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Money Is Not Safe In The Big Banks

August 23, 2013 1 comment

People think that money is safe in the big banks because the FDIC will protect the deposits. This assumption is not based on the facts. This video will show official government documents that describe the plans for confiscating deposits when, (not if) a big bank fails. Individual, as well as public funds from municipal, university, county deposits are at serious risk. YOUR taxpayer money will disappear in the next crisis! Public officials in charge of taxpayer funds need to be aware of the dangers here. The loss of taxpayer funds  and the inability to meet payrolls and obligations will certainly prompt a response that will both immediate and forceful.

This video will show how Cyprus was not a one-time event and how the Cyprus confiscation was planned well in advance and how M.F. Global was the blueprint for future confiscations and how a legal precedent was created when these losses were upheld by the legal system.

Ask your public official in charge of finance where they keep YOUR taxpayer money!

Ask them if they have researched the public banking option! Do not accept no for an answer, ask them why. If they say that you do not understand these things, tell them to explain it to you.

After all, this is your money that you worked so hard for, so don’t let the big gamblers from Wall Street use YOUR personal or taxpayer money to cover THEIR losses. These big bankers are money addicts, they have no appreciation of how much work went into making that money. They do not care about you or your money, all they care about is their addiction. Don’t let public officials continue to put your taxpayer money at risk with these gamblers, just because this is how it has been done in the past.

How Many Warnings Do You Need?


How Many Warnings Do You Need?

If you knew someone with a gambling problem, you probably would not give them your money to hold. If you knew that they had placed bets that were 30 to 70 times more than the amount of money they had, you would certainly consider them totally reckless. If you knew that the money they were holding and betting with was with borrowed money, other peoples’ money not their own, you would probably conclude that they are hopelessly addicted to money. Remember these thoughts as you continue to read this article.

Picture these scenarios:
1. You go to buy groceries and when you use your credit or debit card the transaction is denied despite the fact you have money in your account.

2. You are a public official, such as a school business administrator, county treasurer, municipal finance manager, pension fund administrator, or anyone who has responsibility for protecting public money. You try to access the money and the transaction is denied.

Under either scenario, you investigate why you cannot access money you know is in your account and you find out that the bank has failed and has been closed until further notice by the authorities. You also discover that the government will be confiscating part of your savings in order to “stabilize” the bank.

So you think that “cannot happen here”? You think you are safe because the FDIC “protects” your money?  You placed your money into one of the big banks and believe it is safe because it has large vaults and is insured by the government. Perhaps you placed the public monies you are charged with into a large bank because they are properly “collateralized” and therefore you believe these funds are safe. If you truly believe any these previous statements, you really need to read the rest of this article because your money is at serious risk.

So you think your money is safe? Let’s examine why that assumption could cost you all or part of your savings. Would you be surprised to learn that money sitting in everyday peoples’ savings accounts in Cyprus was confiscated in order to “stabilize” the banks? If you are surprised by this news, hopefully this article will provide you with an incentive to do some research. This article is filled with links to more information, and I encourage you to follow them. If you are aware of this bank confiscation, do not make the mistake of believing that it is an isolated event that “cannot happen here”.

In a nutshell, what actually happened in Cyprus was that the banks were overleveraged and the size of the liabilities of the banks exceeded the Gross Domestic Product (GDP) of the entire country of Cyprus. Given the fact that the “bail outs” of the large banks in 2008 were so politically unpopular, the European “troika” imposed a “bail in”, where customers with savings accounts were to have some of their savings seized (read: stolen) in order to stabilize the banks. The losses to some accounts were as high as 60%. The banks were closed for 12 days, so people had no access to their money and once the banks reopened, they had only limited access to their money in order to protect the banks.

Was this plan by the “troika”, just a one-time event or was this something more? It turns out that this eventuality had actually been planned in advance in 2012 at the G20 Financial Stability Board in Basel Switzerland where the US FDIC and the Bank of England created a joint paper outlining a confiscation scheme. Under the FDIC/BOE joint paper, accounts of $250,000 or less could be seized by the failing bank and converted to stock equity as part of a “bail in” scheme. The stock would of course be essentially worthless because the bank has already failed.

There is also a plan to confiscate savings in New Zealand if necessary to save the banks. Canada also has a confiscation plan in the wings should their banks falter. The European Union has just reached an agreement where shareholders and depositors will be tapped to “bail in” any bank in trouble.

So you still think that this “cannot happen here” because the FDIC will protect your money? Consider that our largest banks have derivative contracts with a notional value of more than $700 trillion (think $700,000 BILLION!). The entire world GDP is only $70 trillion, therefore the liabilities of the big banks could not be covered by the entire GDP of the United States. Does this sound similar to what happened in Cyprus? Does this sound similar to the gambler at the beginning of this article? What is very important to keep in mind is that Cyprus is a small country and that much larger outside forces came in to “stabilize” the banks. If one (or more) of the large U.S. banks experiences a derivative failure, there is not enough money on the planet to “stabilize” them.

These derivatives are really nothing more than “bets” placed by the banks, and when (not if) these “bets” start going bad, the banks will be on the hook for their value. You need to know that these derivative “bets” have been given super-priority status in case of a bank bankruptcy. What this means is that the holders of these derivative contracts will have first priority for payment and that you either as an individual or government entity will be placed at the back of line – as a bank creditor should a large bank fail. This means that you will probably get little or nothing back.  Most people do not understand that once you give a bank your money, the money legally is no longer yours. Under the law, you are an unsecured creditor to the bank and are treated as such in any bankruptcy proceeding. As an individual or as a public official, if you have money in one of the big banks, you have essentially given your money to that gambler and now you are a creditor to the gambler.

This sort of loss has already happened with the MF Global collapse. While this was a futures trading company and not a bank, the blueprint for confiscations was tested here and with the Sentinel case the legal system upheld the customer losses. These trading accounts were supposed to be “segregated” accounts that belonged to the account holders, not MF Global. As an analogy, think of a “segregated” account as a safe deposit box at a bank, the contents belong to you, not the bank. Yet in the MF Global collapse, in this analogy it essentially gambled with the assets in the customers’ safe deposit boxes, and the legal system placed the creditors of the bank above the safe deposit box holders.

Still think the FDIC will protect the derivative and account holders?  JP Morgan Chase has $1.1 trillion ($1,100 Billion!) in deposits and Bank of America also has over $1 trillion ($1000 Billion!). Again, remember that gambler, JP Morgan Chase has about $70 TRILLION in bets out there, but is holding only about $1 Trillion in deposits and another Trillion in assets. It has made bets with a value approximately 35 times all the money it has access to. Again, this is YOUR money they are betting with, not their money.  Bank of America also has about 30 times its assets in derivative bets. Citigroup and Wells Fargo each have over $900 billion each in deposits and also have many times their assets in derivative bets. Once these bets start going bad, there is no way the banks can cover them. The FDIC has only $33 billion available to insure deposits. That means that once any one of these banks fails, the FDIC has less than 3% of the money needed to cover the depositors. If any one of these big banks fails, these banks are so interconnected that it is also likely to bring down the other large banks. In fact both Bank of America and JP Morgan Chase have moved their riskiest derivatives from their uninsured trading houses to the FDIC insured subsidiaries, which are their retail banks, putting the funds in those accounts at a significantly increased risk.  Once even one of these biggest banks experiences a derivative meltdown, there is not enough money in the FDIC or probably even the U.S. Treasury to cover the losses. Still think Cyprus cannot happen to you?

If you are a public official who has responsibility for protecting public money, you probably have that money deposited into an account with one of the largest banks. Do you still believe that money is safe? Are you doing your fiduciary duty to protect that money in the public interest? So as a government official in charge of finances, what are your options?

One option is to start a public bank such as the Bank of North Dakota. First public banks do not gamble with derivatives and the Bank of North Dakota thrived during the crisis of 2008. Not only will you get the safety of the money for which you have responsibility for, but other advantages to this approach include: the ability to provide interest free or low interest loans for public infrastructure projects, the ability to create jobs, generate revenue, and build up the local community. This article clearly explains some of the huge advantages of financing your projects using a public bank.

Consider this – if you buy a home for $100,000, by the time you have paid the mortgage in full, the total cost will have been close to $300,000. Consider the absurdity of paying those who build the home and provide the raw materials $100,000, and paying the financiers $200,000 for money that was not even theirs. This makes little sense. The same principle applies if a state, county, or municipality wants to build a road, school, bridge, or other infrastructure. They need to go to Wall Street for financing at high interest rates. However they could form their own bank and finance the project at zero or near zero interest.  The projects would cost less than half and the finance costs would not be siphoned out of the community, impoverishing it, and ending up on Wall Street or in Cayman Island tax shelters. The finance costs would stay in the community.

Think of the things that could be accomplished if you could eliminate debt service as a line item in your budget! The money deposited in the public bank would be safe and would serve the local community. You could use the public bank to refinance existing debt at zero or near zero percent interest. You could lower tax rates! This idea has such appeal that currently there are initiatives in 20 states to start public banks.
Money controls governmentIf you are a public official with a fiduciary responsibility to protect public funds and one of these large banks fails and you lose the public money, think of the consequences that will arise once the public becomes aware that you did not heed the warnings that Cyprus provided. Think of the consequences that will arise when the public becomes aware that you did not consider alternatives to the big vulnerable banks. It is time to bring home the money from Wall Street where it is at risk. If there is a derivative crash, try meeting your payroll with stock equity (in a failed bank).  The impact of not meeting a payroll will be both immediate and forceful. It is vital to get that money out of Wall Street BEFORE the next meltdown.

To those public officials who are truly interested in serving their communities, this is your moment. This is your time to step up to the plate. Be bold, be innovative, and empower your communities. You owe this to your fellow citizens, your children and your future. Visit this website to learn more about the possibilities that public banking offers, to learn how to get started, and where to find help in implementation. You are not alone of you wish to make this happen.

If you are an individual saver who wants to protect your money, you need to move your money out of the big banks because that is where it is most vulnerable. Move your money into local community banks or Credit Unions. This will help your local banks as well as your community by keeping the money local. It is also important to MOVE YOUR DEBT to these local banks as well. The way bank accounting works, a deposit is actually considered a liability to the bank, while a loan is an asset on its accounting ledger. (I know this sounds convoluted, but this is the way it is). By moving your debt to the local banks, you create assets for them as well as helping your local community. While there are no guarantees that a smaller bank could survive the crash of one or more of the bigger banks, very few of the small banks have gambled with the super-priority derivatives. This is huge advantage that at provides insulation from the large banks.

