: the collusion of two or more people pursuing illegal means to effect some illegal or immoral end. People go to jail for committing conspiratorial acts. Conspiracies are a matter of public record, and some are of real political significance. The Watergate break-in was a conspiracy, as was the Watergate cover-up, which led to Nixon’s downfall. Iran-contra was a conspiracy of immense scope, much of it still uncovered. The savings and loan scandal was described by the Justice Department as “a thousand conspiracies of fraud, theft, and bribery,” the greatest financial crime in history. Often the term “conspiracy” is applied dismissively whenever one suggests that people who occupy positions of political and economic power are consciously dedicated to advancing their elite interests. Even when they openly profess their designs, there are those who deny that intent is involved. In 1994, the officers of the Federal Reserve announced they would pursue monetary policies designed to maintain a high level of unemployment in order to safeguard against “overheating” the economy. Like any creditor class, they preferred a deflationary course. When an acquaintance of mine mentioned this to friends, he was greeted skeptically, “Do you think the Fed bankers are deliberately trying to keep people unemployed?” In fact, not only did he think it, it was announced on the financial pages of the press. Still, his friends assumed he was imagining a conspiracy because he ascribed self-interested collusion to powerful people. At a World Affairs Council meeting in San Francisco, I remarked to a participant that U.S. leaders were pushing hard for the reinstatement of capitalism in the former communist countries. He said, “Do you really think they carry it to that level of conscious intent?” I pointed out it was not a conjecture on my part. They have repeatedly announced their commitment to seeing that “free-market reforms” are introduced in Eastern Europe. Their economic aid is channeled almost exclusively into the private sector. The same policy holds for the monies intended for other countries. Thus, as of the end of 1995, “more than $4.5 million U.S. aid to Haiti has been put on hold because the Aristide government has failed to make progress on a program to privatize state-owned companies” (New York Times 11/25/95). Those who suffer from conspiracy phobia are fond of saying: “Do you actually think there’s a group of people sitting around in a room plotting things?” For some reason that image is assumed to be so patently absurd as to invite only disclaimers. But where else would people of power get together – on park benches or carousels? Indeed, they meet in rooms: corporate boardrooms, Pentagon command rooms, at the Bohemian Grove, in the choice dining rooms at the best restaurants, resorts, hotels, and estates, in the many conference rooms at the White House, the NSA, the CIA, or wherever. And, yes, they consciously plot – though they call it “planning” and “strategizing” – and they do so in great secrecy, often resisting all efforts at public disclosure. No one confabulates and plans more than political and corporate elites and their hired specialists. To make the world safe for those who own it, politically active elements of the owning class have created a national security state that expends billions of dollars and enlists the efforts of vast numbers of people.

Privilege implies exclusion from privilege, just as advantage implies disadvantage," Celine went on. "In the same mathematically reciprocal way, profit implies loss. If you and I exchange equal goods, that is trade: neither of us profits and neither of us loses. But if we exchange unequal goods, one of us profits and the other loses. Mathematically. Certainly. Now, such mathematically unequal exchanges will always occur because some traders will be shrewder than others. But in total freedom—in anarchy—such unequal exchanges will be sporadic and irregular. A phenomenon of unpredictable periodicity, mathematically speaking. Now look about you, professor—raise your nose from your great books and survey the actual world as it is—and you will not observe such unpredictable functions. You will observe, instead, a mathematically smooth function, a steady profit accruing to one group and an equally steady loss accumulating for all others. Why is this, professor? Because the system is not free or random, any mathematician would tell you a priori. Well, then, where is the determining function, the factor that controls the other variables? You have named it yourself, or Mr. Adler has: the Great Tradition. Privilege, I prefer to call it. When A meets B in the marketplace, they do not bargain as equals. A bargains from a position of privilege; hence, he always profits and B always loses. There is no more Free Market here than there is on the other side of the Iron Curtain. The privileges, or Private Laws—the rules of the game, as promulgated by the Politburo and the General Congress of the Communist Party on that side and by the U.S. government and the Federal Reserve Board on this side—are slightly different; that's all. And it is this that is threatened by anarchists, and by the repressed anarchist in each of us," he concluded, strongly emphasizing the last clause, staring at Drake, not at the professor.

The Alliance has grown in strength immeasurably. They stopped our nuclear missile from hitting Hawaii on January 13th of 2018. We were going to blame it on North Korea and Russia and finally get World War III started, but they thwarted our plans when they shot down the missile over the ocean. In damage control we had to state that it was a false missile alert. They also quietly nationalized our Federal Reserve. Also, our many assassination attempts against a main individual in the opposition have been prevented. You know who I’m talking about. But one of our major plans will either start WWIII or wipe out the population with a bioengineered virus. As we always tell our scientists to say to the public, ‘It’s not a matter of if, but when.

Not even much survives as memory. Many of the most notable names of the summer—Richard Byrd, Sacco and Vanzetti, Gene Tunney, even Charles Lindbergh—are rarely encountered now, and most of the others are never heard at all. So it is perhaps worth pausing for a moment to remember just some of the things that happened that summer: Babe Ruth hit sixty home runs. The Federal Reserve made the mistake that precipitated the stock market crash. Al Capone enjoyed his last summer of eminence. The Jazz Singer was filmed. Television was created. Radio came of age. Sacco and Vanzetti were executed. President Coolidge chose not to run. Work began on Mount Rushmore. The Mississippi flooded as it never had before. A madman in Michigan blew up a school and killed forty-four people in the worst slaughter of children in American history. Henry Ford stopped making the Model T and promised to stop insulting Jews. And a kid from Minnesota flew across an ocean and captivated the planet in a way it had never been captivated before. Whatever else it was, it was one hell of a summer.

The Federal Reserve system is unlike any other in the world; it is a crazy genetic mashup of different animals, part private bank and part government agency.

Fletcher Von Pein was one of the twelve founders of the Omega Agency. He was also a powerful banker and a majority shareholder in the US Federal Reserve which, despite its misleading name, had zero government ownership and was actually a private corporation owned by the global elite.

