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IrishGold
10-04-2003, 01:32 PM
A Phone Call To The Fed

From Dan Benham

©1988-2002

d.benham@worldnet.att.net
9-8-2

The following is a conversation with Mr. Ron Supinski of the Public Information Department of the San Francisco Federal Reserve Bank. This is an account of that conversation.


CALLER - Mr. Supinski, does my country own the Federal Reserve System?


MR. SUPINSKI - We are an agency of the government.


CALLER - That's not my question. Is it owned by my country?


MR. SUPINSKI - It is an agency of the government created by congress.


CALLER - Is the Federal Reserve a Corporation?


MR. SUPINSKI - Yes


CALLER - Does my government own any of the stock in the Federal Reserve?


MR. SUPINSKI - No, it is owned by the member banks.


CALLER - Are the member banks private corporations?


MR. SUPINSKI - Yes


CALLER - Are Federal Reserve Notes backed by anything?


MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.


CALLER - Did you say, by the power to collect taxes is what backs Federal Reserve Notes?


MR. SUPINSKI - Yes


CALLER - What are the total assets of the Federal Reserve?


MR. SUPINSKI - The San Francisco Bank has $36 Billion in assets.


CALLER - What are these assets composed of?


MR. SUPINSKI - Gold, the Federal Reserve Bank itself and government securities.


CALLER - What value does the Federal Reserve Bank carry gold per oz. on their books?


MR. SUPINSKI - I don't have that information but the San Francisco Bank has $1.6 billion in gold.


CALLER - Are you saying the Federal Reserve Bank of San Francisco has $1.6 billion in gold, the bank itself and the balance of the assets is government securities?


MR. SUPINSKI - Yes.


CALLER - Where does the Federal Reserve get Federal Reserve Notes from?


MR. SUPINSKI - They are authorized by the Treasury.


CALLER - How much does the Federal Reserve pay for a $10 Federal Reserve Note?


MR. SUPINSKI - Fifty to seventy cents.


CALLER - How much do they pay for a $100.00 Federal Reserve Note?


MR. SUPINSKI - The same fifty to seventy cents.


CALLER - To pay only fifty cents for a $100.00 is a tremendous gain, isn't it?


MR. SUPINSKI - Yes


CALLER - According to the US Treasury, the Federal Reserve pays $20.60 per 1,000 denomination or a little over two cents for a $100.00 bill, is that correct?


MR. SUPINSKI - That is probably close.


CALLER - Doesn't the Federal Reserve use the Federal Reserve Notes that cost about two cents each to purchase US Bonds from the government?


MR. SUPINSKI - Yes, but there is more to it than that.


CALLER - Basically, that is what happens?


MR. SUPINSKI - Yes, basically you are correct.


CALLER - How many Federal Reserve Notes are in circulation?


MR. SUPINSKI - $263 billion and we can only account for a small percentage.


CALLER - Where did they go?


MR. SUPINSKI - Peoples mattress, buried in their back yards and illegal drug money.


CALLER - Since the debt is payable in Federal Reserve Notes, how can the $4 trillion national debt be paid-off with the total Federal Reserve Notes in circulation?


MR. SUPINSKI - I don't know.


CALLER - If the Federal Government would collect every Federal Reserve Note in circulation would it be mathematically possible to pay the $4 trillion national debt?


MR. SUPINSKI - No


CALLER - Am I correct when I say, $1 deposited in a member bank $8 can be lent out through Fractional Reserve Policy?


MR. SUPINSKI - About $7.


CALLER - Correct me if I am wrong but, $7 of additional Federal Reserve Notes were never put in circulation. But, for lack of better words were "created out of thin air " in the form of credits and the two cents per denomination were not paid either. In other words, the Federal Reserve Notes were not physically printed but, in reality were created by a journal entry and lent at interest. Is that correct?


MR. SUPINSKI - Yes


CALLER - Is that the reason there are only $263 billion Federal Reserve Notes in circulation?


MR. SUPINSKI - That is part of the reason.


CALLER - Am I mistaking that when the Federal Reserve Act was passed (on Christmas Eve) in 1913, it transferred the power to coin and issue our nation's money and to regulate the value thereof from Congress to a Private corporation. And my country now borrows what should be our own money from the Federal Reserve (a private corporation) plus interest. Is that correct and the debt can never be paid off under the current money system of country?


MR. SUPINSKI - Basically, yes.


CALLER - I smell a rat, do you?


MR. SUPINSKI - I am sorry, I can't answer that, I work here.


CALLER - Has the Federal Reserve ever been independently audited?


MR. SUPINSKI - We are audited.


CALLER - Why is there a current House Resolution 1486 calling for a complete audit of the Federal Reserve by the GAO and why is the Federal Reserve resisting?


MR. SUPINSKI - I don't know.


CALLER - Does the Federal Reserve regulate the value of Federal Reserve Notes and interest rates?


MR. SUPINSKI - Yes


CALLER - Explain how the Federal Reserve System can be Constitutional if, only the Congress of the US, which comprises of the Senate and the House of representatives has the power to coin and issue our money supply and regulate the value thereof? [Article 1 Section 1 and Section 8] Nowhere, in the Constitution does it give Congress the power or authority to transfer any powers granted under the Constitution to a private corporation or, does it?


MR. SUPINSKI - I am not an expert on constitutional law. I can refer you to our legal department.


CALLER - I can tell you I have read the Constitution. It does NOT provide that any power granted can be transferred to a private corporation. Doesn't it specifically state, all other powers not granted are reserved to the States and to the citizens? Does that mean to a private corporation?


MR. SUPINSKI - I don't think so, but we were created by Congress.


CALLER - Would you agree it is our country and it should be our money as provided by our Constitution?


MR. SUPINSKI - I understand what you are saying.


CALLER - Why should we borrow our own money from a private consortium of bankers? Isn't this why we had a revolution, created a separate sovereign nation and a Bill of Rights?


MR. SUPINSKI - (Declined to answer).


CALLER - Has the Federal Reserve ever been declared constitutional by the Supreme Court?


MR. SUPINSKI - I believe there has been court cases on the matter.


CALLER - Have there been Supreme Court Cases?


MR. SUPINSKI - I think so, but I am not sure.


CALLER - Didn't the Supreme Court declare unanimously in A.L.A. Schechter Poultry Corp. vs. US and Carter vs. Carter Coal Co. the corporative-state arrangement an unconstitutional delegation of legislative power? ["The power conferred is the power to regulate. This is legislative delegation in its most obnoxious form; for it is not even delegation to an official or an official body, presumptively disinterested, but to private persons." Carter vs. Carter Coal Co...]


MR. SUPINSKI - I don't know, I can refer you to our legal department.


CALLER - Isn't the current money system a house of cards that must fall because, the debt can mathematically never be paid-off?


MR. SUPINSKI - It appears that way. I can tell you have been looking into this matter and are very knowledgeable. However, we do have a solution.


CALLER - What is the solution?


MR. SUPINSKI - The Debit Card.


CALLER - Do you mean under the EFT Act (Electronic Funds Transfer)? Isn't that very frightening, when one considers the capabilities of computers? It would provide the government and all it's agencies, including the Federal Reserve such information as: You went to the gas station @ 2:30 and bought $10.00 of unleaded gas @ $1.41 per gallon and then you went to the grocery store @ 2:58 and bought bread, lunch meat and milk for $12.32 and then went to the drug store @ 3:30 and bought cold medicine for $5.62. In other words, they would know where we go, when we went, how much we paid, how much the merchant paid and how much profit he made. Under the EFT they will literally know everything about us. Isn't that kind of scary?


MR. SUPINSKI - Yes, it makes you wonder.


CALLER - I smell a GIANT RAT that has overthrown my constitution. Aren't we paying tribute in the form of income taxes to a consortium of private bankers?


MR. SUPINSKI - I can't call it tribute, it is interest.


CALLER - Haven't all elected officials taken an oath of office to preserve and defend the Constitution from enemies both foreign and domestic? Isn't the Federal Reserve a domestic enemy?


