America Gets Poorer (Part III)
Previously I promised to explain how the banking system we have been given transfers all wealth from those of us who work to those few who gave themselves a license to print our money. As we shall see, there has been a rise in the National Security State that parallels the extraction of wealth from the common people by the Lords of Wall Street. As President Obama said (to the bankers), “My administration is all that stands between you and the pitchforks.”
In a previous essay, The Counterfeiters, which can be found in my March 2009 archives, I explained that what our banking system does is to quite literally legalize counterfeiting. Prior to 1913 only the Treasury of the United States could legally print paper American dollars. After the Federal Reserve was created as a privately owned corporation in 1913, the words Federal Reserve Note has replaced the words Treasury Certificate on our paper currency.
Presidents Lincoln and Kennedy both issued Treasury Certificates. They both realized that prices are a ratio of the money supply to the Gross National Product (GNP) or total number of goods and services for sale. A balanced increase of 4% in both the money supply and in the GNP means that we can print enough Treasury Certificates to increase the money supply by 4% and suffer no inflation in prices. That is because prices are a ratio of the supply of money to the GNP.
Our M3 Money Supply reached ten trillion dollars before the Federal Reserve refused in 2006 to any longer tell us how much money is in circulation. So if we had Treasury Certificates instead of Federal Reserve Notes, we could safely increase the money supply by 4% or 400 billion dollars by spending the money we printed rather than by taxing us.
Why did I say “giving our money to Wall Street?” You will understand once you realize how we fund deficits with Federal Reserve Notes. If the Treasury Department needs to fund a deficit under the current Federal Reserve system, the FED can print 400 billion dollars in new Federal Reserve Notes and then exchange them for 400 billion dollars in Treasury bonds which obligate you as a taxpayer to pay interest and principal to a group of men who were given a license to print our money.
That is why I have called them Counterfeiters. The Federal Reserve, which is owned by the member banks and by Investment banks, can legally print money and enter it into circulation by lending it to either you or your government. Note that under the Treasury Certificate program there is no federal government debt. That is why I have said that government debt is a fiction but that we are obligated to work and to pay real taxes to pay interest on those fictional debts. That fictional US debt is currently 11.4 trillion dollars.
Our deficit is currently 2 trillion dollars and we have guaranteed up to 13 trillion dollars in loans to the bankers. We could soon face a 20 trillion dollar debt which will require us to pay 2 trillion dollars a year in interest payments at 10% or 4 trillion dollars a year at a 20% interest rate.
As I pointed out in a previous essay, our Gross Domestic Product (GDP) has contracted to less than 14 trillion dollars a year but that includes a government share of almost 5 trillion dollars so our share of the GDP is 9.1 trillion dollars. That means when, not if, we pay 4 trillion dollars in interest to China at al there will only be 5 trillion dollars left over for us which is a reduction of 4/9ths or about 44% in our share of the GDP pie. So our after tax net incomes will have to be cut by more than 50% if we don't abolish the Federal Reserve.
To keep control of the people after the bankers cut our wages fifty percent will be exceedingly difficult even with the rise of the National Security State and the passage of the Patriot Act. That is why we have had so many wars since the creation of the Federal Reserve.
I have talked before about the banking system’s right to launder a trillion dollars in drug money and up to 400 billion dollars a year in illegal weapons sales. They also are allowed to launder 500 billion dollars a year in bribes for politicians around the world. This has lead to corrupt government and the systematic destruction of major areas of American cities. And yet we do not have the right to criticize our betters on Wall Street for the destruction of America.
I have also spoken of the divine right of the Lords of Wall Street to steal four billion dollars a week from unaudited government spending. We do not even have the right to ask for permission to audit the books despite the overwhelming documented evidence of theft on a grand scale.
On 9-10-2001 Donald Rumsfeld admitted he was unable to trace 2.3 trillion dollars in Department of Defense (DOD) spending. On the morning of 9-11-2001 dozens of military auditors were busily attempting to trace the money that went missing from the previous Bush I and Clinton administrations.
I feel obligated to point out that the 2.3 trillion dollars we are talking about was from the budgets of previous Presidents as the 2001 budget did not go into effect until October of 2001. Of course the Bush II administration also racked up an additional trillion plus dollars in DOD spending it could not trace since 9-11-2001.