So, consider yourself warned, money is not safe in the big banks. The MF Global losses, the Cyprus confiscations, the Sentinel case, the FDIC/BOE Joint Paper, the plans in the European Union, Canada, New Zealand, and Spain to raid private accounts, and finally the information in this article should be raising all sorts of red flags. HOW MANY WARNINGS DO YOU NEED? Personal accounts, as well as any school, municipal, county, and state funds that are deposited in any of the big banks are not safe. The plans for confiscation have already been developed, they have been approved, they are awaiting the next crisis.

Ask your public official in charge of finance where they keep YOUR taxpayer money!

Ask them if they have researched the public banking option! Do not accept no for an answer, ask them why. If they say that you do not understand these things, tell them to explain it to you.

After all, this is your money that you worked so hard for, so don’t let the big gamblers from Wall Street use YOUR personal or taxpayer money to cover THEIR losses. These big bankers are money addicts, they have no appreciation of how much work went into making that money. They do not care about you or your money, all they care about is their addiction. Don’t let public officials continue to put your taxpayer money at risk with these gamblers, just because this is how it has been done in the past.

The Trillion Dollar Coin: What You Really Need to Know

January 16, 2013 3 comments

Recently a novel idea began circulating in the Washington Beltway that the government could print a $1 Trillion coin and use that to fund its operations in the absence of an agreement on the raising of the debt ceiling. This idea certainly sounds like it came from fantasyland, but if one follows it carefully through to its logical conclusion, it will shine a light on our current monetary system and how it is fundamentally unsustainable. The floating of the $trillion coin has inadvertently opened up a window not just to reform, but to transform our monetary system. The resulting transformational consequences would be welcomed by all political perspectives.

The idea here is that the Treasury Dept has the legal right to issue such a coin, deposit the coin in an account at the Federal Reserve, and then draw upon the account to fund projects approved by Congress. This idea hits at the heart of the power structure across the planet, which has at its core, the ability to create money out of thin air. Currently our entire money supply is created out of thin air by private banks which in turn charge interest on that money. There are many people who, because of its official sounding name, think the Federal Reserve is a branch or part of the U.S. government. However, they are very mistaken. The Federal Reserve is no more federal than Federal Express. The Federal Reserve is simply a [powerful] cartel of private banks with an official sounding name that has usurped the right to print our money, a power bestowed upon Congress in the Constitution by the founding fathers.

“Article I Section 8: The Congress shall have the power to coin money”

FoundingFathersSo what replaced the system that the founding fathers originally intended? In 1913, the passage of the Federal Reserve Act granting the Federal Reserve the legal authority to issue Federal Reserve Notes. When President Wilson signed the bill, he declared it the “first of a series of constructive acts to aid business”. In fact the only business it aided was that of the private banks. The system was designed from its inception to ensure that every dollar that came into existence had to be borrowed from this private cartel of banks called the Federal Reserve.

So what most people also do not know is that every single dollar in circulation has to be borrowed by somebody. In other words, the entire money supply is DEBT BASED and someone is paying interest on that debt to the private bankers. In fact the total cost for 2012 for just servicing the interest on the U.S. government debt was an astounding $359 billion and $454 billion the year before. The interest on our debt for those two years exceeds the entire stimulus bill of 2009.  Think of what we could do with that much money every year: transportation, healthcare, modernizing the electric grid, education, research, are just a few examples that quickly come to mind.

It becomes very easy to see that the ability to collect interest on the national debt involves huge sums of money being paid out to those with the power to create our money and that these people will do almost anything to make sure that things remain exactly as they are. That is why they encourage their corporate controlled media to ridicule the $trillion coin idea as something out of a fantasy tale, or having the talking heads echoing that investors will be spooked, and broadcasting that the world will think that the U.S. has totally lost its marbles.

So how exactly does this idea of printing a $1 trillion coin threaten their power? If the U.S. government does issue such a coin, it will simply be issuing its own currency as the founding fathers originally wrote into the Constitution, bypassing the need to borrow the money from the private bankers. This is what threatens their extremely privileged position. NO INTEREST WILL BE PAID TO THEM ON THIS MONEY!

The question NOT being asked by the corporate media shills is that if the U.S. government can issue its own interest free money in the form of a $trillion coin, then why is it borrowing the money at interest instead?

One can therefore think of the idea of issuing a $trillion dollar coin as being equivalent to the idea of the government printing its own money. The philosophy and result are essentially the same.

Think about this: if you had the LEGAL right to print your own money would you:

1. print your own money to pay your bills?

2. borrow money at interest from the private banks to pay your bills?

Of course any sane person would print their own money. Yet here we have the unimaginable stupidity of a government with the ability to print its own interest and debt free money. Instead chooses to borrow that money at interest. Astoundingly, the corporate controlled media is not asking why this practice continues.

It actually gets even worse. It costs the government 4 cents to print a bill of any denomination, for the paper, labor, ink equipment maintenance etc. It does not matter whether the bill is $1, $5, $20, or $100, the cost is the same.  So if you were the one printing totalprintingcoststhis legal money, the last 4 bills mentioned would have cost you 16 cents to print.  Now can you imagine the totally absurd notion of  you taking these 4 bills to your banker, selling it to them for the cost of printing (16 cents), and then borrowing it back at face value ($126) with interest charges? This is the height of lunacy, and yet this is exactly what our government does. The Treasury Dept prints the bills, delivers them to the Federal Reserve branch offices, charges them for the cost of printing, and then borrows this money back at face value with interest. Ask yourself why the corporate controlled media is not covering this story.

Henry Ford once wrote: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

The fatal flaw in our monetary system is that every dollar has to be borrowed into existence, then this money is extinguished once the loan is paid back. So there is a balance here? Wrong! If you borrow $1000, you add $1000 to the money supply. When you pay the loan back, you extinguish the $1000. The problem is where does the money to pay the interest come from? There is not enough money in circulation to repay both the principal and the interest. This lies at the very heart of our deficit problem. Someone has to borrow money into circulation to cover the costs of your interest payments. The amount of debt in our system must continue to grow in order to service the interest payments on the original debt. So the more the debt grows, the more interest payments needed, the more that must be borrowed to pay that interest, the more debt grows. The fact the U.S. is trillions in deficit is by design. In reality it is impossible to repay this debt. When you hear those clueless people talking about paying off the debt, it cannot be done. If we paid off the entire debt, we would have no money in circulation.

Pretty clever system these money masters have created for themselves, keeping the nation and its people in perpetual debt slavery and getting paid interest for something they created out of thin air, something they never owned, something the Constitution never gave them the right to do. The result of the unsustainability of our current system is that ultimately the amount of debt overhang will become so huge that the system will collapse in on itself. There are many including myself who believe that we are approaching that end point.

InterestOnUS-DeabtThere are those who say that if the government printed this $trillion coin (government printed its own debt free money) that inflation would skyrocket. I have already read hyperbolic articles about the U.S. becoming the next Zimbabwe or Weimar Republic. The reality is that this money would be deposited in an account at the Federal Reserve and could only be spent for expenditures that had been approved by Congress. Since no money would reach circulation without congressionally approved expenditures, it would not add to inflation anymore than the current system of borrowing the money to finance our expenditures. Actually the use of an interest free $1 trillion coin would help lower inflation by eliminating the costs of paying interest to the private bankers while money could enter into circulation the same way as it does currently.

The talking heads on the corporate media blabber about how the $trillion dollar coin (government printing its own debt free money) would scare investors. How would investors be scared when they see that U.S. government would no longer have to pay interest on any new money it created? The money supply could now grow to facilitate economy activity and it would be interest free. The chart to the right from the Treasury Direct website shows the huge costs of serving the interest payments to the private bankers and yet this could all be avoided if the government simply printed its own debt free money. Over 8 trillion dollars!

The “experts” in the corporate media ridicule the idea of the coin (government printing its own debt free money) and say that nothing like this has ever been done before. That would not be accurate either.

In fact during our colonial days, our government did fund its operations by issuing colonial scrip. Our colonies were flourishing at this time and because the government was printing its own money, there was no need for income taxes. (By the way, it is not a coincidence that the Federal Income tax was instituted just before the Federal Reserve Act because the bankers know that the government would need the revenue to pay for the interest on its money supply and debt.) The colonial governments would issue this colonial scrip to pay their debts. There were some colonies that printed too many and suffered inflation, but most were judicious in their creation. Once the British bankers became aware of this colonial prosperity and how their debt based money system was being bypassed, they petitioned King George to forbid the colonies to issue their own currency. Since the bankers controlled the monarchy then, much as they control our government today, their wishes were granted. This quickly resulted in not enough circulating money to facilitate economic activity and the colonies quickly entered into a deep depression. It was this economic depression that was the driving force for the American Revolution.

Another time that the U.S. government printed its own money was during the civil war. The bankers tried to extort interest rates from Lincoln of 24% to 36% to finance the war.

“I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”

Abraham Lincoln

Instead of acquiescing to the bankers, Lincoln courageously started printing Greenbacks to finance the war saving the nation huge future interest payments. In fact the Greenbacks were so popular with the people that a political party formed called the Greenback Party. In the end, we all know what happened to Lincoln.

Not a Federal Reserve NoteAnother time the U.S. government  printed its own money was in 1963 under Kennedy’s Executive Order  No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. This order instructed the Treasury to print bills against any silver inventory held by the government. There were billions of these certificates printed and they were known as United States Notes and they were all interest free. Some of you may remember some of these bills as they had a red seal, rather than the more common green seal of the Federal Reserve Notes. These United States Notes represented a mortal threat to the Federal Reserve System, and we all know what happened to Kennedy 5 months later.

After the Kennedy assassination, no more interest free United States Notes were issued. The Executive Order was never repealed by any U.S. President, This Executive Order is still valid, yet no president Republican or Democrat has ever utilized it!

