Tuesday, September 30, 2008

Bail Out Taxpayers Not Wall Street

We have learned that the figure for the 700 billion dollar bail out was just pulled out of a hat with no regard to the actual need and that it was chosen because it sounded good. Big enough to scare the voters. And not too big to overwhelm them. We also learned that 700 billion dollars was to be a down payment with the taxpayers to pay 5 trillion or more dollars in additional payments after the elections are over.

I have a three point alternative plan which would bail out the taxpayers and not Wall Street.

1)We repeal the Federal Reserve Act of 1913 and issue Treasury Notes to replace all Federal Reserve Notes. Estimated savings to taxpayers would be 759 billion dollars a year.

2)We properly audit federal spending. In 1982 the Grace Commission estimated this would save taxpayers 100 billion dollars a year. With inflation, today's larger budgets and increased political chicanery I would accept no figure under 200 billion dollars as the estimated savings for instituting proper accounting procedures.

3)We institute recovery procedures to bring back to the Treasury all stolen funds. '

Presidents Lincoln and Kennedy issued Treasury Certificates, but they were assassinated by “lone gunmen.” As a proper tribute to their memory we ought to replace all Federal Reserve Notes with Treasury Certificates. They both issued dollars without requiring the United States to first create fictional “debts.” That is why the money they created are called non-interest bearing currencies. The Federal Reserve Act was written by Max and Felix Warburg and was designed to benefit their friends John D Rockefeller, J P Morgan, the Rothschilds and other bankers. The money they gave us is interest bearing. We therefore have a 9.3 trillion dollar debt which is soon to balloon to 15.3 trillion when we have completed bailing out Wall Street and the mortgage bankers.

When you go into a bank to borrow $10,000, the banker will create a checking account entry in your name and have you sign a promissory note requiring you to pay him back the $10,000 plus interest. Please note he is not loaning you Mrs. Jones' deposit money. He is creating new money. The people suffering the loss are the pensioners and those with savings whose purchasing power was just decreased.

Money is a commodity that measures the value of all goods, services and commodities for sale. When the banks issue loans, they are adding to the money supply and cutting your purchasing power. You can think of the money supply as a lottery. If 100,000 tickets were originally sold, but another 300,000 tickets are sold, your chance of winning was cut to 1 in 400,000.

To eliminate inflation and to stabilize prices all we need do is to increase the commodity known as money at the same rate as the Gross National Product (GNP) which measures all goods and services for sale.

Under the current system a debt must be created before money can be issued either in the form of a checking account deposit or new Federal Reserve Notes. The FED does not print dollars. It calls the Bureau of the Mint which is part of the Treasury. On average the FED pays the Mint 3 and ½ cents on the dollar for every Reserve Note printed. When the money is delivered by the FED to the Treasury, the Secretary issues a T-bill or bond to the Federal Reserve in exchange for the money which the Mint printed and sold for pennies on the dollar.

Most likely the Treasury Secretary will exchange T-bills for checking account money from the Federal Reserve or one of its member banks which costs the banks nothing but requires us to pay interest to them forever. That is because we will never completely pay off that 9.3 trillion dollar fictional “debt.”

So if we had never passed the Federal Reserve Act of 1913, we would have no 9.3 trillion dollar debt and no need to pay interest on that debt. That is why the debt is called fictional. But there is another source of savings to the taxpayers.

If we had Treasury Certificates, we would need to maintain a stable price level and to keep sufficient money in circulation to do business and prevent a 1929 style economic collapse. A couple of years ago the M3 money supply was ten trillion dollars. To support stable prices we would have to increase the money supply by the same rate as the GNP. If the GNP grows 4%, then we can also increase the money supply by 4% or 400 billion dollars. Since we would not be issuing bonds in exchange for the Checking account money we issued or the Treasury Certificates the Bureau of the Mint printed, we could simply spend that money into circulation without penalty or interest. This would cut our tax burden.

A couple of years ago I calculated the total subsidy to the Federal Reserve from the taxpayers to be 759 billion dollars by adding the gross interest of 359 billion dollars to the 400 billion dollars the amount the money supply needed to be increased to maintain price stability.

The other subsidy taxpayers currently pay to Wall Street is the decision by both political parties not to adequately audit spending which I estimate to cost us in excess of 200 billion dollars a year.

Catherine Austin Fitts was the managing partner at Dillon Read before becoming Deputy Secretary of Housing and Urban Development (HUD) under the first President Bush. She was nominated to serve on the Federal Reserve Board by Bill Clinton but declined the offer.

Catherine once found a single block in San Diego which had 10 HUD backed loans totaling $20,000,000 for buildings that never existed. In fact not one of the ten buildings even had postal addresses. In the year 2000 Susan Gaffney, HUD's Inspector General, testified before the Congress that she had to write off 17.6 billion dollars in 1998 and 59.6 billion in 1999. She also testified that she made no attempt to recover any of the assets. Apparently both political parties have agreed that Wall Street has the divine right of kings to steal our money and we have no right to ask them to recover it.

There is a program called called Community Wizard which Ms. Fitts has used in the past to trace federal spending by zip code. She once had a friend use it for his home town. The man went livid when he discovered that the federal government had paid out 4 million dollars in flood relief for his small town that never even had one flood in its past hundred years. Unfortunately you are not currently living in a democracy so Community Wizard is not available to you.

You might want to look at Catherine's web page www.Solari.com and type missing money in the search box. You will have sufficient information to grill any candidate who comes to you asking for your vote. This is an election year. And the Bail Out has riled up the electorate. When the Congress, the Senate, the President and Wall Street asked us to bail them out of the latter's losses, many congressmen said they had two types of callers in response to the bail out. “Some said No. The others said Hell No.” It appears the people are tired of being fleeced.

It seems the Bail Out has changed American politics forever.

Indira Singh was a high level computer consultant on 9-11. She traced the computer glitches that made 9-11 possible to one computer company Process Technology (PTECH) in Quincy Massachusetts. PTECH had administrative level access to the computers at FAA, NORAD, the FBI, the Secret Service, the Department of Justice (DOJ), the Pentagon, Social Security, the Treasury Dept., HUD and a lot of other agencies. Ms. Singh said that PTECH was the most likely to be the means used to steal billions of dollars each week from inadequately audited federal spending. She also said that Wall Street is even stealing from Social Security by adding phony recipients to the rolls.

Indira Singh had many conversations with honest FBI and CIA agents after 9-11 about the attack on the World Trade Center. A CIA agent told her that PTECH was an Agency operation. She was also told there is a “wall” inside both the CIA and the FBI. Outside the “wall” are honest hard working men and women. Inside the “wall” are drug smugglers, arms dealers, thieves, traitors and war criminals.

This “wall” has to come tumbling down if we are to survive as a democracy.

There is no absolutely need for us to send Wall Street even more money upon the trillions of dollars they have already stolen. We just need to repeal the Federal Reserve Act, to properly audit federal spending, to recover stolen assets and to allow the crooks to go into bankruptcy and to go to jail if convicted of crimes.

This country belongs to us and not to them.


Blogger Denis Jones said...

I am not as optimistic, as you, and feel the only option remaining for people of the USA is to vote with their feet. In other words, GET OUT WHILE YOU CAN. I have posted a page on renouncing your US citizenship, here. Because so many people are using the option of expatriation, a new law has been past by CONgress, which now imposes a steep price to get out. The cost of freedom can be as high as 30% of your worldwide assests!

11:50 PM  

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