Another way to determine the direction of the general market is to focus on how the leading stocks are performing. If the stocks that have been leading the bull market start breaking down, that is a major sign the market has topped. Another important factor to watch is the Federal Reserve discount rate. Usually, after the Fed raises the rate two or three times, the market runs into trouble.

The formation of our beliefs is fraught with superstitions—even today (I might say, especially today). Just as one day some primitive tribesman scratched his nose, saw rain falling, and developed an elaborate method of scratching his nose to bring on the much-needed rain, we link economic prosperity to some rate cut by the Federal Reserve Board, or the success of a company with the appointment of the new president “at the helm.

Capitalism is Altruistic, and it requires a certain altruism of each of us.

For the same reason a disease cannot be cured by more of the germ that caused it, the inflation and debt accumulation of the Obama years will not inflate our way out of it.

it (government) can't run out of dollars any more than a carpenter can run out of inches.

Pressed to identify useful financial innovations created during the past quarter-century, Paul A. Volcker, former Federal Reserve Chairman and recent chairman of President Obama’s Economic Recovery Board, could single out only one: “The ATM.

If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the banks and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions are more dangerous to liberty than standing armies.(1)

You have to include inflation in your annual revenue and expense forecasts. You have to treat inflation as an annual fee your business pays into the economy. If inflation is 2% for example, that means the economy is charging your business a 2% annual fee and so you gotta make sure your income and total assets grow at minimum 2% annually just to keep up.

The accepted version of history is that the Federal Reserve was created to stabilize our economy. One of the most widely-used textbooks on this subject says: "It sprang from the panic of 1907, with its alarming epidemic of bank failures: the country was fed up once and for all with the anarchy of unstable private banking."23 Even the most naive student must sense a grave contradiction between this cherished view and the System's actual performance. Since its inception, it has presided over the crashes of 1921 and 1929; the Great Depression of '29 to '39; recessions in '53, '57, '69, '75, and '81; a stock market "Black Monday" in '87; and a 1000% inflation which has destroyed 90% of the dollar's purchasing power.24

I have called this mental defect the Lucretius problem, after the Latin poetic philosopher who wrote that the fool believes that the tallest mountain in the world will be equal to the tallest one he has observed. We consider the biggest object of any kind that we have seen in our lives or hear about as the largest item that can possibly exist. And we have been doing this for millenia. In Pharaonic Egypt, which happens to be the first complete top-down nation-state managed by bureaucrats, scribes tracked the high-water mark of the Nile and used it as an estimate for a future worst-case scenario. The same can be seen in the Fukushima nuclear reactor, which experienced a catastrophic failure in 2011 when a tsunami struck. It had been built to withstand the worst past historical earthquake, with the builders not imagining much worse--and not thinking that the worst past event had to be a surprise, as it had no precedent. Likewise, the former chairman of the Federal Reserve, Fragilista Doctor Alan Greenspan, in his apology to Congress offered the classic "It never happened before." Well, nature, unlike Fragilista Greenspan, prepares for what has not happened before, assuming worse harm is possible.

Since President Trump was elected, the economy has added three million jobs. In fact, today there are more jobs available than there are unemployed. That’s resulted in the lowest unemployment rate in seventeen years. The stock market has roared to new highs despite the Federal Reserve raising interest rates five times since Trump’s election.

Whoever controls the volume of money in any country is absolute master of all industry and commerce.

Had Volcker never pushed through his radical change in policy, the world would be many bond traders and one memoir the poorer.

Our financial system is a false one and a huge burden on the people . . . This Act establishes the most gigantic trust on earth." —Congressman Charles Augustus Lindbergh, Sr.

fictional entities as the dollar, the Federal Reserve Bank, and the totemic trademarks of corporations.

It’s not yummy gum if there’s no bubble. Just ask the Federal Reserve.

The Federal Reserve bank protected them at our expense: when “conservative” bankers make profits, they get the benefits; when they are hurt, we pay the costs.

In examining the division of powers, as established by the Federal Constitution, remarking on the one hand the portion of sovereignty which has been reserved to the several States, and on the other, the share of power which has been given to the Union, it is evident that the Federal legislators entertained very clear and accurate notions respecting the centralization of government. The United States form not only a republic, but a confederation; yet the national authority is more centralized there than it was in several of the absolute monarchies of Europe....

The new business model for America is clearly recognizable. Its dominant feature is the merger of government, real estate, and commerce into a single structure, tightly controlled at the top. It is the same model used in Soviet Russia, Nazi Germany, Fascist Italy, and Communist China.

How about the Federal Reserve, then, which has convinced millions that the paper it prints “is” “real” “money”? Prank or fraud? Or perhaps some species of magick that only other sorcerers can understand?

Alan Greenspan, who would later become the Federal Reserve chairman, wrote in 1966: [T]he earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare and other purposes. . . . In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. . . . This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the “hidden” confiscation of wealth.24

In the United States, the most recent survey by the Federal Reserve, which covers the same years, indicates that the top decile own 72 percent of America’s wealth, while the bottom half claim just 2 percent.

More intriguingly, in poll after poll, when Americans are asked what public institutions they most respect, three bodies are always at the top of their list: the Supreme Court, the armed forces, and the Federal Reserve System. All three have one thing in common: they are insulated from the public pressures and operate undemocratically. It would seem that Americans admire these institutions, preciselly because they lead rather than follow.

there is no reason why a properly functioning Federal Reserve cannot function as a complement to a properly functioning social state and a well-designed progressive tax policy. These institutions are clearly complements rather than substitutes.

This, of course, is a classic example of the failure of liberal economics. When evaluating a policy, it focuses only on one beneficial consequence for one group of people and ignores the multitude of harmful effects which befall all other groups.

the New Deal, which created a large number of government jobs and social transfer programs, was a costly and useless sham. Saving capitalism did not require a welfare state or a tentacular government: the only thing necessary was a well-run Federal Reserve.