MR. SUPINSKI - I can't say that.


CALLER - Our elected officials and members of the Federal Reserve are guilty of aiding and abetting the overthrowing of my Constitution and that is treason. Isn't the punishment of treason death?


MR. SUPINSKI - I believe so.


CALLER - Thank you for your time and information and if I may say so, I think you should take the necessary steps to protect you and your family and withdraw your money from the banks before the collapse, I am.


MR. SUPINSKI - It doesn't look good.


CALLER - May God have mercy on the souls who are behind this unconstitutional and criminal act called the Federal Reserve. When the ALMIGHTY MASS awakens to this giant hoax, they will not take it with a grain of salt. It has been a pleasure talking to you and I thank you for your time. I hope you will take my advice before it does collapse.


MR. SUPINSKI - Unfortunately, it does not look good.


CALLER - Have a good day and thanks for your time.


MR. SUPINSKI - Thanks for calling.

IrishGold
10-04-2003, 01:36 PM
If the reader has any doubts to the validity of this conversation, call your nearest Federal Reserve Bank, YOU KNOW THE QUESTIONS TO ASK! You won't find them listed under the Federal Government. They are in the white pages, along with Federal Express, Federal Deposit Insurance Corp. (FDIC), and any other business. Find out for yourself if all this is true.



And then, go to your local law library and look up the case of Lewis vs. US, case #80-5905, 9th Circuit, June 24, 1982. It reads in part: "Examining the organization and function of the Federal Reserve Banks and applying the relevant factors, we conclude that the federal reserve are NOT federal instrumentality's . . but are independent and privately owned and controlled corporations - federal reserve banks are listed neither as "wholly-owned' government corporations [under 31 USC Section 846] nor as 'mixed ownership' corporations [under 31 USC Section 856] . . . 28 USC Sections 1346(b), 2671. '



Federal agency' is defined as: the executive departments, the military departments, independent establishments of the United States, and corporations acting primarily as instrumentality's of the United States, but does not include any contractors with the United States . . . There are no sharp criteria for determining whether an entity is a federal agency within the meaning of the Act, but the critical factor is the existence of the federal government control over the 'detailed physical performance' and 'day to day operations' of that entity.



Other factors courts have considered include whether the entity is an independent corporation . . . whether the government is involved in the entity's finances, . . . and whether the mission of the entity furthers the policy of the United States . . . Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities ...



It is evident from the legislative history of the Federal Reserve Act that Congress did not intend to give the federal government direction over the daily operation of the Reserve Banks . . . The fact that the Federal Reserve Board regulates the Reserve Banks does not make them federal agencies under the Act . . . Unlike typical federal agencies, each bank is empowered to hire and fire employees at will. Bank employees do not participate in the Civil Service Retirement System. They are covered by worker's compensation insurance, purchased by the Bank, rather than the Federal Employees Compensation Act.



Employees traveling on Bank business are not subject to federal travel regulations and do not receive government employee discounts on lodging and services . . . Finally, the Banks are empowered to sue and be sued in their own name. 12 USC Section 341. They carry their own liability insurance and typically process and handle their own claims . . ." According to the Federal Reserve Bank of Philadelphia, "When the Federal Reserve was created, its stock was sold to the member banks." ("The Hats The Federal Reserve Wears," published by the Federal Reserve Bank of Philadelphia).



The original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller's, JP Morgan, Rothschild's, Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs. The MONEYCHANGERS wanted to be insured they had a monopoly over our money supply, so Congress passed into law Title 12, Section 284 of the United States Code. Section 284 specifically states, "NO STOCK ALLOWED TO THE US" *



Monopoly - "A privilege or peculiar advantage vested in one or more persons or companies, consisting in the exclusive right [or power] to carry on a particular business or trade, manufacture a particular article, or control the sale of the whole supply of a particular commodity, A form of market structure in which only a few firms dominate the total sales of a product or service.



'Monopoly,' as prohibited by Section 2 of the Sherman Antitrust Act, has two elements: possession of a monopoly power in relevant market and willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior power, business acumen, or historical product. A monopoly condemned by the Sherman Act is the power to fix prices, or exclude competition, coupled with policies designed to use and preserve that power." (Black's Law Dictionary, 6th Edition) The Federal Reserve Act goes one step farther, "No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer or director of a Federal Reserve Bank." They didn't want We The People to have any say in the operation of their monopoly through our elected officials.

TheSureTruth
09-06-2004, 02:13 PM
Saviors’ Day February 1995

In the Name of ALLAH, WHO came in the Person of Master Fard Muhammad, to WHOM praise is due forever, the Great Mahdi. And in the Name of HIS Servant, our beloved leader, teacher and guide, HIS Messiah to us, the most Honorable Elijah Muhammad.

I greet all of you, my dear and wonderful brothers and sisters, who are here, at the International Anah Theater, in Chicago, and those who are watching by satellite, in the various cities of America, and the various colleges, and universities, and those who are watching, by satellite throughout the world, I am so happy to greet all of you with the greeting words of peace, As-Salaam-Alaikum.


Thomas Jefferson, and others, in writing, the Constitution, please listen, made a provision, that putting the control, of money and credit, under the control of congress, was absolutely, what the founding fathers, wanted. Because Congress was the representative of the people. The founding fathers, fought against the idea, of private control, and ownership, of a CENTRAL BANK. Because they saw, how the private ownership, of central banks, in Europe, caused the undoing of nations.

As these banks, finance wars, that ultimately cause the destruction, of millions of lives. Thomas Jefferson, in a letter to John Adams, wrote, quote,

"I sincerely believe, with you, that banking establishments, are more dangerous, than standing armies."


Well what had the founding fathers learned, from the history, of the actives of privately owned banks, in Europe? That history, begins, with the rise of Meyer Amschel Rothschild. I want you to just put on your, thinking caps, we're going down now, into the valley, and I want all you, in this audience, to walk with me.

Meyer Rothschild said, that he, did not care, who governed, so long as he, controlled, the purse-strings. The founding fathers, of this nation, I really don't think, could be considered, anti-Semitic. But Jewish people, in the new nation, called America, had a hard way to go. Well what was that all about? Some whites, hate the Jews, because of just plain envy, at the success and brilliance, of this people, whom GOD has sent, so many Prophets too. But listen.

When a people, are given Prophets, the presence of a Prophet means, the presence of Revelation. The presence of Revelation means, that wisdom or knowledge, here-to-for, unknown, becomes known, which opens up, new horizons of discovery, new horizons of advancement.

If, you are the recipient of Revelation, you are chosen by GOD, to be an example, of what that Revelation can bring. But you are also chosen to give guidance, of that Revelation, to those, who do not know it.

The Jewish people, have had, many Prophets, and they have had, Revelation, upon, Revelation. Which means, that the Jewish people, have been exposed, to knowledge, unknown in the world, before these Prophets came. Which automatically creates, an environment, for advancement, in every field, of human endeavor. For whenever GOD, Reveals, HIS Revelation touches every field of endeavor. It opens up, every field.

So we should not be surprised, that members of the Jewish community, are at the head of practically every field of human advancement. They have led the way in science and technology, in all branches and disciplines of knowledge; they're leaders.

This can create enmity, envy, jealousy, hated, plotting and scheming, against such people, of advancement.

Ah, but there's another side to this - that must be understood. When one receives, Divine Knowledge - MUSLIMS, I WANT YOU TO LISTEN. When one receives, Divine Knowledge, that opens up, new horizons, for advancement, upward, toward, GOD - there also, is the opening up, of channels of the darker side, of human nature. So when a person, has knowledge, and refuses, MORAL CORRECTNESS, that comes as a responsibility, of those who are possessors of knowledge, than those who take knowledge, but refuse, MORAL CORRECTNESS, become DEVILS. I'm going to say that again, DEVILS. I'm going to say that again, DEVILS. Black, devils, white devils, red devils, yellow devils, green devils, purple devils. Anybody who is a knowing one, and refuses, MORAL CORRECTNESS, than you will use your knowledge, to trick, to deceive, to scheme, and you will become a living agent, of SATAN, the devil.

