Debt Can Never Be Repaid, By Bankster Design

Wednesday, June 9th, 2010 at 2:34 pm 
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You really have to hand it to the banksters. As was painstakingly detailed in the book Creature from Jekyll Island, the banking elite devised a brilliant plan in November of 1910 on Jekyll Island in which to take over control of the United States, steal the wealth from the taxpayers and the resources from the country.

It was at this meeting that the Federal Reserve was conceived by the banking cartel, as they devised a plan to protect its member banks from competition and convince Congress and the American public that this cartel was an agency of the United States government.

The creation of the Federal Reserve will undoubtedly go down as one of the biggest tragedies in American history. After all, the government handed over the right to print the nation’s currency AND charge interest to a private, for-profit corporation with foreign stockholders. The Federal Reserve was given the right to simply print massive sums of money out of thin air and then charge the American taxpayer interest on that money.

In essence what they did was place the American people into indentured servitude by forcing the people to pay usury on worthless fiat currency (paper money created out of nothing), not to fund the government, but to enrich the bankers and fund wars in which America should never be involved. It has led to the massive unsustainable debt situation and the dollar losing 96% of its purchasing power since 1913. Stop and reflect on that last statistic for a moment. If you held $100 since 1913, it would only be able to buy you $4 worth of goods and services today! Or put another way, it would take $20 in today’s money to match what just $1 would have bought you in 1913. The rest of the value has been absorbed by the banking cartel and government. How on earth we still allow this institution to exist and operate in privacy is beyond comprehension.

Furthermore, It is absolutely unconstitutional, as Article 1, Section 8 of the Constitution clearly states that only Congress shall have the power to issue money. This view was confirmed in Lewis v. United States, 680 F.2d 1239 (1982), in which the Supreme Court ruled:

The Federal Reserve Banks are “independent, privately owned and locally controlled corporations”, and there is not sufficient “federal government control over ‘detailed physical performance’ and ‘day to day operation’” of the Federal Reserve Bank for it to be considered a federal agency.

As the United States debt-to-GDP ratio approaches 100%, the interest owed on the debt has become one of the largest annual budget items. The total U.S. debt according to http://www.usdebtclock.org/ has reached $56 Trillion or $180,000 for every U.S. citizen. This figure does not even include unfunded liabilities such as Social Security and Medicare, off-balance-sheet liabilities such as Fannie and Freddie and other liabilities that put the true total debt well over $100 Trillion. But let’s just use the $56 Trillion number for now.

The Federal Reserve conveniently stopped printing the total money supply statistic (M3) back in 2006. But since that date, a number of statisticians have extrapolated the number and come up with estimates that are widely believed to be in the ballpark. Using these numbers, the total amount of U.S. money outstanding is approximately $14 Trillion. If you divide 14 Trillion by the U.S. population of 310 million people, there is approximately $45,000 for every US person.

So, if the debt per citizen is $180,000 ($56 Trillion / 310 million people) and there is only $45,000 per citizen in existence, how can the debt ever be paid off? Even if we use the more conservative estimate of debt which is total public and private debt, we get $29.5 Trillion, which is more than DOUBLE the amount of dollars in existence.

The answer is that the debt CAN NOT be paid off. In fact, this is specifically how the banksters designed the system, so that everyone would eventually be in debt and servitude to them. Think about just how maniacal that is for a moment. But it gets worse…

You see, the government has already pledged all of America’s gold, which is surely no longer at Fort Knox as they haven’t allowed an audit in over 50 years. Even if the gold is still there, it now only represents a fraction of the annual deficit, let alone the total debt. Furthermore, the government will eventually have to pledge what is left of America’s public land, buildings and natural resources, privatizing everything from the Grand Canyon to Manhattan to Yosemite National Park.

On the individual level, since there will never be enough money for everyone to pay back their home mortgages, this means the banks will end up foreclosing on a huge portion of the real estate and housing that hard-working Americans own, a process which has already begun. So not only will the banking elite end up with all of the money, they will also end up with all of the land and resources of the once great United States of America. Sound alarmist? Consider this visionary quote from one of our nation’s greatest leaders:

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” -Thomas Jefferson

It is absolutely ridiculous that we have become so apathetic and brainwashed to be allowing this to happen right under our noses. This charade is going to end badly, either by default or hyperinflation and most likely with a high level of social unrest. Either way, the banksters have created a fiat money system that is absolutely destructive to this country, our freedoms and our way of life. If you are outraged, there are fortunately some things that you can do.