Before Volcker’s speech, bonds had been conservative investments, into which investors put their savings when they didn’t fancy a gamble in the stock market. After Volcker’s speech, bonds became objects of speculation, a means of creating wealth rather than merely storing it.

It was May 2009, and I didn’t like where the economy was headed. (I wished the Federal Reserve had a GPS or a map or some clue as to where they were driving the economy). Actually, the private sector drives the economy, while the Fed and the government just siphon gas out of the tank.

Currently we’re suffering from the fear instilled into Americans that another 9/11 is just around the corner. We’ve also been brainwashed into believing the Federal Reserve just saved us from a total financial collapse in the past seven years even though the Fed was one of the most important causes of the crisis. To deal with the threats of another attack and another financial crisis we are expected to complacently accept endless spending, endless debt, endless bailouts, endless inflation by the Federal Reserve, endless spending by the Congress, and even endless war.

Beyond the speculative and often fraudulent froth that characterizes much of neoliberal financial manipulation, there lies a deeper process that entails the springing of ‘the debt trap’ as a primary means of accumulation by dispossession. Crisis creation, management, and manipulation on the world stage has evolved into the fine art of deliberative redistribution of wealth from poor countries to the rich. I documented the impact of Volcker’s interest rate increase on Mexico earlier. While proclaiming its role as a noble leader organizing ‘bail-outs’ to keep global capital accumulation on track, the US paved the way to pillage the Mexican economy. This was what the US Treasury–Wall Street–IMF complex became expert at doing everywhere. Greenspan at the Federal Reserve deployed the same Volcker tactic several times in the 1990s. Debt crises in individual countries, uncommon during the 1960s, became very frequent during the 1980s and 1990s. Hardly any developing country remained untouched, and in some cases, as in Latin America, such crises became endemic. These debt crises were orchestrated, managed, and controlled both to rationalize the system and to redistribute assets. Since 1980, it has been calculated, ‘over fifty Marshall Plans (over $4.6 trillion) have been sent by the peoples at the Periphery to their creditors in the Center’. ‘What a peculiar world’, sighs Stiglitz, ‘in which the poor countries are in effect subsidizing the richest.

Sneaky and underhanded, the Federal Reserve has been sucking the life blood out of the United States since 1913. Like a black widow spider, it weaves a web of corruption and deceit. Unknown to its prey, the FED's bite is poisonous, deep, long-lasting and brings financial upheaval and misery to Americans.

The only way that the Treasury can redeem its debt to the Social Security Administration is to borrow the money from the public, run a surplus in its other activities or have the Federal Reserve print the money—the same alternatives that would be open to it to pay Social Security benefits if there were no trust fund.

There’s nothing more important than literary merit, and that’s why I not only created an award—the Julius Caesar Author of the Year Award—but I nominated myself as the first recipient. You can’t always wait for success to come to you. Sometimes you just have to create it out of nothingness. Just ask the Federal Reserve.

Recent Federal Reserve Bank of Chicago research has found, with a granular level of detail down to the city block, that the refusal to lend to Black families under the original 1930s redlining maps is responsible for as much as half of the current disparities between Black and white homeownership and for the gaps between the housing values of Black and white homes in those communities. Richard Rothstein, author of the seminal book on segregation, Color of Law: How the Government Segregated America, reminds us that there is no such thing as “de facto” segregation that is different from de jure (or legal) segregation. All segregation is the result of public policy, past and present.

In the same mathematically reciprocal way, profit implies loss. If you and I exchange equal goods, that is trade: neither of us profits and neither of us loses. But if we exchange unequal goods, one of us profits and the other loses. Mathematically. Certainly. Now, such mathematically unequal exchanges will always occur because some traders will be shrewder than others. But in total freedom—in anarchy—such unequal exchanges will be sporadic and irregular. A phenomenon of unpredictable periodicity, mathematically speaking. Now look about you, professor—raise your nose from your great books and survey the actual world as it is—and you will not observe such unpredictable functions. You will observe, instead, a mathematically smooth function, a steady profit accruing to one group and an equally steady loss accumulating for all others. Why is this, professor? Because the system is not free or random, any mathematician would tell you a priori. Well, then, where is the determining function, the factor that controls the other variables? You have named it yourself, or Mr. Adler has: the Great Tradition. Privilege, I prefer to call it. When A meets B in the marketplace, they do not bargain as equals. A bargains from a position of privilege; hence, he always profits and B always loses. There is no more Free Market here than there is on the other side of the Iron Curtain. The privileges, or Private Laws—the rules of the game, as promulgated by the Politburo and the General Congress of the Communist Party on that side and by the U.S. government and the Federal Reserve Board on this side—are slightly different; that’s all. And it is this that is threatened by anarchists, and by the repressed anarchist in each of us,

[Hyperinflation is] not going to happen in this country, will never happen... [The Fed putting so much money into the system is] not going to create the risk of hyperinflation in the future. We have a strong independent Federal Reserve with a very strong mandate from the Congress, and they will do what's necessary to keep inflation low and stable over time.

Did anyone of those bullish investors ever think what would happen to the Treasury market if the Fed ever became a net seller of bonds?

In a single day, the Allies’ entire financial support network hovered on the brink of collapse. It had all been Wilson’s doing, the response to a note he had sent to the Federal Reserve shortly before the election. The president was determined not to let America’s financial entanglement with the Allies’ cause draw it further into support of their war effort.

A fool and his money are soon parted but don't worry, The Fed always prints more.

By loaning banks money for no interest, you’re really letting them into the casinos with the house’s money, aren’t you?

1836: Following his years of fighting against the Rothschilds’ and their central bank in America, President Andrew Jackson finally succeeds in throwing the Rothschilds’ central bank out of America, when the bank’s charter is not renewed. It would not be until 1913 that the Rothschilds’ would be able to set up their third central bank in America, the Federal Reserve.