This devil mentality, works against the advancement of the person towards GOD. And this is seen, in every community, where Revelation comes. MUSLIMS IS IT SEEN AMONG US? How many Muslims, who heard the teaching of the Honorable Elijah Muhammad that opened up, advancement for us, but when the Honorable Elijah Muhammad was gone, and we forgot MORAL CORRECTNESS, we fell all the way back down, like the dog, that we were, when he found us. Are you listening to me? Behold the dog, returns to his vomit! So you have men named Shiriff, and Muhammad, who are dope sellers, dope-users, dope-pushers, pimps, and hustlers! They have become BLACK DEVILS! Agents of Satan. There are Christians like this too. Who do they're wickedness in the name of Jesus Christ.

Well, in Europe, Rothschild, claimed to be Jewish. Not the nationality of a Jew, but Jew in terms of belief in GOD, and a follower of Divine Revelation. But was Mister Rothschild a moral man? Here's a man that had five sons, and he sent his five sons into five countries. One son went to England, one son to France, Austria, one to Italy, and another remained in Germany with the father. And from these sons, and the money that these sons had, they worked and maneuvered, and manipulated, until they gained control, of the central banks of England, France, Austria, Italy, and Germany.

The control of these CENTRAL BANKS, went into the hands of individuals, who's interest were not necessarily, in harmony, with the best interest of that nation. These privately owned, central banks, became the printer of the money, and the extenders of credit of that particular nation.

So government and politics, I wish the politicians, didn't have to go. But I understand you're very busy. Government and politics, in Europe, was always controlled, by the money interest. Wars were fought, and in order to fight a war, governments had to borrow money. They borrowed money from these central banks. The central banks waxed rich, because they loaned money and charged interest. Then took over. When one side, prevails, against the other. And when governments could not satisfy the indebtedness, then some of the natural wealth of that country, flowed, to the bankers. They would loan money to both sides in the conflict. Cause they really didn't care, who won, or who lost.

I mean its hurtful, but a Jew Rothschild, loaned money, to Adolf Hitler! A Jew, Rothschild. Damnit, you better not open your mouth, to call me no anti-Semite! Rotheschild, and Paul Warburg. loaned money to Hitler. Hitler killed, little Jews, while Rothschild and Warburg, stayed in the finest hotels, in Europe. But damn it, if you can't call Rothschild, anti-Semitic, and Warburg an anti-Semite, they don't you open your mouth against me! [Applause]

In a book titled, "None Dare Call It Conspiracy," by Gary Allen and Larry Abraham, where do governments get the enormous amounts of money that they need? Most of course, comes from taxation. But governments often spend, more than they are willing, to tax from their citizens. So governments are forced, to borrow.

The public, is lead to believe, that the government, borrows, from the people, through, savings bonds. Actually, only the smallest, percentage, of the national debt, is held by individuals, in this form. Most government bonds, except those owned by the government itself, through its trust funds, are held by VAST BANKING FIRMS, known as international banks.

For centuries, there has big money, to be made, by international bankers, in financing government, and kings.

Such operators, however, are faced with certain, thorny problems. We know that smaller banks, operate, to protect themselves by taking collateral. But what kind of collateral, can you get, from a government, or a king?

The process through which, one collects a debt, from a government, or a monarch, is not a subject, taught, in the business schools, of the universities. And most of us, never having been, in the business, of financing kings, or governments, have not given the problem much thought.

But there's a king, financing business; and to those, who can ensure, collection, it is a lucrative, business.

An economics professor, named, Stuart Crane, notes that, there are two means used, to loan governments, money to governments and kings, and two means of collecting on that money. Whenever a business firm, borrows, big money, the creditor, obtains, an influence, in management, to protect, its investment. Like a business, no government, can borrow, BIG money, unless that government is willing to surrender to the creditor, SOME of its SOVEREIGNTY.

Certainty, international bankers, who have loaned hundreds of billions of dollars to governments around the world, command, considerable influence, in the polices of such governments.

But the ultimate advantage, listen to this, that the creditor has, over a king or a president, is that if the ruler, gets out of line, the banker can fiance his enemy, or his rival. Therefore, if you want to stay, in the locative, financing business of kings and governments, it is wise, to have an enemy, or a rival, waiting in the wings, to unseat every king or every president to whom you lend money. If the king doesn't have an enemy, you have to be able, to create one.

Now I'm going to show you, why America is in so much debt. The founding fathers of this nation, said, they did not want private control, of a central bank. Because to them, such a bank, would be the detriment of this democracy. Thomas Jefferson saw a privately owned central bank as WORSE than an opposing army. Thomas Jefferson wanted to keep America free, from those thing that lead to the destruction of many nations and governments, in Europe.

And so a privately owned central bank, was UNTHINKABLE, to the founding fathers of this nation, and therefore it was WRITTEN in the constitution, that only CONGRESS, should have the right, to print the money, and the instruments of credit.

The debt of America, is so great, that greater hardship, is now being planned by the government, for the masses of the American people, in order to make America solvent.

Please, you know, wake yourself up now. Come on, come on, if you got to stand up and breath, stand up, stretch yourself. I'm winding this down, so come on, I don't want you to sleep now. Are you all right? OK, sit down - you refreshed? Good, I am too. Lets get rolling.

The great sweep, in the November [95] elections that brought the Republicans into the control of the Senate and the House of Representatives, and the majority of the Governs Mansions of this nation, sent a message, to the government, that the American people, are greatly disturbed, over the course, of this nation, and they all, are seeking change. The majority of the American people, may not know, what change they want, but they definitely desire change, for the better.

The Republican party has come up with a theme, they call it, a "Contract, With, America." This contract, or agreement, is to reform the government in such a way, where great amounts of money can be saved; spending is to be brought in line; taxes are to be reduced. But this contract WITH America, to many seems, in gangster terminology, to be a contract, on America; where the contract says, the poor, and the weak, must be, eliminated.

There is no way, that the Speaker of the House, Newt Ganrage, or Senator Dole, or the Republican party, can solve the problem, of the tremendous debt of this nation, without exposing the root of this problem, and the conspiracy, that brought America, to her wretched debtor condition.

Every home needs a balanced budget. A balanced budget means, that we do not spend more than we take in, or have debts greater than our ability to handle, without over borrowing, that will destroy the economy of our homes.

Serious, financial problems, are at the root, of most of our domestic quarrels. The tremendous stress, on the bread winners in the American family is such that this stress, leads to spousal abuse; women abusing the men; men abusing their wives; the abuse of the children; the break up of the family. So balancing the budget at home, is one of the keys to a stable family environment.

Since this is so in individual homes, it is also true in the larger context, the country, the nation. The nation called, America, is going toward, five, trillion, dollars, in public debt. This debt is so great, that in order to balance the budget, such drastic cuts, have to be made that the poor, and the weak, will suffer the most.

So this contract with America, is a contract on Americas poor. Even the thought, of raising the age level, at which time the elderly will receive social security, to seventy years of age, is a sign that the social security of those who have paid into it, is in deep trouble.

The government, if it raises, the age-limit, to seventy, is betting, that most of those, who paid into this fund, will never live, to see seventy years of age; and therefore Social Security, will not have to be paid.

This is a disgrace. But what is the root of the problem? How did America get into this condition? You know the president, just set a budget, up to congress, of one point six, trillion dollars. Yet, in 1991, the last year that we have knowledge of what America took in, in taxes, America took in a little over, one trillion dollars, in taxes. Which means, that if the budget, this year, or next year is going to be one trillion, six hundred billion dollars. Then where will the one trillion, six hundred billion dollars come from, to satisfy the budget?

At this rate, if America cuts taxes, and yet is increasing its budget, by the time Clinton leaves office, if he only has one term, the country will be, six trillion dollars, in debt.

