[W. Cleon Skousen. "The Life of J. Reuben Clark, Jr." Grantsville, UT. September 1, 1992. ]
J. Reuben Clark Practices Law
As he got to be practically the Secretary of State, it was amazing how all the solicitors, who are the lawyers for the State Department, kept going away, or being gone. This J. Reuben Clark found himself counseling with the President as though he were Secretary of State.
At the end of six years, there was a change in politics. President Wilson was elected, Republicans went out, and J. Reuben Clark went out with them. He then went into private practice, and he was very successful. He had a great reputation by now. But he didn’t know that he was just about to run head on into one of the most monstrous forces of evil that was being gestated or generated in the United States at that time.
In order to tell you that story, which is out of this book, The History of the World in Our Time, I just have to quote a few things. In what we call a people’s republic, you do not find tranquility. Everybody has his rights, everybody is free to speak his opinion, and they all do. You just have a turmoil of constant bubbling and burblings — everybody’s got their ideas solving problems. It isn’t an atmosphere of tranquility, it isn’t Shangri-la.
But, when you’ve educated people, as they did in the early part of the history of this country, they loved it that way. They’d come out of Europe where they were under somebody’s thumb and heel all the time, and they loved it here where they could speak their opinions and then vote the way they wanted to, etc.
Those Who Don’t Like the Constitution
There was one group of people that never liked it. They didn’t like the Constitution, they didn’t like the turmoil, they didn’t like this kind of a republic. You see, this bubbling and burbling and so forth, and everybody putting in their two bits worth, etc. — that produced Washingtons, that produced Jeffersons, John Adams.
I mean, if you’d been at the Constitutional Convention, it wasn’t a nice, sweet, peaceful convention. Those great men with strong opinion hammered and hammered. But when they got through, God says, “I established this Constitution by the hands of wise men that I raised up for this very purpose. Anything that’s more or less that this is evil.” — section 98 and section 101. It all came out of this burbling and gurgling. You got to have fun with it, you’ve got to get used to it.
But these people, who are very rich and very powerful, have always hated it. The reason they hate it is because they operate big industries, where they speak and things happen, where there’s a certain amount of order. If there isn’t, they can change it, just like that.
They said, “Now that’s the way our society should be, that’s the way government should be. We’ve got to change this thing so we’ve got the smartest people in charge, and compel these stupid masses to do what’s good for them.”
In 1908, there was a congregation of these very wealthy people, they represented the greatest powers in the railroad industry, in the oil industry, in the banking industry, in the commercial industry. They were congregated together in the Carnegie Foundation for International Peace. They tried to decide how you could change the whole American system, peacefully if possible, but, if necessary, do it with war.
Using War for a Collectivization of Power
They worked on that for a year. In time of war, the people will tolerate a collectivization of control: mandate, and people do what they’re told to do. They said, “That should be set up so that it’s the permanent pattern of our society.”
They decided that they’d have to do it through war, “You got to get a war, get them in that mood, where they will tolerate the centralized, dictatorial mandate and authority, and then have another war, if necessary, until it becomes a pattern.” That’s what those men decided to do.
The next question was, “How would we get control of the government under those circumstances, and then maintain it?” The answer was, you’ve got to control the State Department and the Presidency. That’s what they agreed upon.
We have the minutes of those meetings. The man who secured them, almost accidentally, a good friend of mine, was working for one of the Congressional Committees. They got the minutes of 1908, when it was resolved that, “We’re going to use war from now on until we get this nation under control.” So, they’ve got to get their own man for President, and they’ve got to have him appoint a Secretary of State of their vintage or mentality.
Remember this is the Carnegie Foundation for International Peace, plotting war! Any of you heard of this before? Yes, some of you have. I didn’t get it in school. I had to dig it out years later when I found that something had gone wrong.
Woodrow Wilson’s Rise to Power
The man they picked out to be their president, to run in the other party — the Republicans were in power — was a man by the name of Woodrow Wilson. He was the head of the department of political science at Princeton. He’d been very critical of the Constitution for a variety of reasons. He liked the British system better.
So they thought, “There’s somebody we could probably mold and weave into what we need.” So they started working on him, and they got him to be governor of New Jersey. They elected him, and this is the book that tells how they did it, how they put the money in, and they used money to manipulate and massage the people of New Jersey until this professor was elected the governor of New Jersey.
Then they started manipulating Woodrow Wilson to agree to this different approach, “Maybe we can get back closer to the British system. Certainly we’ll change the Constitution.”
Right in the middle of that, listen to what Woodrow Wilson says, “Since I’ve entered politics, I’ve chiefly had men’s views confided to me privately. Some of the biggest men the United States in the field in commerce and manufacture are afraid of something. They know that there is a power, somewhere, so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak about their breath when they speak in condemnation of it.”
That’s Woodrow Wilson. He doesn’t know it, but they’re the people that have now taken him in tow. J. P. Morgan and the Rockefellers and the Carnegie money is going in behind him, and getting him set to be President, on condition that he will go for a Federal Reserve system, that will eventually get rid of gold and silver as a money system, establish a credit system with no bottom to it: “Just use the taxing power of the people as a basis for money in the future. It’s necessary that we do get ourselves involved in the affairs of the world, so we can guide the world toward a better structure. It will probably have to be through war.”
That’s an interesting phenomenon, that this book tells all about, Tragedy and Hope. This man believed in this group. He apologizes for them over and over again. He said, “Maybe they were a little clumsy, but their ultimate goal was a good one.” Can’t believe it.
Then he documents all the things that I later put in a book called The Naked Capitalist, that went to a million copies, based on his book, telling people what’s really been going on. For a while it was widely read, but not so much anymore. People have kind of lost touch with who’s running things. It’s the same people.
So we’ve got ourselves a new President, and we got the Federal Reserve. Wasn’t very long before, as you know, we got rid of gold, everybody had to turn it in. All the gold clauses and contracts were wiped out by the Supreme Court. J. Reuben Clark knew all this was unconstitutional — the whole fabric was unconstitutional.
J. Reuben Clark Was Trapped
But meanwhile, he had been trapped just like Woodrow Wilson had. It all came about in 1916, when a man — who was one of the wealthiest men, one of the top men in the country, whose name was Willard Strait, he was part of the J. P. Morgan people — came to him and asked if he wouldn’t like to have a junior partner. To have Mr. Strait, you know, as your partner, for a boy from Grantsville, way out in Utah, I mean, he’s gone clear up on the top level.
“Well,” he said, “where would we have our office?”
“Oh, in New York.”
“Where in New York?”
“Well, we have a skyscraper there, and we’ll be on the lower floor. Everything above you will be our client.”
“Just one client?”
“Yes, just one client.”
“What’s it called?”
“The American International Corporation, the first international conglomerate of industrial power that was ever organized in the United States.”
“What are we going to do?”
“Well, we’re going to use our money that all our people have, and we’re going to start buying up the industries and get things kind of organized together.”
What J. Reuben Clark didn’t know, they were going to have a war within about eighteen months, and they wanted to all of the copper and the steel and the boats and the railroads and everything to make the money from it. Clever. American International Corporation, and guess who was its attorney? J. Reuben Clark.
At first it seemed great, because they were buying up these great industries in Central America, the big fruit companies, all the boats they could get their hands on, the wharfs, steel, copper — I have them all listed here.
At the head of this international association, listen to who was on their board: Stone of the Webster Engineering Company, Percy Rockefeller of Standard Oil, J. Ogden of the Armor Company, Charles Kaufman of General Electric, James Hill of the Great Northern Railway, Oliver Kahn of Kunelob and Company, Robert Lovell of the Union Pacific, and so it goes on. I mean, you’re talking with the richest, the most powerful, and the strongest. He’s buying up millions and millions of dollar’s worth in all these companies.
So in 1916, Woodrow Wilson was elected on the basis that he would keep us out of the war. After he was inaugurated, we were in the war within six weeks. It’s all in this book. At that time, I was about five years old. I was getting on the scene now, gradually here, so I could watch what J. Reuben was doing.
J. Reuben Clark Awakens To What is Going On
But anyway, J. Reuben Clark didn’t awake to what was happening until about 1923. He began to fuss at them, and make their lives so miserable, as he saw what they were doing. One time, he considered dishonestly, they fired him. 1923.
Guess what he did? He came back on Constitution Day and spoke in the Tabernacle about the great United States Constitution. “I’ll tell you,” he said, “it is in jeopardy. I see forces rising all around us today that have as their goal and objective, the destruction of the very thing that made the United States the greatest nation in the world!”
Well, I’m not sure they paid much attention to him. He quotes from his 1923 speech the rest of his life. I finally got a copy of it. It’s great. He took the whole strength, the golden threads of the Constitution, to stress to the people here in Utah what a great responsibility they had to preserve that institution.
Already the foundations are being very badly eroded. So the State Department called him back as Assistant Secretary of State. He was puzzled about just what he should be doing. In Utah we wanted him to run as Senator. Someone was talking about putting him on the Supreme Court. By this time he had such a tremendous reputation he could almost named what he would have liked to run for. In this state, he would have been supported wholeheartedly, and it didn’t work out.
Instead of that, he became ambassador to Mexico. He did a great job down there. He taught the Mexican people to trust him, and to love him. He did a lot to help our Mormon colonies in Mexico during that difficult period where I went to school a couple of years.
Called to be an Apostle
Then in 1933, right in the midst of his getting all of this thing straightened out for Mexico, here comes a letter from the First Presidency calling him to be a counselor to Heber J. Grant. You’ve got to know a little bit about the background of J. Reuben Clark at that time as far as the church was concerned, to appreciate what a shock this was.
He hadn’t been where he could be active in the church for 20 to 25 years. He’d never been a Bishop, never been a Stake President. He paid his tithing, but there wasn’t any church, very often, to go to. In Washington you could go to a little Sunday evening affair that Senator Smoot held, but J. Reuben didn’t get along with Senator Smoot, so that was kind of an ordeal.
And anyway, he worked seven days a week. He was a workaholic. He afterwards said, “I broke the Sabbath for years! The Lord blessed me in spite of it, but certainly not because of it. You people obey the Sabbath day!” My close associate while I was in law school, in fact my mentor, was Ernest Wilkinson. He did the same thing because J. Reuben Clark did it, he worked all day Sunday. He’d take time out for church, but then he was right back at it. He said the same thing, “I broke the Sabbath day trying to become a great lawyer. I paid a price for it. You obey the Sabbath day.” Isn’t that kind of interesting?
So J. Reuben Clark — and I must hurry now just to give you a little final closing scene here. J. Reuben Clark was very disturbed that he would be called to the First Presidency of the Church. He found himself telling Bishops and Stake Presidents how to run their Stakes and their Wards.
Finally he said — and this is an apocryphal story, although it’s hinted at in Michael Quinn’s This is J. Reuben Clark: the Church Years, but I have this apocryphal story in this form, that I picked up from people who claimed they were close to the scene.
Why the Calling Came
J. Reuben Clark said to President Grant, “Don’t you make these choices by inspiration?”
President Grant said, “Yes, we do.”
J. Reuben Clark said, “I can understand why a lawyer of international prominence and so forth, like myself, may add to the prestige of the church. But I don’t know what I an doing here. I am doing things that I never was trained to do. I’m instructing people. I feel very inadequate.”
Well, according to the story that I was told, President Grant said, “That’s not why you were chosen as a counselor.”
“Well, why was I chosen?”
“You were chosen because the Constitution of the United States is in jeopardy. The church needs to be aroused, the country needs to be aroused, and we’ve got to start training our people to defend that Constitution before it’s shredded and lost.”
“Oh, really?!”
“You are the best Constitutionalist in the church.”
All of the sudden you hear him quoting his 1923 speech in Conference. You see, we were a Democratic state, 62 percent Democrats. They began to call that Republican politics in Conference. Oh, he got the Dickens! By the time I got here to Utah, sometime later, J. Reuben Clark was one of the most unpopular people in this state.
“Politics” in Church
They didn’t mind him talking on the gospel, but any time he’d start talking on the Constitution, “that terrible Republican instrument!” Isn’t that something? All through California schools, I was told the Constitution was obsolete. Here’s this man standing up, which everybody knows he’s a Republican, defending the Constitution, and “that’s politics in church.”
President Grant would try to assure the people that we wanted the Saints to hear this. It was not popular. He never did become a popular speaker. Years later when I was here, he spoke at the University of Utah. Here is a member of the First Presidency, and he was a counselor to three Presidents over a period of 28 years. We’ve never had another human being in this church serve as a counselor to Presidents of the church longer than J. Reuben Clark.
So he was so well known, they decided to have him speak at the University of Utah. He stood up before that audience, and they booed him, a member of the First Presidency. Majority of the audience LDS. They booed him. He stood there, by this time he was pretty heavy-set, you know, and he smiled at them.
He said, “Well, I don’t mind you calling me old-fashioned, because I am.” Yeeaahh! “I don’t even mind you calling me antediluvian (which is before the flood!)” Huurraay!! “But,” he said, ” I am a little sensitive about you calling me pre-historic!”
The students all laughed, and immediately they sat back to listen. I’ve got a copy of that speech, and it’s just great. Of course the students had been trained not to believe those things anymore. But he sowed the seeds.
Our Constitution Has Been Shredded
Already the Lord was beginning to build his kingdom preparatory to survive the great destructive forces of Constitutional government. You see, we didn’t realize how badly shredded the Constitution had become. We didn’t realize the whole concept of separation of powers had been shredded. We had Congress delegating to the President the authority to make administrative law.
Most of our laws were not coming out of Congress as required by Article 1 Section 1 of the Constitution, they were coming out of bureau agencies at administrative law. I studied it in school, how it worked. The next thing you knew, if you didn’t like what happened, where’s you appeal? You didn’t really have an appeal, because Congress approved it. They were delegating their legislative authority, and you were having laws that the Congress had never examined, scrutinized or debated. We were covered with them.
So that’s how far we had gone. We had lost our money system based on gold and silver, that was gone. We had lost control of the Supreme Court, beginning with the Butler Case, 1936. The Congress could pass anything that they considered for the welfare of the American people. It was no longer general welfare, it was now private welfare: farmers, schools, etc.
