March 27, 2008
EXCESSIVE DEBT AND MONEY PRINTING
THE “WEALTH” OF BABYLON THE GREAT
Our appreciations to ONE SIMPLE IDEA for this article! This is a massive economic overview of America’s gargantuan monetary crisis – perhaps one of the better articles written on the subject – we commend it and suggest, if you would, use it as a possible guide to the pending “train crash” we’re on! It’s many excellent links impress and suggest that our condition appears irreversible and could easily lead to a cataclysmic economic crisis wherein to “buy or sell” will demand a new monetary standard, a cashless society and “extreme measures” to turn it around – how that plays out in the next MONTHS (2008) is anyone’s guess!
Now – the article:
The nation is facing many pressing problems, now culminating simultaneously. But irresponsible incumbents within the government are ignoring the voters and our many pressing problems as they grow in number and severity.
One major problem is a dishonest
fiat-funny-money-system.
Education is required.
No reforms are possible until there is, first, a fundamental
change in government:
RECOMMENDATION:
Stop Repeat Offenders.
Stop Re-electing Irresponsible Incumbent Politicians.
Currently, at this instant, the total federal debt is about $22 trillion consisting of:
§ $9,394,959,547,218 National Debt
§ $12.8 Trillion borrowed and spent from Social Security (leaving it pay-as-you-go) with a 77 million baby-boomer bubble approaching.
§ $450 billion Pension Benefit Guaranty debt and several hundred billion for the wars in Iraq and Afghanistan, Katrina, Medicare, etc.
And total
nation-wide personal debt is over $20 trillion.
And total state and local government debt is about $6 trillion.
So, all together, the total current U.S. debt (nation-wide) is about
$53 trillion (in
2007 dollars), which has never been worse ever, including as a
percentage of GDP ($13.86 Trillion in year 2007).
The total federal debt of $22 trillion has actually never been larger
(ever).
In World War II, the ratio of the total federal debt-to-GDP reached
116% of GDP.
But, the government paid off most of it by 1976 (see the black-line
with the black-square dots on the debt chart below for the debt in
2005 dollars):
After 1976 (or about) is when many things started to unravel in the
United States.
Now, with a total of $22 trillion of federal debt, and a GDP of $13.86
trillion,
the Debt-to-GDP is now 159% ! (i.e. $22T / $13.86T).
The fiscal outlook is not good.
And the timing for all this massive debt could not be worse, with 77
billion baby boomers that will start drawing from Social Security and
Medicare.
The aging of American is a factor too.
So, the total current (this day) federal debt is now about
$22 trillion and
growing to
nightmare proportions
(as does the size of government).
The interest alone on the
$9.4 trillion National Debt
is over $1 billion per day, and the National Debt is growing by about
$2 billion per day!
The interest alone could exceed $43 trillion (in 2005 dollars), if we
stopped borrowing and started paying $1.05 billion per day (which
would take
153 years, provided
interest rates did not go any higher than 4.5%).
And, there is another ever-present, insidious scheme at work too:
Inflation
This is over-looked by many that do not understand how it hurts them.
Our
fiat-funny-money
monetary system especially hurts savers and those on fixed incomes,
who find the value of their dollars steadily being eroded by the
Federal Reserve's
(a quasi-government controlled /
privately owned
bank system) irresponsible, intentional, non-stop printing presses.
For example, at only 4.5% inflation, $100.00 becomes:
$96.35 in 01 year
$92.70 in 02 years
$89.05 in 03 years
$81.75 in 05 years
$63.50 in 10 years
$45.25 in 15 years
$35.43 in 20 years
The value of the money erodes year after year, which is why the
U.S. Dollar is falling
like a rock.
The inflation is compounded exponentially (like the interest on debt).
Eventually, you have what we have today, where a U.S. Dollar from year
1950 is now worth less than 11 cents.
Which period below looks more stable (A or B)?
Some assert that elimination of the Gold Standard and switching to the
fiat-money-system stabilized the economy.
It is quite possible that we would have had fewer and less severe
recessions since 1913 if we had not abandoned the Gold Standard.