At four trillion dollars in debt, to pay the interest, on that debt - to pay the interest, on that debt, in 1991, was two hundred and eighty-eight billion (288,000,000,000,) dollars - nearly one third of what the government took in, in taxes.

If the DEBT reaches, SIX trillion dollars, practically every penny, that comes, in tax revenue, will have to be paid, to service the debt. Which technically means, that the country, will be bankrupt.

This, condition, of great DEBT, has placed America, at the mercy of those, to whom, she is indebted.

On page forty, of this same book, They Dare Call It Conspiracy, by Gary Allen and Mister Abraham, it reads (listen, listen) quote,

Since the keystone of the international banking empire has been government bonds, it has been in the interest of these international bankers to encourage government debt. The higher the debt the more the interest. Nothing drives government deeply into debt like a war; and it has not been an uncommon practice among international bankers to finance both sides of the bloodiest military conflicts.

For example, during our Civil War, the North, was financed, by the Rotheschilds, through their American agent, August Belmont, and American South, through the Enlargers, Rothschild relatives..

But while wars and revolutions have been useful to international bankers in gaining or increasing control over governments, the key to such control has always been control of money.

You can control a government if you have it in your debt; a creditor is in a position to demand the privileges of monopoly from the sovereign."

Oh man, this is heavy stuff.

"Money-seeking governments, have granted, monopolies, in state banking, natural resources, oil concessions and transportation.

However, the monopoly which the international financiers most covet is control over a nations money.

Eventually, these international bankers actually owned, as private corporations, the CENTRAL BANKS, of the various European nations. The Bank of England, Bank of France, and the Bank of Germany, were not owned, by their respective governments, as almost everyone imagines, but were privately owned monopolies, granted by the head of state, usually in return, for loans.

"Under this system, observed Reginald McKenna, President of the Midlands Bank of England: Those that create and issue the money and credit, direct the policies of government, and hold in their hands, the destiny of the people."

Now most of you think, most Americans think, that the FEDERAL RESERVE BANKING SYSTEM, is owned by the Federal Government, as the representatives of the American people. But the FEDERAL RESERVE BANK, is a PRIVATELY owned, banking institution.

On page fifty-one, of this same book, it reads,

"THE FEDERAL RESERVE, controls, our money supply, and the interest rates, and thereby manipulates, the entire economy - creating inflation, or deflation, recession, or boom, and sending the stock market up, or down, at whim.

THE FEDERAL RESERVE, is so powerful, that Congressman, Wright Patman, Chairman of the House Banking Committee, maintains:

In the United States today, we have, in effect, two governments...We have the duly constituted Government...Then we have an independent, uncontrolled, and uncoordinated government, in the FEDERAL RESERVE SYSTEM, operating the money powers, which are reserve to, Congress, by the Constitution.

Neither Presidents, Congressmen nor Secretaries of the Treasury direct the Federal Reserve. In the matters of money, the Federal Reserve, directs!"

This was written, about thirty years ago. Well is it so today? Recently, the Chairman of the Federal Reserve Board, Mister Alan Greenspan, came before Congress, to hint to the Congress, that the Fed, would raise interest rates, again. So for the seventh time, in a year, interest rates, have been raised.

The Chairman of the Board, of General Motors, and Ford, is now seeking an audience, with Mister Greenspan, to PLEAD with him, not to raise the interest rates, any further. And if Mister Greenspan agrees, this will be the first time, according to what we have read that the Federal Reserve has agreed to sit down directly with the heads of business. The Federal Reserve sits down with the heads of GOVERNMENT.

Why would business, plead, to the Federal Reserve not to raise interest rates? Why couldn't Congress order, the Federal Reserve, NOT to raise the interest rates? If you watch Congress, when they deal with Mister Greenspan, they don't, play with him. Because Mister Greenspan, is the representative of a shadow government, that literally dictates the monetary policies, of this nation.

Now do you a few weeks ago when the Mexican paso was in trouble? Against the wishes of the American people and the Congress, President Clinton, ordered, twenty billion dollars of the American tax payers money, to be used to bail out the paso. But who was President helping? Was he acting on his own? Or was he being directed by powerful forces, that the American people don't know anything about?

According to what we have read, the bail out won't save the common Mexican peasant. The bail out doesn't save, the poor, business man of Mexico. It saves the international bankers, who have, invested heavily in Mexico. Who ordered the bail out? Since the President is supposed to act on the WILL of the American people, and the American people said NO, and the Congress said NO - who told Clinton, "You better do it?"

You know, the Honorable Elijah Muhammad told us, that the Prime Minister of England, may appear to be the leader, but he goes back, behind the door, to unseen forces, that direct his motion; and believe it or not, so it is with the American President.

The American people feel that voting for the President, is voting for the man who has supreme power, to direct the course of this nation, for the next four years. But there's ANOTHER power in America, called the Federal Reserve, that is a POWER, unto themselves.

How did the control of the Federal Banking System come into private control against the wishes of the Founding Fathers of the nation, and WHAT, was written in the constitution, and what was the purpose of that?

Have you noticed how politicians bow to people with money? Well what makes you think that your vote counts? It is MONEY, that buys political influence, and ofttimes, political elections. It is money, special interest, that dictate, in a large measure, the vote of politicians, in City Counsel, in State legislature, and in the Federal Government of the United States.

It is the BIG international bankers, who are in control of MANY of the worlds, governments. But how did this happen to America? The financial woes of this country produce a ripple effect throughout the earth. The financial woes America, are causing the undoing of the social fabric of this nation. The people are grossly dissatisfied with the politics and politicians of America. The people are wondering, how the President and Congress could loan money to other governments and give money away, with the infrastructure of this nation, crumbling, and the debt, is spiraling? How could America, GIVE AWAY MONEY, when the country is in need? There are millions of homeless people, living under bridges, and America, is giving away the wealth, of the nation. How could America, be so generous to other nations and so misery to her own people? Its absolutely, a conspiracy.

And so my beloved brothers and sisters, as I enter my conclusion, the Honorable Elijah Muhammad wrote in his book, Message To The Black Man, that when America went off the gold and silver standard, her financial doom, was sealed. What did he mean by that - when did America go off the gold and silver standard? Who influenced that? And for what purpose?

Brothers and sisters, the Honorable Elijah Muhammad, in saying that when America went off the gold and silver standard, her financial doom was sealed, this is a very big statement; because, the financial doom of a nation, brings down, its government. When Germany lost the value of the German mark, the government went down right behind it. Whoever, and for whatever reason, America was taken away from the gold and silver standard, that made her financial doom, something that is BOUND to happen, then those same traitors, are responsible, for ultimately bringing about, the ruin, of the government, of the United States.


Now, lets, close, don't move, don't move. Did you know, that from 1900 to 1913, the federal government had a very manageable debt into the millions of dollars? But in 1913, something happened. Four things, were set up, in the year 1913. First, the Federal Reserve Bank; the IRS, the FBI, and the Anti-Deformation League of Beni-Brath. All were set up, in the same year. Is that a coincidence? Or is there a tie-in? I don't have time to go into all the details. But by the Help of ALLAH, I'll do that in further whitings, if it is the Will of ALLAH.

But its enough to say, that two German Jews, Paul and Felix Warburg, and the international bankers of Europe, wined and dined, a Senator, named Nelson Aldrich, who was the maternal grand-father, of Nelson Aldrich Rockefeller. And they wined and dined him for two years, showing him the central banks of Europe. Senator Aldrich came back to America, and was given the job, of being, a part of the national study of the national monetary system.

Nelson Aldrich, with Paul Warburg, had a secret meeting on Jekyll Island, off the coast of Georgia. And in that secret meeting, what came out of it was, the basis of the Federal Reserve Act.

They tried to get it through Congress, under the name, the Aldrich Federal Reserve Act. But since Aldrich was so tied to the international banking system, the members of congress, under the leadership of President Taft, they voted it out.

So they went back to the drawing board, and they redid it, and they pushed it through, on December the twenty-second, 1913, just as Congress was about to break, for the Christmas recess; wanting to get home quick, they pushed it through. And the Federal Reserve Act, became, law.