J. Reuben Clark was an educator at heart. He felt the schools were getting a bad deal, and they would be hurt in the process. He tried to defend the importance of maintaining the integrity of our schools. That was interesting. So many things were happening to our society, that from a Constitutional standpoint, we were very seriously at risk.
So this man from Florida that wrote this whole page of newspaper protest the other day, I just went down and checked off the items, “J. Reuben, did you say amen? Yes, he said amen. Amen. Amen. Amen.” You know: going on to four trillion dollars worth of debt, 62 percent of all your income taxes going to pay interest to banks on that debt. We give ourselves a trillion dollar budget, and then we overspend even that much. You know that we are way off balance.
The Butler Case, 1936
I want to say just this little bit about the Butler case. In 1936, the Supreme Court handed down a decision, and while it held against the appellant, it set forth the proposition that Congress can appropriate money and legislate for private welfare. The general welfare clause went right out the window.
The original idea was, if you tax all the people, then you can’t pass a law except for all the people. You can not pass a law that will favor this little group, and that little group. You can’t do that, because these are general taxes. States can handle those problems, the federal government can not. That was all wiped out, 1936, in the Butler case.
Our budget in 1936, in spite of World War I, and already numerous, expensive programs for agriculture, etc. that had been coming up; our budget was 8 billion dollars. We had gone to 800 billion dollars by about 1980. Now you know where it is, trillions. There’s no stop, they will not stop. You couldn’t stop that train, no matter who you elected right now. So, there’s a remedy. J. Reuben Clark knew what it was. I’m going to close now by sharing it with you.
J. Reuben Clark was a Great Man
But I just want to tell you how I learned to love that man, and have him stand up in the face of a very antagonistic, not altogether, but the majority of our people of our state did not like J. Reuben Clark. His biographies all admit that. He wasn’t appreciated until they had a symposium after he was dead, and decided he was great man. Who do I read telling that he was a great man? Some of those who fought him the worst when he was trying to help us.
But in those 28 years, he served three Presidents, and part of the time he was all alone. Brother Grant had a stroke and lived another five years, couldn’t hardly do anything. David O. McKay, the other counselor, he was very sickly and weak, until he became President of the church. Isn’t that interesting? All of the sudden, his health improved tremendously, so he did pretty good, and he just went on and on for a long time.
J. Reuben Clark, of course, died in 1961, but by that time, President McKay had already given us the great announcement of hope. Beginning in 1950, he said, “God is now pouring out into the families of those that he has treasured up from the beginning, the youth that can take it in the days that lie ahead. You’re getting some of the choicest spirits out of heaven.” He announced that about 1950.
We Live in an Exciting New Era
By 1960, he said, “Now I can tell you the new era has begun for this great kingdom. We’ll began to become an influence for good, much more impressive and much more productive than in the past.” 1960. You see, we had worked thirty years to get ten thousand converts in Latin America. Thirty years to get ten thousand. We got the next ten thousand in two years. We got the next ten thousand in one year. Now we get ten thousand every few months.
This is a new era, and you’re in it. All of the buildings that began. During the last ten years of David O. McKay’s life, he felt so helpless. He asked me to do an errand for him one day, and I came in and found that he couldn’t even stand up. He had a couple of strokes. Here were needles and oxygen tanks, and one thing and another. He could see, as I looked around his office, the amazement in my eyes.
He said, “Don’t feel sorry for me, Brother Skousen. Nobody expects me to do anything. All I have to do is stay close to the Lord and make the decisions.” Which he did, and we doubled the membership of the church in the next ten years, when he was an invalid. We doubled the number of temples, I tell you, we just went forward. So when these prophets become very elderly, indisposed, the work goes on, magnificently.
In his day, J. Reuben Clark did that. Now President Hinckley and President Monson carry it on. Oh, what great leaders they are. I love them. Great leaders.
So I come to my conclusion, and it’s J. Reuben Clark’s conclusion. He could see that the powers that existed were so well entrenched, so voluminous, had such a grip on the media, both the parties, the money, that that was going to have to run its course, like an express train going hell-bent to destruction.
Track Two
But the Lord isn’t going to allow this government to be destroyed. Although administrations may destroy themselves, systems may destroy themselves, this country’s going to survive. J. Reuben Clark knew how it would survive: build track two. Don’t get in front of that train on track one, it will just run over you. You quietly build track two.
Sometimes people say, “Dr. Skousen, you spent your whole life studying these things that have gone wrong, with the attack on the Constitution and everything. Why are you so optimistic?”
I say to them, “I read the book, and in the end, we win.” Now, it’s on track two that we win. J. Reuben Clark never lost confidence in having a generation finally become alert, and finally doing its homework, and getting into a position where they would do what God and the Founding Fathers intended that we should have been doing all the time.
So, I bless his memory. I bless his integrity. I bless his tenacity. I’m so grateful for that man. He’s been my inspiration, I’ve learned to love him. I knew him, but not well. I received counsel from him two or three times. One of my books became a national best seller, and he gave me a little bit of counsel about what God was doing, and what to expect, and I was very grateful for that.
His 1937 Prophecy
Oh, what vision, what insight he had. So I close now. On other occasions, you’ll tell more about him. I’ve only touched the highlights. Because during the 28 years that he served in the kingdom, he filled several volumes with teachings and instructions and insights and warnings. You will have other speakers, I’m sure, come and analyze various phases of that in detail, so that you become authorities on the beliefs of J. Reuben Clark, which are identical with the original Founding Fathers.
In the beginning, he said he made some mistakes. But he learned from experience. In the end, when he finally became a counselor to the First Presidency, he told the saints what to expect. I should have told you that in 1937 he gave one of his most famous speeches. I consider 1923, 1937, and 1952 among his greatest talks.
In 1937 he said, “The power people are now planning another war for you. They have made this depression last many more years than it would have ordinarily lasted. They got stock down to 14 cents on a dollar. They just bought up everything at 14 cents on a dollar, and they’re now ready to make additional billions as they put you through another world war.
“They’re going to have you pay for it. You’re going to be involved in it. You don’t think you’ll get involved, but they’ll say that for the peace of the world, you must come in, and you’ll feel so soft-hearted about it, you’ll come in. It will be just as big a mistake as World War I,” which I thought was just great when we went in, and I now know, could have been handled differently, and we could have saved ourselves a lot of problems.
So, he gave the prophecy. Then in 1941, after we were in the war, he said, “May I quote from my 1923 speech, and my 1937 speech….” That’s what he did the rest of his life, quoting his former speeches, where he predicted what would happen, and it did. He truly was a prophet of God, counseling a prophet of God. I bless his memory in the name of Jesus Christ. Amen.
Showing posts with label Constitutional Government. Show all posts
Showing posts with label Constitutional Government. Show all posts
Saturday, January 14, 2012
Government of the elite, by the elite, and for the elite
Ron Paul supporters espouse many seemingly radical political views together with some other traditional and Constitutional-based political opinions. One may ask, 'where is the radical ideology regarding "no more foreign aid" or "bring all the troops home" coming from?' In addition to the average Libertarian, Ron Paul's political views are attracting the "conspiracy theorists" vote. Ron Paul has been a frequent guest on favorite Conspiracy Theory radio programs like the Alex Jones show which has exploded in listenership in the last year.
What are the Conspiracy Theorists afraid of? Conspiracy Theorists are concerned with the effects and decisions that come out of regular meetings of the world elite. Several times a year, world elite, Past and future US Presidents, cabinet members, royalty, media moguls, Forbes 100 CEOs, Ivy League University Presidents, Defense Contractors, FED chairman, etc meet at places like Bohemian Grove each July, or the Davos Conference, the Bilderberg Conference, or at the United Nations, or at the G20 Economic conference, or the Council on Foreign Relations, or the Tri-Lateral Commission.
While at these variously titled meeting, these same powerful and wealthy elite set a world agenda which greatly influences and affects US domestic and foreign policy and our laws. Conspiracy Theorists are concerned that these meetings of the global elite constitute a subversive anti-American government of the elite, by the elite, and for the elite.
In the remaining portion of this post, I would like to illustrate how policies from these international globalist organizations are infiltrating, subverting traditional American values, while also greatly harming our peace and prosperity.
George Romney worked for Massachusetts Democratic U.S. Senator David I. Walsh during 1929 and 1930, first as a stenographer, then, as a staff aide working on tariffs and other legislative matters. Romney researched aspects of the proposed Hawley-Smoot tariff legislation and sat in on committee meetings for Senator Walsh who apposed Tariffs. While living in the DC area, Romney opened a ice cream shop and attended night classes at George Washington University. The Smoot-Hawley Tariff act was eventually signed into law by Herbert Hoover, yet the Depression continued to worsen.
Unfortunately, because of the worsening depression, Romney's ice cream parlor failed, and he no longer had the income necessary to finish his degree at GW. The cause of the worsening Depression was hotly debated at the time. Like most Democrats, Senator Walsh opposed tariffs and he along with FDR and others blamed the Smoot-Hawley Tariff act for worsening the depression. Consequently, from that moment on, "Free-Trade" became a plank in the Republican platform when prior to this, Republicans like Lincoln, McKinley, and Hoover were stanch protectionists.
For any LDS readers out there. I am not sure everyone knows who the Smoot is, in the Hawley-Smoot Act. The Smoot in the title of this bill just happens to be Senator Reed Smoot of Utah, who was also an Apostle of the Lord Jesus Christ and member of the LDS Church's Quorum of 12 Apostles. Elder Smoot didn't become an Apostle after being a Senator, Elder Smoot was appointed and ordained to the Holy Apostleship while he was also serving as a State Senator. While LDS do not claim our leaders are infallible, Elder Smoot was one of very best men that the LDS Church has ever produced.
Thankfully, not everyone agrees that tariffs and protectionism policies caused the Great Depression. Milton Friedman, Father of the Chicago school of economics, monetarist theory of money, and Nobel Laureate always maintained that the FED and not tariffs caused the Great Depression. Milton Friedman said the FED's contraction of the money supply is what triggered the Depression.
The FED initially rejected this analysis, but a recent comment by FED chair Ben Bernanke demonstrates how the FED actually views this issue.
2002: Ben Bernanke speaks at Milton Friedman's 90th Birthday and jokes that Milt was correct all along that the FED caused the great depression by contracting the money supply in a fractional reserve system. Later Ben Bernake again supports Milton Friedman's position at a leture :
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm
2004: Ben Bernanke speaking at the Washington and Lee University, Lexington, Virginia again expresses support for the monitorist theory of money, and the FED's role in exacerbating the Great Depression by increasing interest rates several times, and advocating several banking holidays which exacerbated cash and gold hording.
"Finally, perhaps the most important lesson of all is that price stability should be a key objective of monetary policy. By allowing persistent declines in the money supply and in the price level, the Federal Reserve of the late 1920s and 1930s greatly destabilized the U.S. economy and, through the workings of the gold standard, the economies of many other nations as well."
http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm
2005: Federal Reserve no longer publishing M3 data, which is an important measure that monitors growth of the money supply involving derivatives and other complex investments. This concealing of M3 will serve to hide the initial effects of the sale of fraudulent mortgage-backed securities which will follow.
http://www.federalreserve.gov/releases/h6/discm3.htm
2005-2008: M3 balloons to record levels which measured the money creation being done in the speculative and fraudulent derivatives market, driven by Goldman Sachs.http://www.amcalrealestate.com/wp-content/uploads/2009/07/money-supply-rate-of-change.gif
2008: FED institutes the Bank of International Settlement Basil 2 Accords which restricts/lightens fractional reserve requirements, contracts the money supply, and does to America exactly the same thing that Basil 1 did to Japan resulting in their "Lost Decade."http://www.federalreserve.gov/newsevents/press/bcreg/20070720a.htm
"Economic crises have been produced by us for the GOYIM by no other means than the withdrawal of money from circulation. Huge capitals have stagnated, withdrawing money from States, which were constantly obliged to apply to those same stagnant capitals for loans. These loans burdened the finances of the State with the payment of interest and made them the bond slaves of these capitals .... The concentration of industry in the hands of capitalists out of the hands of small masters has drained away all the juices of the peoples and with them also the States .... " (Protocols of Zion 20:20)
Conclusion: This Current Economic Downturn was engineered just like the Great Depression. Mr. Bernanke confessed to Milton Friedman that he is well aware of how a contraction of the money supply would affect our fractional reserve economy. Mr. Bernanke was well aware of the effects Basil 1 had on Japan, and therefore must have been fully aware of how Basil 2 would effect the American economy.
Furthermore, just as massive borrowing to invest overinflated the money supply prior to the Great Depression, we see the FED set up the current system of derivatives trading which created an unstable economic environment requiring a reaction in terms of implementing Basil 2. This was a perfect example of the FED creating a problem, eliciting a predicted reaction and then providing the pre-conceived solution.
The FED blamed protectionism of the Hawley-Smoot tariff act and regulating trade as the Constitution requires as the cause of the Great Depression. The Civil war was fought over protectionism and tariffs. South wanting to buy cheap slave-produced goods and machinery from the East India Trading Company instead if the North. This blame of the Great Depression on Protectionism turned the Republican party that were once protectionists like Pres McKinley into advocates of free-trade. And now free trade has robbed our county of domestic industrial infrastructure our jobs, and our self-reliance.
So here we see a clear example of how an international organization like the Bank of International Settlement (central bank of central banks) policy has infiltrated and subverted traditional American values and Constitutional principals, while also greatly harming our peace and prosperity.
Overall Analysis: The elite wanted deflation before WW1 and WW2 because they wanted to buy up all the companies that would profit from the war. This time, the elite already own all the major companies. What the elite are doing currently, is buying up soverign national debt. The goal is to get all the countries in as much debt as possible to them before the end game.
According to Milton Friedman's monetarist theaory, recent money supply expansion via TARP, and QE2 that prices are holding somewhat and the current depression is not as bad as it could be. However, our dollar is no longer gold-backed as it once was, and if the dollar loses its status as the world reserve currency, because of free-trade, the US is no longer industrially, energy, or even agricultually independent, and and dollar devaluation would sink the US economy. This fact is precisely what is driving the US to enter into wars with Iraq, Libya, and Iran who were circumventing the Petro-Dollar system by selling oil to China in Euros and Yuan. Iran is now doing business with Russia in Rubles. The fiat, debt-based, Petro-Dollar system cannot tolerate major oil-producing nations selling oil in alternative currencies.