What is the attraction of central bankers to issuing their own digital currencies? The answer lies in wider access to second-layer money. Recall that the Federal Reserve issues two types of money, wholesale reserves for private sector banks and retail cash for people. In order to provide monetary stimulus, the Fed issues reserves and hopes that private sector banks will use those reserves to circulate third-layer deposits into the economy by lending money. With a CBDC, the Fed could issue second-layer money directly to people in the form of digital helicopter money; the phrase “helicopter money” comes from Milton Friedman, who in 1969 provided the imagery of dropping cash out of a helicopter in order to stimulate economic demand.

The Internal Revenue Service which collects taxation in America is also a private company, though the public believe it is part of their government. In 1863 the Bureau of Internal Revenue was formed to collect taxation, but in 1933, that year again, came the start of another coup on the American people. Three members of the Prescott Bush circle, Helen and Clifton Barton and Hector Echeverria, formed the Internal Revenue Tax and Audit Service, registered in Delaware, America’s flag of convenience state, where few questions are asked. Prescott Bush was the father of George Bush. In 1936, this organisation changed its name to the Internal Revenue Service and ran as a private company. In 1953, the original Bureau of Internal Revenue was disbanded, leaving the private Internal Revenue Service to collect all the taxes, illegal taxes most of them, too. This is controlled by the same people who own the Federal Reserve and the Virginia Company and it is bleeding America dry. The Internal Revenue Service was, appropriately, created by American Nazis who were funding Adolf Hitler under the coordination of Prescott Bush, George’s father.

the first century of the US Federal Reserve’s existence has been a failure. Not only has there been incontinent inflation since 1913, the year the Fed came into existence (8 per cent in the preceding 120 years, 2,300 per cent in the succeeding hundred years), but there has been devastating deflation too, and more banking panics, more financial volatility, longer and deeper recessions.

The circular which was distributed to attract subscribers to the Bank's initial stock offering explained: "The Bank hath benefit of interest on all the moneys which it, the Bank, creates out of nothing.

To prevent lower-income African Americans from living in neighborhoods where middle-class whites resided, local and federal officials began in the 1910s to promote zoning ordinances to reserve middle-class neighborhoods for single-family homes that lower-income families of all races could not afford. Certainly, an important and perhaps primary motivation of zoning rules that kept apartment buildings out of single-family neighborhoods was a social class elitism that was not itself racially biased. But there was also enough open racial intent behind exclusionary zoning that it is integral to the story of de jure segregation.

A prohibition on the hoarding or possession of gold was integral to the plan to devalue the dollar against gold and get people spending again. Against this background, FDR issued Executive Order 6102 on April 5, 1933, one of the most extraordinary executive orders in U.S. history. The blunt language over the signature of Franklin Delano Roosevelt speaks for itself: I, Franklin D. Roosevelt . . . declare that [a] national emergency still continues to exist and . . . do hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the . . . United States by individuals, partnerships, associations and corporations.... All persons are hereby required to deliver, on or before May 1, 1933, to a Federal reserve bank . . . or to any member of the Federal Reserve System all gold coin, gold bullion and gold certificates now owned by them.... Whoever willfully violates any provision of this Executive Order . . . may be fined not more than $10,000 or . . . may be imprisoned for not more than ten years. The people of the United States were being ordered to surrender their gold to the government and were offered paper money at the exchange rate of $20.67 per ounce. Some relatively minor exceptions were made for dentists, jewelers and others who made “legitimate and customary” use of gold in their industry or art. Citizens were allowed to keep $100 worth of gold, about five ounces at 1933 prices, and gold in the form of rare coins. The $10,000 fine proposed in 1933 for those who continued to hoard gold in violation of the president’s order is equivalent to over $165,000 in today’s money, an extraordinarily large statutory fine. Roosevelt followed up with a

If not interest rates or monetary policy, then what? Most research on the origins of the bubble has focused on three factors: mass psychology; financial innovations that reduced the incentive for careful lending;

MYTH: Car payments are a way of life; you’ll always have one. TRUTH: Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she became a millionaire. Taking on a car payment is one of the dumbest things people do to destroy their chances of building wealth. The car payment is most folks’ largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. The Federal Reserve notes that the average car payment is $495 over sixty-four months. Most people get a car payment and keep it throughout their lives. As soon as a car is paid off, they get another payment because they “need” a new car. If you keep a $495 car payment throughout your life, which is “normal,” you miss the opportunity to save that money. If you invested $495 per month from age twenty-five to age sixty-five, a normal working lifetime, in the average mutual fund averaging 12 percent (the eighty-year stock market average), you would have $5,881,799.14 at age sixty-five. Hope you like the car!

The true nature of the inflation effect has never been more accurately perceived or more vividly described than it was by Thomas Jefferson: It will be asked how will the two masses of Continental and of State money have cost the people of the United States seventy-two millions of dollars, when they are to be redeemed now with about six million? I answer that the difference, being sixty-six millions, has been lost on the paper bills separately by the successive holders of them. Every one, through whose hands a bill passed, lost on that bill what it lost in value during the time it was in his hands. This was a real tax on him; and in this way the people of the United States actually contributed those sixty-six millions of dollars during the war, and by a mode of taxation the most oppressive of all because the most unequal of all.

the first century of the US Federal Reserve’s existence has been a failure. Not only has there been incontinent inflation since 1913, the year the Fed came into existence (8 per cent in the preceding 120 years, 2,300 per cent in the succeeding hundred years), but there has been devastating deflation too, and more banking panics, more financial volatility, longer and deeper recessions. Even the Fed’s response to the crisis of 2008 has come under severe criticism, as it effectively bailed out bad assets while doing little to help solvent institutions with needed liquidity

