Thread: American Money

Not so many years ago, a political advisor to Billy Jeff Clinton by the name of James Carville, as I recall, proclaimed: "It's the economy, stupid!" Indeed! This is a periodic problem. Need it be? Well, given the fact that rain will fall and given enough parades, someone's parade is going to be rained on. That's life.

However, the nature of money creation and money injection into the political economy of a nation will be major factors determining the health of that nation's economy. Disdaining the careful considerations of the Founding Fathers on the matter and issue of currency, the United States political leaders bent to the self-serving recommendations of bankers and financiers and enacted the Federal Reserve Act. This established the Federal Reserve Corporation, owned by member banks, to create U.S. currency. This "Fed" corporation is a privately-owned institution, having issued shares. Some claim that there are two classes of shares, and that the bulk of these shares are controlled by the great New York "money center" banks, along with a few other connected banking institutions.

Congress having despised its power to directly issue legal currency through the U.S. Treasury, was, after the "Act," forced to go to the Federal Reserve Corporation to seek needed money. As with all banks, the Federal Reserve Bank wants collateral for such large amounts of money, as Congress typically seeks. The U.S. Treasury issues bonds in the amount of the currency desired. Once the collateral is established for, say, $1 trillion, The Federal Reserve Corporation, led by the Federal Reserve Board, pays the Bureau of the Mint to run off the currency, at fractions of a penny per sheet. Meanwhile, the U,S, Bonds, held in collateral, carry an interest burden.

This is part of the inevitable spiralling of national debt, as the economy, no matter how much currency is issued, does not have sufficient currency to liquidate its debt by the factor of the interest born by each issue. Only token coins enter the economy without the burden of debt.

Nevertheless, most of the "heavy" currency is created as ledger entries, as the "money center" banks are the typical initial holders of the Treasury Bonds. The U.S. Treasury is credited with the face value of the bonds, and the "money center" banks have a new asset. For simplicity let's just say one of these banks gets the $1 trillion in bonds. It is accounted as an asset, and loans can be issued on this asset, minus the "reserve" it must set aside at the Federal Reserve Corporation's District Bank in that area (in this case the New York Federal Reserve Bank on Wall Street. If the Reserve Rate is 10%, then the bank in question sets aside $100 billion in its Reserve Account, and is free to lend the remaining $900 nillion. If it finds a borrower (and it will), it credits the borrower $900 billion (for simplicity, in its own banking facility). It sets aside $90 billion at its Federal Reserve Account, and is ready to loan out the remaining $810 billion. The bank sets aside !0% ($81 billion), and it is ready to lend the remaining $729 billion. The $1 trillion asset has grown to $3.439 billion. This process goes forward until the amounts are too small to readily lend. This may be quite small, as bankers don't like "idle" money.

It is all a neat and highly advantageous system for bankers. The head of the Federal Reserve Board is typically an "insider" and/or a finished product or associates of the Chase Manhattan Bank (J.P.Morgan Chase), such as Volker and Greenspan. Not only do they do this "little favor" for the cash-starved Congressmen, they are positioned to manipulate the amount of currency in the economy by the Federal Reserve Board raising the Reserve Rate or lowering it. When the Fed raises the Reserve Rate, then freely loaning banks may well call in loans to get the cash to post in their Federal Reserve Account. If the debtee doesn't have the cash, his collateral asset, say house, is seized by the bank to liquidate to get the funds to place in its Reserve Account.

As there are no more banks which are allowed to operate outside the Federal Reserve System, they all operate in the same general way. Scarce assets ($) in the economy usually mean that there will be bank failures. When Reserves Rates increase, and deflation "kicks in," there may well be created a condition similar to the children's game of "musical chairs." When the music stops, someone has no chair. He's out. The game continues.