Nor is the incoming Obama team exempt from criticism. William J Lynn III was a lobbyist for Raytheon and had been part of the group in the Clinton DOD that had helped to loot the taxpayers of a couple trillion dollars. He was confirmed as Obama’s Deputy Secretary of Defense by a vote of 94 to 3.
On the morning of 9-11-2001 dozens of military auditors were busily attempting to recover trillions of dollars stolen by from us . Robert Andrews, a former Green Beret, was Acting Assistant Secretary of Defense and was in charge of America’s 25,000 special operations troops. Immediately after the second plane of the World Trade Center, Robert Andrews went to the Counter Terrorism Center (CTC) on the west side of the Pentagon. Twenty two minutes after his arrival, the CTC was damaged by a bomb that killed dozens of the military auditors attempting to uncover the truth about the theft of taxpayers money.
Now we are back to business as usual. The Lords of Wall Street are continuing to steal billions of dollars each week. Catherine Austin Fitts says they are sending that money overseas and adding it to their profits from the drug trade and the trillions they have stolen from the Bailouts so they can buy American for pennies on the dollar after they crash the dollar, steal your savings and pensions, foreclose on millions of homes and buy America for pennies on the dollar.
We have entered a period where tax revenues are declining sharply at federal as well as state and local levels so budgets on the local level need to be balanced by cuts and tax increases. Many politicians including Governor Schwarzenegger have called for a sale of state owned real estate. There has also been a movement to sell our roads and water supplies to foreign buyers.
Next time I will discuss what I have called the coming Great Fire Sale which will transfer all of our public assets like water, utilities, parks and roads. This is in addition to our major corporations and our homes that will be bought in bankruptcy and foreclosure with the trillions of dollars the Lords of Wall Street have stolen from federal spending that we commoners are not allowed to audit.
Stay Tuned for my next installment in this series which could be subtitled The Coming Great Fire Sale.
Previously I promised to explain how the banking system we have been given transfers all wealth from those of us who work to those few who gave themselves a license to print our money. As we shall see, there has been a rise in the National Security State that parallels the extraction of wealth from the common people by the Lords of Wall Street. As President Obama said (to the bankers), “My administration is all that stands between you and the pitchforks.”
In a previous essay, The Counterfeiters, which can be found in my March 2009 archives, I explained that what our banking system does is to quite literally legalize counterfeiting. Prior to 1913 only the Treasury of the United States could legally print paper American dollars. After the Federal Reserve was created as a privately owned corporation in 1913, the words Federal Reserve Note has replaced the words Treasury Certificate on our paper currency.
Presidents Lincoln and Kennedy both issued Treasury Certificates. They both realized that prices are a ratio of the money supply to the Gross National Product (GNP) or total number of goods and services for sale. A balanced increase of 4% in both the money supply and in the GNP means that we can print enough Treasury Certificates to increase the money supply by 4% and suffer no inflation in prices. That is because prices are a ratio of the supply of money to the GNP.
Our M3 Money Supply reached ten trillion dollars before the Federal Reserve refused in 2006 to any longer tell us how much money is in circulation. So if we had Treasury Certificates instead of Federal Reserve Notes, we could safely increase the money supply by 4% or 400 billion dollars by spending the money we printed rather than by taxing us.
Why did I say “giving our money to Wall Street?” You will understand once you realize how we fund deficits with Federal Reserve Notes. If the Treasury Department needs to fund a deficit under the current Federal Reserve system, the FED can print 400 billion dollars in new Federal Reserve Notes and then exchange them for 400 billion dollars in Treasury bonds which obligate you as a taxpayer to pay interest and principal to a group of men who were given a license to print our money.
That is why I have called them Counterfeiters. The Federal Reserve, which is owned by the member banks and by Investment banks, can legally print money and enter it into circulation by lending it to either you or your government. Note that under the Treasury Certificate program there is no federal government debt. That is why I have said that government debt is a fiction but that we are obligated to work and to pay real taxes to pay interest on those fictional debts. That fictional US debt is currently 11.4 trillion dollars.