Think about this, much of the $16 trillion in debt that was created since the Kennedy assassination has been because of the interest payments on the debt. If any subsequent president had found the courage to use Executive Order 1110, our current level of debt would be magnitudes smaller. We would not be in the same mess we are in now. So when you hear people talking about needing budget cuts in order to solve our problems and leaving a legacy of debt to our children, you are listening to people who do not understand our monetary system, or worse, they are supporters of the current system of debt that can never be paid off with the resulting perpetual interest payments to the private bankers. The better solution would be to have the government issuing its own money, debt free. Now that would be a great “gift” to our children and grandchildren!

One very valid point made by critics of having the government being able to issue its own money is that there will be nothing to restrain the government from simply overspending. In reality, banker issued debt money has also done little to limit government spending. The mechanism we have currently for that now is the congressionally approved debt ceiling, however flawed that is. Any move towards government issued money could be met by congressionally mandated structures to prevent runaway spending. At the least, if we did not have to deal with the interest payments, our spending would be significantly less than it is currently and that would help cut the deficit significantly.

decliningDollarWhen you hear all the propaganda on the corporate media ridiculing the $trillion coin idea (government printing its own debt free money) and saying how it will harm the economy and the markets, ask yourself, who is benefiting from the current arrangement and who is this person trying to persuade you?  They will tell you that this is inflationary. The truth of the matter is that the current system is inflationary. The chart shows how the value of the dollar has eroded since the creation of the Federal Reserve in 1913.

If the government wishes to build a bridge it has to pay those who supply the materials and those who supply the labor. This is expected and normal. However, the irony is that the government pays more to the financiers of the project than to those who supply the materials and the labor. Most people will recognize this with their home mortgages where the final cost of paying off a mortgage far exceeds the original sale price of the home because of interest charges. The unproductive bankers make far more money than the producers, the builders, and suppliers. What is wrong with this picture?

Money being spent on infrastructure projects creates wealth and since this wealth is balanced by the money being placed into circulation, there would be no inflationary effect. In fact by eliminating the financing costs of these infrastructure projects, you actually lower the price of every public project, reducing inflation.

The practical effects of the government printing its own money are not limited to the federal level. While states cannot explicitly print their currency, they can leverage the money they do have by utilizing the existing [deeply flawed] Fractional Reserve Lending system. States can create their own banks and use them to fund their projects at either no or very low interest rates. As discussed earlier, by eliminating the costs of obtaining money through the financiers, the cost of public projects is cut by almost half.  Ellen Brown, in her book “Web of Debt” outlines how the bankers have a stranglehold on our economy and how one state has created its own bank, the Bank of North Dakota.  If you have not read this book, then you probably do not understand our debt based monetary system. (Disclosure: I have no economic interest or benefit in promoting this book.)

This bank is popular with both Democratic and Republican legislators in the state of North Dakota.  This idea is starting to catch fire and 20 states are now considering some form of state banking legislation. By having a state owned bank that uses the fractional reserve lending system to create its own money out of thin air interest free, the state of North Dakota has a resource that is counter-cyclical, meaning it is capable of reducing the negative impact of recessions. They can make money available for local governments and businesses precisely when private banks decrease lending. This bank has existed for 90 years and remained stable during the financial crisis. The Bank of North Dakota is one key reason why the state has weathered the crisis better than most, has the lowest unemployment in the country, and has a current budget surplus.

Our current debt based money system is at the very heart of the poverty, debt, and economic problems facing our country and our world. The bankers have enriched themselves because we allowed them to both print our money and collect interest on it. The bankers have impoverished the people because they can print our money and collect interest on it.  The bankers have usurped our government because they have accumulated such wealth at the expense of the rest us and essentially made the politicians their paid servants. They then use those politicians to rig the system against the working people. The result is a Congress with extremely low approval ratings.  These facts are recognized by people across all political perspectives, from Democrat to Republican, from the Tea Party to Occupy. This not a Liberal cause, this is not a Conservative case, this is a Common Cause. We need to take back our government from the money masters and make it serve the people instead of the bankers.

DebtBasedMoneyHow can patriots allow such a system to exist? If we can print our own money by passing the banker middlemen, we will solve so many other problems that are symptoms of our debt based money system. Unemployment will drop, deficits will drop, poverty will drop, inflation will drop, and bank induced problems such as recessions and depressions will be alleviated. We all have our pet issues and they all have validity, but if we can unite together on this one issue, many of the other issues will be solved by themselves with a government that is responsive to the people, not the bankers and corporations, and a monetary system free of burden of debt so the needs of people and business can be met efficiently.

We need to start laying the foundations of a movement to change our monetary system BEFORE the inevitable next crisis. People need to become aware that there was once a better system in the past and that it is possible to have that again. This can be accomplished through education, independent media, social networks, and word of mouth. It is time to end the illusion that our current debt based money system works for the benefit of everyone. The discussion on the $trillion dollar coin provides us with a starting point to make that change possible.

“If the American people ever allow private banks to control the issue of currency, first by inflation [bubbles], then by deflation [recession or depression], the banks and the corporations that will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered.”

Thomas Jefferson

It is time for patriots to take a break from mass entertainment, corporate media propaganda, and to become more familiar with the concept of a “wealth based” money system. These are some good places to start:

Sign the petition on the White House website to have the government print its own debt free money
http://wh.gov/m4co

Review: The White House petition website states that if any petition reaches a threshold of 25,000, it must respond to it. President Obama is surrounded by “expert advisors” who are linked to the current system of unrepayable debt with perpetual interest payments to the bankers, and they certainly will not be pushing this issue. However if enough people sign the petition, he may become aware of it.

The free YouTube video: “Secret of OZ”, by Bill Still

http://www.youtube.com/watch?v=swkq2E8mswI

Review: Having  private banks create money is the root economic cause of world poverty, ignorance, hunger, and much preventable disease. We can fix this. We can fix it in a matter of months — a year at most – if we have the will. We can make our government the most financially sound in the world — nearly overnight. All we have to do is to take back the power to create and control the quantity of money from private banks (including the privately-owned Federal Reserve banks) and put that power back into the hands of the Congress of the United States where it was under Presidents Jefferson, Jackson and Lincoln.

The book: “The Web of Debt” by Ellen Brown

http://www.webofdebt.com/

Review: Ellen Hodgson Brown may have done the impossible. She wrote a book about the most stupefying subject in the world – money, where it comes from and how it is manipulated – and made it readable, compelling, even suspenseful. Web of Debt is a page-turner that explains the origin of the Federal Reserve, the functioning of our money supply, currency speculation, capital flows, and the rest. As you read, interest grows like a Wall Street bonus package.

The book: “Modern Money Secrets” by Byron Dale

http://www.wealthmoney.org/modern-money-secrets/

Review: For the first time ever, I see a potential solution to our debt black hole.  Most financial “experts” don’t get it.  The Ivy League ones get lost in flawed neoclassical economics so they can’t see the obvious, and the ones wearing suits on TV are just propagandists.  Byron makes it real clear: no money gets into circulation without going into debt to a bank.  There is no other source.  The United States issues no sovereign money!  Therefore Americans are not free people.  It is time for us to admit the truth and either do something about it, or stop blowing up stuff on the 4th of July believing a myth.

The organization: The Public Banking Institute

http://publicbankinginstitute.org/

Since its founding little more than a year ago, the Public Banking Institute has become a significant force that is helping to turn banking and finance away from fraud and predation back toward their intended objectives of promoting general prosperity and the common good. According to the PBI website, PBI’s vision is to establish a distributed network of state and local publicly-owned banks that create affordable credit, while providing a sustainable alternative to the current high-risk centralized private banking system. (beyondmoney.net)

The organization: American Monetary Institute

http://www.monetary.org/the-need-for-monetary-reform/2009/09

The power to create money is an awesome power – at times stronger than the Executive, Legislative and Judicial powers combined. It’s like having a “magic check book,” where checks can’t bounce. When controlled privately it can be used to gain riches, but much more importantly it determines the direction of our society by deciding where the money goes – what gets funded and what does not. Will it be used to build and repair vital infrastructure such as the New Orleans levees and Minneapolis bridges to protect major cities? Or will it go into warfare and real estate loans creating the real estate bubble – leading to a crash and depression.

A Better Way To Finance Public Projects

July 15, 2012 1 comment

In a local newspaper I recently read an article regarding how a school district was looking to “refinance” their outstanding bonds in an effort to reduce the interest burden on their debt. In the same issue I read how another school district expends nearly $2,000,000 yearly just to pay the interest burden on their debt.

Clearly our school systems face a considerable interest burden on their debts. It is already a matter of public record that US municipalities, school districts, and pension funds were victims of fraud due to the rigging of the commission bids as laid out in an article called “The Scam Wall St Learned from the Mafia” by Matt Taibbi. Many of these municipalities, schools, or other entities were also the victims of a type of derivative called Interest Rate Swaps where the big banks induced them to gamble with public money on the direction of the market, but the end result was often that the “bet” went bad. A great example of this was Jefferson County in Alabama where the original cost for a sewer project was estimated at $250 million and ended up indebting the county $5 BILLION. Since we do not know all the details, it is difficult at this time to determine specifically how many states, counties, municipalities, and school districts may have been victims of financial fraud which resulted in an increased debt burden paid by the taxpayers as a result of the LIBOR rate rigging scandal that is still unfolding.

Consider this…, when a municipality or school district wishes to do a repair, a capital improvement or infrastructure project, the amount of money paid in interest costs to the financiers exceeds the amount of money paid to those who supply the materials and do the labor on the project. Most people should feel angered by this. Why should those who simply move money around, make more money than those who produce the materials and do the actual labor on the project? Most readers can probably relate to this personally because the interest burden of financing the purchase of their homes causes the final total cost of the purchase to far exceed the original cost of home itself. There needs to be a better system of financing public projects.

Perhaps engaging in creative thinking would result in cheaper financing of public projects. Proposed solutions still center on using conventional or Wall Street financing instead of looking to alternative sources. Well, there is a better way and it can provide any sized government or community entity with financing at zero or near zero interest. One needs only to look at the Bank of North Dakota (BND) for a solution, which is currently the only state-owned bank in the country. This bank has been in existence for 92 years and has a history of safe, secure, and highly profitable banking. In fact North Dakota has a budget surplus, much of which can be attributed to the reduced borrowing costs of public projects. The BND’s purpose is to provide loans to build economic capacity within the state. Examples include loans to state entities in the form of low cost loans to municipalities, schools, small businesses, agriculture, infrastructure projects, and students. The BND does not imperil state funds or tax money but is self-funding and self-sustaining. The BND enjoys broad political support from both major parties inside of North Dakota.

