Thursday, October 23, 2008

Canceling American And Third World Debt

The 700 billion dollar Bailout has galvanized American attitudes toward Wall Street. For the first time since 1929-1939 the majority of white Americans have been convinced that New York bankers are treating them as if they were colonial subjects of a foreign empire ruled by the Divine Right of Kings.

One observer said the 700 billion dollar Bailout has transformed the Treasury Secretary into the fourth branch of government. He can spend 700 billion dollars without either congressional oversight or judicial review. I would rephrase that to say Goldman Sachs has become our Fourth and highest branch of government. Our Treasury Secretary Henry Paulson was the CEO of Goldman Sachs and was said to have beenrewarded with a 512 million dollar bonus for his good work. Now he is the head of the Fourth Branch of government which is above the reach of the President, the Congress, the Senate and the Judiciary. He has even been issuing contracts under the Bailout with the terms blacked out. No one in the controlled press has dared question him about the details that he is keeping from us.

Since 1995 four trillion dollars in federal government appropriations have been spent without adequate auditing and are untraceable. That is four trillion dollars not billion. And like all federal money it was deposited in the New York Federal Reserve Bank. The New York Fed and its bigger member banks are responsible to the taxpayers to assure that our money was not stolen. That they have co-operated in the looting of unaudited federal spending is a criminal act. But then Goldman Sachs, the Treasury Secretary and the Federal Reserve Bank are above the law.

To understand the true nature of politics you need to know that what Asia Times said. The biggest 300 banks launder 500 billion dollars in bribes for the politicians of this world. You need to understand what it means when we have proof that billions of dollars each week of your money is being stolen. That money was stolen under Democrat and Republican administrations. That money was stolen under Democrat and Republican Congresses. That money was stolen under the “watchful eye” of the news media.

Now both political parties have joined together to bail out the very people who have been robbing us blind. And the Congress even voted to exempt the perpetrators from criminal prosecution. And the Congress and President Bush gave them 700 billion dollars to cover any trail that could lead to the New York bankers doing jail time. That is why I have decided to call Goldman Sachs our Fourth and Highest Branch of government. And that is democracy as it is practiced in America.

Now even the whitest of white persons should be convinced that New York bankers regard them as no different than the darkest colonial subject. And so I would hope that mainstream Americans would now be willing to openly and fairly consider debt cancellation for the Third World and for America as we both are victims of Wall Street.

But then Americans should have already known what the bankers held nothing but contempt for them when they saw the banks launder more than a trillion dollars a year in drug money. That children in their towns are dying from overdoses and that drug related crime is systematically destroying American cities block by block is well known even though none dare speak the truth.

Americans and Third Worlders have both found themselves in a hole. It is a truism that the first rule of getting out of a hole is to stop digging. We find ourselves drowning in an ocean of debt and the solution offered by Goldman Sachs, the Federal Reserve Bank and their wholly owned subsidiaries, the Republican and Democratic parties, is borrowing 700 billion dollars to solve our current economic crisis.

There is an alternative. We could issue Treasury Certificates to replace all Federal Reserve Notes as President Kennedy did before his assassination ended the program. JFK's Treasury Certificates were issued by the Treasury Department as legal tender and minted by the Bureau of the Mint. Federal Reserve Notes are also printed by the Bureau of the Mint and are also legal tender.

The difference between the two is that if President's Lincoln and Kennedy had not been assassinated we would not have 9.3 trillion dollars in national debt soon to become 14.3 trillion dollars. Look at what happens when the Federal Reserve Bank creates a billion dollars in Federal Reserve Notes. The FED calls the Bureau of the Mint and asks them to print up one billion dollars in Federal Reserve Notes. The FED pays the Mint 3 ½ cents on average for every dollar printed. Then the FED delivers one billion dollars in Reserve Notes to the Treasurer in exchange for Treasury bonds totaling one billion dollars in value obligating the taxpayers to pay the Federal Reserve Bank one billion dollars plus interest in exchange for what the Mint printed for 3 ½ million dollars.

Most of our money supply is in the form of checking account deposits rather than actual cash. Checking account money is created by Federal Reserve member banks when they loan us money. Suppose you borrow $10,000 from a local bank. They do not loan you Mrs. Smith's savings. What they do is to increase the money supply by $10,000 when thet make an entry into their computers. You begin writing checks which will clear the bank assuming they do not lend out a higher percentage than than their share of depositors in the community.

If you were the Treasury Secretary and wanted to borrow one billion dollars in Federal Reserve Notes from the FED, they would give you a checking account deposit of one billion dollars most likely at the NY FED which is the official depository of the United States government. In exchange for the billion dollar entry into the Treasury's checking account, which costs the NY FED no more than one employee making a computer entry, we the taxpayers are on the hook for another billion dollars in debt plus the interest. That is why government debt has been called a “fiction.”

It should be emphasized that the NY FED is the official depository of the Treasury Department. That means that all of the 4 trillion plus dollars in federal spending that was illegally spent since 1995 without proper auditing as required by federal law was done with their co-operation. Billions of dollars a week are being stolen from unaudited federal government contracts and the NY FED has a fiduciary responsibility to the taxpayers to reimburse us for the losses we suffered from their complicity in the theft. If we had a functioning democracy, we could sue and recover that stolen money.

The Bailout money is being used to cover the trail of the culprits. Catherine Austin Fitts noted that Wall Street has been shorting gold to convince the world that things are better than they seem. She believes one purpose of the Bailout is to cover their losses for all those short gold sales.

