For the last few months I've been listening to the morons and criminals who run America, "puzzling" over the collapsing American economy. After weeks of listening to politicians and "experts" dithering about the best approach to our current problem, these people, led by the "action-Jackson" president, W., have decided to bail out the politically powerful "money-center" banks. Why?
This is a pointed question which most Americans should know but which almost none do, in fact, know. Money is created and injected into the political economy by banks. Therefore, when our political economy becomes increasingly cash-strapped, it must turn to the only source for additional money - banks - or do without. Folks, in America, money is LOANED into the system through various debt instruments and "lines of credit." This is true for all cash currency, most of which is "virtual" or "conceptual" currency.
Tokens, such as quarters and dimes, are the perverted remnant of Constitutionally Lawful coins, which were stated amounts of gold and silver. Our Founding Fathers had not discovered "super-strong" aluminum at this time. It is true that the Constitution gave Congress the power to regulate and adjust the grains of gold or silver in a dollar. At that time, apparently, few statesmen perceived the future derashic interpretations of these stipulations, which interpretations were worthy of the most bizarre rabbinic mind, as expressed in the Talmudic and para-Talmudic commentary. Congress and the Executive Branch, especially after 1939, increasingly made the Organic Law of the Nation of "none effect" by their interpretations and policies, which inaugurated a "new tradition in America." The Judicial Branch rarely restrained their madness, as they were "filled with nuts" also. Don't expect to learn that from the media, which has insinuated itself as a "fourth branch of misgoverance."
With the passage of the Federal Reserve Act of 1913, the Establishment acceded to the Era of the Lawful Money Trust, which it greedily placed in the private hands of its banking members, dominated by the "money-center" banks of Manhattan. From this time forward, when the Federal government wanted money, it borrowed it from the Federal Reserve Banks, which were guided by an appointed Board and included a Committee that drew upon leading figures in the ten Federal Reserve Regions. The immense "loans" brokered for the Federal Government were typically banked in accounts at the various money center banks, such as, originally, Chase Manhattan, Marine Midland, Chemical New York, First City Bank of NY, J. P. Morgan Guaranty Bank, et al. From these banks the federal "money" made it ways both through the national economy and, increasingly, the global economy.
Interestingly, the "U.S. Money" was actually a "Federal Reserve Note" denominated in "U.S. Dollars." A financial note is a promise-to-pay a certain amount at a certain time, generally, although the note might be very long-term, or even "open-dated." Hence, a note is a debt instrument.
At the beginning of the Federal Reserve System, banks could and did exist outside the system. There was in existence and circulating "greenbacks" that were silver certificates or convertible into gold coin. At that time a man could take a twenty dollar Federal Reserve Note and convert it into a twenty dollar gold or silver coin. When I was a lad, "silver dollars" and "silver mercury dimes" were common and obtainable from any bank. After the French and others began to make serious dents in the U.S. gold supply by presenting U.S. Dollars (FRNs) for conversion, Nixon cut the gold-backing of our currency, making its value dependent upon the kindly restraint of "dime-a-dozen" politicians. The rapid debasement of the value of our currency followed.
One might say that Washington, D.C., was a sort of "model for America" during the 1970s forward. Politicians and appointed "public servants" got richer, the city got worse, and the poor got poorer.
Further, the Federal Reserve System, created to protect the nation from "booms and busts," had an operational procedure that created "booms and busts." The whole system depends upon integrity and intelligent application of credit. For greedy, "me-now!"-types, this approach seemed stupid. "How! You only live once. Grab what you can!" This Harvard-Yale-educated financiers approached Wall Street and "money center" banks much after the fashion of Washington D.C. hoodlums executing a "rip-and-run" move. Integrity, shall we say, was out of style. Looting the "profane" was "in." Well-known, large corporations were gutted and looted under the emblem of "mergers and acquisitions," while their longterm workers were "pink-slipped." In times American financiers and corporate CEOs were altogether too big for America. They moved plant after plant off-shore, although willing to send an executive underling to listen to "incentive pitches" from pitiful human specimens occupying the positions of state governors. Each state vied with others to land a plant that had to be bribed to set up temporary shop in a given state. With such governers could lotteries, slot machines and race tracks be far behind? These became the opiate of the masses, while financiers, entertainers and politicians vied with one another for leadership in extravagant living.
Under these conditions is it strange to find banks entering the fields of speculation and extravagant lifestyle? Top bankers made big salaries and bonuses, and, when their ineptitude was apparent, they were eased out with "golden parachutes," enabling them to rest and recuperate in suitable splendor. In time they might accept a high, appointed position in a Washington, D.C., Executive Branch cabinet or agency, thereby availing the seated president of the opportunity to utilize "our best minds" to help formulate national and international policies. From such men "weapons of mass destruction" can be envisioned from a goatherder's fart.
The legacy of Harvard-Yale-educated financiers and "public servants" is about nine trillion dollars of U.S. debt. Not to worry! Their plan is to wreck the value of the FRN "dollar" so that the extraordinary amounts of U.S. currency held by foreign nations lose significant value, cutting the burden of the debt these pools of currency represent by that percentage drop. Foreign nations are encouraged to buy U.S. Treasury bonds, so they'll get some interest, which will help offset the loss of inherent purchasing power of the currency they hold. Foreign nations may prefer to buy land in America as an investment. Perhaps excess populations of Chinese peasant farmers can be brought over to work agricultural lands inwhich the Peoples Republic has invested. This would "free-up" American farmers to become Country and Western singing stars.