A public bank can be state wide or can be started or acquired by any sized government or community. It could extend county wide, allowing municipalities and other public entities access to its credit. It could be a consortium of school districts that form their own bank to save financing costs for large projects or purchases such as Haddonfield is considering. It could also be a consortium of colleges and universities seeking to reduce their interest costs which is currently driving the huge debt burden of higher education for students. Some might criticize this as “socialism”, but the system we currently have is “socialism”, where the big bank profits are kept by the banks, and the losses are subsidized by the taxpayers. The biggest advantage of a public bank is that public entities could access the resources of the bank to obtain zero or near zero interest loans. The bank would have access to the Federal Reserve discount window which makes loans available to banks currently at approximately .25% interest. This significant savings could be passed on to the loan seekers. Any profits generated by the bank are recycled back into its operation allowing it to charge the lowest rates possible. By keeping the profits inside of public coffers instead of sending them to Wall Street, the taxpayers are saved most of the costs of public projects by eliminating the financiers.

The costs associated with running a public bank are significantly lower than those for the large Wall Street banks because the employees are public workers and are not paid exorbitant salaries and multi-million dollar bonuses. A public bank is also counter-cyclical, meaning that is can extend credit precisely when private banks are reducing their credit availability and credit is most needed. A public bank is economically sustainable because they are run by professional bankers, operating transparently according to applicable banking principles. By returning credit income to the community in the form of near zero interest rates, the pressure for tax increases is reduced.

So why has this not been done outside of North Dakota? Inertia is a major force. Most commissioners, business administrators, treasurers, and others who handle local finance are not familiar with the concept of public banking. There are also the vested money interests on Wall Street who do not want to see their cash cow removed and they vigorously oppose any moves to initiate public banks or to advertise their advantages. Despite this, the momentum for public banking has been increasing with fourteen states now having either introduced bills to form state-owned banks or to do feasibility studies. The bills were introduced in Oregon, Washington State, Massachusetts, Arizona, Maryland, New Mexico, Maine, California, Montana, and New York. They join Illinois, Virginia, Hawaii, and Louisiana which introduced bills in 2010. Washington and Oregon commissioned the Center for State Innovation based in Madison Wisconsin to do a detailed analysis and it concluded that “state-owned banks would have a positive impact on employment, new lending, and state and local government revenue.” This is a viable solution.

As a former teacher for 15 years and a school administrator for 16 years, I have seen the devastating effect that budget cuts have had on our educational programs. During my time as an administrator, due to budget pressures I witnessed the elimination of the following programs and personnel in the school district where I was employed: Wood Shop, Home Economics, Metal Shop, Child Care Program, Cooperative Industrial Experience (work-study), Print Shop, Philosophy, Auto Shop, elementary librarians, the entire Business Department, Technology Lab, and Carpentry. There were also reductions in the following programs: Art, Music, Performing Arts, and Foreign Language. The loss of these enrichment programs degrades our educational offerings and leaves our society at a distinct disadvantage to other countries where the curriculum is more robust. Don’t we want more for our children and our country’s future?

Isn’t it time to redirect interest payments back into our schools? Isn’t it time to lower debt costs for local governments? Isn’t it time to cut the costs of infrastructure projects in half? Isn’t it time to invest local dollars into the local economy? Isn’t it time for interest payments for public projects to be returned back to be used for tax reduction instead of going into the pockets of the Wall Street bankers or to tax havens in Switzerland or the Cayman Islands?

So how can we make this happen? Taxpayers need to go to their town councils, their school boards, their county commissioners and ask them if public banking is being considered. If the answer is no, then ask why not? Ask these questions, do not accept “no” as an answer. If you are told that you do not understand these things, tell them to make you understand.

To those public officials who are truly interested in serving their communities better: be bold, be innovative, and empower your communities. We owe this to our fellow citizens, our children and our future. To learn more about the possibilities that that public banking offers, to learn how to get started, and where to find help in implementation, visit the following site:
http://publicbankinginstitute.org/advantages.htm

Rudy Avizius
http://www.endtheillusion.org

Rudy Avizius has been researching and writing articles on economic and social issues for over 10 years. He is concerned that our current path is not sustainable economically, socially and environmentally and that the time for real change is rapidly running out. He has also been a guest speaker on several radio talk shows in the US and internationally.

The Disease is our Monetary System


If the American people ever allow private banks to control the issue of currency, first by inflation [bubbles], then by deflation [recession or depression], the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
Thomas Jefferson

                       

emergency roomPicture yourself in this situation:

You are experiencing severe abdominal pains so you visit with your doctor. Your doctor does a perfunctory examination and announces that he will write you a prescription for a pain killer.  Of course you quickly recognize that the doctor is treating the symptom of your problem, but not the problem itself. So you visit a specialist who happened to fall asleep during the abdominal portion of his medical preparation. His uninformed diagnosis of your problem is acid indigestion and you are prescribed  antacids. Unfortunately his misdiagnosis causes your pains to continue. With the underlying disease untreated, you ultimately end up in a hospital where you are diagnosed with abdominal cancer.

In the above scenario, the following things have happened:

  • the first doctor treated the SYMPTOMS of your problem which did not nothing to treat the DISEASE that was causing the symptoms, and over time would only make the SYMPTOMS become worse.
  • the second specialist doctor misdiagnosed the DISEASE, so his treatment would also not address the problem and over time would cause the SYMPTOMS to worsen.
  • the hospital finally correctly diagnosed the DISEASE and therefore the prescribed treatments now have a chance at addressing the problem where the first 2 treatments would have failed.

We have a very similar situation existing in the economy right now. In place of the first doctor, we have our economically illiterate politicians who are looking at the SYMPTOMS of our problems such as unemployment, budget deficits, foreclosures, bank fraud, poverty, inflation, erosion of the middle class, to name just a few. They are trying to treat these SYMPTOMS,  however this does nothing to treat the DISEASE that is causing these SYMPTOMS. The financial class is also the largest donator to political campaigns. So the politicians find themselves in the position where it is to their advantage to intentionally remain ignorant of the DISEASE so they can maintain their power and positions of influence.

 Then we have the specialist economists “advising” our economically illiterate politicians on what to do, but they are also lacking what they need to correctly diagnose the DISEASE. The central banks have sponsored academic research at the major schools. However this sponsorship directly and indirectly influences the research, which ends up tending to support the existing money system. Those who develop conclusions that are not in the interests of the central bankers soon find themselves without jobs or further funding for their research. This leaves the economics students who are our future economic specialists with a view of banking that favors the entrenched banking interests.  With their lack of education on alternative monetary systems, it is not surprising that they misdiagnose the DISEASE due to their bias towards our current “debt based” money system. The end result is that both the economists and the politicians are nothing more than the hired servants of the financial class. It is in their individual interest to perpetuate the illusion that our current monetary system is the only “free and efficient” way to bring money into circulation. Listen closely to these economists during their interviews and notice how all of their “solutions” center around the SYMPTOMS while never mentioning “debt based” DISEASE itself.

Add to this mix a general public that is chained to this debt slavery, working more and more hours and finding it increasingly harder to maintain their families. After exhaustive toiling they seek relief and diversion in the form of mind numbing gladiator football games, celebrity worship, reality TV, or other minutia, rather than taking the time to educate themselves on complex issues. This disinterest or lack of understanding creates an environment where it becomes easy for the financiers to continue a system that benefits them personally at the expense of everyone else.  No one is watching the store and the till is open.

I recently attended the Public Banking Conference in Philadelphia where a 12 year old girl blew the crowd away with her understanding of our corrupt money system. If a 12 year can “get it”, then it is time for our leaders and the general public to “get it” as well. During this conference the following question was asked by another speaker, “How can a nation and its people become $trillions in debt when most of what they have done over the last 250 years is to produce wealth through their labor?” This profound question inspired me to do some serious thinking about where this debt actually originates.

Consider these questions: If you owned a printing press in your basement and could LEGALLY print your own  money…

  1.  would you choose to pay your bills by printing the money you needed?
  2. would you choose to pay your bills by going to the bankers for a loan?

Of course you would print your own money. Our government is in exactly this same position. It can legally print its own money as stipulated by the Constitution, and yet we have the spectacle of our the government  going to private bankers to borrow money to pay its bills, rather printing its own debt free money. Most people are not aware of this fact, and that is by design. 

Can you imagine yourself printing your money, then selling these same bills for the cost of printing to a private bank? Can you imagine yourself then going back to the bank and borrowing that same money at face value plus interest?

That is the unbelievable and absurd situation we currently have. The Treasury Department prints our paper dollars at a cost of approximately 4 cents per bill. The cost of printing each bill remains the same regardless of whether the denomination is $1, $10, or $100. These newly printed bills are then sold to a cartel of private bankers called the “Federal Reserve” for the cost of the printing. The government [taxpayers] then borrows this money back at face value plus interest.

The name “Federal Reserve” was deliberate in its attempt to deceive the people. It is a cartel of PRIVATE bankers, it has no reserves, and it is no more federal than Federal Express. In fact, the federal income tax was started in order to pay the interest on our “debt based” money supply.

Now there are 3 ways that money can be placed into circulation: it can be GIFTED, it can be SPENT, or it can be BORROWED.

If the government were to simply give people printed money, it would be GIFTED into circulation. Since this “free money” provides no incentive to produce anything , there is no increase in production. The money supply increases, but not the number of produced goods or services, which ultimately results in inflation.

If the money is SPENT into circulation, it is used to pay for a goods or service that have been produced. The creation of these goods or services represents the creation of wealth. Therefore this created money is a payment for wealth that has been produced. This also increases the money supply, but since a matching amount goods or services were also created, this does not result in inflation.  This money is then “wealth based” making it is a representation of wealth that has been created and therefore has  no debt or interest burden associated with it.

If the money is BORROWED into existence as it is done in our current “debt based” monetary system, the money is created out of thin air by the banks using the fractional reserve lending system. This money is then a representation of debt and has a debt and interest burden associated with it.