And, while many think the
Federal Reserve
solved everything, did it?
Are things much more stable now?
We certainly have more inflation now (since 1913).
For example, the
M3 Money Supply
grew from $135 billion in 1950 to $10.154 trillion in 2005,
representing a increase by a factor or 75.2 !
But, the nation did NOT become 75.2 times wealthier in 55 years.
The excuse is often used that the Gold Standard caused or contributed
the Great Depression of 1929. While it may have contributed, and
return to a Gold Standard is not recommended, there were many other
contributing factors for periods of economic instability (such as
wars, mismanagement of banking systems, lack of banking laws,
transparency, and regulations, lack of Stock-Market laws and
regulations, unscrupulous speculation, and major changes in government
policies):
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England: |
United States: |
Significant Events: |
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1785-1788 |
the panic of 1785; caused by post American Revolutionary War problems; speculation; currency confusion and mismanagement of banking and currency system; over-expansion and debts, competition in the manufacturing sector from Great Britain, lack of significant interstate trade; the British refused to conclude a commercial treaty; the panic among business and propertied groups led to the demand for a stronger federal government; |
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1792 |
the panic of 1792; caused by banking mismanagement and speculation; the panic of 1792 arose from speculative activity following the adoption of the Federal Constitution, the founding of the First Bank of the United States (BUS), and the emergence of securities markets for bank shares and other government securities in New York City; almost immediately after its establishment in 1791, the BUS over-extended notes and discounts, and then sharply reversed course; speculators holding bank's shares quickly sold their holdings, which had risen markedly over previous months, creating the nation's first true securities market panic; |
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1815 |
1814,1818,1819 |
the panic of 1819; caused by post War of 1812 problems; |
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___ |
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___ |
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1836 |
1836 |
the panic of 1836; caused by banking and currency mismanagement; excessive money-printing; |
|
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1837 |
1837-1843 |
the panic of 1837; caused by banking and currency mismanagement; excessive money-printing; speculation and inflation; a six year depression resulted; |
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___ |
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1857 |
1857 |
the panic of 1857; caused by a downturn in agricultural exports brought on by the end of the Crimean War in Europe and reduced U.S. exports, the failure of the Ohio Life Insurance and Trust Co., panic selling, over-speculation in railroads and real estate, and banking mismanagement; |
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1866 |
1861-1865 |
American Civil War |
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1869-1871 |
the panic of 1869-1871; caused by post war problems; banking mismanagement (not on the Gold Standard); unscrupulous speculation (James Fisk, Jr. and Jay Gould, attempted to corner gold market 24-SEP-1869); |
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1873 |
1873 |
the panic of 1873; caused by banking mismanagement, over-expansion, over-production (particularly in railroad construction), Jay Cooke and Company (bank), which helped the U.S. Government finance the Civil War and also underwrote the construction of the Northern Pacific Railroad declares bankruptcy 08-SEP-1873, which precipitates the "Panic of 1873" and the ensuing three year depression during which more than 10,000 businesses fail; European investors, where a depression is already underway in Europe, begin to call in American loans, and the The New York Stock Exchange closes its doors for 10 days; |
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1890 |
1893 |
the panic of 1893; caused by banking mismanagement and speculation in industrial stocks; Reading Railroad files bankruptcy 10 days before Grover Cleveland takes office. The chief fear among Eastern financiers and businessmen is that in a panic the United States could easily be forced off the Gold Standard. Railroads go broke; many of the great financial trusts begin to collapse; European banks begin selling their American stocks and bonds, and a huge run on banks ensues, until more than 500 Banks have failed; the mistake of businesses was trying to do too big a business on insufficient working capital; they borrowed until borrowing became impossible, through the general contraction of credits forced on the banks, and then came the crash; |
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1914 |
1914-1918 |
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1929 |
Great Depression & Crash of 1929; banking mismanagement; speculation; excesses of the Roaring 1920s |
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1940 |
1941-1945 |
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1950-1953 |
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1961-1975 |
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1985-1995 |
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1990 |
Gulf (Iraq) War (1) |
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2001-present |
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2003-present |
Iraq War (2) |
There are also many reasons why a Great Depression has not occurred again since after World War II:
More banking laws and regulations.
