Another Fed-Certified Takeover!

Centralized banking is one of the main driving forces behind the expatriation of our Founding Fathers.
So much did they object to the institution, Ben Franklin described it as the spark that caused the Revolution War.
The reason for their steadfast objection? Debt is nothing more than an insidious form of slavery.
Accordingly, they were vehemently against any path to immediate indebtedness to government. And they loathed the thought of interest rates hanging overhead – a constant, dehumanizing reminder that you’re property of the government.
In fact, because of the implicit dangers involved with paper money, they were entirely against monetary policy altogether.
So you can imagine how disgusted they’d be if they were to visit the United States Bureau of Unlimited Engraving and Printing (aka the Fed).
And how right they’d be…
It’s as simple as this: Our monetary policy has become the default instrument for budgetary recklessness – and it’s left the integrity of the dollar utterly compromised.
The “experiments” the Fed has been running for the last several decades have not only been thorough failures, they’ve thoroughly devastated our national economy.
And it never seems to end. Because before the Fed could even wash all the blood off its hands from the last fiscal meltdown, another one of its experiments is coming home to roost.
It’s time to mothball the Federal Reserve, for sure.
This time, Bernanke is ravaging the commodities market (with a little help from its Big Bank friends)…

Monetary Mad Scientists
In the 90s, Alan Greenspan and his minions at the Federal Reserve embarked on a monetary experiment.
Namely, the plan was to use securities and credit derivatives as tools for risk management.
Of course, the Fed needed a test subject, so Greenspan & Co. went about using the United States as their guinea pig.
But for all of the complicated theorizing, they never predicted the dangerous influence this experiment would have on the behavior of banks for years to come.
The same goes for the experiment Ben Bernanke started unrolling in 2003…
You see, he wanted to expand the role of megabanks within the commodities markets. To do so, he changed essential policies that were legally prohibiting bank ownership of commercial assets.
Well, 10 years later, we’re starting to get a clearer picture of the implication of those policy changes and what that presence looks like – and it isn’t pretty.
Manipulation is running rampant in the gold, silver, oil and copper markets.
We’re also starting to see a dramatically higher concentration of financial and economic power in the hands of Big Banks.
But the major casualty of bank-owned commodities lies at the feet of Goldman Sachs (GS) Goldman Sachs and its overbearing control of aluminum…
Hoarders Exposed
The last place on Earth you’d expect to find Goldman Sachs is inside the heart of Detroit’s most debilitated subdivision.
Yet, there it is – tucked inside a series of warehouses, walled off by barbed wire fencing.
A stark contrast from its prominent New York City skyline headquarters positioned just off of Wall Street.
Yet, in comparison to its NYC headquarters, the warehouses are actually turning a profit. Hand over fist, in fact.
How? By hoarding millions of tons of industrial metal aluminum. A stockpile that’s nothing to sneeze at – it accounts for a quarter of the world’s entire reported inventory.
You’re probably wondering… If Goldman Sachs is building influence in the metals industry, what’s the big deal? Who cares?
Well, everyone from beverage makers to aircraft manufacturers care… and you should, too.
Put simply, the problem is this: Much more aluminum is arriving at the warehouses than leaving – intentionally.
By withholding its share of the global supply, Goldman Sachs has created a squeeze in aluminum inventory.
And you don’t need me to tell you what happens when there’s more demand than there is supply.
Price spikes are occurring for every product and service using the metal. Soft drinks, beer, auto repairs, airfare… you name it. If aluminum is part of the assembly process, it’s helping disassemble your savings.
But here’s where things get really twisted…
Not only is Goldman depleting the global aluminum supply and making a killing off of inflated prices, it’s also making hundreds of millions by simply storing the metal in its warehouses.
Early last year Sachs bought Metro International Trade Services, a Michigan-based warehousing company. It strategically established warehouse ownership in Detroit because of regulations from the London Metal Exchange (LME).
The regulations allow Goldman Sachs’ local facilities to (1) only release a small fraction of inventory daily, and (2) collect rent for storing aluminum in the warehouses.
The LME set $0.41 per day, per ton, as the maximum allowable…
Goldman’s Detroit-based operation is rumored to be holding more than 1.1 million tons.
That translates into $451,000 per day. That’s $165 million per year for simply storing the aluminum it’s intentionally stockpiling.
In other words, by storing aluminum in Detroit, LME regulations allow Goldman Sachs to only release an extremely limited portion of its inventory, while raking in millions of dollars off of the extended rental periods.
All while driving up aluminum prices on a commodity it trades on the metal exchange.
If that isn’t market manipulation, I honestly don’t know what is.
In fact, it’s driving up prices so much that companies like Coca-Cola Enterprises (CCE) have reported it – catching the attention of several officials in Washington.
The Senate recently held hearings on the matter…
Cue the Congressional Spectacle
In a Senate Banking, Housing and Urban Affairs Committee hearing, Senators Sherrod Brown (D-OH) and Jeff Merkley (D-OR) expressed their concern over big banks profiting at the expense of consumers.
Specifically, they deliberated on what role big banks should play in the commodities arena.
Banks’ involvement in the industry poses a conflict of interest, the senators reasoned, and distracts those same banks from carrying out their primary function. Namely, nurturing the economy through long-term loans.
So to the question of whether banks should be allowed to amass ownership of physical commodities, the senators answered firmly in the negative.
Armed with an answer, Congress moved right on to doing what Congress does best: reviewing, deliberating. In short, twiddling its fat thumbs.
Specifically, the senators say, they are reviewing ways to reestablish those policies that Bernanke and Greenspan foolhardily did away with decades ago.
That’s what they say, anyway. At least loud enough that we can hear them.
And not to be outdone in the arena of “showing grave public concern,” newly appointed head of the SEC, Mary Jo White, will additionally be looking for better ways the SEC can run oversight and regulation.
But until real change occurs, until our monetary policy is back on track, and until banks are restricted from gaming the system, it’s all talk.
Another public spectacle. An illusion that Congress is on top of things and has the American peoples’ best interest in mind.
Let’s be serious, are they really going to take massive profits away from their megabank pals? Are they actually going to put their political careers on the line?
Sadly, it’s doubtful…
So if the dollar in your pocket becomes utterly worthless tomorrow, you’ll know who to thank: the Fed, Congress and big banking.
All I can hope is that I’m proven wrong. As Always The Plain Truth!