But in 1912, there was a great, presidential election, where William Taft, was challenged in his own party, by Teddy Roosevelt. Both Roosevelt, was financed, by some of these international bankers. They hated Taft, for his derailing, of the Aldrich Federal Reserve Act. So they wanted to get at, Taft. But they felt that a Republican, shouldn't bring this Act before Congress. It would be better, if it came through, a Democrat.

So the same bankers, put money behind, Woodrow Wilson; and Woodrow Wilson, sold the American Presidency, to the international bankers. He was elected in 1912, and in 1913, the Federal Reserve Act became law. And the Central Bank of the United States was taken over, by a group of private banking institutions. Then, somebody else, began, printing the money. Like Rothschild said, he don't care who rules, as long as he controls the purse strings.

In 1913, America, was not, yet, at war. In the last winter solstice, of the six thousand year rule of, the enemy, America was betrayed, by one of her Presidents, and one of her Senators, and one of her member of the, United States Treasury.

Do you know why I'm teaching this subject on Jesus, cause after I say what I'm saying today, if I ain’t got a Savior, I'm sure going to need one, after I say what I say today. Let me just finish. Don't be frightened for me. You better be frightened for yourself. Because some stuff is going down in America, right now, as we speak, that all our lives are in DANGER right now. And I've got to sound the alarm, brothers and sisters.

I DON'T CARE NOTHING ABOUT MY LIFE! ITS YOUR LIFE THAT I WANT TO SAVE! [Applause] Listen.

Now that, the bank that prints money, is in the hands of private interest. The idea is, to push up, and inspire the government, to borrow. How do you do it? Get America, into WAR! The war, in Europe, started in 1914, and by 1917, under a lie, about the Lusitania, being sunk by German subs, the American people were called into a war, to end all wars.

Boy this is heavy man. I mean, you can't believe, how wicked, how low down and rotten. Wait a minute, wait a minute, wait a minute. You can't believe, how wicked these people are, to play games with your lives, and the lives of your babies. Create a war just to, get more money, to charge more interest, and send your babies to die, for a bull$h!t. [Applause] Excuse me, but bull-$h!t, is the dropping of a bull. Its BS, its lies, it deceit; and the American people went to war, in 1917, and black people, sued, to become a part, of the war. Because we didn't want to be left out, of America, so America signed us to fight, the war! And black men died. But they don't know what the HELL they were dying for, and neither did the white ones know what they were dying for.

But the man of sin has to be revealed. And I thank GOD, that HE put it in my heart. I don't have no fear, of those bastards! I want to expose them all! [Applause] GOD is PRESENT! GOD is in the world! And I'm going to prove to you, by my LIGHT, that GOD HAS POWER TODAY! Don't worry about me! You better worry about yourself!

Excuse my language. But they are bastards; they are illegitimate children of GOD.

When American started, borrowing money, they had to have a way to pay it back! And that's how they thought of, the IRS. Then they stated taking, INCOME TAX. But by that time the Rockefeller's, and the Carnegie's, had their money in trust funds, and they had found a way, to get around, paying taxes. But the taxes were for the poor, and the middle class. It was a gradual, income tax. It was to keep on, escalating.

And in the say year, the FBI was established. You think the FBI is out here to fight crime? The FBI has done some of the most, wicked, criminal things, in this country, against the citizens, of America! [Applause]

Who are you Farrakhan, that you'd take on, the unseen POWERS, of the WORLD, to expose them, to the light of day? Who are you? I say, I'm your brother. I'm a servant of these, two, mighty men.

The FBI, has spied on, and sought to persecute, everybody, white, or black, that tampers with control, of the poor people. Whether you are communist, socialist; whether you have an idea, that could stimulate, the masses with truth. The FBI, bounces on you.

In the same year that the FBI was established, the Anti-Defamation League was established. The Anti-Defamation League, has been used, to cover up, and to fight, against anybody, that is not necessarily, anti-Semitic, but anybody who will expose, those Jews, who have been at the root, of the control of the banking system, of the Federal Reserve.

So when you start, opening up the truth, immediately, they attack you, and call, either a latent anti-Semite, or an anti-Semite, because, they want to stifle you. They'll drive you out of Congress. They'll drive you out of business. They'll drive you out of wherever you are.

But I say to the Anti-Defamation League, this is one black man, that you ain’t going to drive, one damn thing. [Applause]

Now from 1913 to 1995, the debt is nearly five trillion dollars; and ask yourself, how did we get into World War Two? You say, Japan attacked Peal Harbor. Yes they did. But what were the forces, that created, in Japan, the desire, or the need, or forced them, to attack America? You don't know that. But when America went to war, after the attack on Peal Harbor, she had to borrow money. There were the International Bankers again. They finance ALL SIDES! And how many millions of Americans, lost they're lives?

Suppose Hitler, was trying to destroy, the International Bankers, controlling Europe. But he went about it, by attacking a whole people. All Jews are not responsible, for the evil of the few, who do the evil. All Muslims are not responsible, for the evil of those few Muslims, who do evil. All Christians are not responsible of those who masquerade as Christians.


But certain Jews, have used, Judaism, as a shield. The Bible [Rev.3:9] says,

"They say they are Jews, BUT THEY ARE NOT. And I will make them of the synagogue of SATAN!"

And so, all four of them, are lined up, against Farrakhan. These are the dogs, sicked, on those who stand up for truth. The IRS probing, to see what they can find. The FBI, trying to conjurer, and trap, little cheep, black criminals, in the MOSQUE. SENDING PEOPLE IN AMONG US, to do criminal things, and when they are caught - ASK THEM - "We'll lessen your time, if you say, that Farrakhan told you to do it."

The ADL! - All of them come out, but H E R E, I stand! Getting STRONGER, EVERY DAY!

And so, like Jonah, GOD has called you, to a great work today. GOD wants you, to go to the people of the modern Nineveh, and preach. Nineveh was the only wicked city in the Bible, that saved herself, from destruction, and got two hundred more years, added, because, she heard the preaching of Jonah.

But Jonah didn't want his job; Jonah was running from his mission. And Jonah jumped on board a ship; and fell asleep, in the hole of the ship, and the ship got troubled. And the Captain of the ship said, "Save us." And they found that somebody was in the hole of the ship asleep, and it was Jonah.

So when they threw Jonah overboard, the winds got calm. Then Jonah ended up in the belly of a whale. And finally after, he was in the belly of the whale, three days, he decided, "I had enough. I had enough GOD. Just let me get out on try land, and I'll do what YOU want me to do."

I'm asking you black man - have you had enough? America is troubled today, because, you're asleep, in the bottom of America. America is experiencing, the worst calamities, and disaster, because, Jonah's asleep, in the bottom of the ship. Because GOD has a JOB for you, black man.

But I'm asking you today, have you had enough? And if you've had enough, then its time to get up, and get cast out of the ship. Get cast out of the belly, of this whale.

But first, before you can get on your mission, you have to put on sack-cloth, and ashes. And you have to repent, for being so slow, in accepting your duty, and your responsibility. You have to repent, for being the fool, the clown, the buffoon, the pimp, the punk, the hustler, the buffoon, the clown. You have to repent. You have to atone.

The social fabric of the house is being torn apart. The country is suffering, increasing, calamity. GOD is angry.

So the only real saving power for America, is that human being, in the Bible, who is called Jesus. But really in truth, my dear Pastor, Jesus can't save, only Christ can save. See Jesus couldn't save, as Jesus. He had to be exalted to the right hand, of the Father. Then given power, then that Jesus, the Christ, became Savior, and Lord, of all.

To know Jesus of the Gospels, is not to know him in his exalted state. But to know him as he is exalted to become the Christ, that is to partake of the wisdom, and power, necessary to turn the weak and the negative thing into strength and that which is positive.

The Christ Principle is the only thing that can turn America around, and save this nation. But the American people have to recognize that there's a conspiracy. And the American people have to refuse to take part in it.

