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Jan 20, 2006

1933 Calling: Hello?

This post is inspired by today's NYSE drop--the largest in 3 years, and the headline of Dec 27, 2005: "Stocks Stumble", and by the rickety Japanese markets of late:

On May 23, 1933, Congressman Louis T. McFadden brought formal charges against the Board of Governors of the Federal Reserve Bank System, the Controller of the Currency, and the Secretary of the US Treasury, for numerous criminal acts, including, among others: Conspiracy, Fraud, Unlawful Conversion, and Treason.

Noting that the Federal Reserve Banks are "private monopolies", he asserted that they were rich and predatory moneylenders who prey upon US citizens for the benefit of themselves and their foreign customers, foreign and domestic speculators and swindlers. He called them, "financial pirates", and worse.

Just prior to this filing of charges, FDR signed--at MIDNIGHT of his Inauguration Day, March 5, 1933--a proclamation to divorce US currency from the gold standard, thereby mooting an old debate in America, and seemingly helping the country. On April 5, 1933, FDR ordered the confiscation of gold coins, gold certificates, and gold bullion, Executive Order 6102. (You say there's gold in Fort Knox, do ya?)

Officially, the US was taken off the gold standard, April 19, 1933.

And on June 7, 1934, Congress passed the Corporate Bankruptcy Act allowing corporate reorganisation with the support of 2/3 of their creditors. Yuh.

BTW--McFadden died in somewhat murky circumstances, and after other attempts had been made on his life.

Linkages are squirrelly tonight, but there's more info to be had at which is as good a place as any to check it out if you haven't--because history does repeat, and last I heard, McFadden's case against the Fed is still pending.

jc Jan 20 2006 8:40 pm est

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