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Debt

The Problem is Money ..... Duh!

Submitted by Roanman on Sun, 11/02/2014 - 15:16

If you take a minute to understand how our money is created, the perversity and corruption in our system will become clear. And, when I say system, I mean our monetary system to be sure, but also our entire system of government as it functions today.

Most of our money starts out in life as debt. When the Federal Government of the United States of America decides that it needs money that it otherwise does not have, it issues debt ….. bonds.  Those bonds are sold at auction by the Treasury Department.  Much if not most all of these bonds are purchased by a group of twenty or so large, mostly Wall Street banks designated by The Federal Reserve Bank as "Primary Dealers".

Interestingly, The Federal Reserve Bank or "The Fed" as it is commonly known is not an agency of the Federal Government of the United States of America as one would reasonably expect by virtue of it's name.  It rather is a privately held institution, owned in large part by ..... wait for it ..... the "Primary Dealers.  The Federal Reserve Bank adds or subtracts money from the economy by trading government bonds with the "Primary Dealers", mostly always at a profit to the "Primary Dealers".

Purchasing bonds from the "Primary Dealers" injects cash into the economy as the Federal Reserve simply makes a journal entry into it’s own computer system for it's own account, and in so doing it deposits a sum of money which did not exist one instant before and thus some number of billions of dollars of new money is born out of thin air.  It only dies when the Fed subsequently sells those bonds back into the economy, thus drawing cash out of the economy, or when the government pays that money back by redeeming it's previously issued bonds.  In other words, that money is for the most part immortal.

The Federal Government of the United States of America then pays the required interest on this debt out of tax revenue.

Lately the Federal Reserve Bank has on occasion been buying the bonds back from the "Primary Dealers" the very next day following their original purchase by the "Primary Dealers" from the Treasury Department.  This enables these preferred banks to buy the next batch of new bonds and then subsequently resell them to the Federal Reserve Bank at another profit whenever the Federal Government of the United States of America again decides that it needs to spend some money that it does not have.  Usually, that would be tomorrow.

This is the nuts and bolts of the proceedure commonly referred to as "Monetizing The Debt".

Here is where it gets real interesting ..... at least to me.  Congress is empowered by the Constitution to “coin” money without ever having to fool around with The Fed, issuing bonds, debt or making interest payments. U.S. Constitution - Article 1 Section 8 begins as follows: The Congress shall have Power To ….. some stuff you should probably take the time to read ….. Clause 5, “Coin Money, regulate the Value thereof” ….. and then some other stuff you should probably also take the time to read.  Congress punted on that right with the passage of The Federal Reserve Act of 1913, which Act created The Federal Reserve Bank as a privately held institution.

Were the Federal Government of the United States of America or any other nation in the world for that matter, to simply make it's own entry into it’s own account at it's own bank, rather than the privately owned institution that it now banks with, there would be no debt, no sale of bonds and no need to pay any subsequent interest payments out of tax receipts.

There most certainly would be instances of inflation, which would most certainly be underreported by a legion of governmental economists kept on the payroll, in one way or another, for purposes of massaging numbers in an effort to obscure the true rate of inflation in a cynical effort to evade accountability to the American people.  BUT ..... how is any of that different from what we have today?

The hidden benefit here is of course that there would be no insider profits to be had for the "Primary Dealers”.  Which profits they are presently using for the purchase of among other things, legislation that suits their own special interests, largely to the detriment of the American people.  That last part there is just my opinion.

Were we to simply cut out the middle man by chartering a bank that is wholly owned by the American people through the Federal Government of the United States of America and let it give birth to it's own money, a lot of our problems, most notably our debt, would become a whole lot more manageable.

Doesn't that strike you as an ever so much better approach?  It certainly worked for Andrew Jackson.