And whether the whites, refuse or not, you've GOT to refuse! You've got to REFUSE, to be a sex-hound. You've got to REFUSE, black women, to be a street, urgent. You've got to REFUSE, to let men use your body, for pleasure, and disgrace you, as a women of GOD. [Applause] You've got to refuse black man, to pick up a gun and kill your brother, over the wrong color, or the wrong sign, or the wrong gang. You've got to refuse, to be apart of the madness.

And you say, "But I need money man. I ain’ t got no job man." Shut up - don't come to me with that punk excuse. GOD came and offered us, MONEY, good homes, and friendship in all walk of life. I got money, I got a good home, I got friendship in all walk of life! And I'm neither a pimp, nor a hustler, nor a thief, nor a liar!

And this is why I'm calling on us, to take the vanguard position, and march on Washington. That's why I'm calling on the black man all over America, to stand up like a man, and be a man. And lets go to Washington, on behalf of our suffering people, and say to America, "We demand justice." Justice for the poor. Justice for the locked out. Justice for the weak of the nation.

But first we have to atone, we have to repent. So on October the 16th, 1995, we're going to call it a day, of atonement. A million black men, coming to Washington, in the Name of GOD - Men of GOD; atoning for our wickedness; and refusing to accept our responsibility, to do something for self. Atoning for putting our women and children, on the front line, to fight, bleed and die, for our advancement, while we as men, stayed at home. Atoning for what we've done, to one another, to make our communities, what they have become. And then accepting our responsibility, to do something for self.

We must march on Washington; ask the FBI, and the government, and the Justice Department, open up the books. Let us see, who killed Malcolm. [Applause] Let us see who killed Malcolm. You want to pin it on me. Because you see me rising. You see black people listening, and you don't have no black person to challenge me. So you're going to raise my brother from the dead, and then make me, an accomplish in his murder. To kill the influence that Farrakhan, is developing, with the young people.

FBI is apart of the conspiracy. How dare you go, and trick, my sister, Qubilla Shabazz; and manipulate her pain. After you have manipulated the situation that caused the death of her father, now you want to put the daughter in jail. How low down and rotten can you get? [Applause]

Lyndon Johnson, fabricated a lie called the “Tonkin Gulf” incident, to get us into the Viet Nam war. And they had to borrow money. And it was the Viet Nam war that sunk the economy of America. She’ll never recover from that hole. And look at the lives that were lost; the people that were wounded, who came back from that war, destroyed.

I’m telling you government, you ain’ t getting none of mine to fight in one of your damn wars. And I’m telling you BLACK MAN OF AMERICA, STAY OUT OF AMERICA’S ARMY, STAY OUT OF HER NAVY. [Applause] If you want a job, come on to GOD and let GOD put you to work. Don’t let America send you all over the world, to fight wars, for the international bankers!

You wearing all your African clothes - how proud you are of Africa. Africa’s a bigger slave today than she ever was. Did you hear what I said? Africa owes 400 and some odd billion dollars in debt to the international banking institutions of the world. And they have taken control of the policies of many governments; directing them. And now they have a grip on the natural resources, of African countries. Because of Africa’s debt and her weakness to unify and get out of that debt.

I say, we have to march. We have to show the world that the black man of America is alive and well. That the black man of America is finally standing up to shoulder our own responsibility as free black men.

And so, as I leave you, I took this subject, “Jesus Saves”...because GOD, wants to make me an example, of His Power, to Save. He wants me, to love Him enough, that I wold be willing to give my life. Because if you are not willing to die for GOD, He can’t use you. If you’re not willing to give up everything you got for GOD, He can’t use you.

I thank GOD, for the life that He gave me. I thank GOD, for the talent. I thank Him for my wife; my children, and my extended family. I thank GOD, for the time that He as allowed me, in His Universe; to behold His magnificence. I thank Him; and I love Him with all my heart; with all my Soul; and with all my mind. And I’m ready now, to go down into the valley of death, and challenge the force of death, for the liberation, of all of our people. [Applause] But I know, that yea, though I walk in the valley of the shadow of death, I will fear no evil, for ALLAH is going down and His Christ, is going down in the valley with me.

And I promise you in the Name of ALLAH, that the last enemy that we must conquer is death. And when we conquer death on the other side of that is the Kingdom of GOD, and its establishment. And I only go in front of you, but you have to come behind me. [Applause] You have to challenge the forces of death. Nobody, nobody, nobody, nobody, should be afraid to die. But today we have to challenge death, the international bankers, the wicked manipulators, the real SATANS of the world. We have to upset their world; upset their kingdom. I am set before America as a dare. I KNOW, that if you kill me, I’ll be the last black man, that you ever kill. [Applause]

Don’t fear, for me; don’t worry, about me. I’m alright; I’m in the bosom of the one you call Christ. I’m in his bosom; I feel His presence, all over me; all around me. So He said, “Who will go for us?” And I said, here am I send me. I’m anxious; I thank GOD, for the womb of my mother, that brought me into the world to trouble Satan kingdom. I want to help to tare it down. I wan to help to build a new world, where people can be free, justified and equal and live in peace and in harmony with one another.

So if you will march with me in a Day of Atonement, and cry out to GOD for justice, then GOD will give you the vanguard position. Rise up, and take your responsibility.

And so I ask the Muslims, but in asking you I’m asking all of our people in general, that commandment that Jesus gave - knowing that he was facing the cross, but also believing deeply in his heart that he would be delivered, from death - he said to his followers, and through his followers to the world: Love yea, one another, even as I have, loved you.

He had come to the end of a particular phase of his journey, and he had demonstrated, to his disciples, how much he loved them. But he knew that the disciples were weak. Because they were filled with, strife and envy and contention and jealously and they all wanted to be at the right or the left or to be in front. But he knew, that it was alright to love him. But the best way that you could show that you loved him, was to practice that same love, for one another.

I say to the Muslims, that I have proved to you that I love you. I have not taken your money, to deceive you. I own nothing in this world. Everything I have, belongs to you. I put my name, on nothing. It all belongs, to you. So there never will be no fight, over me, if I am taken, as to who owns what. You are the owners. And everything I build and we build - to the old followers of the Honorable Elijah Muhammad - it is yours too.


This Saviors’ Day, I offer the farm. I offer the restaurant. I offer it all, to all the old followers, who suffered to BUILD with Elijah Muhammad. But you can’t have it, unless you respect, Master Fard Muhammad; and you can’t have it, unless you respect, the Honorable Elijah Muhammad, and come on home, and work, for the deliverance of our people. [Applause]

So I appreciate all the love, that you have poured on me this week, and these many years. And I thank you, on behalf of my wife and my family. I thank you for all of the love you have shown us. But it doesn’t mean anything to me, unless I can stay behind the door, and see you showing love, to one another. The least, little believer, show them the same love, that you show me. The least little black brother or sister, lift them up as though, they are a king; because in GOD’s eye’s, they are kings. And if you will do that! - we will constitute a nation, that will never, be removed, from the earth.

So I thank you for enduring, these hours with me. I thank you for listening, to me, and I pray that GOD, will bless you with the happiest of Saviors’ Days; and that the Savior, will walk with you, and me, and us, and redeem us, and reconcile us and restore us, that we may go on this mission, for Him, with all of the lost people’s, of the Earth.

Thank you for listening, as I greet you in peace, As-Salaam-Alaikum!

www.finalcall.com www.noi.org

Goldie
09-06-2004, 05:35 PM
When the economy implodes don't blame the government, the unions, the corporations, off-shoring, welfare recipients - put the blame where it belongs - on the heads of the bankers.

Your enemies are not Bush, Kerry, the neocons, Israelis, middle easterners - your enemies are Alan Greenspan, the Rockefellers, the Rothschilds.....

They are the ones who have stripped your country, they have enslaved you, they are the reason your children will starve.