This warmongering will evenually lead to the point where the international community led by Russia, China, and Muslim nations will decide to attack the US with a massive nuclear firststrike and invasion; hoping to divide the US up forever. This is the elite's end game which they hope will end the idea of constitutional government forever.
Unfortunately, because the US is not currently economically self-sufficient, an Act like Hawley-Smoot is not going to fix things at this point. The first thing the US would be wise to do is avoid war with Iran at all costs and reform our monetary system where money creation is "merit-based" and not decided by a ruling class of economic oligarchs who buy and sell US bonds.
What are the Conspiracy Theorists afraid of? Conspiracy Theorists are concerned with the effects and decisions that come out of regular meetings of the world elite. Several times a year, world elite, Past and future US Presidents, cabinet members, royalty, media moguls, Forbes 100 CEOs, Ivy League University Presidents, Defense Contractors, FED chairman, etc meet at places like Bohemian Grove each July, or the Davos Conference, the Bilderberg Conference, or at the United Nations, or at the G20 Economic conference, or the Council on Foreign Relations, or the Tri-Lateral Commission.
While at these variously titled meeting, these same powerful and wealthy elite set a world agenda which greatly influences and affects US domestic and foreign policy and our laws. Conspiracy Theorists are concerned that these meetings of the global elite constitute a subversive anti-American government of the elite, by the elite, and for the elite.
In the remaining portion of this post, I would like to illustrate how policies from these international globalist organizations are infiltrating, subverting traditional American values, while also greatly harming our peace and prosperity.
George Romney worked for Massachusetts Democratic U.S. Senator David I. Walsh during 1929 and 1930, first as a stenographer, then, as a staff aide working on tariffs and other legislative matters. Romney researched aspects of the proposed Hawley-Smoot tariff legislation and sat in on committee meetings for Senator Walsh who apposed Tariffs. While living in the DC area, Romney opened a ice cream shop and attended night classes at George Washington University. The Smoot-Hawley Tariff act was eventually signed into law by Herbert Hoover, yet the Depression continued to worsen.
Unfortunately, because of the worsening depression, Romney's ice cream parlor failed, and he no longer had the income necessary to finish his degree at GW. The cause of the worsening Depression was hotly debated at the time. Like most Democrats, Senator Walsh opposed tariffs and he along with FDR and others blamed the Smoot-Hawley Tariff act for worsening the depression. Consequently, from that moment on, "Free-Trade" became a plank in the Republican platform when prior to this, Republicans like Lincoln, McKinley, and Hoover were stanch protectionists.
For any LDS readers out there. I am not sure everyone knows who the Smoot is, in the Hawley-Smoot Act. The Smoot in the title of this bill just happens to be Senator Reed Smoot of Utah, who was also an Apostle of the Lord Jesus Christ and member of the LDS Church's Quorum of 12 Apostles. Elder Smoot didn't become an Apostle after being a Senator, Elder Smoot was appointed and ordained to the Holy Apostleship while he was also serving as a State Senator. While LDS do not claim our leaders are infallible, Elder Smoot was one of very best men that the LDS Church has ever produced.
Thankfully, not everyone agrees that tariffs and protectionism policies caused the Great Depression. Milton Friedman, Father of the Chicago school of economics, monetarist theory of money, and Nobel Laureate always maintained that the FED and not tariffs caused the Great Depression. Milton Friedman said the FED's contraction of the money supply is what triggered the Depression.
The FED initially rejected this analysis, but a recent comment by FED chair Ben Bernanke demonstrates how the FED actually views this issue.
2002: Ben Bernanke speaks at Milton Friedman's 90th Birthday and jokes that Milt was correct all along that the FED caused the great depression by contracting the money supply in a fractional reserve system. Later Ben Bernake again supports Milton Friedman's position at a leture :
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm
2004: Ben Bernanke speaking at the Washington and Lee University, Lexington, Virginia again expresses support for the monitorist theory of money, and the FED's role in exacerbating the Great Depression by increasing interest rates several times, and advocating several banking holidays which exacerbated cash and gold hording.
"Finally, perhaps the most important lesson of all is that price stability should be a key objective of monetary policy. By allowing persistent declines in the money supply and in the price level, the Federal Reserve of the late 1920s and 1930s greatly destabilized the U.S. economy and, through the workings of the gold standard, the economies of many other nations as well."
http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm
2005: Federal Reserve no longer publishing M3 data, which is an important measure that monitors growth of the money supply involving derivatives and other complex investments. This concealing of M3 will serve to hide the initial effects of the sale of fraudulent mortgage-backed securities which will follow.
http://www.federalreserve.gov/releases/h6/discm3.htm
2005-2008: M3 balloons to record levels which measured the money creation being done in the speculative and fraudulent derivatives market, driven by Goldman Sachs.http://www.amcalrealestate.com/wp-content/uploads/2009/07/money-supply-rate-of-change.gif
2008: FED institutes the Bank of International Settlement Basil 2 Accords which restricts/lightens fractional reserve requirements, contracts the money supply, and does to America exactly the same thing that Basil 1 did to Japan resulting in their "Lost Decade."http://www.federalreserve.gov/newsevents/press/bcreg/20070720a.htm
"Economic crises have been produced by us for the GOYIM by no other means than the withdrawal of money from circulation. Huge capitals have stagnated, withdrawing money from States, which were constantly obliged to apply to those same stagnant capitals for loans. These loans burdened the finances of the State with the payment of interest and made them the bond slaves of these capitals .... The concentration of industry in the hands of capitalists out of the hands of small masters has drained away all the juices of the peoples and with them also the States .... " (Protocols of Zion 20:20)
Conclusion: This Current Economic Downturn was engineered just like the Great Depression. Mr. Bernanke confessed to Milton Friedman that he is well aware of how a contraction of the money supply would affect our fractional reserve economy. Mr. Bernanke was well aware of the effects Basil 1 had on Japan, and therefore must have been fully aware of how Basil 2 would effect the American economy.
Furthermore, just as massive borrowing to invest overinflated the money supply prior to the Great Depression, we see the FED set up the current system of derivatives trading which created an unstable economic environment requiring a reaction in terms of implementing Basil 2. This was a perfect example of the FED creating a problem, eliciting a predicted reaction and then providing the pre-conceived solution.
The FED blamed protectionism of the Hawley-Smoot tariff act and regulating trade as the Constitution requires as the cause of the Great Depression. The Civil war was fought over protectionism and tariffs. South wanting to buy cheap slave-produced goods and machinery from the East India Trading Company instead if the North. This blame of the Great Depression on Protectionism turned the Republican party that were once protectionists like Pres McKinley into advocates of free-trade. And now free trade has robbed our county of domestic industrial infrastructure our jobs, and our self-reliance.
So here we see a clear example of how an international organization like the Bank of International Settlement (central bank of central banks) policy has infiltrated and subverted traditional American values and Constitutional principals, while also greatly harming our peace and prosperity.
Overall Analysis: The elite wanted deflation before WW1 and WW2 because they wanted to buy up all the companies that would profit from the war. This time, the elite already own all the major companies. What the elite are doing currently, is buying up soverign national debt. The goal is to get all the countries in as much debt as possible to them before the end game.
According to Milton Friedman's monetarist theaory, recent money supply expansion via TARP, and QE2 that prices are holding somewhat and the current depression is not as bad as it could be. However, our dollar is no longer gold-backed as it once was, and if the dollar loses its status as the world reserve currency, because of free-trade, the US is no longer industrially, energy, or even agricultually independent, and and dollar devaluation would sink the US economy. This fact is precisely what is driving the US to enter into wars with Iraq, Libya, and Iran who were circumventing the Petro-Dollar system by selling oil to China in Euros and Yuan. Iran is now doing business with Russia in Rubles. The fiat, debt-based, Petro-Dollar system cannot tolerate major oil-producing nations selling oil in alternative currencies.
This warmongering will evenually lead to the point where the international community led by Russia, China, and Muslim nations will decide to attack the US with a massive nuclear firststrike and invasion; hoping to divide the US up forever. This is the elite's end game which they hope will end the idea of constitutional government forever.
Unfortunately, because the US is not currently economically self-sufficient, an Act like Hawley-Smoot is not going to fix things at this point. The first thing the US would be wise to do is avoid war with Iran at all costs and reform our monetary system where money creation is "merit-based" and not decided by a ruling class of economic oligarchs who buy and sell US bonds.
Friday, January 13, 2012
Safety Society System
Many people want to "End the FED" but most don't know what to replace it with. This paper discusses an alternative. First to understand what to change, we need to understand exactly what about the FED is a problem. If you "End the FED" and do not address the financial instruments the FED and traditional banking has put in place over the last hundred years, then nothing will change much. Some just want to go back to gold like before, but I want to also discuss why this is not a good idea either. FED vs Gold is a false dichotomy.
FRACTIONAL RESERVE BANKING: this started when Templar Houses issued more gold certificates than the gold they had in deposit (reserve). Today, FED-member banks issue loans of $1000 for every $100 they borrow from the FED. And through derivatives, banks can leverage reserves, by lending up to 50x or 100x. The degree of leverage is called the MONEY MULTIPLIER. This is money the FED-member, to-big-to-fail, bank prints out of thin air. Other than being a total fraud, if there is a contraction in the money supply (like when the FED instituted the Bank of International Settlement Basil 2 Accords in 2007 doing the same thing to American that Basil 1 did to Japan resulting in its “Lost Decade”), a stock market crash, or a run on the bank; the bank becomes insolvent , the bank can't make loans or pay depositors and goes bust.
GOLD REDEEMABLE CURRENCY: money is just a contract that is used as a standardized certificate of exchange. It doesn't necessarily have to have value of its own, but it must be tied to something of value. But you don't want to be able to just pick up money off the ground, or counterfeit it. Gold has historically been used as money because it is rare, inert, shiny and sufficiently difficult to find. However, the drawback to gold is that is rare enough that there is usually not enough of it to provide an economic engine enough liquidity (Protocols of Zion 20:22). Gold can be horded and gold production can be manipulated just like De Beers does with diamonds. Artificial scarcity of resources opens the doors for all kinds of corruption (black markets, bribery). Gold is so rare, countries have gone to war, conquering their neighbors to get more of it to drive their economies.
INFLATION: inflation and devaluation of the currency is a hidden tax on the people, and slowly robs the laborer of the value of their savings. According to the Milton Friedman's Chicago School, monetarist theory of money; inflation is produced when the money supply exceeds the real output of the economy dM/dt (money supply) + dV/dt (velocity) = inf (inflation) + dRO/dt (real output). Also, inflation means that banks cannot hold reserves/deposits in money, and are forced to invest in financial instruments such as stocks, bonds, and derivatives that will keep pace with inflation. Consequently, stock market crashes usually trigger banking failures.
AMORTIZATION: When an individual takes out a loan to purchase a house. Even though the loan may claim to offer a 5% interest rate, this 5% seems like a very low number, but it is totally deceptive. Over the 20-30 years of the loan, the borrower will end up paying close to 2X the original price of the home. What is more, Amortization means that the bank collects all this 5% compound interest over the 30-years up front. That means the borrower builds close to ZERO equity for the first 10-20 years. Consequently, the borrower is tempted to charge the next home borrower an inflated price. If the initial home borrower can convince the next guy to take out a loan for the exact same house at an inflated price, then that additional money becomes equity or profit that can be applied to the next home mortgage. Because loans are the major moment of money creation, by definition, charging an inflated price for the same house means that the Money Supply > Real Output = Inflation.
COMPOUND INTEREST: Not all interest is bad. The Catholic Church's miss-interpretation of interest = usury and its prohibition of all interest made it so that banking and money lending was not a sustainable profession. However, in economy where inflation is controlled, compound interest is totally corrupt. Compound interest adds the interest accrued to the initial principal. This results in a hyperbolic curve where initial investments continue to compound at an exponential rate. This means, that initial investments years later can be worth many times their initial value. The problem with this is that it treats money as having intrinsic value which it does not. Additionally, compound interest can result in debt that never can be repaid. Furthermore, elite families have established Joint Stock Trusts which are owned by the family and no one individual. These Joint Stock Trusts (still legal in the City of London), are highly invested in US and other Government Bonds, and have passed down these investments from generation to generation resulting in unimaginable wealth for these elite families and totally unsustainable debt for the G20 nations. We are fooled into thinking in terms of how much our personal investments could make over 1 lifetime, in comparison to the elite who are using their family Joint Stock Trusts to generate incredible wealth from Bonds purchased a hundred or more years ago.
VALUE OF MONEY: Because money (which should just be a standardized contract), is artificially scarce, money itself has developed its own independent value. This development results in the wealthy having power over the laborer just though the possession of money. Because of scarcity, wealthy can use their money, to lend to others, on their own terms. Wealthy are given unelected economic power to decide to invest in whatever increases or maintains their wealth, position and power. If there is an invention or idea that threatens their position or power, that idea is suppressed.
DEBT-BASED FIAT CURRENCY: Paper currency is not necessarily a bad idea. Money is just a standardized contract of exchange, and shouldn't necessarily have intrinsic value in an of itself. In the FED System, fiat currency is based on its demand for bonds. Every dollar is tied to the sale of a bond. Every Federal Reserve Note is a certificate of debt that is not tied to anything of value, but it is tied to someone else's IOU. If people buy US bonds, the value of our currency increases relative to other countries. If instead, the FED just prints the money, the value of our currency falls. However, the FED only deals with a fraction of the total money supply. Additionally, all these bonds must be paid back with interest. So, even if all the Federal Reserve Notes were turned in that were ever created, the US would still owe interest to the bond owners.
It seems as we all learn more about the FED, Petro-Dollar, System, we are all waking up to the reality of what a huge Ponzi scheme it all is. The value of our currency is tied to the demand for our US Bonds. The demand for US Bonds is currently tied to countries like China and Japan who we have a trade deficit with, and who are interested in using their excess dollars to get the best price on imported oil, and other commodities that are priced in US Dollars. This Ponzi scheme falls apart when countries like Iraq and Iran decide to sell their oil to China in currency other than the USD. If China can buy oil in Euros (Iraq) or Yuan (Iran), then they no longer need to prop up the USD.
