Banking The Problem In Politics & Society
April 27, 2009 (March 2009)
When Benjamin Franklin was called before the British Parliament in 1757 and asked to account for the prosperity in the American colonies. He replied, "That is simple. In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."
It was the struggle for financial sovereignty that precipitated the American Revolution when the (Rothschild) Bank of England forced the colonies to give up their Scrip and intense poverty followed.
That war never ended.
Throughout their political lives Thomas Jefferson, James Madison and Andrew Jackson fought off the European bankers who intermittently controlled the nation’s money supply through privately-owned banks. When Abraham Lincoln issued ‘greenbacks’ that deprived private bankers of their monopoly control of the nation’s money supply he was assassinated. The European bankers battled for more than a century to establish a private central bank in the United States with the exclusive right to print their own paper notes and exchange them for government debt. They succeeded in 1913 with The Federal Reserve Act, a coup that authorized a private cartel to create money out of nothing, lend it to the government with interest and control the national money supply, expanding or contracting it at will. Representative Charles Lindbergh called the Act "the worst legislative crime of the ages." Fifty years later, President John F. Kennedy defied the central bankers when he issued debt-free Treasury Notes. He too was assassinated.
The Systemic Usury Parasite
In 1913 our sovereign authority to create interest-free money was unconstitutionally transferred to a transnational private banking cartel that has systemically infected our economy with a staggering national debt in the tens of trillions of dollars. Eighty-five cents of every dollar is now consumed as “interest” by the systemic usury parasite, draining its host of vital resources and collapsing our economy in bankruptcy.
Ours is not the only nation to succumb. Why rob just one bank when you can rob a whole nation? And why rob just one country when you can rob them all?
The usury parasite has infected 170 countries, feeding itself through the central bank syndicate, a shareholder-owned consortium of private banks, headquartered in Switzerland at the Bank for International Settlements. Created in 1930, BIS obscures its transactions with an astounding array of legal immunities that prohibit any form of oversight or intrusion.[i] It functioned as a Nazi money laundering operation in World War II.[ii] Today it serves as the cashier’s window for the global casino.[iii] Each central bank member has an exclusive monopoly on its government’s monetary system, with the power to create public debt and expand or contract the host’s economy at will. Coordinating their monetary policies with each other through the BIS, the central bankers meet behind closed doors, appoint their own governors and set their own rules. Their books are not subject to audit by the governments that host them. The IMF and World Bank are tentacles of this parasite that strangle governments with insurmountable debt, forcing these nations through “structural adjustment” policies to rob their taxpayers, slash social programs, transfer public assets to private owners and sell the nation’s treasures to transnational predators at fire sale prices. Government treasuries are the parasite’s host. Flushing the global economy of this systemic disease begins with understanding how a central bank debilitates its host with suffocating debt.
Although governments have inherent authority to create their own money, they borrow it from central banks, with interest. A central bank fabricates paper money and credit by “lending” them into existence, in return for treasury bonds of the host government ~ taxpayer IOUs. This “money” has no pre-existing value in reality and is conjured up through accounting entries. It is literally created out of nothing. The central bank first “lends” these accounting entries to its own investment banks and then to downline commercial banks, with interest. The commercial banks then lend nine times the amount of their borrowed accounting entries held “in reserve.” This nine-fold multiplication of borrowed accounting entries, described as “fractional reserve banking,” creates massive inflation of the money supply which devalues the currency. Borrowers further expand the money supply when they pay back these accounting entry credits with compound interest that multiplies exponentially. More money must be fabricated to pay this interest. Thus, all “money” that enters circulation is actually debt contrived by accounting entries. Every fiat dollar is an IOU from a borrower to a lender. A debt-based monetary system can never achieve equilibrium because compound interest that multiplies exponentially overwhelms the money supply. Escalating interest eventually reaches staggering proportions and causes systemic collapse.
Today the nation is essentially bankrupt and hoping Barack Obama’s team of Wall Street advisors will forestall economic collapse. This expectation is equivalent to hoping that Al Capone will make our streets safe. Obama’s economic recovery team is a Trojan horse filled with the same Wall Street racketeers that infected the global economy with a quadrillion dollar derivatives bubble, using deliberately deregulated mechanisms.[iv] They have successfully held the nation hostage with a universal credit freeze and threats of systemic collapse if trillions of dollars in ransom demands are not met. But why would our government agree to double its public debt to save crooked financiers and reckless gamblers from bankruptcy? Why would our government re-victimize taxpayers who did not participate in this global fraud and whose investments, retirement savings, pension plans and real estate values have already been eviscerated by these swindlers? The answer is that the Treasury Secretary and Federal Reserve Board have historically represented a parasitic crime syndicate, not the host government and its taxpayers.