Speculators, meanwhile, have seized control of the global economy and the levers of political power. They have weakened and emasculated governments to serve their lust for profit. They have turned the press into courtiers, corrupted the courts, and hollowed out public institutions, including universities. They peddle spurious ideologies—neoliberal economics and globalization—to justify their rapacious looting and greed. They create grotesque financial mechanisms, from usurious interest rates on loans to legalized accounting fraud, to plunge citizens into crippling forms of debt peonage. And they have been stealing staggering sums of public funds, such as the $65 billion of mortgage-backed securities and bonds, many of them toxic, that have been unloaded each month on the Federal Reserve in return for cash.21 They feed like parasites off of the state and the resources of the planet. Speculators at megabanks and investment firms such as Goldman Sachs are not, in a strict sense, capitalists. They do not make money from the means of production. Rather, they ignore or rewrite the law—ostensibly put in place to protect the weak from the powerful—to steal from everyone, including their own shareholders. They produce nothing. They make nothing. They only manipulate money. They are no different from the detested speculators who were hanged in the seventeenth century, when speculation was a capital offense. The obscenity of their wealth is matched by their utter lack of concern for the growing numbers of the destitute. In early 2014, the world’s 200 richest people made $13.9 billion, in one day, according to Bloomberg’s billionaires index.22 This hoarding of money by the elites, according to the ruling economic model, is supposed to make us all better off, but in fact the opposite happens when wealth is concentrated in the hands of a few individuals and corporations, as economist Thomas Piketty documents in his book Capital in the Twenty-First Century.23 The rest of us have little or no influence over how we are governed, and our wages stagnate or decline. Underemployment and unemployment become chronic. Social services, from welfare to Social Security, are slashed in the name of austerity. Government, in the hands of speculators, is a protection racket for corporations and a small group of oligarchs. And the longer we play by their rules the more impoverished and oppressed we become. Yet, like

Wilson had to explain why the Constitution did not, like several state constitutions, include a bill of rights. The reason, he said in one of his most influential arguments, lay in a critical difference between the constitutions of the states and the proposed federal Constitution. Through the state constitutions, the people gave their state governments “every right and authority which they did not in explicit terms reserve.” The federal Constitution, however, carefully defined and limited the powers of Congress, so that body’s authority came “not from tacit implication, but from the positive grant” of specific powers in the Constitution.

You know the Fun-Suckers. You may be married to one. The Fun-Suckers go around saying how unsafe this fun thing is and how unhealthy that fun thing is and how unfair, unjust, uncaring, insensitive, divisive, contagious, and fattening every other thing that’s fun is. The Fun-Suckers are a bit too careful, a bit too concerned, a bit too scrupulous.

As Burbank points out, relations between the branches are governed as much by norms and customs as by formal structures. The Constitution permits Congress to impeach and remove federal judges, for example, but the norm is that impeachment is reserved for criminal behavior or serious ethical lapses, and not for judicial rulings with which members of Congress disagree.

Why Did the Stock Market Crash? The most persuasive explanation for the 1929 stock market crash blames the Federal Reserve. Throughout the 1920s, but particularly in 1927, the Fed pumped artificial credit into the loan market, pushing down interest rates from their free-market level. Lower interest rates exaggerated the feeling of prosperity, and misled businesses and investors. In a laissez-faire market where money and banking are not disturbed by the government, the interest rate is a price that tells borrowers how much capital citizens have saved and made available to fund projects. But when the Fed adopts an “easy-money” policy by pushing down interest rates, this signal is distorted and the interest rate no longer does its job of channeling the available capital into the most deserving projects. Instead, an unsustainable boom develops, with firms hiring workers and starting production processes that will have to be discontinued once the Fed slows down its injections of new money. Many economists point to the Fed hikes in interest rates during 1928 and 1929 as the cause of the stock market crash. In a sense this is true, but the deeper point is that the crash was made inevitable by the bubble in the stock market fueled by the artificially cheap credit preceding the hikes. In other words, when the Fed stopped pumping in gobs of new money that pushed up the stock market, investors came to their senses and asset prices plunged back towards their pre-bubble level.

The Tenth Amendment recognizes the States' jurisdiction in certain areas. States' Rights means that the States have a right to act or not to act, as they see fit, in the areas reserved to them. The States may have duties corresponding to these rights, but the duties are owed to the people of the States, not to the federal government. Therefore, the recourse lies not with the federal government, which is not sovereign, but with the people who are, and who have full power to take disciplinary action. If the people are unhappy with say, their State's disability insurance program, they can bring pressure to bear on their state officials and, if that fails, they can elect a new set of officials. And if, in the unhappy event they should wish to divest themselves of this responsibility, they can amend the Constitution.

Primer of Love [Lesson 47] And Aaron shall lay both his hands upon the head of the live goat, and confess over him all the sins of the children of Israel, putting them upon the head of the goat. ~ Leviticus 16:3-30 Kowal zawini, cygana powiesili. The blacksmith was guilty, but they hung the gypsy. ~ Polish Proverb Lesson 47) Sometimes to save a relationship you need a scapegoat Not an innocent scapegoat ~ that's fair game for the media wolves. The scapegoat for the common man is the government. Don't like the economy ~ blame it on Obama.Don't like your job ~ blame it on your boss. Not enough money for Christmas gifts -- it's Ben Bernanke and the Federal Reserve's fault. If he loves hummus -- it's Hillary Clinton's Mideast policy. If she's contracted genital warts -- it's Bill Clinton's fault. It really is.

I strongly support liquidating the corporation that is the Federal Reserve and returning to a monetary system based on a marketproduced precious metal, like gold, which is represented by a currency printed and managed by the U.S. Treasury Department as stipulated by our Constitution. The assets currently owned by the Fed should be liquidated and parceled out on a pro-rata basis to its creditors. All we need is the will.

If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.”   Robert H Hemphill, credit manager of Federal Reserve Bank of Atlanta, 1934

La plus importante réforme monétaire que l’on puisse espérer serait l’abolition de toutes les banques centrales et un retour à une situation qu’ont vécu les humains de tous temps où l’argent est une commodité d’échange qui ne peut être produite qu’à un coût élevé, tel qu’en or ou en argent, par le marché. À nouveau, pas de monopole dans la production monétaire mais bien une compétition de cette production monétaire afin de ne pas pouvoir la créer à partir de rien.