  1. Move your money out of the big banks and into local community banks or non-profit credit unions. Because of fractional reserve banking, every dollar that you remove deprives the banks of $9 or more used for risky derivatives gambling where its heads they win, tails you lose.
  2. Support a full audit of the Federal Reserve, sign the petition and write or call your local congressman. Voter action has already led to a partial one-time audit that recently passed the Senate, which is a good first step. But we need periodic full audits of exactly what the Fed is doing with taxpayer funds. The more the awareness is raised about the Fed, the better chance we will have of eliminating this institution one day and returning the right to print money to the Congress, INTEREST FREE!
  3. Get out of debt and live within your means. We’ve had it good for a very long time and have been able to live beyond our means due to the dollar’s status as world reserve currency and easy credit. Those days are coming to an end, so you should do everything within your means to get our of debt while interest rates are still low. They will need to shoot dramatically higher one day, and you don’t want to have an adjustable rate loan of any type when they do. Establish your freedom from the banks and deprive them of their revenue (interest on your debt).
  4. Invest in precious metals. The government’s most likely response to the debt issue and slowing economy is going to be to print money on a scale the world has never seen before. This will undoubtedly lead to hyperinflation, destruction of the U.S. dollar and skyrocketing prices for gold and silver, real money. In addition, the banks and their government bed buddies hate gold because it is out of their control. They can’t print gold or silver out of thin air and it is a threat to their fiat currency system and their very power structure. You should consider owning physical gold and silver and if you are enjoying the leveraged gains provided by mining stocks, make sure to occasionally convert those paper profits into more physical metal stored outside of the banking system.
  5. Lastly, continue to learn and share this information with as many people as possible. We can take our country back and end debt enslavement, but we have to move beyond the two-party system and stop bickering over marginal issues. Both parties are completely corrupt and in the pockets of the banksters and megacorporations. None of this will change until we eliminate the Fed and eliminate money from our political system. The mainstream media is not going to tell everyone this, because they are owned and funded by the banksters and elites. The information must spread via the Internet at a grassroots level.

Jason Hamlin
Gold Stock Bull

Ending the Government Monopoly on Currency

Wednesday, March 17th, 2010 at 2:43 pm 
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Written by Ann Shibler
Wednesday, 03 February 2010 10:34

real moneyThe legal tender laws of the United States are found in Article I, Section 8 of the Constitution and grant power to Congress to “coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.”  Nothing more.

In the Constitution’s Article I, Section 10, the states were restricted in regard to money: “No state shall … coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts.”  Bills of credit is a term used by the Founders to describe what we have come to know as unbacked paper currency, or fiat money.

So, we know that the federal government was never given the authority to issue paper currency, while the states were specifically prohibited from doing so. In 1792 the U.S. Mint set to work, constitutionally authorized to do so, stamping coinage of a fixed size, weight and purity for people who brought in their gold and silver. There were also private mints that did the same work.  There was no government monopoly and no unbacked paper money issued by the federal government.

However, U.S. Treasury notes, unbacked by gold or silver, were issued beginning in 1862 during the Civil War. Known as “greenbacks,” this fiat paper currency was made official legal tender by an act of Congress in 1862. This legal tender status guaranteed that creditors would have to accept greenbacks despite the fact that they were not backed by gold, bank deposits, or government reserves, and bore no interest. Then in January of 1875, Congress passed the Specie Payment Resumption Act, which returned gold backing for these notes beginning the first of January 1879.

Jumping ahead to 1913 when the Federal Reserve was created, we see the Fed issuing its Federal Reserve Notes, circulated side-by-side with U.S. Treasury Notes, bearing the phrase “redeemable in gold.” That didn’t last long. In 1933 FDR’s administration outlawed possession of gold and the people were ordered to turn in all they had. Almost simultaneously, the Federal Reserve notes declared they were “redeemable in lawful money.” But gold was no longer lawful money; silver still was, but silver redemption was abolished in 1968.