The growing importance of the service industries (i.e. trade, transportation, etc.) where employment is typically more stable than manufacturing.
More stable industries have grown in importance, this has made the whole economy more stable and less susceptible to prolonged and severe recessions.
Unemployment insurance has helped to reduce the loss of income during recessions.
Social Security and Medicare helped reduce poverty of the elderly.
More workers per household.
Recessions now have more of a global domestic dimension, and financial markets in many countries are more closely monitored, and investors can make investments on a global scale. This provides some stabilization.
Exports and imports have become more important to business enterprises.
Technology that has led to improved and faster communication systems
Global competition is helping to modernize other nations, increasing the size of the global business community.
the Federal Reserve fractional banking system is a PYRAMID scheme.
If the Federal
Reserve was so wonderful, why did the Great Depression of 1929 follow
16 years later?
If the Federal Reserve was so wonderful, why do we now have more
inflation than
before (especially since 1950)?
Perhaps the Federal Reserve merely used the Great Depression as an
excuse to eliminate the Gold Standard?
The Federal Reserve wanted a fiat-funny-money system because the
dishonest fiat-funny-money system is very popular among bankers and
government officials, because it gives them the money to spend FIRST,
early in the circulation cycle, BEFORE the currency loses its value
due to inflation. This dishonest system shifts the losses to others
that don't understand how they are being cheated.
There are two types of depressions:
(1) Deflationary
(2) Hyper-inflationary
The results are bad either way. BOTH erode value.
So, to say there hasn't been a depression since 1933 is NOT really
true.
The double-digit inflation, price controls, and instability of the
late 1970s and early 1980s was devastating too.
So, you don't have to be a rocket scientist to see how this could all
culminate to create an
economic melt-down.
The culprit is: inflation . . .
The best analogy regarding fiat-funny-money systems is like playing the game of Monopoly, and one player can print all the money they want.
Before long, that
player has all the money and property, and everyone else is broke or
in debt. That's how the game is won!
Now consider what is happening in this nation (for some time now).
The banks and government print money out of thin air, and then try to
loan it to everyone under the sun (including your dog; literally, some
people get credit card applications for their pets and children,
exemplifying how eager the banks are to lend money to everyone
possible).
They prefer to loan it to people that have some hard
assets/collateral, because it's hard to get blood out of a turnip.
Then, when some people default on their loans, the banks confiscate
real assets and property; thus, converting money (printed from thin
air) into real assets and property.
There is a moral issue here.
How can these inflationist practices be rationalized?
To really understand why the dishonest fiat monetary system is so
popular among some economists, the business community, bankers, and
government officials, it is necessary to understand how it gives those
that receive the money FIRST an advantage, early in the circulation
cycle, BEFORE the currency loses its value due to inflation.
This dishonest system shifts the losses to others that don't
understand how they are being cheated.
Thus, our money system is essentially a PYRAMID scheme, and all
PYRAMID schemes collapse, eventually.
Here's how it works (they don't teach this in any public schools).
The Federal Reserve loans money (with interest) to member banks (which
charge more interest).
Up to 90% of each new bank loan is money created out of thin air.
But it gets worse.
For each dollar re-deposited into the fractional (9:1 ratio) bank
system (a closed loop monopoly bank system), 9 times more new money
can be created out of thin air.
Depending on the size of each loan, that PYRAMID scheme can continue
until 90 times more money has been created out of thin air. However,
the bank is required to have 10% of their loans in reserves.
For example, let's say the bank has $1111.11 in reserves. That means
the bank can make a loan of 9 times that initial $1111.11, which is
$10,000.00. 90% of each subsequent deposit can then be used for
another loan of money created out of thin air . . .