The fact that "ruining the value of the dollar" hurts the great bulk of American workers has little weight, since expatriation of industrial plants has gutted the strength of organized workers (unions), and the American worker is viewed as feckless, lazy, and unskilled. The VIPs of the political and corporate hierarchy fear only the garbage collection unions. Maybe that's why organized crime went into this conservative investment.
I've tried to give you some idea of the folly of putting money creation in the hands of private banks. They have a "track record" of depressions, recessions and booms. These events are subject to manipulations which work to the advantage of the Established Financial Order, aka, Resident Evil. They have been made kingpins of money creation. They have also been made the Lords of Destruction of the money that has been previously created. As Henry Kissinger noted: "Power is the ultimate aphrodesiac." Folks, these are perverts of finance, and their record proves it.
How do these ordinary banks create money ought of nothing? They take a $1000 deposit and place in a Federal Reserve Regional Bank the current amount due at the current Deposit Rate. For example, at a ten percent Deposit Rate, they would deposit $100 in their account at the Regional Fed Bank. Incidentally, they owe that $1000 to a depositor. However, they only keep $100 set aside to cover it. This allows them to loan to another individual the remaining $900. If and when they do find a willing individual to whom to make a loan, they, or another bank, deposit ten percent ($90) with the Regional Federal Reserve Bank and then take the remaining $810 and again try to find a willing individual to loan this money to. The process can theoretically continue forever, if people were interested in tiny loans and banks could make a profit from making such loans. As is evident from this simple example, the original $1000 has generated through the "magick" of fractional banking about $2700. It could well generate about $10,000. Assume that the original $1000 was deposited by means of ten $100 bills. All the remaining money generated up to about $10,000 was created out of nothing but book entries. It is both real money in terms of purchasing power and conceptual money. There is no physical reality to it. The closest that materiality comes to it is in the real objects it is used to purchase, such as houses, cars, etc.
For these loans collateral may be demanded. Equity in one's house, for example. If the bank must "call in" a loan but the loanee doesn't have the "cash," then the house may be taken in lieu of the "cash" obligation. Usually, this would happen when a boom begins to turn into a bust. A falling value to a home may threaten the loanee's obligation. It is a situation similar to a margin call. The bank may want more "cash" to keep the loan in "proper" order. If the loanee doesn't have the wherewithal, then the bank must take the collateral (house) and make the best of it. It might be hard to sell. The price accepted may be below the loan value. The remainer the bank "writes off." When a bank does this, the "conceptual" money created is extinguished. It officially is removed from Federal Reserve statistical aggregates. It no longer exists. Currency, such as a $100 bill, actually physically exists. However, most of the money in circulation statistically has no actual existence outside of computerized entries. Delete it, and it is no more.
From these simple outlines one should readily perceive how a "credit bubble" comes into existence, and the inevitable result of a leak that can't be fixed.
If banks are the source of money, their calling in of loans (created money) is the source of money scarcity. Writing off loans extingushes, or depletes, the statistical aggregate of money in amounts directly related to the written off amount. As this occurs, the profits of the bank may well lessen, unless offset by some financial bet that proved lucky. Wall Street begins rumor-mongering, and the stock of the bank begins to fall. If depositors withdraw money, then the fundamental asset of the bank shrinks. A "run" may mean either of two things: if the bank is huge, then the Federal Reserve will "rush in funds" to stabilize the bank, while politicians assure depositors their money is safe; but if its is small, it will have good assets absorbed by a stronger bank, and its bad assets written off.
As the money aggregates shrink in the early stages of a bust, banks become very conservative in their practices. They don't want to lose any depositors. Hence, their losses may be concealed to all but federal authorities and the private Federal Reserve System. This doesn't make them good candidates for initiating loans to prospective loanees.
Therefore, the difficulty of the late Fall economic staggering and the threatened collapse of the economy has been blamed by all the primary candidates for guilt, meaning politicians, economic advisers, the Federal Reserve System and its Board, the S.E.C., Wall Street, private banks and other debt mongerers., upon each other. This is a process that is untenable, so that all participants break off pointing the finger of guilt at each other and declare that the fault for the stagnating economy is the failure of ordinary Americans to spend. As is usual in modern America, the victim is accused of guilt.
How can money get into the political economy, if banks will not lend it into existence? Well, the Founding Fathers never expected this ststem to obtain. Abraham Lincoln directed the Department of the Treasury to issue legal tender paper dollars, called "greenbacks," which could be used to pay soldiers and suppliers. It is true that politicians connected to the banking establishment of the time were able to undercut the second issuance of greenbacks by not making them legal tender for paying taxes. Yet, the principle of legal tender paper money had been established in relatively modern times. Clearly, any system of money creation will fail if sabotaged successfully. That, then, is an issue for criminal law to settle.
This principle of the national goverment paying currency into the domestic political economy for needful purposes and in a prescribed, rational fashion should be the American System of Money Creation, as opposed to the Jewish System of debt-money creation through private banks and other debt mongerers. Not only is this evident to any rational mind, but a disguised form of money creation by the Federal Government has occurred recently. President George W. Bush and Congress agreed to issue money directly to ordinary Americans through the offices of the Internal Revenue Service, Department of the Treasury. If they had waited for private banking members of the Federal Reserve System to do it, it would not have been done.
The issuance of money directly to ordinary Americans privately shocked the Federal Reserve Board, which perceives this as a threat to private bank's money creation function. The Fed has suddenly pretended to be interested in entities other than money center banks. Doubt be taken in by this crocodilian predator.
America, demand that your Congress spend money into the economy by means of useful projects and that it not be loaned into the system by private banks. Let's end the Era of Debt.
