FINAL WARNING: Financial Background
increase in interest rates, which climbed to 13-1/2% by September,
1979, and then soared to 21-1/2% by December, 1980.Conjecture could dictate that this economic decline was purposely
engineered to cause the political decline of Carter. In response to the
rising interest rates, Carter said: “As you well know, I don’t have
control over the FED, none at all. It’s carefully isolated from any
influence by the President or the Congress. This has been done for
many generations and I think it’s a wise thing to do.” Even though
inflation had skyrocketed to all-time highs, Reagan kept Volcker on. It
was Volcker who started the collapse of the U.S. economy.During the 1970’s, many banks had left the Federal Reserve, and in
December, 1979, Volcker told the House Banking Committee that “300
banks with deposits of $18.4 billion have quit the FED within the past 4-
1/2 years,” and that another 575 of the remaining 5,480 member banks,
with deposits of $70 billion, had indicated that they intended to
withdraw. He said that this would curtail their control over the money
supply, and that led Congress, in 1980, to pass the Monetary Control
Act, which gave the Federal Reserve control of all banking institutions,
regardless if they are members or not.Alan Greenspan, who became the Chairman of the Federal Reserve
Board in 1987, is a member of the Council of Foreign Relations. He has
a bachelor’s and master’s degree, and a doctorate in Economics from
New York University. He met Ayn Rand, the author of Atlas Shrugged,
in 1952, and they became friends. It is from her that he learned that
capitalism “is not only efficient and practical, but also moral.” In
February, 1995, the seventh increase in the interest rate, within the
period of a year, took place. This put Greenspan in the limelight, as
well as the Federal Reserve. It was very interesting how the media spin
doctors churned out information that totally skirted the issue
concerning the FED’s actual role in controlling our economy.In the mid-1970’s, Paper 447, Article 3, from the World Bank, said that
the World economy would be fairly stable until 1980, when it would
begin falling, in domino fashion. On October 29, 1975, the Wall Street
Journal printed a comment by H. Johannes Witteveen, Managing
Director of the United Nation’s International Monetary Fund, that the
IMF “ought to evolve into a World Central Bank ... to prevent inflation.”