The transformation, then, from honest money, backed by gold and silver, to fiat money redeemable in absolutely nothing, was complete. The nation barely noticed the new debased and devalued currency, perhaps because they were mesmerized by the growing stack of greenbacks in their pockets. The purchasing power of the dollar has shrunk by almost 95 percent since 1913 because of the takeover of the money supply by the Fed; inflation is rampant and the Fed continues to ratchet up the printing presses, further devaluing the dollar.

But there is a way out of the downward spiraling valuation of fiat money.

Congressman Ron Paul (R-Texas), has once again prescribed just the right medicine for what ails this country’s monetary system by introducing H.R. 4248, the Free Competition in Currency Act of 2009 (See 5-minute video explanation by Rep. Paul.). An advocate of sound money, Congressman Paul noted that, to be useful and honest, currency has to be, just as it has historically been, durable, portable, divisible, uniform, stable, reproducible and scarce — gold and silver certainly fit the bill. “Currency, or money, is what allows civilization to flourish,” he stated upon introducing his very short, clear, precise and understandable bill.

The purpose of the Act is to reintroduce a system of competition in currencies. By eliminating legal tender laws that give the Federal Reserve a monopoly over our money supply, the Federal Reserve would lose its power to manipulate the money supply and therefore its value. Doing away with laws that prohibit private mints from creating coinage would also end the Federal Reserve’s money monopoly. Eradicating the capital gains and sales taxes on gold and silver coins, platinum palladium or rhodium bullion coins is just plain common sense — after all, a sales tax is not applied every time we exchange a $10 bill for a roll of quarters — and would set the groundwork for real prosperity.  And along with the above, repealing federal criminal code pertaining to precious metals would be a protection against government confiscation and penalties.

Rep. Paul’s concluding paragraph in his “Statement Introducing the Free Competition in Currency Act” properly proclaims:

Allowing for competing currencies will allow market participants to choose a currency that suits their needs, rather than the needs of the government. The prospect of American citizens turning away from the dollar towards alternate currencies will provide the necessary impetus to the US government to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government’s ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system.

A case to help illustrate what sound money can do rests in the once-great, agriculturally-based bread basket of Africa, Zimbabwe. Suffering from a dictatorship that imposed wage and price controls and bad economic policies that resulted in massive hyperinflation that destroyed the manufacturing and production base that in turn effected an enormous rise in hunger and poverty, Zimbabwe has recently seen a remarkable turnaround in the last year.

Zimbabwe’s Finance Minister Tendai Biti suspended the use of their completely worthless currency and instead legalized the U.S. dollar as currency. Zimbabwe resident Cathy Buckle wrote that Biti’s move “eradicated the black market almost overnight, stopped super-hyperinflation instantly and put real money in people’s pockets.  But, more importantly to everyday life, Mr. Biti’s policy put food back in the shops.”  Ms. Buckle went on to relate how badly state control damaged even the communication system of the nation.  Since the introduction of the U.S. dollar, cell phones proliferate which she credits with having an impact on the reduction of crime and the increase in freedom.

Once one grasps the concept that sound money is necessary for the prosperity of any nation, that sound money can be the difference between freedom and tyranny, and that it is certainly the prescription for reversing the approaching economic tsunami created by the Federal Reserve, it becomes even more difficult to accept the current political rhetoric that emphasizes increasing the national debt, installing a national health care system through a gargantuan 2,000 page bill, increasing spending toward the idea of creating jobs, etc.

H.R. 4248 was introduced in early December and as yet has no cosponsors. It probably won’t see the light of day as it is buried in several committees — Financial Services, Ways and Means, and Judiciary — unless Americans make clear to their elected representatives that a true stimulus is needed, in the form of sound money that can only come about by eliminating the Federal Reserve’s current chokehold on the money system.

Contact your representative and senators today and urge them to commit themselves to really stimulating the economy by supporting H.R. 4248. Any other policy or program is disingenuous, no matter how it’s sugarcoated, painted, or marketed to we, the people.