The racketeers who bribed members of Congress to deregulate Wall Street, could not have held our nation hostage without collusion from the Treasury Secretary and Federal Reserve Board. These monetary “authorities” represent Robber Barons, Inc. ~ the crime syndicate that ransacks government treasuries through the central bank system (IMF/World Bank/BIS),[v] investment banks and private equity firms (JP Morgan Chase, Citigroup, Bank of America, Morgan Stanley, Lehman Brothers, Salomon Smith Barney, Goldman Sachs and Carlyle).[vi] Treasury Secretary Henry Paulson, a Goldman Sachs CEO, is also a Board Governor at the IMF. Treasury Secretary Lawrence Summers’ Harvard team organized the looting of Russia, stripping one trillion dollars from Russia’s struggling economy and shifting state-owned assets to private owners. Summers succeeded Robert Rubin as Treasury Secretary and successfully completed Rubin’s repeal of Depression-era laws that protected public assets from Wall Street fraud. A former co-chairman of Goldman Sachs, Rubin joined CEO Sanford Weill at Citigroup to fully embrace the benefits of deregulation. Rubin’s Citigroup pooled bogus loans as AAA securities and sold them as collateralized debt obligations. Larry Summers championed the deregulation of financial derivatives, ensuring the globalization of losses from those securities. With $2 trillion in toxic assets, Citigroup fraud has metastasized to 100 countries making it too infectious to quarantine (“too big to fail”). Rubin protégés advised Obama that taxpayers should be held liable for $306 billion of Citigroup’s junk loans.[vii] Rockefeller owns Citigroup and JP Morgan Chase, two of the investment banks that own the Federal Reserve. Paul Volcker, the head of Obama’s economic advisory team, is the Rockefeller banker whose policies under Reagan ignited the strongest political protests in the history of the Federal Reserve.[viii] Obama’s Treasury Secretary, Timothy Geithner,[ix] is an IMF Director, BIS committee Chairman, ex-president of the Federal Reserve and a protégé of David Rockefeller, Henry Kissinger, Robert Rubin and Lawrence Summers.
If it doesn’t govern, it isn’t a government. What is masquerading as government is a crime syndicate with a flag. The US Government is an instrument of organized crime, alternatively described as the Octopus, the Washington Consensus, the Shadow Government, Wall Street, the Round Table (Bilderbergs, Trilaterals, Council on Foreign Relations, Royal Institute of International Affairs), and the New World Order. There is nothing new about this Underworld Order. The sordid criminal record of this syndicate dates all the way back to European “colonizers” and operates through the Morgan-Rockefeller-Rothschild banking dynasties, American, European and Asian “royal” families, “philanthropic” foundations, advisory councils and transnational corporations. Pillaging the earth at gunpoint, syndicate families have amassed fortunes from drug trafficking, slave labor, weapons, blood diamonds, banking, gold, oil and genocide.
From the very beginning of America’s fledgling republic these international gangsters surreptitiously gained control of the banks, railroads, oil and vital infrastructure, using a maze of corporations, offshore banks and holding companies that disguised foreign ownership of national resources.[x] During the 19th and 20th centuries this syndicate secured private ownership of vital infrastructure and natural resources worldwide by engineering both covert and overt wars, crushing democracies and installing brutal dictators. They financed Trotsky, Lenin and Hitler, using syndicate members within the US Treasury and Federal Reserve to protect “their” international assets. Thomas Lamont, a self-described fascist, was the JP Morgan banker who represented the US Treasury at the 1919 Treaty of Versailles negotiations. He personally raised $100 million to finance Benito Mussolini. William Boyce Thompson, director of the New York Federal Reserve traveled to Russia to undermine the Russian Revolution, ensuring that railroads, banks, oil and vital resources would remain in private hands.[xi] Thomas McKittrick, Rockefeller’s Vice Chairman of Chase National Bank, was the president of the Bank for International Settlements during World War II, coordinating Nazi money laundering operations.[xii] Hitler was armed and financed by Anglo-American corporations that provided the money, oil, weapons and extermination gas used for genocide.[xiii] Allen Dulles, a Wall Street attorney, negotiated their contracts. As CIA director, Allen Dulles and his brother John Foster Dulles (Secretary of State) continued to brutally suppress every democratic uprising that threatened syndicate control over international assets. Across the globe democratically elected leaders were deposed or assassinated that dared to return natural resources to their rightful owners.