(001) 90% of that
$10,000.00 can be loaned again, to create a new loan of $9,000.00
(002) 90% of that $9,000.00 can be loaned again, to create a new loan
of $8,100.00
(003) 90% of that $8,100.00 can be loaned again, to create a new loan
of $7,290.00
: : : :
: :
(088) 90% of that $1.16 can be loaned again, to create a new loan of
$1.045
(089) 90% of that $1.045 can be loaned again, to create a new loan of
$0.94
: : : :
: :
(131) 90% of that $0.013 can be loaned again, to create a new loan of
$0.011
(132) 90% of that $0.011 can be loaned again, to create a new loan of
$0.01
_______________________
TOTAL SUM = $99,888.89 (of money created out of thin air from initial
$1111.11 in reserves).
Thus, from the
initial $1111.11 in the bank reserve, $98,888.89 (98.89% of
$100,000.00) of more new money could be created out of thin air.
But it still gets worse, because a LOAN = PRINCIPAL + INTEREST.
But the bank
creates only the PRINCIPAL for each new loan.
So, where does the
INTEREST come from?
One of several things must happen:
1. create more new money to delay the collapse of the PYRAMID (such as the recent government $152 Billion economic stimulus package in FEB-2008). However, this creates more inflation.
2. those with money must spend more money to allow more new money to be created out of thin air.
3. increase productivity.
4. increase products and/or natural resources (e.g. oil, steel, etc.) to sell to other nations to bring money back.
5. the wealthy share their wealth (not likely to any significant extent).
6. increase taxes on the wealthy (however, if the wealthy are taxed too much, they might up and move their wealth and businesses to another country).
7. increase productivity via increased population.
8. increase productivity via illegal immigration (cheap labor).
9. reduce taxes to encourage more spending.
10. reduce interest rates to encourage more spending (but this creates more debt).
11. the government prints up more new money and gives it back to people to stimulate more spending (such as the $152 Billion proposed in FEB-2008).
12. foreclosures.
13. plunder pensions and other systems (e.g. Social Security surpluses).
14. the PYRAMID finally collapses when there is finally too much debt and inflation to delay the inevitable collapse. Between year 1950 and 2005, the M3 Money Supply increased from $135 billion to $10.15 trillion (i.e. 75.2 times more money).
It is a PYRAMID
scheme, and all pyramid schemes eventually collapse. As time goes
on, this problem can only get bigger and bigger. The only thing
stopping the collapse of this pyramid is a short time-lag by creating
more debt and printing more money. But that time-lag is shrinking
every day, as the ability to repay debt becomes more difficult.
Debt will grow larger and larger.
The time it takes to finally collapse fools people. Printing more
money to delay the collapse will make inflation get worse and worse.
It could take decades or centuries, but the inevitable collapse is a
mathematical certainty. Eventually, the debt and inflation will become
impossible to deal with.
We will not be able to create more debt to create more money.
We will not be able to spend our way out of the collapse.
We will not be able to print (money) our way out of the collapse (due
to inflation).
We will not be able to immigrate our way out of the collapse.
We will not be able to procreate our way out of the collapse.
We will not be able to increase productivity enough to avoid the
collapse.
We will not be able to tax (or un-tax) our way out of the collapse.
Look at our current situation and results of this PYRAMID scheme:
§ $20 Trillion nation-wide personal debt;
§ $9.4 Trillion National Debt;
§ plundered pensions (PBGC pensions are $450 Billion in the hole);
§ rising foreclosures;
§ rising bankruptcies;
§ rising unemployment;
§ pressure to raise taxes for those that have money (i.e. the wealthy);
§ pressures to increase illegal immigration to increase productivity and growth (cheap labor);
§ stock market and real-estate bubbles and volatility;
§ the M3 Money Supply of $135 Billion in year 1950 increased to $10.15 Trillion by year 2005 (by a factor of 75.2);
§ inflation; a 1950 U.S. Dollar is now worth less than 11 cents;
§ the pressure to spend and borrow (i.e. numerous credit card applications in the daily mail);
§ bank fees (i.e. to increase reserves for more loans; the banks receive the interest);
§ the U.S. Dollar falling against all major international currencies;
§ and now, the recently proposed $152 Billion economic stimulus package (proposed FEB-2008) with more created out of thin air, will increase the time-lag to prevent the collapse of the PYRAMID scheme, but it is only a short-term solution and will make things worse, long-term
For anyone who
thinks it is bad now, they haven't seen anything yet. But none of this
will never be taught in public schools (see
47 minute video),
and probably not in universities either.