Our deficit is currently 2 trillion dollars and we have guaranteed up to 13 trillion dollars in loans to the bankers. We could soon face a 20 trillion dollar debt which will require us to pay 2 trillion dollars a year in interest payments at 10% or 4 trillion dollars a year at a 20% interest rate.
As I pointed out in a previous essay, our Gross Domestic Product (GDP) has contracted to less than 14 trillion dollars a year but that includes a government share of almost 5 trillion dollars so our share of the GDP is 9.1 trillion dollars. That means when, not if, we pay 4 trillion dollars in interest to China at al there will only be 5 trillion dollars left over for us which is a reduction of 4/9ths or about 44% in our share of the GDP pie. So our after tax net incomes will have to be cut by more than 50% if we don't abolish the Federal Reserve.
To keep control of the people after the bankers cut our wages fifty percent will be exceedingly difficult even with the rise of the National Security State and the passage of the Patriot Act. That is why we have had so many wars since the creation of the Federal Reserve.
I have talked before about the banking system’s right to launder a trillion dollars in drug money and up to 400 billion dollars a year in illegal weapons sales. They also are allowed to launder 500 billion dollars a year in bribes for politicians around the world. This has lead to corrupt government and the systematic destruction of major areas of American cities. And yet we do not have the right to criticize our betters on Wall Street for the destruction of America.
I have also spoken of the divine right of the Lords of Wall Street to steal four billion dollars a week from unaudited government spending. We do not even have the right to ask for permission to audit the books despite the overwhelming documented evidence of theft on a grand scale.
On 9-10-2001 Donald Rumsfeld admitted he was unable to trace 2.3 trillion dollars in Department of Defense (DOD) spending. On the morning of 9-11-2001 dozens of military auditors were busily attempting to trace the money that went missing from the previous Bush I and Clinton administrations.
I feel obligated to point out that the 2.3 trillion dollars we are talking about was from the budgets of previous Presidents as the 2001 budget did not go into effect until October of 2001. Of course the Bush II administration also racked up an additional trillion plus dollars in DOD spending it could not trace since 9-11-2001.
Nor is the incoming Obama team exempt from criticism. William J Lynn III was a lobbyist for Raytheon and had been part of the group in the Clinton DOD that had helped to loot the taxpayers of a couple trillion dollars. He was confirmed as Obama’s Deputy Secretary of Defense by a vote of 94 to 3.
On the morning of 9-11-2001 dozens of military auditors were busily attempting to recover trillions of dollars stolen by from us . Robert Andrews, a former Green Beret, was Acting Assistant Secretary of Defense and was in charge of America’s 25,000 special operations troops. Immediately after the second plane of the World Trade Center, Robert Andrews went to the Counter Terrorism Center (CTC) on the west side of the Pentagon. Twenty two minutes after his arrival, the CTC was damaged by a bomb that killed dozens of the military auditors attempting to uncover the truth about the theft of taxpayers money.
Now we are back to business as usual. The Lords of Wall Street are continuing to steal billions of dollars each week. Catherine Austin Fitts says they are sending that money overseas and adding it to their profits from the drug trade and the trillions they have stolen from the Bailouts so they can buy American for pennies on the dollar after they crash the dollar, steal your savings and pensions, foreclose on millions of homes and buy America for pennies on the dollar.
We have entered a period where tax revenues are declining sharply at federal as well as state and local levels so budgets on the local level need to be balanced by cuts and tax increases. Many politicians including Governor Schwarzenegger have called for a sale of state owned real estate. There has also been a movement to sell our roads and water supplies to foreign buyers.
Next time I will discuss what I have called the coming Great Fire Sale which will transfer all of our public assets like water, utilities, parks and roads. This is in addition to our major corporations and our homes that will be bought in bankruptcy and foreclosure with the trillions of dollars the Lords of Wall Street have stolen from federal spending that we commoners are not allowed to audit.
Stay Tuned for my next installment in this series which could be subtitled The Coming Great Fire Sale.
posted by Daniel F at 7:15 PM
1 Comments:
Join 5,500 plus outraged Americans and sign, comment and promote the Abolish the Federal Reserve Petition to show your displeasure at the real estate and financial meltdown caused to a large degree by easy money policies of Greenspan and the Fed.
http://www.petitiononline.com/fed/petition.html
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