FRACTIONAL RESERVE BANKING: this started when Templar Houses issued more gold certificates than the gold they had in deposit (reserve). Today, FED-member banks issue loans of $1000 for every $100 they borrow from the FED. And through derivatives, banks can leverage reserves, by lending up to 50x or 100x. The degree of leverage is called the MONEY MULTIPLIER. This is money the FED-member, to-big-to-fail, bank prints out of thin air. Other than being a total fraud, if there is a contraction in the money supply (like when the FED instituted the Bank of International Settlement Basil 2 Accords in 2007 doing the same thing to American that Basil 1 did to Japan resulting in its “Lost Decade”), a stock market crash, or a run on the bank; the bank becomes insolvent , the bank can't make loans or pay depositors and goes bust.
GOLD REDEEMABLE CURRENCY: money is just a contract that is used as a standardized certificate of exchange. It doesn't necessarily have to have value of its own, but it must be tied to something of value. But you don't want to be able to just pick up money off the ground, or counterfeit it. Gold has historically been used as money because it is rare, inert, shiny and sufficiently difficult to find. However, the drawback to gold is that is rare enough that there is usually not enough of it to provide an economic engine enough liquidity (Protocols of Zion 20:22). Gold can be horded and gold production can be manipulated just like De Beers does with diamonds. Artificial scarcity of resources opens the doors for all kinds of corruption (black markets, bribery). Gold is so rare, countries have gone to war, conquering their neighbors to get more of it to drive their economies.
INFLATION: inflation and devaluation of the currency is a hidden tax on the people, and slowly robs the laborer of the value of their savings. According to the Milton Friedman's Chicago School, monetarist theory of money; inflation is produced when the money supply exceeds the real output of the economy dM/dt (money supply) + dV/dt (velocity) = inf (inflation) + dRO/dt (real output). Also, inflation means that banks cannot hold reserves/deposits in money, and are forced to invest in financial instruments such as stocks, bonds, and derivatives that will keep pace with inflation. Consequently, stock market crashes usually trigger banking failures.
AMORTIZATION: When an individual takes out a loan to purchase a house. Even though the loan may claim to offer a 5% interest rate, this 5% seems like a very low number, but it is totally deceptive. Over the 20-30 years of the loan, the borrower will end up paying close to 2X the original price of the home. What is more, Amortization means that the bank collects all this 5% compound interest over the 30-years up front. That means the borrower builds close to ZERO equity for the first 10-20 years. Consequently, the borrower is tempted to charge the next home borrower an inflated price. If the initial home borrower can convince the next guy to take out a loan for the exact same house at an inflated price, then that additional money becomes equity or profit that can be applied to the next home mortgage. Because loans are the major moment of money creation, by definition, charging an inflated price for the same house means that the Money Supply > Real Output = Inflation.
COMPOUND INTEREST: Not all interest is bad. The Catholic Church's miss-interpretation of interest = usury and its prohibition of all interest made it so that banking and money lending was not a sustainable profession. However, in economy where inflation is controlled, compound interest is totally corrupt. Compound interest adds the interest accrued to the initial principal. This results in a hyperbolic curve where initial investments continue to compound at an exponential rate. This means, that initial investments years later can be worth many times their initial value. The problem with this is that it treats money as having intrinsic value which it does not. Additionally, compound interest can result in debt that never can be repaid. Furthermore, elite families have established Joint Stock Trusts which are owned by the family and no one individual. These Joint Stock Trusts (still legal in the City of London), are highly invested in US and other Government Bonds, and have passed down these investments from generation to generation resulting in unimaginable wealth for these elite families and totally unsustainable debt for the G20 nations. We are fooled into thinking in terms of how much our personal investments could make over 1 lifetime, in comparison to the elite who are using their family Joint Stock Trusts to generate incredible wealth from Bonds purchased a hundred or more years ago.
VALUE OF MONEY: Because money (which should just be a standardized contract), is artificially scarce, money itself has developed its own independent value. This development results in the wealthy having power over the laborer just though the possession of money. Because of scarcity, wealthy can use their money, to lend to others, on their own terms. Wealthy are given unelected economic power to decide to invest in whatever increases or maintains their wealth, position and power. If there is an invention or idea that threatens their position or power, that idea is suppressed.
DEBT-BASED FIAT CURRENCY: Paper currency is not necessarily a bad idea. Money is just a standardized contract of exchange, and shouldn't necessarily have intrinsic value in an of itself. In the FED System, fiat currency is based on its demand for bonds. Every dollar is tied to the sale of a bond. Every Federal Reserve Note is a certificate of debt that is not tied to anything of value, but it is tied to someone else's IOU. If people buy US bonds, the value of our currency increases relative to other countries. If instead, the FED just prints the money, the value of our currency falls. However, the FED only deals with a fraction of the total money supply. Additionally, all these bonds must be paid back with interest. So, even if all the Federal Reserve Notes were turned in that were ever created, the US would still owe interest to the bond owners.
It seems as we all learn more about the FED, Petro-Dollar, System, we are all waking up to the reality of what a huge Ponzi scheme it all is. The value of our currency is tied to the demand for our US Bonds. The demand for US Bonds is currently tied to countries like China and Japan who we have a trade deficit with, and who are interested in using their excess dollars to get the best price on imported oil, and other commodities that are priced in US Dollars. This Ponzi scheme falls apart when countries like Iraq and Iran decide to sell their oil to China in currency other than the USD. If China can buy oil in Euros (Iraq) or Yuan (Iran), then they no longer need to prop up the USD.
Turns out the most of our economic system is not Constitutional. Even before the FED, how we run our economy is more according to the "wicked traditions of our forefathers". The Constitution of the United States actually holds the secrets of how to fix our economic system. Most people don't like centralized control, but the Constitution is inspired, and there are a few powers God actually saw in his wisdom that the Federal Government should be granted.
US Constitution, Article 1, Section 8: The Congress shall have Power To lay and collect Taxes, Duties, Imports and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To borrow money on the credit of the United States; To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes. To establish an uniform Rule of Naturalization, and uniform laws on the subject of Bankruptcies throughout the United States; To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; To provide for the Punishment of counterfeiting the Securities and current Coin of the United States.
ISSUING THE CURRENCY: The Constitution clearly says that the Federal Government must "Coin the money". And in case you are tempted to think "this just applies to weights and measures" and to "to make sure gold is pure and of the proper weight", the next part says that the Congress has the power to punish counterfeiting the "current coin" of the US. If there is a "current coin", then that means that the US is the one "coining" it.
I don't believe that the US money needs to be gold. Gold, copper, silver are always in limited supply and are better used as building supplies. However, using technology the US government can print money that is nearly impossible to counter-feit, also, the government using quantum encryption can use digital currency that cannot be hacked.
The key here to "coining the currency" is that the US Government via the Congress create all the US Currency in the Money Supply, and not abdicate that duty to the FED, or allow the Banks to create most of the money in the money supply via Fractional Reserve Banking.
SAFETY SOCIETY SYSTEM: Instead of protecting the currency itself by making it redeemable for a warehoused item, the Safety Society System is focused on creating a locally administered banking institution that is immune from the expected economic shocks that historically topple other banks. Full Reserve Banking, makes a bank resistant to banking runs, stock market crashes, and contractions of the money supply. I believe that if a system protects the banking institution, that system will protect the people and the value of their money.
1. US Treasury via the Congress Creates all Money in the Money Supply and regulates its value. Sufficient money is created, upon demand, at the time of loan approval.
2. US Treasury loans money to Local Banks called a Safety Society at a variable prime simple interest rate which gets passed on to the individual borrower.
3. Local Safety Society determines loan eligibility and credit-worthiness based on previous and projected employment history, income, etc. Loan eligibility criteria would be nationally standardized but locally applied.
4. Local Safety Society makes loans only on "real" assets or on the projected building of or production of a "real" asset or the mining, farming or production of a "real" commodity.
a. Credit-worthy Individuals could take out a loan on an existing home or new home construction.
b. A community could take out a loan for a museum or community aquatics center based on the projected revenue on an approved ballot initiative for a 1% sales tax.
c. A corporation could take out a loan to purchase land and drill for oil based on the scientifically verifiable oil deposits.
5. The money created for these Safety Society loans is backed by the "real" assets, real estate and "real" commodities that the loan is being issued to purchase, produce, or mine.
6. SSS loans are fee-based. Local Banks make their money to cover overhead exactly the same way they do now by charging loan origination fees and monthly service charges.
7. The borrower builds equity from day 1. If the borrower comes on hard times and misses several payments. These payments are deducted from the borrowers equity. Repossession occurs when the borrower has lost all equity in the home, building, farm, mine.
8. Other credit and banking institutions would handle other speculative "venture-capital" banking ventures. SSS would only issue loans for non-speculate real assets that could be repossessed.
9. SSS Bank deposits are not used to issue loans. SSS operates on Full Reserves, and all deposits are kept at the bank for immediate withdrawal at any time.
10. The Federal Government generates revenue based on the prime simple interest rate. This tax/free constitutes a Constitutional uniform and voluntary tax on the use of money and extension of credit. This prime interest rate would be used to regulate the value of the currency, and control inflation by removing excess liquidity from the economy.
SSS BENIFITS:
1. People want a gold-redeemable, or commodity-redeemable currency so that when the bank goes bust, they don't lose their money. But, really. Why not set up a system that saves the bank? What good is gold when the entire economy just fell apart? You can't eat gold when society just collapsed. Better to prevent the collapse.
2. SSS protects the bank from individual bankruptcy, by making sure each loan is backed by real assets and goods and commodities that can be repossessed so that the Bank can repay the US Treasury.
3. Again, this is not money "created-out-of-nothing." Loan approval is the point of money creation, and money is created by the SSS for real assets. The real assets back the money. The focus is on the banks being able to redeem their money.
4. Because money creation is always backed by a real asset, according to the Milton Friedman equation, the Money Supply always keeps pace with Real Output.. Therefore, there would be no inflation.
5. Because SSS banks wouldn't lend for Stocks, bonds, derivatives, the banks would never be left holding a bunch of worthless pieces of paper with nothing to repossess.
6. Because inflation is controlled, the SSS Bank can hold deposits as cash, and never has to invest in paper (stocks, bonds, derivatives) that carries the risk of becoming worthless.
7. Focus of the SSS bank is the preservation of value. The Laborer is not forced to subjugate themselves and enslaved themselves to the Wealthy to grant them credit. SSS is free market without the capitalist.
8. Wealthy can still use their wealth in speculative ventures separate from the SSS system.
9. Because of our inflationary economy instead of an economy focused on the preservation of value, companies must grow to keep up with inflation or die. This requires that companies ruthlessly compete against one another and after dominating the domestic market, are forced to expand overseas to keep pace.
10. All countries would be economically free to develop their own resources without international exploitation.
11. Wealthy are sill free to speculate all they want. But with SSS, the regular laborer class is protected from the risk-taking. 12. Both sides debate that neither government nor the unelected government should be controlling the economy and deciding where money goes. SSS is merit-based. That means if an individual, coorperation, or community is credit-worthy, they will have access to the money they need; created on demand.
COMPETING CURRENCIES:
Some want competing currencies in the US. But I don't see how the idea of competing currencies is in line with the Constitution's call for the Congress to "coin the currency", the "Commerce Clause", and to prosecute counterfeiting of the "current coin" How can the idea of competing currencies jive with the Constitutional call for there to be a "current coin"? How could the Congress regulate interstate commerce if every state or region had its own currency, resulting in currency wars? How could the Congress regulate the value of currency, if there were competing currencies --- well, competing.
Thursday, January 12, 2012
Media Attack on Mitt Romney
1. flip-flopper. The media continues to instill mistrust in the pro-life conservative voter by questioning Mitt's allegiance to life. On a personal level, Mitt has and will always be always be pro-life. However, when running for Governor, Mitt clearly stated that he personally did not agree with abortion but was running on a neutral policy to not overturn Roe v. Wade. The majority of citizens in Massachusetts were pro-choice and it is not correct to impose our minority values on the majority. We live in a democracy and govern by the will and voice of the people. However, when other pro-life issues came to his desk as governor, such as the emergency contraception bill in 2005, he vetoed it. I think conservatives can judge Mitt on his voting record. He has never voted pro-choice. In national politics, the majority of Americans are pro-life, and therefore, if elected Mitt would support the overturning of Roe v Wade with exceptions.
2. Mormon religion and claimed beliefs. The media carefully repeats mis-information about what members of the LDS faith believe. Mormon beliefs is about the importance and sanctity of the traditional family, about following the doctrine of Jesus Christ which is to “do unto others what you would have them do unto you”, and being LDS is about patriotism to our country, its laws, and to the Constitution. LDS are taught that the US Constitution is inspired by God. So, people can spread rumors about what it means to be a Mormon, but family, virtue, and patriotism is what being a member of the Church of Jesus Christ of Latter-day Saints means to me.
3. Association with anti-American globalist groups such as the Bohemian Grove, the Bilderberg Group, Council on Foreign Relations, and the Private Federal Reserve. Every year, the wealthy elite of the world get together during the last 2 week of July to enjoy their “Mid-summer encampment” at the exclusive and secret Bohemian Grove in Sonoma County Northern California. The Bohemian Club, is a secret elite, all-male association founded in 1872. One of the founding members was Mark Twain. More current membership includes every Republican US Presidents and many Democratic Presidents since Taft, Supreme Court Justices, presidential cabinet members, Forbes 100 CEO's, defense contractors, media moguls, IV League university presidents, all get together to frolic among the redwoods. In addition to the rumors, of drug use, homosexuality, prostitution, etc, is their disturbing Cremation of Care ceremony where a few members of the group of several thousand dress up like druids and burn the effigy of a child on an alter before a great owl statue. This is interpreted as the casting out of conscience preparatory to the many unconscionable acts they will do over the next 2 weeks. The Manhattan Project was initially conceived a the Grove (a fact Edward Teller excluded from his autobiography on the history of the H-bomb, he also discusses nuclear fracking at the end of the book as a great idea).
What nearly every Ron Paul supporter knows and is concerned about is the infiltration of American institutions and the subversion of American values by powerful anti-American globalist who get together in meeting like the Bohemian Grove, Bilderberg Conference, CFR, G20, Davos, etc. and set the agenda, craft the laws, and decide the elections for the US.