The way money is brought into circulation is at the very heart of our problems. It turns out that in our “debt based” monetary system, our entire money supply (except for coins) is created when a loan is taken out. Once the loan is repaid, the money is removed from circulation.  This system unfortunately has a fatal flaw that guarantees its ultimate collapse.

Let’s assume that we are on an island with a totally closed monetary system and you were to borrow $100 at 10% interest. You can pay back the $100 principle because $100 was put into circulation as a result of your loan. However, where will the $10 in interest payments come from if there is no other money in circulation? The fact of the matter is that the loan must default because there is not enough money in circulation to pay principal and interest. Since the $100 in circulation is the result of the loan being taken out. This $100 is placed as a liability on the bank’s books. Once you have paid off the loan, this liability is removed from the bank’s ledger.  That is how the money is extinguished once you have repaid the principal on the loan. The only way to pay back the interest on the loan is to borrow more money into circulation. Only the principle is extinguished, the interest is not extinguished because the interest was not a liability on the bank’s ledger. The interest amount ends up in the pockets of the bankers. If someone takes  out additional loans to cover the interest charges, it will only delay the day of reckoning. Ultimately you will have an even higher interest burden that can never be repaid. Doesn’t this sound familiar to the economic situation we currently find ourselves in?

Of course our monetary system has millions of people, taking out loans, making payments and doing other transactions all of the time. However, the fact remains that you can only repay a loan with interest if you or someone else takes out a loan to place additional money into circulation. The problem is that now someone else will have a loan to repay and will also need additional money in circulation to pay for their interest charges. So the debt burden for the money to pay the interest payment on your loan  has been shifted to someone else, and over time the interest burden continues to grow. It becomes quickly obvious that as a nation we must constantly be in debt in order to service the interest charges on our money supply. As time passes, this debt overhang with its associated compounding interest charges becomes a larger and larger burden on the society, eventually reaching a level that is no longer sustainable as it is becoming today.

The other fatal flaw in this system is that in order for the money supply to keep up with the growth in the economy, we must also continue to grow the debt in order to grow the money supply. Some of those clueless politicians represented by the first doctor we visited at the beginning of this article think we should pay off the debt. What they do not realize is that if the debt was ever totally paid down, there would be no money in circulation. Our current “debt based” monetary system is the DISEASE. Until we change our monetary system from “debt based” to “wealth based”, we can never pay off the debt, because if we did, there would be no money in circulation. The patient would die!

Think about this example of the insanity of the current system. If a government wants to build a bridge, instead of printing and then SPENDING the money into the economy with no interest bearing debt associated with it, the government instead goes to the bankers and BORROWS the money into existence. By BORROWING the money into existence, the government incurs interest charges which means that over the term of loan the government will pay more money for this bridge in finance charges than it pays for the materials and for the labor for the project. This financing cost of “debt based” money is then passed on to everyone.

In a “wealth based” system, the government would SPEND the money into existence, rather than BORROW it into existence. The costs of all infrastructure projects could be cut by more than half. This fact should resonate to those of you with a home mortgage, once your mortgage is paid off, the interest charges have easily exceeded the original cost of your home. The same thing is happening to all of our infrastructure projects. The financial class is profiting  immensely from our current “debt based” system.

Benjamin FranklinSo, is a “wealth based” monetary system some utopian vision of what has never been and can never be? The answer is no. In our colonial past we had colonial scrip where the government SPENT the money into existence.  Our colonies were prospering at that time. David Hayes writes about Benjamin Franklin during a visit to England:

The English officials asked how it was the Colonies managed to collect enough taxes to build poor houses, and how they were able to handle the great burden of caring for the poor. Franklin’s reply was most revealing: “We have no poor houses in the Colonies, and if we had, we would have no one to put in them, as in the Colonies there is not a single unemployed man, no poor and no vagabonds.” Think long and hard about this. In the American colonies before the American Revolution, there was “not a single unemployed man, no poor and no vagabonds”. — no one on Welfare, no one on Social Security, no homeless, no income tax, no alphabet agencies, No IRS, BATF, FBI, DEA, CIA, HEW, OSHA, SBA, and on and on and on to provide for the “general welfare” of our villages, towns, cities and states. How did Benjamin Franklin explain this to the British officials of his day?
How would he explain it to today’s lawyers, judges, politicians and other government officials? “It is because, in the Colonies, we issue our own paper money. We call it Colonial Script, and we issue only enough to move all goods freely from the producers to the Consumers; and as we create our money, we control the purchasing power of money, and have no interest to pay.”

There was a reason the term Commonwealth was applied to Massachusetts, Pennsylvania, Virginia and Kentucky. The term was also used interchangeably  with the term “state” by Vermont and Delaware in its 1776 constitution. When Benjamin Franklin was in England, he observed hunger, tramps, beggars, and poverty in the richest nation of its time. He asked how England with all its wealth had such grinding levels of poverty. The reply was that they had too many workers and that the rich were already overburdened with taxes. (Sound familiar?) However, they also had misdiagnosed their problem. It was not that they had too many workers, it was that they had too little money in circulation and it all carried the endless burden of unrepayable debt and interest.

The colonies did not have this problem because they used “wealth based” money that had need SPENT into circulation. This caught the attention of the English bankers. They had laws passed that prohibited the colonies from using their “wealth based” currency and mandated that “debt based” currency should be used. Within a year after passage of these laws, the colonies found themselves with mass unemployment and beggars as Franklin had found in England. This suffering brought on by a “debt based” currency was the trigger for the Revolutionary War. Unfortunately, even after the Revolutionary War, the monetary system remained “debt based” and except for brief periods of time we never returned to a ‘wealth based” currency.

Later in our history, Abraham Lincoln was faced with the financing costs of the civil war. He went to the bankers and found to his dismay that they were going to charge him 24% to 36% interest which would have left the country hopelessly indebted to the bankers. Instead, he issued Treasury Notes that came to be known as Greenbacks because of their green colored ink on the back. This money was independent and debt free and was spend into circulation with no debt or interest burden. Lincoln understood the power of the bankers which led him to write:

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarch, more insolent than autocracy, and more selfish than a bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at the rear is my greatest foe.”
Abraham Lincoln

In fact, Lincoln did exactly what the founding fathers had envisioned for the Republic when they specified that “only Congress shall have the right to coin money”. We all know what happened to Lincoln after the war.

Not a Federal Reserve NoteJohn Kennedy also understood the damage that the current “debt based” money system was having on the nation and he signed Exec­utive Order 11110 which allowed the Treasury to issue “United States Notes” without having to go through the Federal Reserve system. Some of you may remember these
“United States Notes” as they had the red seal on them, not the usual green seal of the Federal Reserve Notes. This money was also spent into the economy and was free of any debt and interest burdens.

We all know what happened to Kennedy a few months after signing that executive order.

The amounts of money that benefit the financial class by maintaining our current “debt based” money system is staggering. According to the US Treasury, the amount of interest we have paid on the “Debt Outstanding” since 1988 is more than $8.2 trillion. To better understand the scope of that figure, that would be $8,200 billion! Our interest payments on the debt are projected to continue to grow if nothing is changed. Can you imagine what could be done for our nation with all that money? Education, healthcare, infrastructure, space exploration, alternative energy sources, research & development, lower tax rates, to name just a few. Add to that the fact that with huge debt overhang, we would not be at the mercy of the global bankers in this time of economic crisis. In fact if we eliminated fractional reserve lending, and had a “wealth based” money supply, there would be no crisis.

I see so many good people working so hard to address unemployment, lack of health insurance, budget deficits, foreclosures, endless wars, bank fraud, poverty, inflation, erosion of the middle class, and other SYMPTOMS of our current “debt based” money system that afflict our society and place huge burdens on the people. Yet until we eliminate the DISEASE, we will never be successful in eliminating the SYMPTOMS. This corrupt “debt based” system is at the very core of most of our social and economic problems. However, there are alternatives to our current system and many people and organizations are working towards changing our money system . The very powerful forces who wish to keep our current “debt based” system in place for their own self-serving individual benefit have the advantage of inertia, the support of the media controlled by them,  and a general lack of knowledge about the subject. Most people are not even aware of the DISEASE, its nature, and that alternatives do exist.

We need to start laying down the foundations of a movement BEFORE the inevitable next economic crisis hits us. People need to become aware that in the past we had a better system. This can be accomplished through education, independent media, and word of mouth. It is time to end the illusion that our current “debt based” system works for the benefit of everyone.

James Madison wrote in 1789, “That the people have an indubitable, unalienable, and indefeasible right to reform or change their government whenever it be found adverse in inadequate to the purpose of its institution.”   How can patriots allow such a system to continue to exist? I would encourage people to take a break from mass entertainment and to become more familiar with the concept of a “wealth based” money system. These are some good places to start:

The free YouTube video: “Secret of OZ”, by Bill Still
http://www.youtube.com/watch?v=swkq2E8mswI

Review: Having  private banks create money is the root economic cause of world poverty, ignorance, hunger, and much preventable disease. We can fix this. We can fix it in a matter of months — a year at most – if we have the will. We can make our government the most financially sound in the world — nearly overnight. All we have to do is to take back the power to create and control the quantity of money from private banks (including the privately-owned Federal Reserve banks) and put that power back into the hands of the Congress of the United States where it was under Presidents Jefferson, Jackson and Lincoln.

The book: “The Web of Debt” by Ellen Brown
http://www.webofdebt.com/

Review: Ellen Hodgson Brown may have done the impossible. She wrote a book about the most stupefying subject in the world – money, where it comes from and how it is manipulated – and made it readable, compelling, even suspenseful. Web of Debt is a page-turner that explains the origin of the Federal Reserve, the functioning of our money supply, currency speculation, capital flows, and the rest. As you read, interest grows like a Wall Street bonus package.

The book: “Modern Money Secrets” by Byron Dale
http://www.wealthmoney.org/modern-money-secrets/

Review: For the first time ever, I see a potential solution to our debt black hole.  Most financial “experts” don’t get it.  The Ivy League ones get lost in flawed neoclassical economics so they can’t see the obvious, and the ones wearing suits on TV are just propagandists.  Byron makes it real clear: no money gets into circulation without going into debt to a bank.  There is no other source.  The United States issues no sovereign money!  Therefore Americans are not free people.  It is time for us to admit the truth and either do something about it, or stop blowing up stuff on the 4th of July believing a myth. 

