The same bank bailout happened in 2008 as happened in 1933, the Federal Reserve Banks were Bailed Out by the UNITED STATES Government!
So along comes FDR, President of the UNITED STATES CORPORATION of America. One of the very first things he did was issue an executive order basically outlawing the private ownership of gold bullion called the Bankruptcy Act, HJR 192, and Straw Man Debt Slave Law. US Treasury Gold Certificates were no longer legal tender when held by the general public, unless exchanged at the US Treasury or Federal Reserve Bank for other non-gold paper. The US Treasury backing was the “full faith and credit of the United States”. Reportedly, the US Treasury sent gold certificates to the Federal Reserve in exchange for Federal Reserve Notes.
The net result of this exchange was that the privately-controlled Federal Reserve Bank held US Treasury Gold Certificates backed by US Treasury gold, while the US Treasury held Federal Reserve Notes backed by “credit”. These actions bailed out the privately-controlled Federal Reserve bank, which as of 1933 would no longer be in danger of collapsing due to a short-fall of 20,000 or more metric tons of gold.
During a “Fireside Chat” on 07 May 1933, Roosevelt basically admitted that gold-clause obligations far exceeded the amount of gold held by the US Treasury and Federal Reserve. In fact, the total gold obligations far exceeded the amount of gold in the entire world, not even counting corporate gold obligations.
“Behind government currency we have, in addition to the promise to pay, a reserve of gold and a small reserve of silver, neither of them anything like the total amount of the currency.” – FDR, 07 May 1933.
As citizens complied with the new bankruptcy law by turning in gold and the gold reserves of the US Treasury and Federal Reserve increased. After most of the public’s gold was turned in, FDR raised the official price from $20.67 to $35.00 per troy ounce. Gold-clause Federal Reserve notes were not recalled and remained in circulation. But they could no longer be exchanged for gold, except by certain foreign central banks who owned the Federal Reserve.
Banks were able to buy valuable assets with mere paper.
The new series of 1934 Federal Reserve notes no longer had any gold clause, they were only redeemable for “lawful money” or debt obligations of you and me. FDR’s actions in bailing out the Federal Reserve Bank set in motion the ultimate debt-enslavement of the US Government and its citizens.
Then goes the United States Corporation of America President G.W. Bush and incoming President B. Obama and both bail out the banks again using your tax paying money! The credit contraction which started in 2008 has many similarities to 1929. But this time, there is no gold limitation constraining the printing presses. Some people believe that another gold confiscation is a very real possibility. But the major difference between now and 1933 is that in 1933, the Federal Reserve owed a lot of gold that it didn’t have.
Today the only backing for the US Dollar is the “full faith and credit” of the United States. Government debts, domestic and international, can now be paid with nothing more than newly-printed Federal Reserve paper notes or promissory notes. Both are debts of the United States Government, but promissory notes can also pay debt as well as create debt. The U S Department of Debt Loan Payoff is here to help you become debt free.
The liabilities of the Federal Reserve Bank are no longer denominated in gold, and they haven’t been since Richard Nixon closed the international dollar-gold exchange window in 1971.