A majority of Ron Paul supporter fear these meetings constitutes a US government, of the elite, by the elite, and for the elite. You may defeat Ron Paul in the Primary, but if he runs as a 3rd Party Candidate to continue “injecting issues into the debate”, you will loose the general election against President Obama. Ron Paul does not talk openly about the Bohemian Grove, but nearly all of his politics are reactionary to this issue. Nearly all Ron Paul supporters are concerned about the un-American influence of these organizations.
4. Romney Care = Obama Care. The elite-controlled media that has been giving you “anything but Romney” coverage, is associating the Massachusetts health care bill you established as the “blue print for Obama Care”. I am a Emergency Physician, and nothing could be further from the truth. The Ron Paul/Fox News group tries to paint this as a Constitutional issue because of the individual mandate that is required for everyone to purchase a minimum level of insurance just like drivers are required to purchase car insurance. Despite the media's attempts, I can't really even think of any similarities between Romney Care and Obama Care. 1. Romney care is a state program, and that is the crux of the Constitutional issue. The states are free to be “the laboratories of democracy.” 2. Romney care does not have a government option. The State of Massachusetts has not set up its own insurance company to compete against private insurance companies like Obama Care does. Romney care helps citizens afford to purchase private health care from Aetna, Cigna, Blue Cross, Humana, Wellpoint, or United. 3. Romney care does not set up a quality reimbursement system where doctor's reimbursement will depend on a government defined quality factor. 4. According to FactCheck.org, 59% of Massachusetts citizens are satisfied with Romney Care. (Harvard/Boston Globe Survey, 2009)
5. Anyone else but Romney. The main stream and alternative media attempting to injure your campaign with their “blah-blah”, un-excitement for you candidacy. The day after your win in New Hampshire, which wasn't really official until the next day, the news commentator said something like , “well since you all have already heard about the significance of Romney's win in New Hampshire yesterday, we don't want to bore you so we will move on to discuss other things today”.
I don't think there is anything you can do about this. The media is generally liberal and even the conservatives don't like you. Conservative Radio talk show host, Dr. Bill Bennett is very influential among the 60+ crowd and his support for John McCain hurt you 4 years ago.
6. Ron Paul Independent Run. If you let Ron Paul run as a 3rd-party candidate against you in the general election you will lose in the General Election to President Obama. So, either you address the many issues that the “conspiracy theorist” Ron Paul supporters are concerned about and distance your self from the globalists, and big business, or invite Ron Paul to be your running mate in the General Election. He may decline, but it may make him look bad if he runs as an Independent.
7. Association with Big Business. The economy has been in decline for the last 4 years. America is shipping our industry and jobs overseas. We are are not managing our affairs wisely. We are not “living within our means” as a nation. Much of the blame for our current economic condition is not being focused on Pres. Obama, but on big globalist investment firms like Goldman Sachs, and private institutions like the Federal Reserve. You need to distance yourself from the negatives of Big Business while playing up your leadership skills. You need to show that Bain Capital is not Goldman Sachs, or MF Global.
1. When you were with Bain & Company, you didn't like what they were doing, so you distanced yourself from them and formed Bain Capital. You were so successful doing what you knew to be right, Bain & Company asked you to serve as their CEO to get them back on track to profitability.
2. The 2002 Winter Olympics was mired in scandal. Corporate advertisers were pulling out left and right. You came in and operated things honestly and justly and turned things completely around and organized one of the most successful winter Olympics in history. You even directed traffic.
3. You ran as Governor of Massachusetts and didn't get into office and run things with a “business as usual” attitude. You got in and righted the ship, balanced the budget, and returned the State to efficient operation and continued prosperity.
2. Mormon religion and claimed beliefs. The media carefully repeats mis-information about what members of the LDS faith believe. Mormon beliefs is about the importance and sanctity of the traditional family, about following the doctrine of Jesus Christ which is to “do unto others what you would have them do unto you”, and being LDS is about patriotism to our country, its laws, and to the Constitution. LDS are taught that the US Constitution is inspired by God. So, people can spread rumors about what it means to be a Mormon, but family, virtue, and patriotism is what being a member of the Church of Jesus Christ of Latter-day Saints means to me.
3. Association with anti-American globalist groups such as the Bohemian Grove, the Bilderberg Group, Council on Foreign Relations, and the Private Federal Reserve. Every year, the wealthy elite of the world get together during the last 2 week of July to enjoy their “Mid-summer encampment” at the exclusive and secret Bohemian Grove in Sonoma County Northern California. The Bohemian Club, is a secret elite, all-male association founded in 1872. One of the founding members was Mark Twain. More current membership includes every Republican US Presidents and many Democratic Presidents since Taft, Supreme Court Justices, presidential cabinet members, Forbes 100 CEO's, defense contractors, media moguls, IV League university presidents, all get together to frolic among the redwoods. In addition to the rumors, of drug use, homosexuality, prostitution, etc, is their disturbing Cremation of Care ceremony where a few members of the group of several thousand dress up like druids and burn the effigy of a child on an alter before a great owl statue. This is interpreted as the casting out of conscience preparatory to the many unconscionable acts they will do over the next 2 weeks. The Manhattan Project was initially conceived a the Grove (a fact Edward Teller excluded from his autobiography on the history of the H-bomb, he also discusses nuclear fracking at the end of the book as a great idea).
What nearly every Ron Paul supporter knows and is concerned about is the infiltration of American institutions and the subversion of American values by powerful anti-American globalist who get together in meeting like the Bohemian Grove, Bilderberg Conference, CFR, G20, Davos, etc. and set the agenda, craft the laws, and decide the elections for the US.
A majority of Ron Paul supporter fear these meetings constitutes a US government, of the elite, by the elite, and for the elite. You may defeat Ron Paul in the Primary, but if he runs as a 3rd Party Candidate to continue “injecting issues into the debate”, you will loose the general election against President Obama. Ron Paul does not talk openly about the Bohemian Grove, but nearly all of his politics are reactionary to this issue. Nearly all Ron Paul supporters are concerned about the un-American influence of these organizations.
4. Romney Care = Obama Care. The elite-controlled media that has been giving you “anything but Romney” coverage, is associating the Massachusetts health care bill you established as the “blue print for Obama Care”. I am a Emergency Physician, and nothing could be further from the truth. The Ron Paul/Fox News group tries to paint this as a Constitutional issue because of the individual mandate that is required for everyone to purchase a minimum level of insurance just like drivers are required to purchase car insurance. Despite the media's attempts, I can't really even think of any similarities between Romney Care and Obama Care. 1. Romney care is a state program, and that is the crux of the Constitutional issue. The states are free to be “the laboratories of democracy.” 2. Romney care does not have a government option. The State of Massachusetts has not set up its own insurance company to compete against private insurance companies like Obama Care does. Romney care helps citizens afford to purchase private health care from Aetna, Cigna, Blue Cross, Humana, Wellpoint, or United. 3. Romney care does not set up a quality reimbursement system where doctor's reimbursement will depend on a government defined quality factor. 4. According to FactCheck.org, 59% of Massachusetts citizens are satisfied with Romney Care. (Harvard/Boston Globe Survey, 2009)
5. Anyone else but Romney. The main stream and alternative media attempting to injure your campaign with their “blah-blah”, un-excitement for you candidacy. The day after your win in New Hampshire, which wasn't really official until the next day, the news commentator said something like , “well since you all have already heard about the significance of Romney's win in New Hampshire yesterday, we don't want to bore you so we will move on to discuss other things today”.
I don't think there is anything you can do about this. The media is generally liberal and even the conservatives don't like you. Conservative Radio talk show host, Dr. Bill Bennett is very influential among the 60+ crowd and his support for John McCain hurt you 4 years ago.
6. Ron Paul Independent Run. If you let Ron Paul run as a 3rd-party candidate against you in the general election you will lose in the General Election to President Obama. So, either you address the many issues that the “conspiracy theorist” Ron Paul supporters are concerned about and distance your self from the globalists, and big business, or invite Ron Paul to be your running mate in the General Election. He may decline, but it may make him look bad if he runs as an Independent.
7. Association with Big Business. The economy has been in decline for the last 4 years. America is shipping our industry and jobs overseas. We are are not managing our affairs wisely. We are not “living within our means” as a nation. Much of the blame for our current economic condition is not being focused on Pres. Obama, but on big globalist investment firms like Goldman Sachs, and private institutions like the Federal Reserve. You need to distance yourself from the negatives of Big Business while playing up your leadership skills. You need to show that Bain Capital is not Goldman Sachs, or MF Global.
1. When you were with Bain & Company, you didn't like what they were doing, so you distanced yourself from them and formed Bain Capital. You were so successful doing what you knew to be right, Bain & Company asked you to serve as their CEO to get them back on track to profitability.
2. The 2002 Winter Olympics was mired in scandal. Corporate advertisers were pulling out left and right. You came in and operated things honestly and justly and turned things completely around and organized one of the most successful winter Olympics in history. You even directed traffic.
3. You ran as Governor of Massachusetts and didn't get into office and run things with a “business as usual” attitude. You got in and righted the ship, balanced the budget, and returned the State to efficient operation and continued prosperity.
Wednesday, January 04, 2012
Problem with Ron Paul
In July 2010, Barney Frank and Ron Paul co-authored a Huffington Post article rolling out their Sustainable Defense Task Force . The Task Force "consisting of experts on military expenditures that span the ideological spectrum" would recommend a trillion dollars in defense cuts.
However, as several articles are pointing out, these experts hardly represent the ideological spectrum. The names of the people in this TASK FORCE are huge liberals and have served in other very liberal, George Soros supported think tanks.
http://www.comw.org
The Commonwealth Institute appears to be a think tank, public policy organization whose major project is called "the Project on Defense Alternatives (PDA)"
http://www.comw.org/pda/
It appears that the goal of PDA is for "Sustainable Growth" of the DOD, which is a misleading way of saying that these policy makers want to cut the US Military Budget by $1 Trillon over the next 10 years. However, everyone knows that just pulling out of Iraq and Afghanistan would achieve this goal without any further cuts to Defense spending. What puzzles me is that this whole PDA/Sustainable Defense Task Force is a group formed by a partnership between Ron Paul and Barney Frank, and it is filled with people connected with George Soros. The people who will decide how best to gut the DOD just at the exact time Russia and China are getting ready to attack the US
William D. Hartung (New American Foundation) Soros Funded
Lawrence J. Kolb (the Center for American Progress) Soros Funded, Obama WhiteHouse Think Tank
Miriam Pemberton (Institute for Policy Studies) Soros Funded, Soros Jr on board
Christopher Hellman (National Priorities Project) Soros Funded
Winslow Wheeler (Center for Defense Information) Urging globalism
Charles Knight (Project for Defense Alternatives)
Carl Conetta (Project for Defense Alternatives)
Guy Molyneux (Open Society Institute)
Richard Healey (Institute for Policy Studies, Center for Social Inclusion)
Paul Kawika Martin (Peace Action = Committee for a SANE Nuclear Policy, Physicians for Social Responsibility) Soros Funded
Lacie Olson (Center for Arms Control and Non-Proliferation, Physicians for Social Responsibility)
Heather Hurlburt (National Security Network) Soros funded
According to a FrontPageMag.com article 9 out of 14 members of the Paul-Frank Task Force are linked to George Soros supported organizations. 2 are affiliated with the CATO Institute.
Task Force Proposals:
1. cutting nuclear deterrence
2. reduce navy fleet by 57 ships, 2 carriers
3. cancel Joint Strike Fighter
4. curtail missile defense
5. retire four Marine battalions
6. reduce military by 200,000
7. cut DOD research by 50 Billion over 10 years
8. increase healthcare fees for military
Paul is a globalist fraud. Only most conspiracy nuts are too near-sighted to realize their conspiracy candidate is just another example of controlled opposition.
#1. A work associate who is a member of an elite family have supported him and the Tea Party from the beginning
#2. He's a Libertarian
#3. He is associated with Alex Jones
#4. He wants to legalize drugs
#5. He voted to end "don't ask don't tell"
#6. His "Sustainable Defence Task Force" wants to gut the heart out of our military.
#7. He spoke yesterday favorably about a return to the gold standard ( it's the amortized loan that inflates not the FED).
I have noted that you routinely talk about how the Soviet-Russian Establishment is an expert at setting up controlled opposition party candidates. However, it seems when it comes to the Anglo-American Establishment and Ron Paul, you never consider that he is also a cunning example of controlled opposition. Why do I believe Ron Paul is on the dark side? Let me list the reasons.
Anthony "Tony Powers" deMedici is a local radio personality in my area, and a local and national Tea Party organizer. I worked with Tony's son James who got me listening to Alex Jones. Because of this interaction, I mistrust Ron Paul and Alex Jones.
Ron Paul is associated with Alex Jones who is controlled opposition taking the place of William Cooper. Look at who Alex Jones associates with: Jessie Ventura (obvious insider who founded wwe and used insider money and influence to get elected governor), Charlie Sheen (used his insider American Express Black Card for drugs and prostitutes).
Ron Paul is a Libertarian. The whole Libertarian movement is controlled opposition. Ive been listening to Neal Boortz and Herman Cain out of Atlanta for years. I liken the Libertarian movement as Republicanism without virtue. Boortz routinely says he could never run for president because of the many skeletons in his closet.
Ron Paul is a member of the Greek fraternity Lambda Chi Alpha. President Truman also was initiated or "crossed over" to this fraternity before being inaugurated. In my mind, this Greek fraternity seems a bit more than the usual college weekend drinking club.
Soros and Barny Frank associated "Sustainable Defence Task Force"
Puts pork in bills and votes against them knowing they will pass anyways.
Against the FED but wants to return to gold. Ending the FED is good but returning to gold won't change the boom-bust economy.
Wants to legalize drugs knowing that it's government corruption and secret societies that run the drugs and create the "market" and not the "market" itself.
Advocated ending all foreign aide. Yes, $1.5 billion to Muslim Brotherhood in Egypt by Pres Obama isn't good, but humanitarian relief is the only good PR the US has at the moment.
Ron Paul will run against Romney and Obama as a third party splitting off conservative votes from Romney. Consequently, Obama will win in October.