General Smedley Butler is best remembered today for his oft-quoted statement in the socialist newspaper Common Sense in 1935: "I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-12. I brought light to the Dominican Republic for American sugar interests in 1916. I helped make Honduras 'right' for American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went its way unmolested.... Looking back on it, I felt I might have given Al Capone a few hints. The best he could do was to operate his racket in three city districts. We Marines operated on three continents." [xiv]
Author Bernard Lietaer, a former central banker, writes in “The Future of Money:”
"Your money's value is determined by a global casino of unprecedented proportions: $2 trillion are traded per day in foreign exchange markets, 100 times more than the trading volume of all the stock markets of the world combined. Only 2% of these foreign exchange transactions relate to the "real" economy reflecting movements of real goods and services in the world, and 98% are purely speculative. This global casino is triggering the foreign exchange crises which shook Mexico in 1994-95, Asia in 1997 and Russia in 1998. These emergencies are the dislocation symptoms of the old Industrial Age money system."
These emergencies are also the hallmark of the transnational crime syndicate manipulating the global economy through financial terrorism. Collapsing healthy economies with currency speculation, fabricated debt and naked short selling, these vultures have swarmed across the globe devouring the assets of one nation after another with coordinated “privatization” schemes. The US is their current victim.
Instead of allowing a handful of corrupt Wall Street investment banks to implode from well-deserved bankruptcy, the Swindler Bailout engineered by the US Treasury and Federal Reserve extorts trillions of taxpayer dollars to pay off the gambling debts of racketeers, reward criminal CEOs for fraud, finance acquisitions to devour healthy banks and to further consolidate syndicate banking monopolies. Taxpayer loans could have been directly issued to victims of predatory lenders to stabilize the housing market and “bailout” funds could have been directly injected into the REAL economy. Instead, the confiscated wages of American workers were transferred to corrupt investment conglomerates and their foreign creditors. Tim Geithner plans to use confiscated American wages to create a “bad bank” to purchase toxic waste. Fed-Treasury gangsters serve the syndicate, not taxpayers. Crippling national debt from illegal wars, Swindler Bailouts and Obama’s “stimulus” lay the groundwork for classic IMF “structural adjustment” of the American economy, permanently stripping citizens of their remaining assets, health care protection and confiscated wages held in trust by the Social Security Administration. This premeditated Grand Theft is the prelude for national insolvency and subsequent sale of the nation’s assets to transnational pirates. [xv]
Alan Greenspan, Federal Reserve Chairman, and Board Director at the predatory Bank for International Settlements, used the standard Rockefeller-Rothschild blueprint for engineering the US financial collapse: deliberate expansion of cheap credit to inflate the web of debt and entice rampant speculation followed by sudden constriction of credit to violently contract the economy. A tactic used by Rothschild’s Bank of England to rob its colonies, this violent contraction catalyzes waves of foreclosures, bankruptcies and layoffs that force sellers to accept pennies on the dollar for their assets. Alternatively described as Milton Friedman’s ‘Shock Treatment’ and Henry Kissinger’s formula for “making the economy scream,” this psychopathic financial terrorism is often accompanied by death squads to bring a nation to its knees.
Disintegration would be a blessing
Billionaire George Soros said the world financial system has disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.[xvi] Whether this is true or another syndicate pretext for consolidating its pyramid scheme under one Underworld Bank, we would be wise to seize this moment to make systemic corrections that will generate long-term stability and restore our financial sovereignty.
Imagine for a moment that worldwide governments had retained their exclusive authority to create money and issue credit and had strictly regulated the transparent movement of capital within their own borders. Had they remained autonomous, systemic global collapse would not have been possible. Predatory loans in the US could not have collapsed Iceland’s economy or infected foreign banks with toxic Wall Street derivatives. Small, autonomous units counteract systemic risk by isolating disease and preventing it from metastasizing to the whole system. Monolithic conglomerates are lethal by nature. The greater their scope, the greater the systemic risk of contagious catastrophic collapse ~ a fact we are now witnessing. The global agribusiness cartel is bankrupting independent farmers (driving them to suicide), poisoning every continent with GMOs and destroying the world food supply.[xvii] The central bank syndicate is strangling every country with debt. The globalized gambling casino has destroyed productive economies worldwide. This “disintegration” of the world financial system is an opportunity to dis – integrate the global tentacles of every syndicate conglomerate that is destroying human freedom and the earth’s life systems.