SINCE the financial crisis, it has become commonplace to argue that banks should be run as utilities, not casinos. At least in terms of their financial performance, that seems to be happening. In 2006, the eight American banks that regulators have since labelled “globally systemically important” generated casino-like profits, with returns on equity of 30% on average, according to Oliver Wyman, a consultancy. They are currently managing less than 11%, and there is worse to come: the Federal Reserve recently announced plans to oblige them to raise extra capital. By one calculation that would reduce their return on equity to little over 8%, other things being equal—a lower return than America’s water companies make. And other things are unlikely to be equal. American regulators continue to biff big banks with blistering fines. Then there is the requirement that banks produce “living wills”, explaining how they could be wound down if disaster strikes: the regulators have rejected every single “will” they have received so far as too flimsy. Making banks easier to close down will probably leave them even less profitable.

And so, as the passengers drifted off to sleep to the rhythmic clicking of steel wheels against rail, little did they dream that, riding in the car at the end of their train, were six men who represented an estimated one-fourth of the total wealth of the entire world. This was the roster of the Aldrich car that night: Nelson W. Aldrich, Republican "whip" in the Senate, Chairman of the National Monetary Commission, business associate of J.P. Morgan, father-in-law to John D. Rockefeller, Jr.; Abraham Piatt Andrew, Assistant Secretary of the U.S. Treasury; Frank A. Vanderlip, president of the National City Bank of New York, the most powerful of the banks at that time, representing William Rockefeller and the international investment banking house of Kuhn, Loeb & Company; Henry P. Davison, senior partner of the J.P. Morgan Company; Benjamin Strong, head of J.P. Morgan's Bankers Trust Company;1 6. Paul M. Warburg, a partner in Kuhn, Loeb & Company, a representative of the Rothschild banking dynasty in England and France, and brother to Max Warburg who was head of the Warburg banking consortium in Germany and the Netherlands.2

The biggest fear for homeschooled children is that they will be unable to relate to their peers, will not have friends, or that they will otherwise be unable to interact with people in a normal way. Consider this: How many of your daily interactions with people are solely with people of your own birth year?  We’re not considering interactions with people who are a year or two older or a year or two younger, but specifically people who were born within a few months of your birthday. In society, it would be very odd to section people at work by their birth year and allow you to interact only with persons your same age. This artificial constraint would limit your understanding of people and society across a broader range of ages. In traditional schools, children are placed in grades artificially constrained by the child’s birth date and an arbitrary cut-off day on a school calendar. Every student is taught the same thing as everyone else of the same age primarily because it is a convenient way to manage a large number of students. Students are not grouped that way because there is any inherent special socialization that occurs when grouping children in such a manner. Sectioning off children into narrow bands of same-age peers does not make them better able to interact with society at large. In fact, sectioning off children in this way does just the opposite—it restricts their ability to practice interacting with a wide variety of people. So why do we worry about homeschooled children’s socialization?  The erroneous assumption is that the child will be homeschooled and will be at home, schooling in the house, all day every day, with no interactions with other people. Unless a family is remotely located in a desolate place away from any form of civilization, social isolation is highly unlikely. Every homeschooling family I know involves their children in daily life—going to the grocery store or the bank, running errands, volunteering in the community, or participating in sports, arts, or community classes. Within the homeschooled community, sports, arts, drama, co-op classes, etc., are usually sectioned by elementary, pre-teen, and teen groupings. This allows students to interact with a wider range of children, and the interactions usually enhance a child’s ability to interact well with a wider age-range of students. Additionally, being out in the community provides many opportunities for children to interact with people of all ages. When homeschooling groups plan field trips, there are sometimes constraints on the age range, depending upon the destination, but many times the trip is open to children of all ages. As an example, when our group went on a field trip to the Federal Reserve Bank, all ages of children attended. The tour and information were of interest to all of the children in one way or another. After the tour, our group dined at a nearby food court. The parents sat together to chat and the children all sat with each other, with kids of all ages talking and having fun with each other. When interacting with society, exposure to a wider variety of people makes for better overall socialization. Many homeschooling groups also have park days, game days, or play days that allow all of the children in the homeschooled community to come together and play. Usually such social opportunities last for two, three, or four hours. Our group used to have Friday afternoon “Park Day.”  After our morning studies, we would pack a picnic lunch, drive to the park, and spend the rest of the afternoon letting the kids run and play. Older kids would organize games and play with younger kids, which let them practice great leadership skills. The younger kids truly looked up to and enjoyed being included in games with the older kids.

President Theodore Roosevelt had created the bureau in 1908, hoping to fill the void in federal law enforcement. (Because of lingering opposition to a national police force, Roosevelt’s attorney general had acted without legislative approval, leading one congressman to label the new organization a “bureaucratic bastard.”) When White entered the bureau, it still had only a few hundred agents and only a smattering of field offices. Its jurisdiction over crimes was limited, and agents handled a hodgepodge of cases: they investigated antitrust and banking violations; the interstate shipment of stolen cars, contraceptives, prizefighting films, and smutty books; escapes by federal prisoners; and crimes committed on Indian reservations.

If it was a mistake not to finish school (it wasn't!), it was an even worse mistake to go to work. ("Work! The word was so painful he couldn't bring himself to pronounce it," says a character in one of Cossery's books.) Until I was almost eighteen I had know freedom, a relative freedom, which is more than most people ever get to know. (It included "freedom of speech," which has hung over into my writing.) Then, like an idiot, I entered the lists. Overnight, as it were, the bit was put in my mouth, I was saddled, and the cruel rowels were dug into my tender flanks. It didn't take long to realize what a shithouse I had let myself into. Every new job I took was a step further in the direction of "murder, death and blight." I think of them still as prisons, whorehouses, lunatic asylums: the Atlas Portland Cement Co., the Federal Reserve Bank, the Bureau of Economic Research, the Charles Williams Mail Order House, the Western Union Telegraph Co., etc. To think that I wasted ten years of my life serving these anonymous lords and masters! That look of rapture in Pookie's eyes, that look of supreme admiration which I reserved for such as Eddie Carney, Lester Reardon, Johnny Paul: it was gone, lost, buried. It returned only when, much later, I reached the point where I was completely cut off, thoroughly destitute, utterly abandoned. When I became the nameless one, wandering as a mendicant through the streets of my own home town. Then I began to see again, to look with eyes of wonder, eyes of love, into the eyes of my fellow-man.