All of the above
are the many manifestations of unchecked greed, and there will
eventually be painful consequences for most people when the PYRAMID
scheme finally collapses, as all PYRAMID schemes always do.
(Editor’s Note: Solution? Or is this wishful thinking?)
The SOLUTION (a Monetary System Amendment):
§
The federal government
controls the monetary system. It shall create the money it needs,
interest free. It shall control the money-supply.
§
The federal government
shall prohibit usury (interest) by the government and member banks
(under-cutting anyone who lends with interest). If a lot of interest
is bad (i.e. usury is immoral), how can a little interest be good? If
inflation is bad, how is a little inflation good?
§
This creates a stable
money supply with the flexibility for small fluctuations. If
inflation is too high, some money in circulation can be removed. If
there is deflation, or the population increases, the government can
create and spend some money. If they do a bad job of it, the voters
know exactly who to hold accountable. Currently, the Federal Reserve
is a quasi-government controlled / privately owned bank, and the
voters have little (if any) control over it. Why would people borrow
from a bank (with interest) when they can borrow from the government,
interest free? Thus, there would be little (if any) usury. Usury,
predatory lending, and other manifestations of unchecked greed and the
other numerous negative side effects would be greatly reduced. If
properly managed, without profit and usury as a motive, the U.S.
currency would become superior to any other world currency.
The current
dishonest and usurious pyramid-scheme monetary system explains why the
nation is swimming in massive
debt, which has NEVER been worse (including as a percentage of
GDP):
Hence, the nation
is enslaved to massive, growing debt that is inherent with a usurious,
9-to-1 fractional lending pyramid scheme.
The excessive debt and money-printing helps to explain one of the
ways vast wealth has shifted in the last 30 years (see below).
The 1% of the total U.S. population that once had 20% (in year 1976)
of all wealth now has 40% of all wealth.
Hence, the saying: The rich get richer, and the poor get poorer:
And median incomes have been falling since 1999 . . .
If we started NOW trying to pay back just the National Debt, it could
take over 153 years, and that would require that we stop borrowing $1
billion per day, and start paying back more than the daily interest of
$1.11 billion:
Even if we ever
had the discipline, the interest alone on the National Debt would come
be over $54 Trillion, and that is provided that the interest rate
never exceeds 4.5% .
Now, include the total $22 trillion of federal debt.
It's could take literally centuries to pay down the total federal
debt.
What's the likelihood of our
Do-Nothing Congress ever having the discipline to do that?
The total future debt (accumulative) paid would come to $198.7
trillion dollars !
This should all be very alarming to Americans.
But only an educated electorate can understand it, and then choose to
change it.
Those that understand must help to energize their friends, family, and
associates, and help to spread the word. No one knows if success is
possible or not, but doing nothing will accomplish nothing.
Especially if voters still choose to (despite the many
compelling reasons
not to) keep re-electing, rewarding, and empowering the very same
irresponsible,
bought-and-paid-for, look-the-other-way, incumbent politicians that
use and abuse the voters, and continue to ignore the nation's
pressing problems,
growing in number and severity, threatening the future and security of
the nation.
And, our
education is
already in the pipeline.
The question is:
(a) Will we learn the smart, less painful way?
(b) Or, will we learn the
HARD, painful way?
Are we now facing a recession, and with so much debt (and interest due
daily on that debt), will likely see more inflation.
Even though we have been brainwashed to believe 3% to 4% inflation is
OK, it isn't.
Not when
inflation is incessant, year after year (since year 1956),
becoming exponential, like reverse compound interest.
In 2007, inflation may grow to 5% or higher, because the government
has been borrowing too much and printing too much money
(simultaneously).
Also, the wars in Iraq and Afghanistan are causing inflation (wars
always do that).
Some of the consequences are from a trend that started around 1976:
Look at all the graphs above (after 1976).