Localization of essential systems protects the overall web of life as nature wisely demonstrates by creating mini ecosystems and storing the blueprint for survival in every seed. Localizing public control of money and credit would protect self-sustaining economies from the contagion of systemic collapse caused by globalized conglomerates. Autonomous, publicly-owned, interest-free monetary systems that support small community banks, small farms and local producers of goods and services would rehabilitate self-sustaining communities and flush the systemic usury parasite from the global financial system.
Monetary reform must be accompanied by effective quarantine of the global gambling casino: Tax every gambling transaction; Indict regulators who betray the public trust; Replace the Glass-Steagall firewall between commercial banks (public savings) and reckless investment banks; Outlaw antisocial speculation that threatens public welfare; Criminalize currency speculation; Restrict commodities futures trades to physical purchases of goods; Ban derivative gambling and over-the-counter transactions that are not transparent; Prosecute naked short sellers that collapse healthy businesses; Ban leveraging without sufficient collateral; Invigorate anti-trust laws that separate investment sectors in finance, insurance and real estate; Prevent criminal conglomerates from becoming too big to jail. Collapse Wall Street casinos and let the gamblers migrate to Las Vegas where cheaters will be effectively dealt with by the House.
Isolating and strictly regulating Wall Street and offshore casinos to prevent predators from devastating the productive economy will heal the global financial system and deter future crime but its current victims will never be reimbursed for their losses. Productive workers who lost their life savings and retirement pensions slowly accumulated over a lifetime of contributing have been thoroughly robbed by sociopaths who instantly amassed unearned wealth by gambling that contributes nothing of value. They will retire, without being prosecuted, in luxury. (A new monetary system could compensate these productive workers without incurring any debt to taxpayers by creating pensions with interest-free constitutional money.[xviii])
The Mechanics of Money
Money is not a commodity. It is a symbol of value. Any two people can transfer whatever they like as a medium of exchange. We agree as a group to use one medium of exchange to simplify transactions. The purpose of inventing a medium of exchange is to sustain the flow of goods and services circulating in an economy. If we agreed to use gold or feathers as tokens, the medium of exchange would be finite and too scarce to meet everyone’s needs ~ and finite physical commodities have historically been monopolized by individuals who constrict the flow of goods and services that are needed by everyone in society. Paper is plentiful. In theory, we agree to the fiction that paper money and computer credits have value in order to produce and exchange the commodities we need. But they have no intrinsic value.
The pieces of paper and computer entries that are fabricated by private corporations, what we call money, can and should be created and regulated by a legitimate government agency. It is irrational to transfer this vital social function to private corporations that thrive on usury and destabilize economies by expanding and contracting their fabricated credit. Usury is not a fact of life, an inherent condition one finds throughout the natural world. It is a parasitic human contrivance that eventually kills the host.
Money and credit can and should be used to keep the economy flowing, facilitating the exchange of real goods and productive services that meet the needs of society ~ without fabricating debilitating and fictitious debt. This, in fact, was the intention of Article 1, Section 8 of the United States Constitution that authorized only Congress to coin money and regulate its value. The founders of our nation understood that a government does not need to borrow its money from a private corporation. It has the power to create its own money. We are that government and that power belongs to us.
Our government was designed with the constitutional authority to create money and issue credit without ever charging interest or creating debt. It can directly spend interest-free money into circulation and extinguish excess currency to prevent inflation. Moderate interest rates on government loans could be used to finance the operations of city, state and federal government in lieu of taxes. Publicly-owned community banks could charge a moderate interest rate that is returned to depositors as dividends, or it could be used to generate revenue for implementing worthwhile social projects. Monetary science comes equipped with mathematical formulas to achieve permanent monetary equilibrium through a set of principles that balance the money supply and maintain currency stability, eliminating recessions, depressions, inflation and deflation forever. Debt-free monetary systems that function as a public service are described by Stephen Zarlenga in “The Science of Money.” The mechanics of maintaining monetary equilibrium have been understood for centuries. All that is required is social consensus.