 

Central Banking

Submitted by Roanman on Wed, 08/28/2013 - 10:02

 

In the year of 2000 there were seven countries whose economies operated without a privately owned central bank, they were:

Afghanistan

Iraq

Sudan

Libya

Iran

Generally accepted "terrorist" hotbeds all.

Cuba

North Korea

Those well known human rights abusers.

 

Today, thanks to the yoeman efforts of both the Bush and the Obama administrations on behalf of the world's central bankers, only three remain:

Cuba

North Korea

Iran

 

It doesn't take much reading up on this stuff before pretty quick you come across the Rothschilds, Khazarian vs. Abrahamic Jews, Synagogue of Satan stuff, the Rockefellers, Trilateral Commission, the Bank for International Settlements, Bilderbergs and The Council on Foreign Relations etc., all of which completely saturates this conversation.

And, all of which, while fun and most likely mostly true, completely misses the point.

That point being, why on earth would any nation put it's national bank and thus it's supply of money in the hands of privately held interests rather than in the hands of a democratically elected or governmentally appointed body, and thus provide public oversight of the peoples money?

The reason is obvious, ... at least to us ... a privately held central bank enriches banks and bankers, or in other words, the Rothschilds, Rockefellers, denizens of The Council on Foreign Relation, Trilateral Commission, Bilderbergs, Bank for International Settlements, Goldman Sachs, JP Morgan and the other Primary Dealers, all at the expense of ordinary citizens. 

You can think and think and think and think and think and think and think and think and you will not come up with a system for funding your government that is more damaging to the average citizen.

I don't care what it is that you care about when it comes to politics, whether you are of the right or the left, liberal, conservative, socialist, communist, libertarian, anarchist, ambivalent or just plain disgusted, there is absolutely no possibility of achieving anything of your dreams for your nation until the money supply is ripped from the hands of the privately owned central bankers and vested with your nation's citizenry.

Where it obviously, will undoubtedy, absolutely and damn near immediately go FUBAR ......... but FUBAR in most of the world's economies lately, rates as a significant improvement. 

Until people seize control of the supply of their money, it ain't their country.

They are simply tenants or indentured servants or in the term of the day, "debt slaves".

Because ..... If it ain't your money, it ain't your country.

 

Fiat Empire

Submitted by Roanman on Sat, 11/17/2012 - 06:53

 

 A month or so ago Zero Hedge posted it's list of the top 15 "Economic Truth" documentaries.

We've been methodically grinding through them.

I think we'll probably post them all as so far I've liked every one of the eight I've sat through.

If you don't want to wait for me, hit the little gear above and watch them all back to back to back.

This Telly Award-winning documentary is inspired by The Creature from Jekyll Isalnd a book by G. Edward Griffin who explains the history of the Federal Reserve Act of 1912.

Also featured is Dr. Edwin Vieira, Ph.D., J.D. from Harvard whose discussion of the Fed includes the single simplest explanation of how the banks benefit from "The Federal Reserve System" at your expense ... at about 20 min ... that we have ever come across. 

Mr Viera also discusses various long-term studies which indicate that the Federal Reserve System encourages war, destabilizes the economy, generates inflation (a hidden tax) and in general is THE THING ... you know ... in addition to your own self ... that is screwing you over.

Just sayin". 

Dr. Theodore Baehr completes the vid with a discussion of the relationship between the Media, the Fed and the Government and why you never see these issues discussed on network TV or in the mainstream media.

This stuff is not as dry as my explanation of it.

About 58 minutes.

Way double highly recommended.

 

 

To quote six American Presidents on money creation and the nature of the banks.

Submitted by Roanman on Sat, 11/03/2012 - 08:12

 

Since we're already on the subject.

