Sunday, October 30, 2011

American People Deserve American Money

The American public has lost a lot of respect around the world, but nothing they might do deserves the punishment they have received from the bankers. I am not speaking of the current crisis, but the whole of the impoverishment meted out since the coup of 1913.

It was upon a dark day in December, well after the westerners had boarded their trains for the holidays, that the old money bankers got their half of the politicians to vote in the Federal Reserve Act. The same year saw the passing of the 16th Amendment which of course created a new animal called a taxpayer.

Taxes and banks are directly related. Banks loan to governments and the people pay the interest (and more) through taxes. If you are a politician or a banker, it's a great system.

If you're some poor schmuck born in the ghetto, you will be living life at a serious disadvantage to the folks up in Kennebunkport. That's just the luck of the draw. There is nothing any of us can do about our starting position in life. After that, things get complicated.

You know where I'm going. Our circumstances often dictate our decisions. Choices are not always financially available to everyone. Public schools in poverty-stricken neighborhoods are not good.

You can complete the fire drill of problems America faces today for which there is “no money” to pay for the fixing of anything. Are we to watch our bridges fall down and our dams burst just so that we might make this month's payment to the financial wizards in Europe?

It's not like the Europeans know how to operate money. All but the money-lending nations are bankrupt. I sense a pattern. Can you still buy Swiss Francs? Most nations are too far in debt.

Anyone with any common sense understands how the current international economic situation is going to play out – everyone is going to demand to be paid whatever they are owed. No one wants to be stuck holding the bag. The debts are too large, anyway. There is not enough wealth to pay it all off.

P < P + I

Where P is principal and I is interest. The equation itself is our supposed economy.

Money is created whenever a loan is made from a bank. Say you borrow $100,000 to buy a house, P equals $100,000.

Notice that the interest owed on the loan is not created. The borrower will have to scurry for that.

When you take a bank loan for $100,000 that money is created out of thin air, but is backed by the existence of the house you are purchasing.

As long as a dollar is backed by a dollar's worth of wealth, then there is no change in the value of a dollar. This is a stable economy (a balanced equation.) You can think of this as:

P = P

Where things go wrong is when a dollar is created without a dollar of collateral. Charging interest on the creation of a dollar brings us back to where we live today:

P < P + I (imbalanced economy that can only spiral into bankruptcy.)

Federal Reserve Notes (what passes for “money” today) are created at interest, with the interest going to private bankers no one can identify. “Investors” they're called. Rich people who own everything.

The Sovereign right to coin money is long established in international law. We the People deserve our money back, don't we? Let's take it back and create it interest free as it should be. Outlaw interest.

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