Look at the National Debt in 2005 dollars (the black line with black
squares).
Also, look at the Debt-to-GDP ratio (after 1976).
With the growing debt, the Federal Reserve and government may have NO
choice but to print MORE money. That will cause inflation, and that
can cause recessions and bubbles.
But, to make the matter even worse, is this: More borrowing too!
Why?
(1) Because the borrowing will create a snow ball effect, in which it
creates more pressure to print more money.
(2) The government and Fed have not demonstrated fiscal discipline
since 1976 (or earlier).
(3) The government is FOR SALE. Politicians are more
bought-and-paid-for and
irresponsible.
(4) The
Do-Nothing Congress
will still refuse to pass
many badly-needed, no-brainers, common-sense
reforms.
Congress is where
good ideas and [in]sincere intentions go to die in a sea of
corruption, influence peddling, rank favor-trading, graft,
pork-barrel,
waste, and
look-the-other-way/bought-and-paid-for incumbent politicians. That
goes for
BOTH parties.
Also,
foreclosures are on
the rise. . . .
Consider the following issues related to excessive debt and
money-printing:
§ Look at the inflation on the bar chart (it shows MUCH more inflation since 1913).
§ Look at the CPI graph (it shows inflation upon inflation upon inflation; especially after WWII).
§ Look at the M3 Money Supply growth by a factor of 75.2 times between 1950 and 2005 (but we are NOT 75.2 times wealthier).
§ Look at the nation swimming in debt (over $20 trillion in personal debt, nationwide)
§ Look at the Federal Reserve and banks printing excessive amounts of money (out of thin air) and then trying to loan it to everyone possible (and their dogs and children; literally, some peoples' pets are getting credit card applications, and they come in the mail every day)
§ Look at the confiscation of real assets and property when people default on their loans, converting money (printed from thin air) into real assets. Foreclosures have been rising sharply for almost two years, and rising interest rates for the past two years is not helping. Neither is the large number of people borrowing on the equity in their homes (just like playing Monopoly where one person can print all the money they want).
§ Look at the moral issue and nefarious reasons created to defend inflationist practices.
§ Look at the massive debt causing pressure to print even more money.
§ Look at the Monopoly analogy (i.e. in which one player can print all the money they like; before long everyone else is broke or in debt). That analogy is quite accurate. Look at how banks are so eager to loan out money printed out of thin air.
§ Look at the gradual shift of wealth distribution. In 1976, 1% of the U.S. population owned 20% of all wealth. Now, 1% of the U.S. population owns 40% of all wealth. That is yet another side effect of inflationist practices and massive debt.
§ Look at the massive total federal debt of $22 trillion (that's 164% of GDP), which creates pressure to print money and induce inflation to shrink debt (but erodes everyone else's hard earned income).
§ Look at the Great Depression 16 years after creating the Federal Reserve. If the Federal Reserve and a fiat-funny-money system is so great, why wasn't the Great Depression avoided?
§ Look at the lack of saving, which is partly because of inflation and massive debt.
§ Look at the bubbles; bubble after bubble, which is partly because of inflation as people search for someplace to put their money to stop the erosion of their hard-earned income (stocks, real-estate, gold, etc.; for example, when stocks plummeted in 1999, people fled to real-estate. But, by 2006, that bubble burst too, and people fled back to stocks and other things)
We've been
crappin' in our own nest for decades, and it may now just be a
matter of time before the bough it rests upon finally snaps.
Notable Notes and Quotes:
§ "U.S.A.'s balance of payments deficits is so strong and irreversible, that we must accept that at some future date there will be a run against the U.S. Dollar. Probably the kind of disorderly run that precipitates a global financial crisis." - Dr. Paul A. Samue lson, Nobel Prize Winner in Economics, year 2005.
§ "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 tax payers will be saved immense sums of interest. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity. - Abraham Lincoln, assassinated President of the U.S.
§ "Whoever controls the volume of money in our country is absolute master of all industry and commerce . . . and when you realize that the entire system is very easily controlled one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate." - James A. Garfield, assassinated President of the U.S.