The organization: The Public Banking Institute
http://publicbankinginstitute.org/

Since its founding little more than a year ago, the Public Banking Institute has become a significant force that is helping to turn banking and finance away from fraud and predation back toward their intended objectives of promoting general prosperity and the common good. According to the PBI website, PBI’s vision is to establish a distributed network of state and local publicly-owned banks that create affordable credit, while providing a sustainable alternative to the current high-risk centralized private banking system. (beyondmoney.net)

The organization: American Monetary Institute
http://www.monetary.org/the-need-for-monetary-reform/2009/09

The power to create money is an awesome power – at times stronger than the Executive, Legislative and Judicial powers combined. It’s like having a “magic check book,” where checks can’t bounce. When controlled privately it can be used to gain riches, but much more importantly it determines the direction of our society by deciding where the money goes – what gets funded and what does not. Will it be used to build and repair vital infrastructure such as the New Orleans levees and Minneapolis bridges to protect major cities? Or will it go into warfare and real estate loans creating the real estate bubble – leading to a crash and depression.

Rudy Avizius
http://www.endtheillusion.org

The Money Masters Live in Fear

February 9, 2012 10 comments



“Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” – President James Garfield, 2 weeks before his assassination.

Most people in the United States have long suspected that a “shadow government” exists and that the real power in the country resides in that dark location, not in our elected government. The citizens instinctively know that our elected officials are really nothing more than the hired servants of the money masters and are beholden to them if they wish to retain their positions of power.

International Swaps & Derivatives Association ISDA

A quick look at the curtain which they hide behind reveals one shadowy organization that represents the interests of these money masters, the International Swaps and Derivatives Association also known as ISDA. The officers and directors of this organization include some of the largest hedge funds and most of the major banks in the world including the largest banks in the United States. One of the purposes of the ISDA is determine if a “credit event” is actually a default. If a “credit event” is declared to be a default, then Credit Default Swap (CDS) contracts come into play.

Most people have heard of Credit Default Swaps and derivatives, but are not quite sure of what they really are. Before I can continue with this article, I will present a short description of these two financial instruments. Please bear with me on this as things will get interesting shortly.

Credit Default Swaps (CDS) can be generally considered to be insurance policies issued by banks (sellers) and taken out by investors (buyers) to protect against failure among their investments. The problem with them is that while insurance companies are regulated to make sure that the companies have the ability to pay their claims, the CDS issued by the bankers are largely unregulated.

Derivatives are financial instrument whose value is based on the value of another financial instrument. If one looked at a football team: it owns the stadium, has contracts with players, has advertising rights, has television contracts etc. Each one of these is an economic entity capable of generating income. Derivatives could be considered the bets that people place on these teams. (Credit Default Swaps are a form of derivatives).

So what do derivatives and Credit Default Swaps have to do with all this, how do they affect people on the street, and why are the money masters so concerned about them?

Take a look at the ,following table in a report created by the Bank of International Settlements.

Derivatives keep growing

Source: Bank for International Settlements

If you look at the highlighted area, you will see that the total value of Credit Default Swaps for 2011 is a staggering $32,409 BILLION dollars! That is $32 TRILLION, with a “T”! To put this into perspective the gross domestic product (GDP) of the United States in 2010 — the total value of all the goods and services generated in the entire country that year — was $14.6 trillion. The amount of credit default swaps held by the banks dwarfs the entire economic output of the United States. There is no way in hell that these banks could ever pay even a small fraction of these claims. The TOTAL amounts of derivatives is a staggering $707 TRILLION plus a measly few hundred billion more. This entire system is a house of cards just waiting for a single card to fall. There is not enough money on this planet to cover these contracts.

A report by the Comptroller of the Currency has the nation’s five largest banks — JPMorgan Chase, Citigroup, Bank of America, HSBC, and Goldman Sachs — holding nearly 95 percent of the industry’s total exposure to derivatives contracts. This means the 5 largest banks are on the hook for over $30,000 billion for just the CDS they issued.

This is where it starts to get interesting.

Remember earlier in this article I stated that one of the purposes of the ISDA is to determine if a “credit event” is actually a default? If a “credit event” is declared to be a default, then Credit Default Swap (CDS) contracts come into play. Think about this, the very same banks that would have to pay the claims by those who bought these contracts, are in the position of determining if a “credit event” is really a default. All the banks have to do is to NOT declare any default and they do not have to pay! If they did have to pay, and then the house of cards would collapse. The big banks would immediately be insolvent and the money masters live in fear of this.

This lack of a declared default by the ISDA is exactly what brought down MF Global which was speculating heavily on European bonds. What ultimately happened was that an agreement was reached in Europe that that investors would have to take a write-down of 50% on Greek Bond debt. Now MF Global was leveraged anywhere from 40 to 1, to 80 to 1 depending on whose figures you believe. Let’s assume that MF Global was leveraged 40 to 1, this means that they could not even absorb a small 3% loss, so when the “haircut” of 50% was agreed to, MF Global was finished. It tried to stem its losses by criminally dipping into segregated client accounts, and we all know how that ended with clients losing their money.


MF Global may well be just the tip of the iceberg on what still awaits us.

However, MF Global thought that they had risk-free speculation because they had bought these CDS from these big banks to protect themselves in case their bets on European Debt went bad. MF Global should have been protected by its CDS, but since the ISDA would not declare the Greek “credit event” to be a default, MF Global could not cover its losses, causing its collapse.

Think about this for a minute, if you or I paid 50% of our mortgage payment, this would certainly be declared a default. However, in the Greek bond write-down the ISDA did not declare it a default. What you essentially have here is a situation where the banks controlling the ISDA and are essentially determining their own fate.

Now with the talk in Europe being that investors may have to take a write down of 70% on some European debt, will that be declared a default? I doubt it, again because that would drive the 5 biggest banks in the United States into insolvency. The problem becomes, at what point does the ISDA declare a default? At 70%, at 80% , or at 100% if Greece or another country just walk away from their debt? Once a default is declared by the ISDA, the banks are done, and the money masters know this! The conflict of interest in this situation is clear. These banks got to write the insurance , get paid the premiums and yet they have total control over whether they will have to pay.

The money made by selling these derivatives is directly responsible for the huge profits and bonuses we now see on Wall Street. The money masters have reaped obscene profits from this scheme, but now they live in fear that it will all unravel and the gravy train will end. What these banks have done is to leverage the system to such an extreme, that the entire house of cards is threatened by a small country of only 11 million people. Greece could bring the entire world economy down. If a default was declared, the resulting payouts would start a chain reaction that would cause widespread worldwide bank failures making the Lehman collapse look small by comparison.


The ability of these large banks to not pay on the Credit Default Swaps that they wrote, sold and profited from is a travesty. What will happen once other countries like Italy, Spain, and France have bond write downs? This criminal abrogation of contracts exposes something much bigger, the unregulated shadow banking system of derivatives. The Dodd-Frank bill that people thought would regulate the finance industry does little to address the problems of derivatives, largely due to the money masters’ lobbyists that influenced the bought politicians to not put limits on the gravy train. We have a system where: laws are written by the servants of the money masters, the regulators are appointed by these same servants, CDS policies were written by the money masters, premiums were paid to the money masters, fees were taken by the money masters , but no payouts will be permitted by the money masters. Do not expect the paid politicians or regulators to do anything about this.

These titans of Wall Street do not answer to any government or to the public. They have set us all up for a second financial crisis far worse than in 2008. These money masters are humanity’s worst enemy. This is another example of a paper game they have created to enrich themselves, but puts the entire world at risk.


Well, these Masters of the World will be having a themselves a get-together to plan the future of their world.

*The ISDA 27th Annual General Meeting will be held on April 30-May 2, 2012 in Chicago.

*This will be followed by the G8 summit meeting in Chicago on May 19 and May 20.

*Then this will be followed by the NATO summit in Chicago on May 20 and May 21.

During 9-11, it was said that our security services failed to connect the dots. However, here we have a situation where if you analyze this carefully, it is easy to connect the dots.

There is a reason that the ISDA meetings are held first. The G8 and NATO events are the window dressing for public consumption. The real decisions will be made by the money masters so their meeting needed to be held first. At this meeting, the money masters will develop their marching orders for their puppets, the paid servants who are the political leaders who will be in attendance at the G8 conference.


These puppets at the G8 Conference will then create the marching orders for the militaries that they control. However, all the “big picture” planning will have been developed at the ISDA meetings. The money masters live in fear of an economic collapse that they have brought about and they may have need of a military adventure to distract the masses from their crimes. Of course the paid servants will go along with this plan because they do not want to do anything that would change their positions of power. Watch for signs of a bogeyman country orchestrated by the mass media to whip up frenzy in support of war, or possibly even a false flag attack. This media campaign will be another symptom of the fear of the money masters.

The militaries will do what they always do and will blindly follow their orders. The NATO meeting will be used to develop the planning for the execution of the orders developed by the money masters.

With the continued austerity being imposed on the world by these bankers and their agencies such as the IMF, World Bank, and their hired servants our political leaders, a meeting of so many tools in one location is a natural magnet for protestors who are tired of the corruption and greed in the system. The demonstrators will be targeting the puppeteers, not just the puppets.


It is not difficult to imagine that the money masters do not want any of these meetings to be disrupted and that plans have already been made for an overwhelming police presence. There have already been reports of joint military exercises between the Los Angeles police and the military. You can count on the fact that the 1st Amendment will sustain “collateral damage”.

Chris Hedges, a Pulitzer prize winning journalist, has speculated that since the NDAA was opposed by the agencies in the national security establishment including the FBI, NSA, that what might be driving these military exercises is the fear that the bankers do not trust the police to protect them if things turn south.

“And I think, without question, the corporate elites understand that things, certainly economically, are about to get much worse. I think they’re worried about the Occupy movement expanding. And I think that, in the end—and this is a supposition—they don’t trust the police to protect them, and they want to be able to call in the Army.” – Chris Hedges

It is no mistake that Chicago was chosen for the site of these meetings. The powers that be know that the police will meet the protests with violence, but in Illinois, it is illegal to record the police. So the documentation of violence perpetrated in the protection of the interests of the money masters will be significantly reduced. The choice of Chicago for the site of these meetings is another example of the fear of the money masters.