Geraldine Perry has suggested that if banks are to remain privately owned they must be required to operate as independent businesses with 100% reserves and use their own (legitimate) capital for loans, not fictitious accounting entries and not other people's money. A public Monetary Authority would issue the national money supply. Attorney Ellen Brown’s brilliant book, “The Web of Debt,” proposes sound mechanics for a new monetary system, using interest-free constitutional money and credit issued by the government. Richard C. Cook explores creative possibilities that truly liberate the mind and demonstrate the possibilities of a compassionate monetary system. These three visionaries all endorse the Monetary Reform Act conceived by Stephen Zarlenga. All that remains is public demand for this reform.
Existing debt to the central bank crime syndicate disappears in an instant when it is recognized that fictitious accounting entries do not constitute lawful “consideration”. Nothing of value has been borrowed. What a bank “lends” is the borrower’s own promise to invent money for the bank, an absurd fraud.
Completely abolishing the privatization of national money and credit would end world poverty and liberate human energy to create worldwide abundance in which every human community could produce and exchange the goods and services it needs without ever being enslaved by fictitious debt. What is most essential to liberating humankind from centuries of covert suppression is financial sovereignty. Political freedom without economic freedom is meaningless. The self-induced implosion of a corrupt financial system provides our generation with a precious (and brief) opportunity to secure the blessings of liberty envisioned by our ancestors and to finish the America.
[i] World Research Library, “Global Banking: The Bank for International Settlements”, August Review;
diplomatic immunity for persons and what they carry with them (i.e. diplomatic pouches)no taxation on any transactions, including salaries paid to employees embassy-type immunity for all buildings and/or offices operated by the BIS no oversight or knowledge of operations by any government authority freedom from immigration restrictions freedom to encrypt any and all communications of any sort freedom from any legal jurisdiction
immunity from arrest or imprisonment
inviolability of all papers and documents
[v] Michael Hudson, “Super Imperialism: The Origin and Fundamentals of US World Dominance”
[viii] Paul Volcker’s policies as Chairman of the Federal Reserve contributed to the significant recession in the US economy in the early 1980s, which included the highest unemployment levels since the Great Depression. Volcker's Fed elicited the strongest political attacks and most wide-spread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of the high interest rates on the construction and farming sectors, culminating in indebted farmers driving their tractors onto C Street and blockading the Eccles Building. After leaving the Federal Reserve in 1987, he became chairman of the prominent New York investment banking firm, J. Rothschild, Wolfensohn & Co, a corporate advisory and investment firm in New York, run by James D.Wolfensohn, who later to became president of the World Bank. [Since 2006, Wolfensohn has also been the chairman of the International Advisory Board of Citigroup.] As of October 2006, Volcker is the current Chairman of the Board of Trustees of the Group of Thirty. He was a founding member of the Trilateral Commission and has had a long association with the Rockefeller family, rotating, since 1952, between the Chase Manhattan Bank, the US Treasury and the Federal Reserve Bank. He played an important role in the decision to suspend gold convertibility in 1971, which resulted in the collapse of the Bretton Woods gold standard. (http://en.wikipedia.org/wiki/Paul_Volker)
Committee on payment and settlement systems at the Bank for International Settlements. As Treasury
Secretary, Geithner has the authority to spend the TARP “bailout” funds without Congressional approval. He proposes to create one or more "bad banks" to buy and hold toxic assets, using a mix of taxpayer and private money. He also proposes to expand a lending program that would spend as much as $1 trillion to cover the decline in the issuance of securities backed by consumer loans and to give banks new infusions of capital with which to lend. Geithner arranged the bailouts of Bear Stearns and AIG and played a pivotal role in the decision not to save Lehman Brothers from bankruptcy. Tim Geithner’s father, Peter Geithner, oversaw the Ford Foundation's microfinance programs in Indonesia being developed by Ann Dunham-Soetoro, Barack Obama's mother. (http://en.wikipedia.org/wiki/Timothy_Geithner)
[x] Linda Minor, “Follow the Yellow Brick Road: From Enron to Harvard”
[xii] World Research Library, “Global Banking: The Bank for International Settlements”, August Review;
Joan Veon, Afghan Voice, “Controlling the World’s Monetary System: The Bank for Int’l Settlements;”
Alfred Mendez, “The Network,” http://www.bilderberg.org/bis.htm#visit;
Jerry Fresia, “Toward an American Revolution: Exposing the Constitution and Other Illusions” (Chap. 5)
[xiv] Smedley Butler, (http://home.iprimus.com.au/korob/fdtcards/Butler.htm)