Senator and CIA Insider Accuse Federal Reserve of Covering Up Secret Bankruptcy

By MONEY MORNING STAFF REPORTS

Is the Federal Reserve covering up a dangerous crisis that threatens to bring down, not just the United States, but the entire global economy?

According to two men, one a high-ranking member of the U.S. Intelligence Community, and the other, a 2016 Presidential hopeful, the answer is yes.

They both believe the world's most powerful central bank is secretly bankrupt and Fed Chairwoman Janet Yellen will do whatever it takes to keep the public in the dark about this startling situation.

If they're correct, every American should fear the unavoidable endgame their evidence is predicting.

Recently, in an emotional speech from the Senate floor, Senator Rand Paul declared that the Federal Reserve is now "insolvent."

Senator Paul has long been an advocate of an official audit of the Fed's books, which polls show 74% of the American people agree with.

And in a separate statement he explained why.

"The Fed's operations under a cloak of secrecy have gone on too long and the American people have a right to know what the Federal Reserve is doing with our nation's money supply," Senator Paul declared.

And an unlikely ally has stepped forward to help him provide the public with the answers they are seeking.

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Unfortunately, they are downright frightening.

Jim Rickards is the CIA's Financial Threat and Asymmetric Warfare Advisor.

In an exclusive interview with Money Morning, Rickards revealed that he and his team have detected a series of dangerous economic signals that predict a fast-approaching $100 trillion meltdown.

And they believe it will lead to an event more severe than the 1930s.

A 25-year Great Depression.

Their estimated date for this catastrophe is March 3, 2015.

Making matters worse, they believe it is impossible to stop.

Rickards shared an alarming collection of charts in the discussion that proved our country has secretly reached, or exceeded, crisis levels in our stock market, with our dollar, and banking system that are more severe than in 1929.

He examined two charts in particular that specifically place much of the blame for this on the Federal Reserve.

"What you can see from this first chart is that for over a decade the Federal Reserve steadily grew its capital reserves. Even after the recession struck, on the surface at least, they kept strengthening their financial backing," he explained.

"And today they have over $56.2 billion of cash on hand. $56.2 billion sounds like a lot of money, but it's not the full picture."

"You have to compare the cash the Federal Reserve has on hand with the debt they've taken on since the recession. And when you do the picture becomes a lot scarier, because that figure is $4.3 trillion," Rickards continued.

"So you have $56.2 billion propping up $4.3 trillion worth of debt. That means the Fed is leveraged 77-1. Prior to our 2008 meltdown that was only 22-1."

"To folks like me at the CIA that says one thing, the whole thing is unstable and it's ready to explode," he warned.

Rickards then cited two private meetings he held with Federal Reserve officials that suggested they know this too.

"I spoke to a member of the Board of Governors of the Federal Reserve, (name withheld), and said to her I think the Fed is insolvent," Rickards revealed.

"She refused to answer the question directly initially, but I pressed her and she said, 'we are but it doesn't matter'."

Rickards' second meeting explained why this high-ranking Fed board member came to that conclusion.

"I was at a recent conclave in the Rocky Mountains with officials from the Federal Reserve and the Bank of England. They'll say things in private that they won't admit publicly," Rickards explained.

"They handed me a copy of Janet Yellen's playbook. And while a lot of Americans have no idea what her big plans are, this playbook revealed everything. It's more of the same. She's going to just keep printing money."

"Don't ever think the Fed knows what they're doing. They can print all the money they want, but if people aren't using it in the economy than it is going to collapse."

What makes Rickards' and Paul's alliance so unusual is that Senator Paul is no fan of the CIA.

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During a marathon, 13-hour filibuster he successfully halted the appointment of the new director of the Central Intelligence Agency. He cited the public's need to be made aware of the White House and intelligence community's use of drones as the reason for his actions.

However, this has not stopped Rickards and Paul from uniting on what Rickards believes is the greatest threat to our country.

In fact, in a Treasury meeting, Rickards accused both the Fed and Treasury of being more dangerous to the United States' national security than Al-Qaeda or any rival nation.

And Senator Paul has cited Rickards' work in numerous speeches and in his official budget proposal for the year where he warned that our central bank was leading us towards a "Roman Empire-like collapse."

Which is a conclusion that Rickards and many of his colleagues agree with.

A startling report containing the consensus view of all 16 branches of the U.S. Intelligence Committee has revealed that these agencies have begun to estimate the impact of "The fall of the dollar as the global reserve currency."

And our reign as the leading superpower being annihilated in a way "equivalent to the end of the British Empire in the post-World War II period."

The question we should all be asking ourselves now is "what if they're right?"