The number and behavior of law enforcement as well as the myriad of other security agencies that will be present during these Chicago meetings will certainly be an indicator of the level of fear that the money masters are feeling as the world they have created on a foundation of theft, fraud, leverage and debt crumbles around them.

The Occupy Movement has been shining a light into the dark recesses that these money masters inhabit. The movement represents a real threat to their privileged positions as the public becomes more and more aware of the fraud and greed perpetrated by them, as they continue to extract even more money from the public. The money masters had their paid servants, the politicians evict the Occupiers from their parks in most cities across the United States. Another example of the fear the money masters have.

But…..

These money masters know now that all they accomplished was to scatter the movement which ultimately only strengthened it even more. The message is now quietly spreading to college campuses and to communities where foreclosures are being fought (further threatening the bottom lines of these same bankers). Every time that the hired politicians send their enforcers, the police to violently repress the movement, the movement grows in strength.

The money masters live in fear that they will not escape the blame for creating the next economic crisis as conditions continue to worsen. The money masters know that nothing has changed since the 2008 collapse and that the number of derivatives has actually grown since then (see chart). You would think that the bankers would have learned their lesson, instead with their myopic focus on their own wealth and greed the derivatives grew to significantly higher levels. These money masters now live in fear of the repercussions of these actions.

Eventually even the police will realize that their pensions are being raided by these money masters. The money masters have been manipulating their politician puppets to enact “pension reforms” that hide their theft in the name of “necessary cutbacks”. The money masters live in fear that ultimately even the police will refuse to protect their interests.

The money masters live in fear that the Occupy Movement will awaken the country from its deep sleep, and that the wrath of the people will turn against these sociopaths who have so manipulated the system in order to enrich themselves with no regard for anyone else. They may have their psychological and physical bunkers to hide in, but the very fact that they need these bunkers, shows their fear.

For more articles by many authors on economic, social, justice, media, and community issues:
http://www.endtheillusion.org

Occupy Evictions: Did the Money Masters Win?

December 14, 2011 2 comments

Has anyone asked themselves this question: where would our country’s economy be right now, if they had enforced banking regulations as vigorously as they enforce park rules?

It is ironic that so many in this country have fallen for the corporate media propaganda that seeks to divide the masses and have us fight each other. They wish to accomplish this so that we do not focus on those who pillaged the economy and Treasury and left the devastation of millions without jobs, millions of families foreclosed upon and left in the streets to fend for themselves, the 50 million without health insurance, and the record nearly 46 million now on food stamps . This is a standard divide and conquer tactic so that we are focused on each other, rather than on the perpetrators. The corporate media drivel tells us that these victims are lazy, and need to work harder to find jobs. The corporate media where the rich pay other rich people to tell the middle class to blame poor people.

Does anyone else find it odd how so many millions became so lazy and shiftless after the financial overlords trashed our economy in 2008?

The millionaire talking heads on the media propaganda networks will have the masses blame it on the victims, rather than the perpetrators.

Riot police surround seated demonstratorsAll this is happening while those who committed the fraud continue to pay themselves huge salaries, stock options, and bonuses. Thanks to the Citizens United ruling, these financial overlords now contribute unlimited money ANONYMOUSLY to their paid servants of both political parties in Washington DC. This allows these money masters to get legislation passed favorable to them and to shield themselves from prosecution for their fraud. The hired politicians are not our leaders, they are the puppets of their financial masters.
Where is the outrage of the masses, that there have been no prosecutions of those who stole from the taxpayers? Where is the outrage for all of the fraudulent paperwork being used in foreclosures taking place across the nation? Where is the outrage when our president pressures the NY State Attorney General to drop his opposition to a “settlement” that leaves the amount of the fraud unknown and is favorable to those who committed it? Where is the outrage to the total failure of the regulators to do their jobs?

(Oh yeah, they did convict Bernie Madoff. However, his mistake was that he stole from the rich, not the taxpayers, and THAT is why he is in jail. )

raising weapons against protestorsInstead, we have the financial overlords turn their enforcers, the police, on the Occupy Movement, who accuse the money masters of this fraud. The media which these financial overlords also control, chimes in and tries to ridicule the protestors: they are dirty, they have no message, they are lazy, etc, etc. Sadly, so many among the masses cannot see this propaganda for what it is and they parrot what they hear. The puppet mayors have conference calls to coordinate police action against these accusers since they are threatening the very core of the financial elites’ power structure in the country, and of course the funding that keeps the politicians in power.

These are just some of the spectacles we have witnessed recently:
• Police in full riot gear surrounding peaceful protestors sitting in parks

• Police pointing weapons at peaceful protestors while enforcing park rules

• Oakland streets turned into a war zone in order to enforce park ordinances

• Colleges calling in police with full riot gear, rubber bullets, and batons beating students protesting rising tuition costs

• Seated students at UC Davis who presented no imminent threat to anyone being assaulted with MILITARY GRADE pepper spray by a calm police officer under no apparent duress. The video of this atrocity went viral on the Internet with millions of viewers within days.

• A complete press blackout during the eviction of the protestors in Zuccotti Park where the reporters were roughed up and not allowed within 3 blocks of the park, and the CBS helicopter filming the scene was chased out by NYPD helicopters. Residents in the area were ordered to stay indoors so that no one could record police activities.

• A police lieutenant in the New York Police Department (NYPD) pepper spraying protesters trapped in a net, calmly walking away, and then this criminal had to suffer the unbearable consequence of losing 10 vacation days for a criminal physical assault that would have landed anyone else a prison term. He was left in a position of authority and commands many officers below him. So much for the police investigating themselves.

If the crime and damage to the nation because of park rule violations, or curfew violations deserves such a violent reaction, what would be a proportionate response to those who trashed our economy and left so many jobless, without healthcare, and without their homes? We need riot police in corporate offices arresting these perpetrators. Instead, those who committed these crimes shield themselves from prosecution because of their “contributions” to those in political and judicial offices and so nothing happens to them. The masses in the country continue to follow the media pied piper and turn their anger on the accusers, rather than the perpetrators.

harmless rubber bulletsThere are those who still think that we live in a free country. If you are one of them, try going to Wall Street with a sign and see just how free you are to express your opinion.

Those who do not think, simply parrot what the propaganda they hear on the corporate media. You hear them say that the movement has no message. No message? The very name Occupy Wall Street tells the message. Then the parrots say that they should be protesting in Washington DC, not Wall Street. Well, since the politicians are the puppets of the money powers, if you want change you do not confront the puppets, you confront the puppeteers. The movement is EXACTLY where it needs to be.

The irony is that Occupy Wall Street was never allowed to even get near Wall Street. Any marches in that direction were met with a forceful and often violent response by the police. The enforcers of the power structure defended the “Temple of Greed” on Wall Street with extraordinary vigor. The protestors had to settle for a park blocks from their intended target.

One of the Citadels of Greed, JP Morgan Chase was so grateful for the loyalty that the enforcers exhibited in protecting their interests. They donated $6.5 million in computer laptops to the NYPD. These will presumably be used with facial recognition software to determine the identities of the all the protestors so they can then share this data with Homeland Security. An empire in decline often turns on its own citizens as the end game approaches.

police attack studentsNot all cities jumped on the violent confrontation bandwagon. Albany, NY police refused to arrest protestors despite pressure from the puppet governor and mayor. Washington DC and Philadelphia PA are other cities took the constitutional right to Freedom of Speech and Assembly not as obstacles, but as the bedrock of our nation’s soul. These cities did not have the violent clashes as did so many others. They did not need to field thousands of police in full riot gear and thus saved their cities $millions in overtime pay that the confrontational cities imposed on their taxpayers. The more violent and confrontational cities will inevitably also have to face numerous criminal and civil lawsuits that will also potentially cost $millions. All this to protect the bankers?

These cities need to take a look at the professional manner in which the Washington DC police and city officials handled their protests. These cities then need to send their police chiefs for some workshops in Washington DC on effective methods of policing. It is obvious that they certainly need the training!

These confrontational cities on behalf of the money powers, have acted as though these protestors were some sort of “contagion” that needed to be disinfected. The irony was that every time they were excessive in their responses, the movement only grew in strength. It was after the mass arrests on the Brooklyn Bridge that the movement started spreading to over a thousand cities across the globe. The money powers are growing more and more nervous as the conversation in the nation shifted from shredding the social safety net to the excessive wealth disparities that are visible to all, but those who choose not to see. So the money powers redoubled their efforts and coordinated the evictions with their paid servants, the politicians, to try to stop this “contagion”.

Leave your big bankWith the full backing of the police, the treasury, all branches of government, and even the military if needed, the money powers now have successfully “evicted” the peaceful protestors from many of the parks and they think they have “won”.

Arrogant fools, you cannot evict an idea. The Occupy Movement is now moving to Occupy homes going into foreclosure. This will make it much more difficult for the banks to evict homeowners from their homes by making every eviction another possible confrontation. Some will block access to ports. These new tactics will threaten the unprecedented levels of wealth accumulation by the financial overlord parasites who place themselves in close proximity to working peoples’ money and find more and more ways to skim more for themselves. This will also serve to unite the millions of people in danger of foreclosure with the Occupy Movement. This will unite people in the neighborhoods affected by foreclosure and homelessness with the Occupy Movement. This was a WIN-WIN-WIN for the movement. So here we have ANOTHER example of where the movement was met with a forceful response, and instead it grew in strength. Many other protestors will go to their hometowns and organize even more people to the movement increasing its strength even more. The “contagion” spreads. Brilliant strategy Mayor Bloomberg!

Many of the protestors moved back to their college campuses. At UC Davis, there were approximately 150 students protesting tuition hikes when the police pepper sprayed some seated protestors. The video was viewed by millions across the world. The outrage caused a 3 block line of students to silently shame the Chancellor as she walked out of a Regents Meeting the evening of the incident. The next day thousands of students showed up at an assembly to call for her resignation. Another example of how a violent reaction to a small demonstration grew the movement from a small number to thousands. The “contagion” spreads even more.