Usury is a dictatorial means of eliminating the financially unfit. Since the financially unfit may be merely outsiders unaware that there would be sudden, unexpected changes in the way the Federal Reserve System is going to be operating, then they may be as fit as the next, as far as it goes, but, unaware of the moment the music is to be stopped, not in a favorable position to grab a chair, so to speak. Over time, usury will destroy most independent businesses, leaving on large and connected firms or banks, as the case may be. In the twilight of the energy of a nation, monopolies and cartels loom over a host of share-croppers and subsistence workers.

The Founding Fathers seemed to have envisioned a money system in the U.S.A. which would be a commodity, such as gold, silver or even paper. The key to any sound economy is "real" currency, which is inelastic and indivisible. Whatever the currency is, it should be issued from an agency within the U.S. Treasury. The money should be paid into the economy by means of U.S. Treasury Banking outlets. The Treasury would fund directly all Congressional appropriations. However, a rigid percent of money issuance annually, pegged to average growth over the previous five years, should be used as a guideline.What is desirable is steady growth--not boom or bust.

The "real" money should be issued in quantities sufficient to insure the general welfare. The U.S. Treasury should issue its own "Green front-n-back" dollars as legal tender. Citizens could swap their Federal Reserve Notes for U.S. Treasury dollars at a generous ratio. The Treasury would pay the "Fed" its FRNs from time to time, until there were no more. The Treasury would cease to have any dealings with the Federal Reserve Board or its Corporation, other than turning over its "Notes" from time to time. All banks that are part of the Federal Reserve System would cease to be part of the new independent banking system, which would be allowed to loan money at a stated rate of one-for-one. They would be allowed to hold collateral. A stated processing cost would be deducted from the initial amount of the loan. The borrower would pay back the full amount of the loan. However, the citizens would be free to keep their money in the State branch of the Treasury Bank.

It is best for the "currency" to be composed of a virtual unit, which is, nevertheless, treated as a finite quantity. By establishing an intranet cybersystem, as opposed to internet, outside interference with currency levels can be maintained. Please recall that it is unlawful for a noncitizen to invest in America--including its currency. Hence, no outside manipulations of the national currency can occur. It is both righteous and necessary to place a manditory capital punishment sentence on "counterfeiting" or "cyber-robbery" or "cyber-trespass" into the money creation and distribution system. Money is the life of a nation; it is its blood. There can be no foolishness here.

The best way to handle finances in America is through a closed monetary system accessible by means of plastic checking cards. Every citizen would be issued a card and a checking account. Since there is no usury, there is no reason to establish a separate "savings" account. Money transfers during any purchase, sale, or other transfer purpose will be a simple electronic credit/debit procedure between accounts.

Facilities and devices for such are examples of areas in which American entrepreneurs can establish businesses. Yet, there are all the other means by which Americans in the past have developed businesses. The federal government should make a market (dollars, or barter, for commodites) in grains, minerals, stock and the like. These should be sold to any interested American businessman or college for resale or scientific study. A certain portion of the commodites, such as grain, should be kept in storage for the nation's sake, as well as to assist foreign nations suffering from famine. Otherwise, they should be made available for use by American factories, et al. A small mark-up would be in order.

The ideal America would have a government that paid its own way. Hence, there would be no income tax or IRS. There might be an excise tax, but that would be attached to the goods, services, and such, upon which it is placed (no basic foods excise tax), and this tax would automatically be credited to the government account within the closed monetary system. It would be -by law - limited to a small fraction of the transaction in question. It might be returned from time to time by dividends to the elderly needy and similar distressed people.

A vastly increased use of railroads, and a substantial decrease in "big dog" trucks on the roads would be a new direction. New rail infrastructure and improved engine design would be ongoing areas of interest. As this, and all major transportantion services, would be operated by the government (service not profits being the object here), this, too, would be a major way that the government can spend money into the economy, as employees and private contractors receive their alloted moneys. Further, small business catering to the nutritional needs of these employees, will establish restaurants and the like. Remember, a restaurant can purchase commodities, chickens, beef etc., from the government, or from a processor who has made his purchases from the government.