However, as several articles are pointing out, these experts hardly represent the ideological spectrum. The names of the people in this TASK FORCE are huge liberals and have served in other very liberal, George Soros supported think tanks.
http://www.comw.org
The Commonwealth Institute appears to be a think tank, public policy organization whose major project is called "the Project on Defense Alternatives (PDA)"
http://www.comw.org/pda/
It appears that the goal of PDA is for "Sustainable Growth" of the DOD, which is a misleading way of saying that these policy makers want to cut the US Military Budget by $1 Trillon over the next 10 years. However, everyone knows that just pulling out of Iraq and Afghanistan would achieve this goal without any further cuts to Defense spending. What puzzles me is that this whole PDA/Sustainable Defense Task Force is a group formed by a partnership between Ron Paul and Barney Frank, and it is filled with people connected with George Soros. The people who will decide how best to gut the DOD just at the exact time Russia and China are getting ready to attack the US
William D. Hartung (New American Foundation) Soros Funded
Lawrence J. Kolb (the Center for American Progress) Soros Funded, Obama WhiteHouse Think Tank
Miriam Pemberton (Institute for Policy Studies) Soros Funded, Soros Jr on board
Christopher Hellman (National Priorities Project) Soros Funded
Winslow Wheeler (Center for Defense Information) Urging globalism
Charles Knight (Project for Defense Alternatives)
Carl Conetta (Project for Defense Alternatives)
Guy Molyneux (Open Society Institute)
Richard Healey (Institute for Policy Studies, Center for Social Inclusion)
Paul Kawika Martin (Peace Action = Committee for a SANE Nuclear Policy, Physicians for Social Responsibility) Soros Funded
Lacie Olson (Center for Arms Control and Non-Proliferation, Physicians for Social Responsibility)
Heather Hurlburt (National Security Network) Soros funded
According to a FrontPageMag.com article 9 out of 14 members of the Paul-Frank Task Force are linked to George Soros supported organizations. 2 are affiliated with the CATO Institute.
Task Force Proposals:
1. cutting nuclear deterrence
2. reduce navy fleet by 57 ships, 2 carriers
3. cancel Joint Strike Fighter
4. curtail missile defense
5. retire four Marine battalions
6. reduce military by 200,000
7. cut DOD research by 50 Billion over 10 years
8. increase healthcare fees for military
Paul is a globalist fraud. Only most conspiracy nuts are too near-sighted to realize their conspiracy candidate is just another example of controlled opposition.
#1. A work associate who is a member of an elite family have supported him and the Tea Party from the beginning
#2. He's a Libertarian
#3. He is associated with Alex Jones
#4. He wants to legalize drugs
#5. He voted to end "don't ask don't tell"
#6. His "Sustainable Defence Task Force" wants to gut the heart out of our military.
#7. He spoke yesterday favorably about a return to the gold standard ( it's the amortized loan that inflates not the FED).
I have noted that you routinely talk about how the Soviet-Russian Establishment is an expert at setting up controlled opposition party candidates. However, it seems when it comes to the Anglo-American Establishment and Ron Paul, you never consider that he is also a cunning example of controlled opposition. Why do I believe Ron Paul is on the dark side? Let me list the reasons.
Anthony "Tony Powers" deMedici is a local radio personality in my area, and a local and national Tea Party organizer. I worked with Tony's son James who got me listening to Alex Jones. Because of this interaction, I mistrust Ron Paul and Alex Jones.
Ron Paul is associated with Alex Jones who is controlled opposition taking the place of William Cooper. Look at who Alex Jones associates with: Jessie Ventura (obvious insider who founded wwe and used insider money and influence to get elected governor), Charlie Sheen (used his insider American Express Black Card for drugs and prostitutes).
Ron Paul is a Libertarian. The whole Libertarian movement is controlled opposition. Ive been listening to Neal Boortz and Herman Cain out of Atlanta for years. I liken the Libertarian movement as Republicanism without virtue. Boortz routinely says he could never run for president because of the many skeletons in his closet.
Ron Paul is a member of the Greek fraternity Lambda Chi Alpha. President Truman also was initiated or "crossed over" to this fraternity before being inaugurated. In my mind, this Greek fraternity seems a bit more than the usual college weekend drinking club.
Soros and Barny Frank associated "Sustainable Defence Task Force"
Puts pork in bills and votes against them knowing they will pass anyways.
Against the FED but wants to return to gold. Ending the FED is good but returning to gold won't change the boom-bust economy.
Wants to legalize drugs knowing that it's government corruption and secret societies that run the drugs and create the "market" and not the "market" itself.
Advocated ending all foreign aide. Yes, $1.5 billion to Muslim Brotherhood in Egypt by Pres Obama isn't good, but humanitarian relief is the only good PR the US has at the moment.
Ron Paul will run against Romney and Obama as a third party splitting off conservative votes from Romney. Consequently, Obama will win in October.
Sunday, January 01, 2012
Safety Society/Merchantile Exchange/Bank
Discussing banking with several friends on the Internet and by email, there is another part of the Full Reserve, Safety Society that is needed to satisfy the demands for money in an economy. On one side, a healthy bank should only create money for loans for the purchase or production of a real bank-redeemable, bank-repossessible assets, goods, or commodities. On the other side, money can also be created by the Merchantile exchange side and issued for deposited, wearhoused real assets, goods, materials that can be fully redeemed or repurchased by the people. In this way, the Safety Society/Merchantile Exchange Bank separates the Loan-side of business from the Deposit-side of business and there isn't multiple parties making a claim on the same asset as would happen if you issue money and issue a loan based on the same wearhoused asset.
1. Most money in our money supply is created by a bank when a loan is issued.
2. Milton Feidman's monetarism equation shows how money supply, velocity and real output produce unwanted inflation. dM/dt + dV/dt = infl + dRO/dt.
3. The amortized loan drives inflation by collecting interest up front, the home owner does't build significant equity and then charges the next owner a higher price for an older asset. Thus money creation > real output = inflation.
4. Safety Society Bank is full reserve and separates deposits from loans. All deposits are kept 100% at the bank.
5. Loans are only issued for real assets. Never for other currency or stock or bonds (private currency).
6. Loans are simple interest and fee based. Loan origination fee is how local banks earn revenue and monthly service charge and late fees.
7. Borrowers earn equity from month 1.
8 if they miss a payment, it is deducted from equity.Default happens when all equity is lost and not after first missed payment.
9. State or federal government actually creates the money and the standardized credit worthiness criteria but loans are administered by local banks.
10. If default occurs, bank repos a real asset and can operate, rent and sell asset and repay federal or state treasury. Fed or state earns revenue by simple interest which is a voluntary tax/fee on the use of money . The interest rate would control inflation by withdrawing money from the system as needed.
11. There would always be as much money as needed for any individual, corporation, or community to borrow however much they could repay for real assets only.
12. Safety Sociey System is safe, immune from contractions and downturns in economy and from bank runs.
13. Money is no longer artifically scarce. We no longer need to use scarce gold for money because we have technology to produce hard-to-counterfeit paper currency. But we can produce as much paper as is needed for credit worthy assets.
It makes no sense to have gold-redeemable currency, but not protects the banks from fractional reserve lending and borrowing for derivatives and stock that become worthless in a recession and bankrupt the bank. What good is redeeming gold when your banking system just collapsed. Money is created when a loan is issued. So, as long as a bank makes a loan for a "real asset", then the Bank can repossess that insured asset and not lose value if a person defaults on their loan.
With a gold-backed currency, how is value maintained in the system when people default on their loans and there are multiple people making a claim to redeem the same ounce of gold? If enough people fall on hard times, then the Fractional Reserve Bank goes bust and the economic disease spreads like Contagion to the rest of the community. However, for deposits and such (which should be separate from loans in a full-reserve bank), a Bank/Merchantile Exchange could issue script money in exchange for real products, goods, and commodities. For example, An egg farmer would bring his eggs to the Bank/Merchantile Exchange/Safety Society. The Safety Societ/Mechantile would issue script/money based on those goods which could be used to purchase other goods in the Merchantile Exchange. This way the community is injected with money sufficient to re-purchase the commodities at the Store/Bank.
The Safety Society part of the bank would issue loans. Currently Banks issue loans on their reserves, or how much money they have in deposits. When a Bank loses reserved they can't loan or pay out withdrawals and everyone goes bust (like Kirkland). However, if script/money is always issued and backed up by a real asset, then the Bank and the Community is always protected. So the Saftey Society Bank would issue loans based on if the loan was going for the purchase or production of a real "credit worthy" redeemable, repossessabke good, commodity, or asset like real estate.
Loans are not made based on how many eggs are in the wearhouse at the Merchantile Exchange. Money has already been created based on the eggs. The price of the eggs, that they would be sold, would be based on supply and demand and based on retaining value. There would not be much markup on the eggs. The money issued would be almost enough to purchase the eggs back. Loans would be a totally separate mechanism for money creation instead of how the banks do now with fractional reserve lending and create double the money for each egg they have in possession.
Separating the Deposit/Merchantile Exchange-side of banking from the Safety Society/Loan-side of Banking preserves the bank's Full Reserve status and prevents there being multiple money creation on the same asset (egg), and consequently multiple parties making a claim to redeem/repossess the same asset (egg).
It would be best if interest rates and money creation and credit-worthiness criteria were standardized by the US Treasury as the Constitution requires, but the Safety Society/Merchantile Exchange could be totally decentralized and locally regulated.
You don't need to perseverate on the "egg". Substitute it for whatever non-perishable you like. The following statement seems to be the core of your economic ideology: "because when you require that others invest their stored value in some new enterprise, they will be more careful and require compensation"
1. Your system is fractional reserve. Loans are made based upon deposits. Therefore, both the investors and the loaned money holders have claim on the same wearhoused commodity.
2. You claim investment risk is necessary. I say it is not. I would like to see a decrease in the practice of money making money. My whole system is about decreasing the practice of the wealthy making money on money. Venture capital will still be necessary but the laborer will be able have access to safe, appropriately priced credit. Furthermore, The bank makes fees and interest to cover it's overhead. The government makes a Constitutional voluntary tax/fee/interest to control inflation and generate revenue.
3. When you have some kind of economic shock, history demonstrates again and again that your system's loan defaults will exceed the projected risk and your bank will be insolvent, your wearhoused wealth will disappear, and your economy will be in shambles.
4. Your historical system divides the people into classes of wealth-holders and laborers where the wealthy use their un-elected Machiavellian economic power to "carefully decide" to invest in those things that will maintain or advance their power.
5. You have never proven that my system would produce unwanted inflation nor "steel" value from the wealthy.
6. Money is not being created out of nothing. There are real assets that the bank can redeem and repossess if the loan is defaulted on. Neither side needs to lose.
7. Your wealth vs. laborer system is neither honest nor wonderful. Wealth/commodity-holders need not enslave the laborer.
8. We need not excessively put a drag on growth as your system historically does. My system which is not mine and neither is it my invention would use fees, interest, and have standardized rules by elected leaders that contol and properly regulate money creation and economic growth.
9. You are arguing for a historical system based on a local unelected oligarchy, austerity, inequality, and economic slavery. Tyranny is wrong whether it be local or global.
10. Man should earn his bread by the sweat of his brow all the days of his life and not just until he has wearhoused enough to live off the sweat of others.
Thinking about the failings of the "egg" analogy it is clear that the Merchantile Exchange would only deal with non-perishable goods and not perishable items. Therefore there would need to be a separate grocery store.
1. Most money in our money supply is created by a bank when a loan is issued.
2. Milton Feidman's monetarism equation shows how money supply, velocity and real output produce unwanted inflation. dM/dt + dV/dt = infl + dRO/dt.
3. The amortized loan drives inflation by collecting interest up front, the home owner does't build significant equity and then charges the next owner a higher price for an older asset. Thus money creation > real output = inflation.
4. Safety Society Bank is full reserve and separates deposits from loans. All deposits are kept 100% at the bank.
5. Loans are only issued for real assets. Never for other currency or stock or bonds (private currency).
6. Loans are simple interest and fee based. Loan origination fee is how local banks earn revenue and monthly service charge and late fees.
7. Borrowers earn equity from month 1.
8 if they miss a payment, it is deducted from equity.Default happens when all equity is lost and not after first missed payment.
9. State or federal government actually creates the money and the standardized credit worthiness criteria but loans are administered by local banks.
10. If default occurs, bank repos a real asset and can operate, rent and sell asset and repay federal or state treasury. Fed or state earns revenue by simple interest which is a voluntary tax/fee on the use of money . The interest rate would control inflation by withdrawing money from the system as needed.
11. There would always be as much money as needed for any individual, corporation, or community to borrow however much they could repay for real assets only.
12. Safety Sociey System is safe, immune from contractions and downturns in economy and from bank runs.
13. Money is no longer artifically scarce. We no longer need to use scarce gold for money because we have technology to produce hard-to-counterfeit paper currency. But we can produce as much paper as is needed for credit worthy assets.
It makes no sense to have gold-redeemable currency, but not protects the banks from fractional reserve lending and borrowing for derivatives and stock that become worthless in a recession and bankrupt the bank. What good is redeeming gold when your banking system just collapsed. Money is created when a loan is issued. So, as long as a bank makes a loan for a "real asset", then the Bank can repossess that insured asset and not lose value if a person defaults on their loan.
With a gold-backed currency, how is value maintained in the system when people default on their loans and there are multiple people making a claim to redeem the same ounce of gold? If enough people fall on hard times, then the Fractional Reserve Bank goes bust and the economic disease spreads like Contagion to the rest of the community. However, for deposits and such (which should be separate from loans in a full-reserve bank), a Bank/Merchantile Exchange could issue script money in exchange for real products, goods, and commodities. For example, An egg farmer would bring his eggs to the Bank/Merchantile Exchange/Safety Society. The Safety Societ/Mechantile would issue script/money based on those goods which could be used to purchase other goods in the Merchantile Exchange. This way the community is injected with money sufficient to re-purchase the commodities at the Store/Bank.
The Safety Society part of the bank would issue loans. Currently Banks issue loans on their reserves, or how much money they have in deposits. When a Bank loses reserved they can't loan or pay out withdrawals and everyone goes bust (like Kirkland). However, if script/money is always issued and backed up by a real asset, then the Bank and the Community is always protected. So the Saftey Society Bank would issue loans based on if the loan was going for the purchase or production of a real "credit worthy" redeemable, repossessabke good, commodity, or asset like real estate.
