FDIC Casting Operation ChokePoint
Government institutions have many purposes, which should include governance and clear direction as stated by law. What is appalling is that most agencies walk a fine line between legal statutes that are clear and loopholes that government bureaucrats exploit to send billions to their cronies. One such corporation is the Federal Deposit Insurance Corporation. A piece of misinformation that bothers me is the level of protection the FDIC can provide in a financial panic.
In a panic, the FDIC can only provide a single-digit percentage of the money outstanding. The FDIC has roughly $95 billion in reserves against a little more than $7.3 trillion in insured deposits. Is that the kind of risk you want to take? Is that the same sort of guarantee you get from buying a bond? The saying follows that your bond is backed by Article IV, Section 1 of the Constitution. Great, so my bank account is insured by the FDIC, which is backed by the full faith and credit of the U.S. Government.
U.S. Government Defaults
It’s interesting to note that the U.S. Government has already defaulted a few times in history. The first was April 5th, 1933 when FDR signed Executive Order 6102.
Executive Order 6102 prevented hoarding gold coins, gold bullion, and gold certificates within the U.S. There is more to the story than just taking everyone’s gold. It starts with the Federal Reserve, who is the premier wealth inequality promoter in the world. The Federal Reserve Act of 1914 limited the ability to increase the money supply because the currency had to be backed by 40% gold. Depression-style disinflation resulted in the Fed expanding the money supply to the legal limit, resulting in Executive Order 6102. FDR needed to take the people’s gold to expand the money supply and maintain the 40% backing. I think it was more of a wealth confiscation scheme, which still goes on today.
Default number two occurred in August of 1971 when Richard Nixon suspended dollar convertibility into gold. Both defaults were because the government didn’t have enough gold. Basically, the U.S. said we don’t need gold anymore because we can just print more money out of thin air and use floating exchange rates.
Henry Kissinger worked out a deal to have oil priced in dollars, and if not for that deal, why would countries hold very many dollars? When one’s account says it’s backed by the FDIC and the full faith and credit of the U.S. Government, remember these facts. Not only does the Fed pop bubbles, but they tell you gold is tradition, and not money.
In the past hundred-plus years, they have asked for more gold, more credit, and more faith? Well, I think they have gone to the end of that rope.
If the FDIC is supposed to be transparent and helpful to people, why were they caught in Operation ChokePoint? Operation ChokePoint is a 2013 initiative by the U.S. Department of Justice that investigates U.S. banks that deal with payday lenders, firearm dealers, and companies suspected of money laundering. This sounds like what they should be doing, right? Not so fast! FDIC officials, Department of Justice officials, and other agencies set out to kill legal businesses by starving them of access to capital. Newly unsealed documents reveal that the FDIC coerced banks to stop lending money to legal businesses. Additional documents show banks offered proof these businesses were financially sound and in no way a threat to stability. These companies were targeted by beliefs and not by wrongdoing. We the people are under attack, and the onslaught will continue.