Further, the government would own the cables overwhich TV, computers, radios, and the like operated. It could sell time slots to film producers, so that the system could be opened up, breaking free of any closely controlled media system. The fee would be small, covering costs of operating plus a tiny fraction. Naturally, educational programs formulated by accredited schools would be offered "airtime" pro bono.

In conjunction with transportation, the development of electrical vehicles would be encouraged. A system of "oases' would constructed on the highways and roadways. These would have facilities for recharging the vehicle at government electrical service outlets for a fee, payable by the citizen's checkcard. Or, the citizen can utilize rental vehicles which are charged and ready to go. Each vehicle would be able to travel to the next oasis, where it can be exchanged for another, and so on. Travelling "light" would be a wise way to travel.

In all these things there would be room for entrepreneurial ventures.

There would be a small standing army, and a large reserve army. The borders would be especially protected, for the New World Order crowd is devilishly persistent in trying to thwart any sane alternate to their own neo-feudal one.

Dealings with foreign nations to acquire a commodity would be solely the function of the federal government. A system of bartering for said commodities would be established.

Foreign holders of U.S. Bonds would be paid in FRN. The Bureau of the Mint would be paid pennies on the $1000 to print the FRN currency, and this money would be paid to the foreign holders of U.S. bonds. Caveat emptor! Foreign ownership of U.S. domestic property would be forbidden, owners paid in FRNs, and the property placed in a foundation which will, over time, liquidate the property and provide the funds to the citizenry as "cash" dividends. All foreign embassies should be housed on the Virgin Islands, Midway Islands--or both.

The federal government would have ample ways to pay money into the system to keep it going and growing. The highway construction and infrastructural maintenance and improvement are two constant areas of attention. The federal government should own and operate utilities, waterworks, and marine shipping. There is no reason why American goods should not be carried on American ships, built in America, and based in America. Foreign goods could be freighted to facilities on Midway or Puerto Rico and off-loaded there. American ships can bring them here to America.

Enemies of America and friends of global government and economic interconnectivity will produce a thousand objections per second to such plans but its is the thwarting of their New World Order that is the real issue. However, I believe as Abraham Lincoln did: that America should make and sell its own goods to its own people.

Trade is basically most important to the rich and bored. If one country trades with another country, it is either going to have a favorable trade balance, an unfavorable trade balance, or a wash. If favorable, it has a disadvantaged neighbor or trading partner, which is a possible threat. If unfavorable, it is losing wealth to this trading partner, and that is not good. If its a wash, why bother?

The United States is particularly favored, as we can feed ourselves, cloth ourselves, house ourselves, and provide health services. With an America First and an America the Beautiful vision, the citizens of this country can provide a model for a practical, wholesome nation.

It all begins with vision and money creation.

Independent banks would be free to loan money which they possessed, but they would not be free to loan money they do not actually have. There should be no "privileged" set of citizens. Most people would go to jail, if the authorities discovered that they were lending money that they did not possess. Neither bankers, nor lawyers, nor doctors, nor anyone else should be given legal monetary advantages over other citizens.

This baleful system is supporting valiantly by all its beneficiaries, including Wall Street, the media and the most prestigious academic citadels. Why not? They constitute not only beneficiaries but people educated to be "true believers" of a system which favors them. The masses would not appreciate the finer things which money can buy, according to one elitist rationale. Why let them have it?

By using "scare tactics" and promoting causes for war-making, the money creators in America can wed themselves to the "military-industrial complex," co-opting patriotic Americans along the way, and create giant spikes in debt, as is being done now in the Levant. Debt is the wheel that makes adventurous war possible, and its accumulation provides a justification for looting and rapine by the adventurous victor. Hence, banning usury from a nation's economy is the single best way to keep that nation at peace with its neighbors.A sound economy is the second best way. Funny how they go hand-in-hand.