Loans are not made based on how many eggs are in the wearhouse at the Merchantile Exchange. Money has already been created based on the eggs. The price of the eggs, that they would be sold, would be based on supply and demand and based on retaining value. There would not be much markup on the eggs. The money issued would be almost enough to purchase the eggs back. Loans would be a totally separate mechanism for money creation instead of how the banks do now with fractional reserve lending and create double the money for each egg they have in possession.
Separating the Deposit/Merchantile Exchange-side of banking from the Safety Society/Loan-side of Banking preserves the bank's Full Reserve status and prevents there being multiple money creation on the same asset (egg), and consequently multiple parties making a claim to redeem/repossess the same asset (egg).
It would be best if interest rates and money creation and credit-worthiness criteria were standardized by the US Treasury as the Constitution requires, but the Safety Society/Merchantile Exchange could be totally decentralized and locally regulated.
You don't need to perseverate on the "egg". Substitute it for whatever non-perishable you like. The following statement seems to be the core of your economic ideology: "because when you require that others invest their stored value in some new enterprise, they will be more careful and require compensation"
1. Your system is fractional reserve. Loans are made based upon deposits. Therefore, both the investors and the loaned money holders have claim on the same wearhoused commodity.
2. You claim investment risk is necessary. I say it is not. I would like to see a decrease in the practice of money making money. My whole system is about decreasing the practice of the wealthy making money on money. Venture capital will still be necessary but the laborer will be able have access to safe, appropriately priced credit. Furthermore, The bank makes fees and interest to cover it's overhead. The government makes a Constitutional voluntary tax/fee/interest to control inflation and generate revenue.
3. When you have some kind of economic shock, history demonstrates again and again that your system's loan defaults will exceed the projected risk and your bank will be insolvent, your wearhoused wealth will disappear, and your economy will be in shambles.
4. Your historical system divides the people into classes of wealth-holders and laborers where the wealthy use their un-elected Machiavellian economic power to "carefully decide" to invest in those things that will maintain or advance their power.
5. You have never proven that my system would produce unwanted inflation nor "steel" value from the wealthy.
6. Money is not being created out of nothing. There are real assets that the bank can redeem and repossess if the loan is defaulted on. Neither side needs to lose.
7. Your wealth vs. laborer system is neither honest nor wonderful. Wealth/commodity-holders need not enslave the laborer.
8. We need not excessively put a drag on growth as your system historically does. My system which is not mine and neither is it my invention would use fees, interest, and have standardized rules by elected leaders that contol and properly regulate money creation and economic growth.
9. You are arguing for a historical system based on a local unelected oligarchy, austerity, inequality, and economic slavery. Tyranny is wrong whether it be local or global.
10. Man should earn his bread by the sweat of his brow all the days of his life and not just until he has wearhoused enough to live off the sweat of others.
Thinking about the failings of the "egg" analogy it is clear that the Merchantile Exchange would only deal with non-perishable goods and not perishable items. Therefore there would need to be a separate grocery store.
Monday, December 26, 2011
Problem with Gold and a Gold-Redeemable Currency
Protocol 20:22 "YOU ARE AWARE THAT THE GOLD STANDARD HAS BEEN THE RUIN OF THE STATES WHICH ADOPTED IT, FOR IT HAS NOT BEEN ABLE TO SATISFY THE DEMANDS FOR MONEY, THE MORE SO THAT WE HAVE REMOVED GOLD FROM CIRCULATION AS FAR AS POSSIBLE."
Man has been on a gold and silver standard since money was first mentioned in the Bible in the days of Abraham about 2000 BC and the Silver Shekel of Tyre. The widespread use of money fits with Revelation's description of money being revealed during the 3rd Seal or 3rd Millennium of man's mortal existence on this Earth (Black Horse).
But the Black Horse of the 3rd Seal isn't primarily about money. The Black Horse represents famine. According to the prophecy, artificial scarcity resulted in a days wages barely purchasing enough wheat or barley for one man to survive. However, luxury items like oil and wine were unaffected. The artificial scarcity of a gold-redeemable currency, has driven nations to plunder and subjugate neighboring peoples for gold for thousands of years.
I believe money should be backed by real assets as well as being fully redeemable for those assets without causing unwanted inflation. But a Constitutional money system should also not need to constrain us to the scarcity of gold, nor cause our banking institutions to be vulnerable to failure due to fractional reserve banking and periodic contractions in the money supply.
Unfortunately, I see an eventual end to the FED and a return to a gold standard. If this happens, will the US confiscates gold from the people again like it did in 1933 or will it confiscate half of Germany's gold supply that is currently being held by the New York FED? (Max Keiser)
SSS is not inflationary. Loans focus on retaining value and would not be approved for inflationary profiteering. Constitutional voluntary fee/tax would also control inflation levied for the use of national credit. Also, the SSS currency is backed by real redeemable assets. And SSS protects banks from their inherent vulnerability to failure due to commodity price fluctuations and the consequences of fractional reserve banking.
What good is it to have gold-redeemable currency when your bank fails, the curency fails, and the economy falls into a deep depression? Why not prevent the bank failure? ****Letting the bank redeem their money following an individual failure is better then letting the people redeem their money following a total banking, currency and total economic failure.*****
Don't fall for the obvious Gold propaganda that is being overplayed in both the mainstream and alternative media. Sean Hannity, Rush Limbaugh, Genesis Communication all preaching gold, gold, gold.
> Money is just a medium of exchange. As long as the parties involved agree upon what the exchange rate. If individuals are free to make private contracts with one another, then they should be free to exchange money. Money, as I see it, could be described as a standardized government contract form approved for use by its citizenry.
>
> The issues with gold is that while it is innert and lasts a long time, there isn't much of it around. This creates a problem of scarcity. And when something is made scarce, then it gets a false value associated with it. On the flip side, you don't want people to be able to counterfeit money either. That goes for the government also. However, with modern technology, we can better create paper currencies that cannot easily be counterfeit.
> Today, we really don't need gold at all because we can create a relatively counterfeit-proof currency that is equally accessible. Thus we can get back to money just being just a contract again and not treated as something of value in and of itself.
>
> I am afraid that just because the FED instituted a fraudulent, inflationary, and destructive fiat currency that we necessarily need to run away from paper back to the inequality and scarcity of gold. That said, money has to be tied to something of value. I agree that the Goverment shouldn't counterfeit either.
> I am of the opinion that it was the HUD/FHA amortized loan and other amortized loans like it that were the major drivers of inflation in our economy. Banks create most of the money in our economy and amortized loans are the tool by which banks create that money. And exactly as the Feidman macroeconomic equation predicts, the amortized mortgage (double death) creates money each time a home is bought and sold for a higher price that does not match an increase in real output. It's the same house as before, just older and now costs more but is not worth more. This is an amazing verification of the Friedman equation. (in fact this point is exactly what woke me up in 2008)
> Despite your opinion that the Freidman Macroeconomic equation doesn't apply to the macroeconomics of inflation, I think I have just shown you a clear example of how a microeconomic mismatch between money creation, velocity, and real output creates macroeconomic inflation. The Amortized Mortgage is an inflation generator by doing exactly what the Freidman equation predicts.
>
> Freidman Monetarism may be ruining this country, but it's not because the equations don't apply or don't work. The equations do apply and the system is working just as the equation predicts.
> I suggest that because the Friedman equation does apply, that it is very possible that the SSS would not produced the unwanted inflation that you are convinced it would produce. Remember, money would never be created out of nothing. Money would only br created if there was a durable good it was being created to purchase or produce. Not unlike your system. Money supply, money velocity would stay proportional to real output.
>
> Again, just like your system. The real asset and the price has been negotiated before the loan is applied for. There is no speculation. if a building is being built, the materials, land, labor etc already exists and has a negotiated price before the money is created. In this system money ceases to be the rate limiting step.
> Again, I don't remember saying this or thinking this. If inflation is controlled, simple interest, fee-based loans can compete in a free market. Anyone is free to charge more and pay more. However in the SSS, local banks make money as they do now by charging a loan origination fee and a monthly service charge. The Gov makes money by charging a prime interest rate and generating revenue on what is a Constitutionally-sound voluntary tax on the entire money supply and not just a fraction of it (could make the income tax obsolete). And then we can get rid of the useless "too-big-to-fail" mega banks who were instituted because of our short but persistent history of small bank failures.
> In the Safety Society System we don't need the unelected wealthy capitalist to decide what to invest in. Our capitalist system tells us we need those few rich guys at the top of the pyramid. In this system we have a free market without a need for the the capitalists (oligarchs). And we can still have our football stadium and aquarium.
>
> In the SSS, If an individual is credit worthy and there is a real asset to purchase, the local bank would extend the loan and the loan would be repaid with interest and fees. And when the owner resold the asset, he would have equity from day 1 such that he wouldn't need to inflate the asking price to his neighbor.
>
> Furthermore, if a community wants a museum or an aquarium, they can qualify for a loan to build the aquarium or museum. And they don't need Billionaire ultra-elite capitalists to fund these building projects. Other financial institutions would fill the niches for venture capital and other speculative activities. SSS is about being full reserve and staying safe.
Man has been on a gold and silver standard since money was first mentioned in the Bible in the days of Abraham about 2000 BC and the Silver Shekel of Tyre. The widespread use of money fits with Revelation's description of money being revealed during the 3rd Seal or 3rd Millennium of man's mortal existence on this Earth (Black Horse).
But the Black Horse of the 3rd Seal isn't primarily about money. The Black Horse represents famine. According to the prophecy, artificial scarcity resulted in a days wages barely purchasing enough wheat or barley for one man to survive. However, luxury items like oil and wine were unaffected. The artificial scarcity of a gold-redeemable currency, has driven nations to plunder and subjugate neighboring peoples for gold for thousands of years.
I believe money should be backed by real assets as well as being fully redeemable for those assets without causing unwanted inflation. But a Constitutional money system should also not need to constrain us to the scarcity of gold, nor cause our banking institutions to be vulnerable to failure due to fractional reserve banking and periodic contractions in the money supply.
Unfortunately, I see an eventual end to the FED and a return to a gold standard. If this happens, will the US confiscates gold from the people again like it did in 1933 or will it confiscate half of Germany's gold supply that is currently being held by the New York FED? (Max Keiser)
SSS is not inflationary. Loans focus on retaining value and would not be approved for inflationary profiteering. Constitutional voluntary fee/tax would also control inflation levied for the use of national credit. Also, the SSS currency is backed by real redeemable assets. And SSS protects banks from their inherent vulnerability to failure due to commodity price fluctuations and the consequences of fractional reserve banking.
What good is it to have gold-redeemable currency when your bank fails, the curency fails, and the economy falls into a deep depression? Why not prevent the bank failure? ****Letting the bank redeem their money following an individual failure is better then letting the people redeem their money following a total banking, currency and total economic failure.*****
Don't fall for the obvious Gold propaganda that is being overplayed in both the mainstream and alternative media. Sean Hannity, Rush Limbaugh, Genesis Communication all preaching gold, gold, gold.
> Money is just a medium of exchange. As long as the parties involved agree upon what the exchange rate. If individuals are free to make private contracts with one another, then they should be free to exchange money. Money, as I see it, could be described as a standardized government contract form approved for use by its citizenry.
>
> The issues with gold is that while it is innert and lasts a long time, there isn't much of it around. This creates a problem of scarcity. And when something is made scarce, then it gets a false value associated with it. On the flip side, you don't want people to be able to counterfeit money either. That goes for the government also. However, with modern technology, we can better create paper currencies that cannot easily be counterfeit.
> Today, we really don't need gold at all because we can create a relatively counterfeit-proof currency that is equally accessible. Thus we can get back to money just being just a contract again and not treated as something of value in and of itself.
>
> I am afraid that just because the FED instituted a fraudulent, inflationary, and destructive fiat currency that we necessarily need to run away from paper back to the inequality and scarcity of gold. That said, money has to be tied to something of value. I agree that the Goverment shouldn't counterfeit either.
> I am of the opinion that it was the HUD/FHA amortized loan and other amortized loans like it that were the major drivers of inflation in our economy. Banks create most of the money in our economy and amortized loans are the tool by which banks create that money. And exactly as the Feidman macroeconomic equation predicts, the amortized mortgage (double death) creates money each time a home is bought and sold for a higher price that does not match an increase in real output. It's the same house as before, just older and now costs more but is not worth more. This is an amazing verification of the Friedman equation. (in fact this point is exactly what woke me up in 2008)
> Despite your opinion that the Freidman Macroeconomic equation doesn't apply to the macroeconomics of inflation, I think I have just shown you a clear example of how a microeconomic mismatch between money creation, velocity, and real output creates macroeconomic inflation. The Amortized Mortgage is an inflation generator by doing exactly what the Freidman equation predicts.
>
> Freidman Monetarism may be ruining this country, but it's not because the equations don't apply or don't work. The equations do apply and the system is working just as the equation predicts.
> I suggest that because the Friedman equation does apply, that it is very possible that the SSS would not produced the unwanted inflation that you are convinced it would produce. Remember, money would never be created out of nothing. Money would only br created if there was a durable good it was being created to purchase or produce. Not unlike your system. Money supply, money velocity would stay proportional to real output.
>
> Again, just like your system. The real asset and the price has been negotiated before the loan is applied for. There is no speculation. if a building is being built, the materials, land, labor etc already exists and has a negotiated price before the money is created. In this system money ceases to be the rate limiting step.
> Again, I don't remember saying this or thinking this. If inflation is controlled, simple interest, fee-based loans can compete in a free market. Anyone is free to charge more and pay more. However in the SSS, local banks make money as they do now by charging a loan origination fee and a monthly service charge. The Gov makes money by charging a prime interest rate and generating revenue on what is a Constitutionally-sound voluntary tax on the entire money supply and not just a fraction of it (could make the income tax obsolete). And then we can get rid of the useless "too-big-to-fail" mega banks who were instituted because of our short but persistent history of small bank failures.
> In the Safety Society System we don't need the unelected wealthy capitalist to decide what to invest in. Our capitalist system tells us we need those few rich guys at the top of the pyramid. In this system we have a free market without a need for the the capitalists (oligarchs). And we can still have our football stadium and aquarium.
