Henry used the most effective threat he could have today. He told a roomful of the leaders of the nation's biggest and healthiest banks that they MUST accept the government's partnership or they could never again count on federal assistance* if they run into trouble in the future. Despite some initial resistance on the part of Wells Fargo, all of the big boys caved. "No free money in the future?  Uh oh... I guess I better go along to get along."  Not that I had any illusions that a single one of these institutions had any actual principle to stand on aside from greed, but it's amazing the lightning fast speed with which they each lined up to let a destructive force gain a hefty share in their operations.

If you haven't figured this secret out by now, the Federal Reserve makes money out of nothing. That is their chief magic trick. I don't mean that they necessarily print paper money--though they certainly do that, too, in order to cover the bailouts they continue to orchestrate. No, I'm talking about good old accounting. Very simply, when a bank or other major organization gets into trouble, when it does not have enough available liquidity to cover the demands of its depositors and/or creditors, the Fed accommodatingly steps in, makes some notations in its books, and "transfers" imaginary money to the requesting institution. The Fed can then charge interest on the imaginary money it has just created out of thin air and then "loaned." This game goes on and on until, ultimately, the Fed has such a choke hold on the institution that, ultimately, it becomes owner by default. The Fed plays this game over and over and over again--with banks, railroads, and governmental bodies such as the City of New York. Yup, you heard me. And no, I'm not kidding.

What has happened today is that the Fed, via its crony Henry Paulson, has engaged not in a gradual, silent takeover as it usually does, but instead in a hostile corporate takeover. They're still trying to make it look like it's the federal government that's doing it. They're still busy pretending they're a legitimate arm of the government, and they've sent the complicit head of our beholden Treasury Department to do the dirty work. It had to look like it was "the government" after all. But the Fed has indeed authored this move, and it is the Fed that will benefit from it--and not just financially. The Fed has today taken not another baby step forward in controlling our financial system but a giant leap. No one should reman in doubt now about the danger the Fed poses to the freedom of the American people. Our economy is being leveled, America is being purposely weakened, so that the cartel that runs the Federal Reserve can dictate much more far reaching events. To quote Henry Kissinger: "Who controls money can control the world."

The hour has grown very late, my friends. It is time to pull the fangs from this beast before it devours us entirely. In the short term, we should demand the resignation of Treasure Secretary Paulson who has wildly overstepped the legal bounds of his authority and is engaging in thoroughly unconstitutional activity. After that, we must at all cost strive to disentangle ourselves entirely and permanently from the Federal Reserve.

*Translation: Assistance from the Federal Reserve--which, if you've read my two recent entries you know is NOT really the government.