Oakland's port shut down

Mayor Bloomberg, Mayor Quan, Mayor Hancock, to name just a few, do you really think that now that these demonstrators are no longer in your parks, they will just go home and stay silent? Do you really think that your batons, rubber bullets, riot police, and pepper spray will make the anger of the injustices go away?

No, they will take the skills they learned and contacts they made at these parks and they will be very busy. They will be organizing at their colleges and universities, they will be organizing in their home towns, they will be spreading the word, they will be occupying homes in foreclosure, and the “contagion” will spread beyond your money masters’ wildest fears. These financial elites will long for the days where the only thing they had to deal with was park gatherings and signs.

Unfortunately, none of the structural problems that the Occupy Movement have been shining a light on have been addressed by the puppet politicians. This GUARANTEES that the economic, social and political systems will continue to deteriorate. This fact alone will add more frustrated people, many of which will join the movement. And the “contagion” spreads even more.

None of the perpetrators of the financial fraud have been prosecuted. It doesn’t take a Phd in economics to know that this means the financial crimes will not stop. The parasitic money masters are continuing the same behaviors that got us into this mess to begin with. The level of derivatives is now even greater than it was in 2008. This guarantees that we will face another devastating econmic collapse, probably significantly greater than in 2008. This will result in even more unemployment, foreclosures, lost health benefits, gigantic bank bailouts, government guarantees, and social safety net cuts with the resulting social unrest inherent under such conditions. What’s in YOUR wallet? The “contagion” will now spread across the wider society.

Using an insect lifecycle as a metaphor, the movement will go into the pupa stage where it will appear that it has become dormant. Imagine the tens-of-thousands of people occupying parks, plazas, colleges, homes in foreclosure, and other places around the country. They will spend the winter organizing.

Then in Spring, movement will metamorphose and emerge more powerful than ever. More and more frustrated people who sitting on the fence will start to support the changes called for. Now the money powers will be getting even more nervous. Their divide and conquer tactics, as well as the use of redirection will not work like it used to.

police brutality
Watch for more violence by the enforcers as the money masters and their hired politicians vainly try to cling to their positions of privilege and power. Watch how shrill the media attacks will become. Maybe they will start a war to distract the public from their crimes. Maybe they will infiltrate more provocateurs into the movement as they have already tried. Learn to recognize these tactics and do not allow yourself to fall for them.

It is time to let the “too big to fail” banks know that they do not have the final say. They can buy our politicians, they can generate fraudulent mortgage documents, they can buy protection against prosecution, but they have no defense against the combined economic might of the people!

So, what can YOU do? VOTE WITH YOUR POCKET BOOK!

The big banks have been draining our economy, placing their profits in off shore accounts, not paying their fair share in taxes, financing the shipping of our jobs overseas, getting government bailouts, and paying their executives HUGE bonuses. They take the money they make in your community and ship it out impoverishing your community. Move your money to a local bank or credit union. With the banks using fractional reserve lending, it means that they are leveraged 10 to 1. This means that if only 10% of all deposits from a “too big to fail” bank are withdrawn, they will be insolvent. We, the People can bring these giants down! A local bank or credit union will invest in your communities, pay taxes in your communities and make it a better to place to live. Move your money to a local bank or credit union!

Time to send these Wall Street criminals a message!

Stop paying a 3% bank tax on all credit card transactions.

Stop shopping at the big chain stores. They take their profits and ship them out of your communities impoverishing them. Many of them “hide” their profits by moving them to off-shore tax havens. Patronize your local merchants. They are paying their taxes, they are keeping the money in your community, they are part of your community.

Since money in politics is at the root of the government corruption, we need to repeal the Citizens United ruling that allows the money powers to drown out the voices of the people with unlimited money donated ANONYMOUSLY to our corrupt politicians of both parties. Some organizations that are working towards this end include:

http://www.followthemoney.org
http://www.opensecrets.org
http://www.campaignmoney.com
http://www.citizen.org
http://www.commoncause.org

Take the time to educate yourself on these issues. It is time to take our country back from the criminals who have hijacked our democratic republic and raided the national treasury for their own self-serving ends, thrown millions of families into the streets using fraudulent documents. It is time to return this nation to its people! These criminals need to “occupy” prison cells.

http://www.endtheillusion.org

Citizens Close Tax Evader Bank

April 27, 2011 2 comments

tax evaderThis video by EndTheIllusion shows how about 50 determined citizens successfully shut down a Bank Of America branch in Philadelphia on April 18, 2011, TAX DAY for most American citizens.

Bank of America is one of many very large corporations that make $billions in profits, and then use tax loopholes and off shore tax havens to avoid paying taxes on their profits. In fact according to the Government Accountability Office, 2 out 3 corporations pay no taxes. Then the politicians who are bought by these same corporations and the uber wealthy get themselves even more tax loopholes and tax cuts. All this while our government debates throwing veterans into homelessness, cutting heating aid for the elderly, and benefits for mothers with children.

So this group of determined citizens decided to do something about this moral crisis on our society.

Click here to view this video directly on YouTube.

Are you WILLINGLY paying a 3% tax?


Are you WILLINGLY paying a 3% tax?  Are you then paying this money so that it can leave your community, so it can be shipped to tax havens abroad and to pay for the bonuses of bankers and the Wall Street types?

I pay my taxes, why don't the corporations The unfortunate answer is that you probably are. With 609 million credit cards(1) being held by US consumers and with credit cards being used for more than $2.5 trillion(2) in transactions every year  you are probably using credit cards for many of your purchases. Did you know that credit card companies charge their merchants a fee of approximately 3% of every transaction? This is on top of minimum monthly fees, gateway fees, statement fees, and address verification fees. The money from these fees goes to pay bonuses for the top bankers. The amounts of these bonuses actually exceed the profits that these banks make.

So, in the end who really has to pay these fees? Does the merchant absorb them or pass them on to the customers?

BankBuildingIn this difficult economy, most merchants operate on very tight margins and they cannot afford to absorb these fees, so they are passed on to their customer. This means that everything you buy has an extra 3% tacked onto the selling price. So, even if you are paying in cash, you are probably still being charged the extra 3% because so many others pay using credit cards. You are essentially paying a 3% BANK TAX for every purchase you make because of this. So no wonder the banks are doing well in this depressed economy: 3% of $2.5 trillion is a lot of money, and this does not count any interest, late fees, annual fees, and other fees that YOU pay to the credit card companies. No wonder some of the largest buildings in our cities are banks. These large banks are not producing anything, they create no wealth (except for themselves). They are parasites on the working people who place themselves in close proximity to large piles of workers’ money and find ways to siphon off as much as possible for themselves in the way of  bonuses and money to be used to “buy” legislation that will provide loopholes in the tax code so they can keep even more money for themselves.

Big Corporations The banks are not the only ones that are siphoning money from your community. The big corporations are also doing the same. When you do your shopping at a large chain store, they do provide jobs that basically minimum wage, while they take the profits and ship it out to the central offices and out of the community. Since 2 out of 3 corporations pay no federal taxes, this means that YOU are paying for their police protection, fire protection,  and for the wars that profit them. Much of this money is also sent out of the country to avoid paying their fair share in taxes which impoverishes not only your community, but your nation as well.

So what can you do to stop your money from leaving your community and enriching the elites?

Thank this merchant for passing savings on to youFIRST: Consider this, do you get upset when you go to a gas station and they charge you more for a credit card purchase as opposed to a cash purchase? Do you get upset with a merchant if they charge you extra if you pay by credit rather than with cash? These vendors are actually doing you a favor and passing the savings on to you for paying in cash instead of pocketing the extra money. Seek out these vendors and give them your business. Thank them for allowing you to save money by passing the cash savings to you. If your merchant does not give you a cash “discount”, ask them why not. Tell them you will purchase elsewhere if they do not.

SECOND: Pay with cash whenever possible. This denies the big banks the money for all of these fees and keeps it in your pocket and in your community. Tell your family, your neighbors, your friends to do the same thing. If we could collectively cut our credit card spending in half, this alone would save us $37 billion that would be kept in our pockets and in our communities. This would be an essentially “free stimulus” for our communities, rather than having the banks siphon this cash from our communities.

THIRD: Purchase as much as possible from smaller local merchants, rather than large corporations, huge chain stores, large franchises, and large banks. Buy from your local hardware store rather than going to Home Depot. Buy from your local clothing store rather at Walmart. Drink a local beer rather than Budweiser. Buy your food from your local farmer when possible. Buy your flower bulbs from the grandmother next door rather from mailorder. These banks and corporations take their profits and also ship it out of our communities where they use the money for “productive” things like executive bonuses. Your local bank, your local restaurant, your local hardware store will keep that money in your community rather than shipping it out. This helps to stimulate the local economy and has a ripple effect as the money circulates locally. The job you save may be your own.

lobbyist control of our government FOURTH: Become aware of which corporations are the large contributors to political campaigns and lobbyists. These corporations use this money to lobby our elected leaders to add to the 71,000 page tax code to insert tax breaks that benefit them, leaving the rest of us to pay the services they receive, such as roads, police, fire, military protection. If they are not paying for these services, YOU ARE! Roads and military protection do not come cheap! This shirking of their duty, results in even more money leaving our communities which impoverishes them even more. The Wall St speculators and bankers are thriving in this environment, while Main Street suffers. Avoid buying from these large entities, and instead buy from the local merchants who are not buying our politicians and are paying their fair share of taxes.

US Uncut PhillyFIFTH: Check out what the organization US Uncut is doing. These people are aware of the scale of theft that is taking place and how the result is draconian program cuts to ostensibly cut the deficit, but in reality is really of transfer of money from those who need it the most to those who need it the least in the form of tax cuts for the wealthiest. Our nation is actually debating cutting early childhood education, forcing veterans into homelessness, and cutting food aid to pregnant women and children, while giving tax breaks to billionaires, the banks, the speculators, and the big corporations. This is just plain wrong!

With so many of our fellow citizens unemployed, underemployed, or just worried about keeping the job they have, we need to take these simple steps to start protecting our communities and ourselves from the greed of these financial elites and to VOTE WITH OUR WALLETS!

(1)”The Survey of Consumer Payment Choice”, Federal Reserve Bank of Boston, (January 2010)

(2)American Bankers Association, (March 2009)

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