Various snips:

The Nature of Money, John Kutyn, March 5, 2000, (with editorial comments by Mark Anielski)


“The central error of all present economic thought, is its failure to understand money from its microeconomic foundation”, John Kutyn, johnkutyn@connect.ab.ca


We must examine the fractional reserve banking system as being a large pyramid scheme, which by their very nature are illegal. In a fractional reserve banking system, money is created when loans are created, and money is destroyed with the payment of principle or interest. Since loans are repaid with money, and the amount of money created (through loans) is always less than the amount of money required to repay the loans (principle plus interest), it then follows that it is impossible to repay the loans. By the simple fact that money is destroyed by both interest payments and principle payments, there can never be enough money created by loans to repay these same loans created by the banking system. Moreover, should the creation of new loans stop, even if no principle loan payments were made, the entire money supply would soon disappear. At a 10% interest rate, this would happen in less than 10 years.

By a further example, should we wish to keep the money supply constant, then loans must grow by the amount of interest paid. Over time this leads to a continual increase in loans for the same money supply, also demonstrating that loans can never be repaid.

Bankers attempt to maintain their pyramid scheme by ever increasing amounts of loans. However, these loans are neither self-sustaining nor repayable, and the system must eventually collapse. This is part of the deceit of fractional reserve banking, the granting of loans that can never be repaid.

Separately, but with keeping with the same ideas, we must examine the legality of government income taxes, and ask if these taxes are not an attempt to defraud taxpayers. The main issue centers around government debt, and the collection of taxes to pay either interest or principle on this debt. The financing of government deficits could be accomplished with either the printing of new government notes (in a simple case, the government would print up bank notes, deposit these notes to their bank account, and write cheques on the amount deposited), or by borrowing money created out of nothing by the banks (either by direct loans or by the purchase of government bonds by the banks). In both cases, the government is spending money that did not exist before. However, by borrowing from the banks, the government is deliberately creating a future tax liability when it was not necessary to do so. These loans then become a fraudulent transfer of wealth from taxpayers to bankers. Moreover, as we will examine, governments can immediately repay all loans at no cost to the taxpayers, and at the same time improve the stability of the financial system. That they fail to do so, clearly shows their intention to continue to defraud taxpayers.

In an economy operating below it's productive capacity, it should be expected that the initial loan will result in more production, and will have only a limited effect on the price level. Once the new capacity is in operation, this will lower the price level. Thus, we would expect these loans to have only a minimal initial increase on the price level, soon to be reversed by a downward trend. Are there negative effects to a fall in prices? As a society, are we not more concerned about the number of units produced, and not the relative level of the price level? This question can only be answered by examining how rigid costs are compared to prices. If in response to falling prices, costs, at least in the short term do not fall, then prices will eventually fall below costs resulting in business closures. More importantly, payments of principle and interest are in nominal terms and can not fall. Thus, even if all other costs freely fall with prices, a falling price level will severely impact the financial viability of a business. This may also be a factor in the ability of different costs to fall in response to a fall in prices. Rent costs may not be able to be lowered due to the level of mortgage payments on the building. Workers may not survive a fall in wages due to high personal loan payments.

A point should also be made that any effects of technological growth are reflected in this financial model by a change in the “# of units produced”. With money remaining constant, an increase in production through technical advancement will see prices fall. Money is created or destroyed through loan growth or repayment regardless of technological advancement. Perhaps it is important to touch on a point not well understood. People believe that there must be economic growth to earn money to repay loans. This is the same as saying that we get money from economic activity, which can then be used to repay loans. These statements are false. No economic activity has ever created any money. Money is only created by within the banking system by a new loan. Thus to generate money to repay loans, a new loan must be created creating a circular impossibility. Moreover, since the payment of interest reduces the amount of money without reducing loans, this only adds to the problem of not having enough money to repay loans.

In discussing the effects of loans on GDP, I will consider three types of loan growth, for they all impact the economy in different ways. Specifically, we will consider loans that increase expenditures, loans that increase production capacity, and loans that are used to purchase existing assets. I might add here, that the effect of loans on the economy has been largely ignored by the economic community. This follows from the belief that “for the community as a whole the increase or decrease of the aggregate creditor position is always equal to the increase or decrease of the aggregate debtor position” (p.75, The General Theory of Employment, Interest, and Money, John Maynard Keynes). While this statement is true in a 100% reserve banking system, it is totally untrue in a fractional reserve banking system (though even in a 100% reserve banking system, different loans will affect the economy in different ways). In a 100% reserve banking system, loans represent a transfer of purchasing power (money) from one person to another. In a fractional reserve banking system, increasing bank loans represent an increase in purchasing power (money), while decreasing bank loans represent a decrease in purchasing power (money). Moreover, conventional analysis has failed to understand how different types of loans will have different effects on the economy.

A financial system with money based on debt will be unstable and eventually implode, regardless of how efficient or technologically advanced an economy is.

Impact of Repayment of Loans
Now let us consider the effects when new loan creation stops, and repayment begins. The first point to remember is that new money is created by the amount of new loans created. However, money is destroyed by the amount of loans repaid plus the amount of interest paid. That is, even if the total amount of loans outstanding remained the same, each year money would be destroyed by the amount of interest paid. Thus, over time, in a system where money is created through debt, if new debt creation stops, all money will eventually be destroyed (even if no loans are repaid) as a result of interest payments.

There are two sources of repayment of loans. Either money circulating in the economy can be reduced, or some money held in lieu of property can be reduced, or some combination of both. In the first case, GDP will fall as the money circulating in the economy falls. In the second case, the price of land will fall, as there is now less money held in lieu of land. In reality, some combination of these two is likely to occur. This will change the rising price trend to a falling one and will alter future expectations. Should market values have risen substantially above any equilibrium price, they will now start to fall towards the equilibrium price, mindful that the equilibrium price is also falling as the money supply is falling. The effect on GDP is to decrease GDP by the amount of principle and interest paid as a result of reducing expenditures multiplied by the velocity of money.

A point should be made here about the stability of the banking system. Loans are generally secured by collateral (land) and repaid by income. As the granting of loans will increase both land values, and GDP, this will have a positive effect on both collateral values, and income repayment ability. However, once credit creation stops, both collateral values and income will fall. A relatively large credit expansion will increase GDP while increasing land values substantially above equilibrium values. When such an expansion stops, and land values fall back to equilibrium values, many loans will be left unpayable, especially those made in the latter days of the credit expansion. As banks are highly leveraged businesses, this could easily lead to significant bankruptcies in the banking industry.

Again, to emphasis the mathematics of these three loan types:
1) Loans to purchase existing assets will increase these asset prices in a model where the newly created money is not spent in the productive economy. As the prices of these assets rise, the value of investment returns fall given that the investment return has remained constant. In extreme cases, loan growth and asset valuations will be such that loan payments far exceed investment returns. When such a credit expansion stops, asset values will fall to a level that reflects their investment return. Loan values will then be far in excess of asset values and loans can not be repaid from the sale of assets or from investment income.

2) Loans to finance expenditures will result in loans increasing at a much faster rate than income. When such a credit expansion stops, the resulting decrease in expenditures will significantly decrease GDP, which will decrease incomes, which will further decrease GDP, creating a downward spiral. With loans and debt repayment remaining constant, and income falling, loan repayment is impossible.

3) Loans to finance increased production will lead to falling unit prices, which will decrease investment returns. Thus, the greater the increase in loans, the greater is the fall in unit prices and the ability to repay these loans. When such a credit expansion stops, the absence of new loans as well as loan payments will decrease GDP. This will further reduce either the number of units produced or the price/unit of both, further reducing the ability of business to repay loans. Again, once the credit expansion stops, loan repayments are impossible.

In any economy, all three types of loans will have a cumulative effect, and in the short term this effect will appear to be positive. Credit growth that finances both increased expenditures (either by consumers or governments) as well as business investment will both increase GDP. In addition, the deflationary effects of the business expansion will provide a balance to any inflationary effects of expenditure expansions. Credit growth that finances existing assets will increase asset values. As asset prices rise, they will provide security for increased borrowing while providing the justification for lowering the savings rate.