Just how difficult this task turned out to be is demonstrated in a number of problems which have arisen in our own day. The failure to use the checks and balances effectively has allowed the judiciary to create new laws (called judicial legislation) by pretending to be merely interpreting old ones. Failure to use the checks and balances has also allowed the President to make thousands of new laws, instead of Congress, by issuing executive orders. It has allowed the federal government to invade the reserved rights of the states on a massive scale. It has allowed the legislature to impose taxes on the people never contemplated by the Founders or the Constitution. The whole spectrum of checks and balances needs to be more thoroughly studied and more vigorously enforced.

These are a substantial number of “they” who once a year meet to deliberate the fate of national economies and, hence, entire populations. Many of them also believe in the mandate of eugenics, the practice of improving the human race to include reducing the population. Know that we do not have the names of every attendee. Only those who authorize the release of their names get mentioned in the public media. Daniel Estulin, author of The True Story of the Bilderberg Group, wrote that the group’s membership and meeting participants have represented a “who’s who” of the world power elite with familiar names like David Rockefeller, Henry Kissinger, Bill and Hillary Clinton, Gordon Brown, Angela Merkel, Alan Greenspan, Ben Bernanke, Larry Summers, Tim Geithner, Lloyd Blankfein, George Soros, Donald Rumsfeld, Rupert Murdoch, other heads of state, influential senators, congressmen, and parliamentarians, Pentagon and NATO brass, members of European royalty, selected media figures, and invited others. Such invitees have included President Obama along with many of his top officials. Estulin said that also represented at Bilderberg meetings are leading figures from the Council on Foreign Relations (CFR), IMF, World Bank, the Trilateral Commission, EU, and powerful central bankers from the Federal Reserve, the European Central Bank (ECB), and the Bank of England. David Rockefeller, the head of the Rockefeller family financial empire, is believed to have been a leading Bilderberg attendee for years. Other wealthy elite members merely send representatives.

In the February 9, 1935, issue of the Saturday Evening Post, an article appeared written by Frank Vanderlip. In it he said: Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion, near the close of 1910, when I was as secretive—indeed, as furtive—as any conspirator.... I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System.... We were told to leave our last names behind us. We were told, further, that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson, where Senator Aldrich's private car would be in readiness, attached to the rear end of a train for the South.... Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as "Ben," "Paul," "Nelson," "Abe"—it is Abraham Piatt Andrew. Davison and I adopted even deeper disguises, abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville, after those two aviation pioneers, the Wright brothers.... The servants and train crew may have known the identities of one or two of us, but they did not know all, and it was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.

The phone rang. It was a familiar voice. It was Alan Greenspan. Paul O'Neill had tried to stay in touch with people who had served under Gerald Ford, and he'd been reasonably conscientious about it. Alan Greenspan was the exception. In his case, the effort was constant and purposeful. When Greenspan was the chairman of Ford's Council of Economic Advisers, and O'Neill was number two at OMB, they had become a kind of team. Never social so much. They never talked about families or outside interests. It was all about ideas: Medicare financing or block grants - a concept that O'Neill basically invented to balance federal power and local autonomy - or what was really happening in the economy. It became clear that they thought well together. President Ford used to have them talk about various issues while he listened. After a while, each knew how the other's mind worked, the way married couples do. In the past fifteen years, they'd made a point of meeting every few months. It could be in New York, or Washington, or Pittsburgh. They talked about everything, just as always. Greenspan, O'Neill told a friend, "doesn't have many people who don't want something from him, who will talk straight to him. So that's what we do together - straight talk." O'Neill felt some straight talk coming in. "Paul, I'll be blunt. We really need you down here," Greenspan said. "There is a real chance to make lasting changes. We could be a team at the key moment, to do the things we've always talked about." The jocular tone was gone. This was a serious discussion. They digressed into some things they'd "always talked about," especially reforming Medicare and Social Security. For Paul and Alan, the possibility of such bold reinventions bordered on fantasy, but fantasy made real. "We have an extraordinary opportunity," Alan said. Paul noticed that he seemed oddly anxious. "Paul, your presence will be an enormous asset in the creation of sensible policy." Sensible policy. This was akin to prayer from Greenspan. O'Neill, not expecting such conviction from his old friend, said little. After a while, he just thanked Alan. He said he always respected his counsel. He said he was thinking hard about it, and he'd call as soon as he decided what to do. The receiver returned to its cradle. He thought about Greenspan. They were young men together in the capital. Alan stayed, became the most noteworthy Federal Reserve Bank chairman in modern history and, arguably the most powerful public official of the past two decades. O'Neill left, led a corporate army, made a fortune, and learned lessons - about how to think and act, about the importance of outcomes - that you can't ever learn in a government. But, he supposed, he'd missed some things. There were always trade-offs. Talking to Alan reminded him of that. Alan and his wife, Andrea Mitchell, White House correspondent for NBC news, lived a fine life. They weren't wealthy like Paul and Nancy. But Alan led a life of highest purpose, a life guided by inquiry. Paul O'Neill picked up the telephone receiver, punched the keypad. "It's me," he said, always his opening. He started going into the details of his trip to New York from Washington, but he's not much of a phone talker - Nancy knew that - and the small talk trailed off. "I think I'm going to have to do this." She was quiet. "You know what I think," she said. She knew him too well, maybe. How bullheaded he can be, once he decides what's right. How he had loved these last few years as a sovereign, his own man. How badly he was suited to politics, as it was being played. And then there was that other problem: she'd almost always been right about what was best for him. "Whatever, Paul. I'm behind you. If you don't do this, I guess you'll always regret it." But it was clearly about what he wanted, what he needed. Paul thanked her. Though somehow a thank-you didn't seem appropriate. And then he realized she was crying.