Now you understand why I can truthfully say that both political parties and the mainstream press are fronts for Goldman Sachs, Wall Street and the Federal Reserve. Now you know why the Bailout can never work. They are creating more debts to get certain select people out of debt while simultaneously increasing the total amount of the debt exponentially.

Ms. Fitts has estimated that between the Bailout and the Housing Recovery Act of 2008that we have agreed to add another 5 trillion dollars to the national debt. She did say that we taxpayers might opt out of the Bailout after a few trillion dollars in debt are added and the average voter discovers just how much inflation all these Bailouts will cost them personally.

One cost of the Bailout is the service charge on the fictional national debt. If we add 5 trillion dollars to the national debt over the next 12 to 24 months, we can expect interest rates to increase sufficiently to cover the cost of the loss in purchasing power due to inflation. At 10% interest the cost to service the “national debt” would be 1.43 trillion dollars a year. At 20% the cost would be 2.86 trillion dollars. We could not pay that much money to the banks even if we canceled Social Security, Medicare, Food Stamps and all military spending.

Another cost would be inflation. As you print more dollars, each one becomes less valuable. My original prediction made several years ago was that the average wage in America would be cut 50% in real after tax dollars by 12-31-2009. Since Social Security is a wage based tax system, a 50% cut in wages will mean that recipients will also see their benefits by half. Of course if the unemployment rate approaches 17 or even 20%, the cut to the elderly will be even greater. I also have noticed that even though the Baby Boomers born after WW II are not old enough to qualify for Social Security the number of recipients has increased by more than 5 million in the past few years. It would seem to me that the real economy is so depressed from Wall Street's thievery that men and women over 50 are opting for Social Security disability because they can find no work.

The Bailout cannot work, will not work and was never intended to work. It was designed to complete the transfer of all wealth from those of us who work to Wall Streeters who have the license to print our money for us.

There is a better solution. Middle Class Americans can unite with the people of the Third World and demand non-interest bearing Treasury Certificates replace all Federal Reserve Notes. By issuing new non-interest bearing currencies globally people in Africa, Asia and Latin America can use the increase in the money supply to pay off fictional debts created under the old system. President Lincoln did a similar thing to finance the Civil War.

Prices are a ratio of the commodity called money to all commodities, goods and services for sale. If we have a ten trillion dollar money supply and a 4% growth in GNP, then we can safely increase the money supply by 4% without fear of inflation. The federal government could spend that 4% or 400 billion dollars into circulation without creating either a debt or an inflation. The United States could use the money to secure pension funds plundered by Wall Street's greed and incompetence. The Third World could use the money to get out of debt.

Some ideologues have demanded we go to a gold standard. There is no gold left in Fort Knox. Almost all of it was stolen by the same people on Wall Street who are benefiting from the Bailout and have been allowed to steal billions of dollars from inadequately audited government contracts. Additionally, we are importing 4.4 billion barrels of oil every year. If we were on a gold standard, OPEC would get what little gold we had left in Fort Knox before noon on Day One of ths issuance of the first Gold Certificates. Going on the gold standard is a distraction and will not work though buying gold or silver might work for some in the short run in these perilous times. Do not construe what I have said as investment advice.

As of October 2008 I can say without any possible refutation that Americans are colonial subjects of Wall Street. It remains to be seen if they can ever regain the freedoms they have been gradually losing since long before I was born. I can absolutely guarantee you that the collapse of the dollar will give us our last best chance to energize the populace and to take America back from those who created ten trillion dollars in fictional debt and are behind the rise of the National Security State. Wall Street hopes the repeal the Bill of Rights will immunize them from the wrath of the taxpayers and others whom they have severely abused.

The next 24 months will be our last best chance to say “No.” After that Americans will be as impoverished and enslaved as the darkest skinned African of any 19th century colony. All dissenters could be legally sent to prison and tortured for saying “No” to anything Wall Street demands. This is your last chance to get off the bus to hell.


Anonymous Anonymous said...

So one week left to election and looks like Obama will take the chair on the hill. I have been your regular reader and wonder what are your thoughts at the present moment. If Reps lose it this time, which looks inevitable at this moment, how do you think your rather apocalyptic fears will turn out? Btw do you put any significance in to the news of the US strike inside the Syrian border today? I'll be waiting for your next installment as always!

7:46 PM  
Blogger Daniel F said...

Whenever I write about money, I get less feedback. But it is the collapsing dollar that is driving everything else. If I seem apocalyptic, it is because I know what Wall Street has in mind for us when the dollar does collapse.

I have decided to add some material to the above in the next few days to make it more understandable to those who do not understand money. I figured out the difference between interest and non-interest bearing currencies when I was 9 years-old but most people do not understand banking.

Obama and McCain both supported Bush's 700 billion dollar Bailout so there is no difference between the two. They both hate America.

I am not an event driven writer as I have said before. I am chronicling the end of America and the world we knew.

Jesse Ventura said he could have beaten both of them. He said he did not run because it is not a punishable offense to kill the President of the United States. I would have loved to see him campaign against John Barack O'Bush. Three men on a mission to take the last dollar from your pension and to give it to Wall Street.

Check back in a few days to read the revised version of this article.

As things stand now, I see the economic collapse happening before WW III breaks out. Livni is calling for ealy elections and seems to be the favorite. That is a good sign.

10:46 PM  

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