>
> In the SSS, If an individual is credit worthy and there is a real asset to purchase, the local bank would extend the loan and the loan would be repaid with interest and fees. And when the owner resold the asset, he would have equity from day 1 such that he wouldn't need to inflate the asking price to his neighbor.
>
> Furthermore, if a community wants a museum or an aquarium, they can qualify for a loan to build the aquarium or museum. And they don't need Billionaire ultra-elite capitalists to fund these building projects. Other financial institutions would fill the niches for venture capital and other speculative activities. SSS is about being full reserve and staying safe.
Thursday, December 15, 2011
Monetary and Economic Solution for the World
Dear Ben,
I was listening to one of your recent interviews, and I was just amazed at your description of a monetary a banking solution. I have been thinking exactly along the same lines. I especially liked your comments on gold and gold production; how it can be and is manipulated just as easily as fiat currency. (eg 1300's Florentine banking failure). I have been making these same arguments.
1: Gold and gold production can be and is manipulated just as easily as fiat currency. (eg 1300's Florentine banking failure).
2: Money and Credit need to be created by the US Treasury and administered locally based on projected production of commodities and not what is already warehoused.
Critics in the media are a dime-a-dozen, but it's rare to hear people talk about solutions. I wanted you send you my thoughts with regard to a US Constitutional-based banking and Monetary System called the "Safety Society System."
ENUMERATED PRIVILEGE
According to Article 1, Section 8 of the Constitution the Congress of the US is charged with the duty, privilege, and responsibility to "coin" or create the money as well as borrow and lend based on the credit of the United States. So, knowing that "coining" money is part of the duty of Congress, I wonder just how much our Senators and Representatives know about how our economy works. With the passage of the Federal Reserve Act in 1913, the Congress has abdicated this sacred responsibility to a privately owned central bank. Now, it's time for Congress to take this privilege back.
MONEY SUPPLY
The money supply is broken up into constituent parts (m0-m3). Many opponents of the Federal Reserve System advocate a return to a gold standard where circulating money (m0-m2) must be backed by gold and other precious metals. Unfortunately, as you are already well aware, the same "special interests" that own the banks own the domestic gold production with a DeBeer's-like Monopoly. But, in addition to backing circulating money with gold, a large portion of the money supply could be backed with land and and other "real" assets, commodities and durable goods. To protect gold production, Congress may need to regulate domestic gold production by exercizing anti-trust legislation in addition to giving back to the states Federal Lands and the corresponding mineral rights.
MONEY CREATION
Instead of allowing the mega-banks to create 90% of the money supply via Fractional Reserve Lending, why not allow the US Treasury create/coin all the money in the money supply? Why not cut out the super-mega, too-big-to-fail banks and allow non-profit local and banks direct access to US Treasury capital for the purpose of issuing simple-interest, fee-based loans for credit-worthy borrowers, for non-depreciating assets like land and real-estate, commodities and durrible goods? Under such an equitable, risk-free system; capital is no longer an artificial scarcity and the unelected, ultra-elite, banking corporatocracy who control huge capital pools no longer wield Machiavellian power over the rest of society.
SAFETY SOCIETY
Therefore, I propose the creation of local and state non-profit "community safety society" banks. These locally controlled and administered institutions would have direct access to US Treasury capital for the purpose of issuing simple-interest or fee-based loans for non-depreciating assets such as land, and real-estate purchases. These "safety societies" would generate revenue for the Federal Government and to cover overhead costs by charging a loan origination fee, as well as modest monthly loan servicing fees (simple interest).
Under the "Safety Society" System, any citizens who can demonstrate regular employment and income can qualify for a loan. Groups, co-ops, and corporations can qualify for business loans to purchase and develop land. Communities can pass referendums for a sales tax increase and qualify for larger loans based on the projected tax revenue.
Many monetary solutions which call for a commodity-backed currency require the commodities to be wearhoused before the money is created and the loan extended. In the Safety Society System, money is created and loans extended for projected growth and production.
AMORTIZATION AND INFLATION
The benefits of this system are that home and business owners will be able to build equity immediately unlike the FHA/HUD amortized loans we have now that collect interest up front. Amortized loans are a major driver of inflation because the only way to earn equity in the first 10 years is for the price of the home to go up. So, you have a 10-year-old home that is now $30,000 more expensive. Consequently, the amortized loan has been a major contributer to the devaluation of the dollar since 1934.
LOW RISK
I claim that such an equitable lending system would protect our "safety society" bank from risk by only issuing simple-interest/fee-based loans for non-depreciating assets. In the event that a borrower (citizen, co-op, corporation, community) were unable to make a payment, that missed payment would be deducted from the equity in the property. In this way, the loan would operate as an instant reverse mortgage at any time. Therefore, missed payments actually become extra revenue for the Federal Government Foreclosure would not occur until the borrower had lost all equity in the asset unlike today when a bank has the right to foreclose after 1-2 missed payment resulting in the borrower forfeiting any and all equity in the property.
REVENUE
Currently, the Federal Government only collects revenue (prime interest) on a fraction of the money created because the Federal Government only creates a fraction of the money supply in the system. Under the "Safety Society" system, all new money created would generate revenue. Under our current system, the FED generated less than 50 Billion dollars a year. The "Safety Society" collecting 1% fee on all new money creation could generate trillions via an equitable and voluntary taxation of the people.
INFLATION CONTROL
An important aspect of the "Safety Society" Banking System is its ability to control inflation but immediately respond for the need for liquidity in the economy. When capital is plentiful, and individuals can pay cash and not borrow, new money will not be needed and not created. On the other hand, when capital is in short supply, money can be created and loaned interest free as needed.
FULL RESERVE BANKING
The non-profit "Safety Society" Banking System would be a type of full reserve banking. The Bank would borrow from the US Treasury 100% of what it would lend. Accordingly, customer deposits would not be used to make new loans, but could be kept at the bank in electronic form until withdrawn making "Safety Societies" immune to failure following a "run" on the bank. Full Reserve "Safety Societies" would also be immune to stock market crashes and economic downturns that cause banking assets to lose value, leading to the loss of fractional reserves, which then leads to the inability of banks to make new loans or reimburse depositors.
VENTURE CAPITAL
Under our system, our "Safety Societies" would reduce but not eliminate the need for businesses and communities to raise money via the sale of stocks and bonds. Stock and Bond sales would be unnecessary because no-interest loans could be easily obtained. However, despite the cheapness of capital, the "Safety Society" would never be used to loan money for the purchase of stock, bonds, or other speculative financial instruments. "Safety Society" monies cannot be used to generate other money, but only can be used in exchange for "real" assets with non-depreciating value for at least the life of the loan. Stock sales may be brokered by other institutions and private individuals to raise capital for more speculative endeavors such as for the purposes of research and development and business creation. Government programs will also continue to assist with these capital needs as they do currently.
RETAINING VALUE
The goal in our full reserve "Safety Society" banking system is not to use capital to create capital. In our system, the US Treasury under the direction of the Congress creates money, so there is no need for money to create money. The main goal in our system is to maintain the value of the money that has already been created and implement an equatable economic and monetary system where money is backed by real assets, where the money supply can be expanded as needed; eliminating artificial scarcity, and where economic power is returned to individuals and communities, and not consolidated into the hands of an unelected money masters. Under the "Safety Society" Banking System, the people will no longer be economic sharecroppers to a small minority of elite capital controllers and special interests.
Best Regards,
David D Brosnahan MD, MS
dbrosnahan@gmail.com
Martinez, GA
I was listening to one of your recent interviews, and I was just amazed at your description of a monetary a banking solution. I have been thinking exactly along the same lines. I especially liked your comments on gold and gold production; how it can be and is manipulated just as easily as fiat currency. (eg 1300's Florentine banking failure). I have been making these same arguments.
1: Gold and gold production can be and is manipulated just as easily as fiat currency. (eg 1300's Florentine banking failure).
2: Money and Credit need to be created by the US Treasury and administered locally based on projected production of commodities and not what is already warehoused.
Critics in the media are a dime-a-dozen, but it's rare to hear people talk about solutions. I wanted you send you my thoughts with regard to a US Constitutional-based banking and Monetary System called the "Safety Society System."
ENUMERATED PRIVILEGE
According to Article 1, Section 8 of the Constitution the Congress of the US is charged with the duty, privilege, and responsibility to "coin" or create the money as well as borrow and lend based on the credit of the United States. So, knowing that "coining" money is part of the duty of Congress, I wonder just how much our Senators and Representatives know about how our economy works. With the passage of the Federal Reserve Act in 1913, the Congress has abdicated this sacred responsibility to a privately owned central bank. Now, it's time for Congress to take this privilege back.
MONEY SUPPLY
The money supply is broken up into constituent parts (m0-m3). Many opponents of the Federal Reserve System advocate a return to a gold standard where circulating money (m0-m2) must be backed by gold and other precious metals. Unfortunately, as you are already well aware, the same "special interests" that own the banks own the domestic gold production with a DeBeer's-like Monopoly. But, in addition to backing circulating money with gold, a large portion of the money supply could be backed with land and and other "real" assets, commodities and durable goods. To protect gold production, Congress may need to regulate domestic gold production by exercizing anti-trust legislation in addition to giving back to the states Federal Lands and the corresponding mineral rights.
MONEY CREATION
Instead of allowing the mega-banks to create 90% of the money supply via Fractional Reserve Lending, why not allow the US Treasury create/coin all the money in the money supply? Why not cut out the super-mega, too-big-to-fail banks and allow non-profit local and banks direct access to US Treasury capital for the purpose of issuing simple-interest, fee-based loans for credit-worthy borrowers, for non-depreciating assets like land and real-estate, commodities and durrible goods? Under such an equitable, risk-free system; capital is no longer an artificial scarcity and the unelected, ultra-elite, banking corporatocracy who control huge capital pools no longer wield Machiavellian power over the rest of society.
SAFETY SOCIETY
Therefore, I propose the creation of local and state non-profit "community safety society" banks. These locally controlled and administered institutions would have direct access to US Treasury capital for the purpose of issuing simple-interest or fee-based loans for non-depreciating assets such as land, and real-estate purchases. These "safety societies" would generate revenue for the Federal Government and to cover overhead costs by charging a loan origination fee, as well as modest monthly loan servicing fees (simple interest).
Under the "Safety Society" System, any citizens who can demonstrate regular employment and income can qualify for a loan. Groups, co-ops, and corporations can qualify for business loans to purchase and develop land. Communities can pass referendums for a sales tax increase and qualify for larger loans based on the projected tax revenue.
Many monetary solutions which call for a commodity-backed currency require the commodities to be wearhoused before the money is created and the loan extended. In the Safety Society System, money is created and loans extended for projected growth and production.
AMORTIZATION AND INFLATION
The benefits of this system are that home and business owners will be able to build equity immediately unlike the FHA/HUD amortized loans we have now that collect interest up front. Amortized loans are a major driver of inflation because the only way to earn equity in the first 10 years is for the price of the home to go up. So, you have a 10-year-old home that is now $30,000 more expensive. Consequently, the amortized loan has been a major contributer to the devaluation of the dollar since 1934.
LOW RISK
I claim that such an equitable lending system would protect our "safety society" bank from risk by only issuing simple-interest/fee-based loans for non-depreciating assets. In the event that a borrower (citizen, co-op, corporation, community) were unable to make a payment, that missed payment would be deducted from the equity in the property. In this way, the loan would operate as an instant reverse mortgage at any time. Therefore, missed payments actually become extra revenue for the Federal Government Foreclosure would not occur until the borrower had lost all equity in the asset unlike today when a bank has the right to foreclose after 1-2 missed payment resulting in the borrower forfeiting any and all equity in the property.
REVENUE
Currently, the Federal Government only collects revenue (prime interest) on a fraction of the money created because the Federal Government only creates a fraction of the money supply in the system. Under the "Safety Society" system, all new money created would generate revenue. Under our current system, the FED generated less than 50 Billion dollars a year. The "Safety Society" collecting 1% fee on all new money creation could generate trillions via an equitable and voluntary taxation of the people.
INFLATION CONTROL
An important aspect of the "Safety Society" Banking System is its ability to control inflation but immediately respond for the need for liquidity in the economy. When capital is plentiful, and individuals can pay cash and not borrow, new money will not be needed and not created. On the other hand, when capital is in short supply, money can be created and loaned interest free as needed.
FULL RESERVE BANKING
The non-profit "Safety Society" Banking System would be a type of full reserve banking. The Bank would borrow from the US Treasury 100% of what it would lend. Accordingly, customer deposits would not be used to make new loans, but could be kept at the bank in electronic form until withdrawn making "Safety Societies" immune to failure following a "run" on the bank. Full Reserve "Safety Societies" would also be immune to stock market crashes and economic downturns that cause banking assets to lose value, leading to the loss of fractional reserves, which then leads to the inability of banks to make new loans or reimburse depositors.
VENTURE CAPITAL
Under our system, our "Safety Societies" would reduce but not eliminate the need for businesses and communities to raise money via the sale of stocks and bonds. Stock and Bond sales would be unnecessary because no-interest loans could be easily obtained. However, despite the cheapness of capital, the "Safety Society" would never be used to loan money for the purchase of stock, bonds, or other speculative financial instruments. "Safety Society" monies cannot be used to generate other money, but only can be used in exchange for "real" assets with non-depreciating value for at least the life of the loan. Stock sales may be brokered by other institutions and private individuals to raise capital for more speculative endeavors such as for the purposes of research and development and business creation. Government programs will also continue to assist with these capital needs as they do currently.
RETAINING VALUE
The goal in our full reserve "Safety Society" banking system is not to use capital to create capital. In our system, the US Treasury under the direction of the Congress creates money, so there is no need for money to create money. The main goal in our system is to maintain the value of the money that has already been created and implement an equatable economic and monetary system where money is backed by real assets, where the money supply can be expanded as needed; eliminating artificial scarcity, and where economic power is returned to individuals and communities, and not consolidated into the hands of an unelected money masters. Under the "Safety Society" Banking System, the people will no longer be economic sharecroppers to a small minority of elite capital controllers and special interests.
Best Regards,
David D Brosnahan MD, MS
dbrosnahan@gmail.com
Martinez, GA
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