 

If the American people ever allow private banks to control the issue of their  currency, first by inflation, then by deflation, the banks … will deprive the people of  all property until their children wake-up homeless on the continent their fathers conquered … The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.  Thomas Jefferson

I believe that banking institutions are more dangerous to our liberties than standing armies. Thomas Jefferson

The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating.  Thomas Jefferson

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its constitution; I mean an additional article, taking from the federal government the power to borrow money.  Thomas Jefferson

 

 
 
 
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.  James Madison

 

 

 

If (As the supreme court had recently inferred) Congress has the right under the Constitution to issue paper money, it was given to them to be used by themselves, not to be delegated to individuals or corporations.  Andrew Jackson

 

 

 

The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of  consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.  Abraham  Lincoln

 
 
 
 
 
Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to … provisions [which] would place our currency and credit system in private hands.   Theodore Roosevelt
 
 
 
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of  credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most  completely controlled and dominated Governments in the civilized world no longer a  Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.  Woodrow Wilson 
 
 
 

Yes you did you half-witted narcissistic twit!!!!!

 

 

Paul Grignon's Money as Debt

Submitted by Roanman on Fri, 11/02/2012 - 15:26

 

A couple of weeks ago Zero Hedge posted it's list of the top 15 "Economic Truth" documentaries.

We've been methodically grinding through them.

I think we'll probably post them all as so far I've liked every one of the eight I've sat through.

If you don't want to wait for me, hit the little gear above and watch them all back to back to back.

The following video, Money as Debt 1 a short animated documentery by Paul Grignon explains just what exactly money is and where it comes from.

Hint, mostly it ain't the mint.

I know you think you know what money is, and maybe you do, but you may not know where it comes from.

At 47 minutes it's about all I can handle in one sitting.

Way double highly recommended.

 

 

Etymology

Submitted by Roanman on Tue, 03/13/2012 - 17:52

 

The Wiffer, upon hearing about the clamor for a more uplifting posting, heartily agreed and sarcastically suggested the following for the new JustThinking.us logo.

 

 

I thought that was a bit harsh, but it did get me thinking.

From Merriam-Webster, among the definitions for the noun bond are the following:

 

Bond - something that binds or restrains : Fetter

A binding agreement : Covenant

A band or cord used to tie something.

One who acts as bail or surety. 

An interest-bearing certificate of public or private indebtedness.

 

The etymology for the word bond is shared with that for the noun Bondage, a synonym for Slavery.

From the free dictionary, the definition and etymology (origin) for the noun mortgage is as follows:

 

Mortgage - A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

From Middle English - morgage, and from Old French : mort - dead,

from Vulgar Latin - mortus, from Latin - mortuus, past participle of mori - to die;

plus gage - pledge (of Germanic origin).

Word History: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, "dead," and gage, "pledge."

It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt.

If the mortgagor does not, then the land pledged to the mortgagee as security for the debt "is taken from him forever, and so dead to him upon condition.

And if he doth pay the money, then the pledge is dead as to the mortgagee.

 
I raise this point with the following thought in mind.
 
If you are holding bonds from Greece, probably Spain, Portugal, Ireland or Argentina (among others)
 
the states of California, New York, Michigan or Illinois (among others),
 
or maybe the cities of Detroit, Flint, Saginaw, Pontiac,
 
or maybe the Detroit Public Schools,
 
You're dead.
 
Sorry Honey!!!
 
 

A Global History of Debt by Region

Submitted by Roanman on Tue, 02/07/2012 - 19:23

 

From Credit Loan here's another pretty good infograph.

As always, click on the graphic for a short article that will offer some details the generalities of which you probably already have down.

 

 

I love the part about Argentina having reduced their national debt over the past decade.

Default and subsequently becoming an international credit pariah will do that for you.

 

 

To quote John Mauldin

Submitted by Roanman on Fri, 11/18/2011 - 06:06

 

John Mauldin's Frontline Thoughts claims a readership of one million.

We believe 'em, as nearly everybody around here reads it most every week.

You have to sign up to access the letter on the "EU Debt Crisis" from which this quote was taken.

The good new here is that it's free and highly recommended.

Click anywhere below to acces this fine site.

 

 

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