As I saw it, there was a 75 percent chance the Fed’s efforts would fall short and the economy would move into failure; a 20 percent chance it would initially succeed at stimulating the economy but still ultimately fail; and a 5 percent chance it would provide enough stimulus to save the economy but trigger hyperinflation. To hedge against the worst possibilities, I bought gold and T-bill futures as a spread against eurodollars, which was a limited-risk way of betting on credit problems increasing. I was dead wrong. After a delay, the economy responded to the Fed’s efforts, rebounding in a noninflationary way. In other words, inflation fell while growth accelerated. The stock market began a big bull run, and over the next eighteen years the U.S. economy enjoyed the greatest noninflationary growth period in its history. How was that possible? Eventually, I figured it out. As money poured out of these borrower countries and into the U.S., it changed everything. It drove the dollar up, which produced deflationary pressures in the U.S., which allowed the Fed to ease interest rates without raising inflation. This fueled a boom. The banks were protected both because the Federal Reserve loaned them cash and the creditors’ committees and international financial restructuring organizations such as the International Monetary Fund (IMF) and the Bank for International Settlements arranged things so that the debtor nations could pay their debt service from new loans. That way everyone could pretend everything was fine and write down those loans over many years. My experience over this period was like a series of blows to the head with a baseball bat. Being so wrong—and especially so publicly wrong—was incredibly humbling and cost me just about everything I had built at Bridgewater. I saw that I had been an arrogant jerk who was totally confident in a totally incorrect view. So there I was after eight years in business, with nothing to show for it. Though I’d been right much more than I’d been wrong, I was all the way back to square one.

I wondered what was going on in neuroscience that might bear upon the subject. This quickly led me to neuroscience’s most extraordinary figure, Edward O. Wilson. Wilson’s own life is a good argument for his thesis, which is that among humans, no less than among racehorses, inbred traits will trump upbringing and environment every time. In its bare outlines his childhood biography reads like a case history for the sort of boy who today winds up as the subject of a tabloid headline: DISSED DORK SNIPERS JOCKS. He was born in Alabama to a farmer’s daughter and a railroad engineer’s son who became an accountant and an alcoholic. His parents separated when Wilson was seven years old, and he was sent off to the Gulf Coast Military Academy. A chaotic childhood was to follow. His father worked for the federal Rural Electrification Administration, which kept reassigning him to different locations, from the Deep South to Washington, D.C., and back again, so that in eleven years Wilson attended fourteen different public schools. He grew up shy and introverted and liked the company only of other loners, preferably those who shared his enthusiasm for collecting insects. For years he was a skinny runt, and then for years after that he was a beanpole. But no matter what ectomorphic shape he took and no matter what school he went to, his life had one great center of gravity: He could be stuck anywhere on God’s green earth and he would always be the smartest person in his class. That remained true after he graduated with a bachelor’s degree and a master’s in biology from the University of Alabama and became a doctoral candidate and then a teacher of biology at Harvard for the next half century. He remained the best in his class every inch of the way. Seething Harvard savant after seething Harvard savant, including one Nobel laureate, has seen his reputation eclipsed by this terribly reserved, terribly polite Alabamian, Edward O. Wilson. Wilson’s field within the discipline of biology was zoology; and within zoology, entomology, the study of insects; and within entomology, myrmecology, the study of ants. Year after year he studied

Politicians are the only people in the world who create problems and then campaign against them. Have you ever wondered why, if both the Democrats and Republicans are against deficits, we have deficits? Have you ever wondered why if all politicians are against inflation and high taxes, we have inflation and high taxes? You and I don’t propose a federal budget. The president does. You and I don’t have Constitutional authority to vote on appropriations. The House of Representatives does. You and I don’t write the tax code. Congress does. You and I don’t set fiscal policy. Congress does. You and I don’t control monetary policy. The Federal Reserve Bank does. One hundred senators, 435 congressmen, one president and nine Supreme Court justices — 545 human beings out of 235 million — are directly, legally, morally and individually responsible for the domestic problems that plague this country. I excused the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered by private central bank. I exclude all of the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman or a president to do one cotton-picking thing. I don’t care if they offer a politician $1 million in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislators’ responsibility to determine how he votes. Don’t you see the con game that is played on the people by the politicians? Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party. What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of Tip O’Neill, who stood up and criticized Ronald Reagan for creating deficits. The president can only propose a budget. He cannot force the Congress to accept it. The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating appropriations and taxes. Those 545 people and they alone are responsible. They and they alone should be held accountable by the people who are their bosses — provided they have the gumption to manage their own employees.

The future is now quite uncertain; everyone lives for today, a state of mind in which the game of graft and swindle is played with ease — that is, it is only "for today" that they allow themselves to be bribed and bought, while tomorrow and tomorrow’s virtue they reserve to themselves! It is a well-known fact that individuals, being truly things apart, care more for the moment than their opposites the gregarious do, because they consider themselves as unpredictable as the future; likewise, they readily take up with the violent, because the crowd could neither understand nor condone the actions to which they dare have recourse — but the tyrant or Caesar understands that the individual has a right even to his excesses, and has an interest in advocating a bolder private morality, and even in lending it a hand. For what he thinks of himself, and what he wants others to think of him, is what Napoleon in his classical manner at one time declared: "I have the right to answer any complaint against me with an eternal “this is what I am”. I stand aloof from the whole world and accept conditions from no one. I want submission even to my fancies and regard it as a matter of course that I indulge myself in this or that diversion." Napoleon once spoke thus to his wife, who had reasons to question her husband’s fidelity. It is during the most corrupt times that these apples ripen and fall, by which I mean the individuals who bear the seeds of the future, the intellectual pioneers and founders of causes and federations. Corruption is only an ugly word for the autumn of a people.