However, once credit expansion stops, the financial system will implode. When the productive economy is intimately connected to the financial system, the effects will be most traumatic.

One of the policy points in this exercise of examining a debt-money based economy, is that it is deflation, not inflation, that is the cause for concern. It would also appear that a deflationary spiral would be difficult to stop. In an economy financing the increase in productive capacity, prices will turn negative while loan growth and money supply growth are still positive. This will lead to a contraction in demand for loans to increase production, which further reduces prices, and so a downward spiral is created. A decrease in interest rates will reduce the total interest paid, which will have a positive affect on the money supply and the price level. However, this is only temporary, as for any given interest rate, the total interest paid will again start to increase over time.
What is evident from a debt-money based economy, is whenever debt stops increasing, the economy will enter a downward spiral. Thus, the only way for such an economy to continue operating is an ever-increasing level of debt.

A fractional reserve banking system also gives bankers the capacity to create severe financial distortions. At the heart of today's bubble is a massive credit expansion within America. As noted, increasing loans increases spending which increases incomes, profits, and government tax revenues, all of which have a positive effect on GDP. However, with a creation of such a bubble, there are forces that tend to counterbalance this bubble. In a consumer driven economic bubble such as we find in America, increases in consumer demand will lead to an increase in imports. This in turn leads to a decrease in the exchange rate, which in turn leads to higher inflation. Generally speaking, this increase in inflation in an economy experiencing a credit expansion will lead to higher interest rates which will tend to decrease demand and counterbalance the expansion. Should central banks attempt to keep interest rates low, thus creating an environment of low or negative real interest rates, capital will begin to flow out of the economy, again limiting the credit expansion.

Thus, in order for the bubble to intensify, measures must be developed to counter the effects of an increasing trade imbalance. This has been accomplished through what is called the “Yen Carry Trade”. The “yen carry trade” is a series of paper financial transactions within the Japanese banking system that has not only allowed the American financial bubble to be created, but has added greatly to it's rise. Within the Japanese banks, offsetting bookkeeping entries have created vast amounts of new loans and new Yen. This new Yen has been sold for U.S. dollars in sufficient quantity to not only offset the effects of a trade imbalance, but significantly increase the value of the U.S. dollar. This Japanese created liquidity has had a significant effect on America, providing funds not only to finance the trade imbalance, but also funds for the purchase of U.S. government bonds (thus holding down long term interest rates) and investments in the U.S. stock markets (thus helping to fuel the speculative fever). The combination of a rising U.S. dollar, and higher investment returns in America have allowed investors in the Yen carry trade to show significant paper profits. It must be stressed that the creation of such a large financial bubble in America would not be possible without the “Yen Carry Trade”. It truly attests to the power given to bankers to manipulate the world economy through the creation of money from nothing, even to the point of creating money in one country to control the economy of another.

For the purpose of this article, I will discuss the events that will occur, should the loans involved in the “Yen Carry Trade” be repaid. The United States trade deficit is now approaching $250-300 billion [2000]. In addition, as the worlds largest debtor nation, there is a significant capital account deficit. Offsetting these outflows has been large capital inflows into the U.S., such as the “Yen carry trade”. As these capital inflows slow, due to the large current account deficit, we will notice a fall in the value of the U.S. dollar. As the dollar continues to fall, there will be pressure on many of the investors in the “Yen carry trade” to sell their U.S. assets and repay their Yen loans. This will first involve a major sell off on the U.S. bond and stock markets to convert to U.S. dollars. Then, this massive sale of U.S. dollars at a time when the trade deficit is about $250-$300 billion/year will accelerate the decline in the value of the U.S. dollar. This will add greatly to future inflation expectations, further accelerating the sell-off of the bond and stock markets. Consumers, seeing the value of their savings fall, will further accelerate the fall as they sell to meet margin calls or salvage their savings before further falls. More importantly, there will be a major reduction in consumption due to rising interest rates, a falling dollar and stock market, all creating a negative wealth effect. In effect, what we will observe is a severe contraction in credit growth. This will put the economy into a major downward spiral with falling employment, profits, and government tax revenue further diminishing demand. It is important to note that a major source of government tax revenue is due to capital gains income, and that once taxpayers start claiming capital losses, the change in tax revenue will be severe. The banks will now be re-evaluating how new loans are given, paying greater attention to the ability of the consumer to repay loans from income. Due to the fall off of income and the major credit expansion over the last few years, very few new loans will be given. In addition, it will be much more difficult to use stock margin accounts to fund consumer purchases.

Without new loans to help repay old ones and finance consumption, consumers will now face a major decline in consumption. For example, if loan payments equal 16% of current income, in the absence of new loans, consumption will decrease by over 16%(with a negative savings rate).

Corporations, facing rising interest costs and collapsing demand, will see profits greatly diminished. This will be another factor driving down the stock market. Layoffs and insolvency's will be common place as corporations attempt to deal with falling demand, tightening profit margins (as over capacity leads to more competitive pricing), and rising interest costs.

Without elaborating further on events occurring in such a nightmare scenario, it must be understood that when a credit contraction does occur, based on logical reasoning, the above events will happen. It must be also be understood, that the solution to the financial Armageddon described above lies first in understanding how our present financial structure operates, and finding the political will to alter this structure.

Hypertiger
09-06-2004, 08:13 PM
The FED only buys what no one else does...Most treasuries are bought with the previously created debt...

Consumers requesting new debt creation from commercial banks using previously created debt as collateral is the primary source of debt inflation...

The current reserve is for every 1 dollar of previously created debt held in reserve 34 dollars can be created.

In the last 4 Years the total debt supply which is the money supply went from 25 Trillion to 35 trillion...2.5 trillion was created by the Federal Government 7.5 Trillion was from consumer requests of commercial banks and over half of that was for real estate...

US real estate is the largest debt inflationary engine on the planet.

goddess
01-28-2007, 12:18 AM
Bumping for some reading material

drewk4
01-28-2007, 02:50 AM
Good one, thanks G.

des00s
02-01-2007, 01:11 PM
The only solution for a moral monetary system is the ablolition of fractional reserve banking and usury - which are outside forms of money creation. This will never happen for several reasons. One being it gives an immediate economic advantage/stimulant to competitors (other nations) that can immediately and rapidly stimulate their economy and thus everyone else (other countries) is doomed to reapeat these same practices to remain competitive. You can even see it now with other currencies other than the dollar, they are all inflating at a slightly slower pace because if they let the value their currencies rise too much it kills their exports and industrial production and slows down their economy. This is one way the US is "exporting" inflation. The other reason is that this world is run by bankers and they will never let this happen because that is their bread and butter. Thus even with a gold-backed currency it is doomed to transform into a true fiat currency over time through this outside money creation and the whole process repeats itself over and over again throughout history. You can't stop it but you can profit from it tremendously by simply understanding what is unfolding and buy gold and wait. Sometimes the signs of what is going on with this global liquidity runaway train makes my brain begin to go into denial and think that maybe what I am seeing can not possibly be true and I am somehow mistaken. Its so unbelievable. But this sucker is going to crash and if you own gold and silver you will profit nicely from the coming global liquidity disaster. Just go back and look at the market cap in silver and gold and then look at the market cap of the stock market. When this thing blows up, and it has too because it is "unsustainable" in alan Greenspans words, that money has no place to go but gold/silver, the safe haven. The result will suprise even the biggest gold optimists.

GoldWampum
02-01-2007, 01:34 PM
Nice move to bring this material back up to the front.

mozkill
02-07-2007, 06:19 PM
As soon as we establish a democracy in Iraq we will establish banks and a fractional reserve monetary system! In this way we will finally have control of the oil!

highroller4321
02-07-2007, 11:24 PM
As soon as we establish a democracy in Iraq we will establish banks and a fractional reserve monetary system! In this way we will finally have control of the oil!



Ya right!!!!






Great post gold. If only the average american would realize such a thing!