§ "The process by which banks create money is so simple that the mind is repelled." - John Kenneth Galbraith, Economist
§ "Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of sovereignty of Parliament and of democracy is idle and futile . . . Once a nation parts with control of its credit, it matters not who makes the nation's laws . . . Usury once in control will wreck any nation." - William Lyon MacKenzie King, former Prime Minister of Canada (who also succeeded in nationalizing the Bank of Canada).
§ "We are grateful to the Washington Post, the New York Times, Time Magazine, and other great publications whose directors have attended our meetings and respected the promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But the world is now more sophisticated and prepared to march towards a world-government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the National auto-determination practiced in past centuries." - David Rockefeller, in an address to the Trilateral Commission meeting, 1991.
§ "Only small secrets need to be protected. The big ones are kept secret by public incredulity." - Marshall McLuhan, media "guru"
§ In 1913, the struggle for a better monetary system was lost when President Woodrow Wilson signed the Federal Reserve Act, giving the privately owned international banking cartel the power to create the United States money. Later, Woodrow Wilson stated: "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, President of the U.S. 1913-1921.
§ "Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when the speak in condemnation of it." - Woodrow Wilson, President of the U.S. 1913-1921.
§ "Fiat money is the cause of inflation, and the amount which people lose in purchasing power is exactly the amount which was taken from them and transferred to their governments by this process." (G. Edward Griffin, "The Creature from Jekyll Island")
§ "A fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims who are usually oblivious to the cause of their plight. This system of legalized plunder (though not constitutional) allows one group to benefit at the expense of another. An actual transfer of wealth goes from the poor and the middle class to those in privileged financial positions." (Congressman Ron Paul (R-TX), "Paper Money and Tyranny")
§ "When the President signs this bill [converting to a fiat-money system], the invisible government of the monetary power will be legalized . . . the worst legislative crime of the ages is perpetrated by this banking and currency bill." (Charles A. Lindbergh, Sr. 1913)
§ "Whoever controls the volume of money in any country is absolute master of all industry and commerce." (Paul Warburg, drafter of the Federal Reserve Act)
§ "Permit me to issue and control the money of a nation and I care not who makes its laws." (Mayer Amschel Rothschild)
§ "Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly." (Fifth plank of the Communist Manifesto, 1848)
§ "Ideologically, [sound money] belongs in same class with political constitutions and bills of rights." In the name of civil liberty and civilization itself, the Fed should be abolished. (Ludwig von Mises).
§ Senator, Warren G. Harding, who was elected to the Presidency in 1920, said in a 1921 Congressional inquiry that the Reserve was a private banking monopoly. He said: "The Federal Reserve Bank is an institution owned by the stockholding member banks. The Government has not a dollar's worth of stock in it." His term was cut short in 1923 when he mysteriously died, leading to rumors that he was poisoned. This claim was never substantiated because his wife would not allow an autopsy.
§ In 1993, Senator Bob Kerrey promised to support President Bill Clinton's Budget Plan, if Clinton would appoint a Committee to study the condition of the American economy. The President established a 32-member bipartisan committee and in August, 1994, they issued their report. According to the committee's findings, by the year 2012, unless drastic changes are made, we won't even be able to pay the interest on the national debt. Knowing this, the federal government has allowed the trend to continue, almost as if they're trying to run our economy into the ground. It seems obvious that the destruction of the American economy will eventually be a result of trying to keep people in deep debt, and financially enslaved.
§ In a letter to Edward M. House (President Woodrow Wilson's closest aide), dated November 23, 1933, Franklin D. Roosevelt said: "The real truth of the matter is, and you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson."
§ "I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." (Thomas Jefferson)
§ "Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." (Daniel Webster)
§ "All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation." (John Adams)
§ "There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." (Lord John Maynard Keynes (1883-1946), renowned British economist).
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The inevitable collapse of the dollar (all pyramid-schemes are doomed to collapse) |
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Falling U.S. Dollar (click here to see charts of U.S. Dollar falling against all major currencies for over 7 years) |
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