The Remorseless Money Power

NathanRothschild

Many eminent public men are of the opinion that his[Grant] administration of civil affairs did not tend to the enhancement of his fame. A summary of the war legislation, in so far as it relates to the finances of the Government, exhibits these remarkable facts as to the existence of a remorseless money power:

First, Congress at the demand of the bullion brokers and gold gamblers of New York City and Boston, purposely depreciated the currency issued by the government by striking out its legal tender qualities, by refusing to receive its own money in payment of its taxes. It was high priced gold for the bond holder, and depreciated greenbacks for the patriotic soldier who offered up his life for his country.

Second, the passage of the national banking law, by which the government delegated its highest sovereign power – that of issuing money – to private corporations for private gain, resulting in a privileged class of capitalists, whose interests were wholly antagonistic to the welfare of the United States, thereby making a permanent creditor and debtor class, one the master, the other the servant.

Third, an alliance, offensive and defensive, of the national banking money power and the manufacturers, whose combined interests have dominated the legislation of Congress, by which the banks have practically secured a monopoly of the medium of exchange, and by which the manufacturers have secured a high protective tariff for their immediate benefit, and at the same time flooded their mills and factories with cheap foreign labor.

Fourth, the passage of laws, the effect of which was to enormously increase the untaxed wealth of a privileged class, who extort heavy tribute from the productive energy of the American people.

Fifth, The creation of a money power, foretold by Andrew Jackson, whose unlimited greed has appropriated to its own use the greatest portion of the wealth of the United States.

Sixth, A matured plan to perpetuate the public debt of the United States for the purpose of holding the people in subjection to the money power.

Seventh, An enormously extravagant administration of the Federal Government, as a part of the plan to fix a permanent debt on the nation.

Eighth, Senator Sherman, during all this period, was the chairman of the Finance Committee of the Senate, and he was the influential agent of the money power who shaped and molded that legislation, upon which was reared that imperial combination of moneyed influence which, to a very large extent, rules the press, the pulpit, the legislative bodies, and the courts of the country.

In view of the various financial measures enacted by Congress from 1865, to the passage of the Resumption Act of 1875, all of which tended to greatly appreciate stocks and bonds, and to divest the Government of its undoubted power to issue full legal tender United States notes, or greenbacks, the following significant extract from the most influential journal of Great Britain, the London Times, is hereby subjoined.

In 1865 the Times editorially stated: –

If that mischievous financial policy which had its origin in the North American republic during the late war in that country should become indurated down to a fixture, then that Government will furnish its money without cost.

It will have all the money that is necessary to carry on its trade and commerce.

It will become prosperous beyond precedent in the history of the civilized nations of the world. The brain and wealth of all countries will go to North America. That Government must be destroyed or it will destroy every monarchy on this globe.”

—“Immediately following the visit of these bankers to Washington, a circular was issued by the London bankers, and distributed by one Mr. Hazard, who was their representative in this country at that time.

The contents of this famous circular are as follows: –

Slavery is likely to be abolished by the war power and chattel slavery destroyed. This I and my European friends are in favor of; for slavery is but the owning of labor and carries with it the care of the laborer, while the European plan, led on by England, is capital control of labor by controlling wages. This can be done by controlling the money. The debt, that capitalists will see is to be made out of the war, most be used as a measure to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make his recommendation to Congress. It will not do to allow the greenback (as it is called) to circulate as money any length of time, for we cannot control it.”

—“The existence of this remarkable circular has been strenuously denied time and again by the national banking money power. Notwithstanding these denials, the line of action indicated in
that circular has been consistently pursued from that day to this.
The advice of said Hazard was at once acted upon by the organized banks, and they proceeded to make known their demands to Congress.

Therefore, a bill was speedily brought forward by Senator Sherman in the United States Senate, providing for the incorporation and organization of the present system of national banks as banks of issue – a bill whose passage meant the creation of moneyed institutions, whose interests would be, or could be made, antagonistic to the nation.

It is the small coins that most actively circulate in the channels of trade; it is gold that is hoarded by the miser and the capitalist.
The small coins that are in active circulation have always eluded every effort to hoard them in  large quantities. The rapid increase in the production of silver in the United States meant the financial liberation of the people from the money power of the East. The prospects for an enormous supply of silver from the western mines threatened the supremacy of New York City and London as the money markets of the world.

The owner of silver could take his bullion to the mint, have it coined into standard silver dollars of full legal tender debt, paying power, receive them after their mintage, and transact business by their means; he was not under the necessity, when in need of money, to make application to a national bank for a loan of its circulating notes, whose sole credit rested on the solvency of the  United States. He was not compelled to pay toll to the national banks for the use of their debts as money.

The national banking money power could not control the silver dollar, as long as the law authorized its free coinage, and consequently, a gigantic conspiracy was formed in London and
New York City to demonetize silver. This great money power whose almost absolute control of the currency was surely driving all
business to a credit basis, deliberately planned the destruction of that precious metal whose value has been far more stable than that of gold. The Coming Battle Copyright 1899 By M. W. Walbert

For well over a century these high priests of the remorseless Money Power have kept a clever secret. The secret behind the money power is held in the strictest confidence and anybody asking too many questions in the wrong circles, will soon hit a wall of silence, or worse. After all, giving away the secret to the golden goose of debt creation, would no doubt implode the entire operation, therefore, protecting that secret has evolved into a separate apparatus of ruthless academic and media control, just to keep out the naysayers,  investigators and just about anybody else, asking too many of the wrong questions, of the right people.

The secrecy surrounding the internal operations of the BIS is just the tip of the conspiracy iceberg:

—“But should we trust the Bank for International Settlements?

—Of course not.

—This is a very secretive organization that very few people know about but that possesses absolutely enormous power.  The following is a brief overview of the Bank for International Settlements from one of my previous articles entitled “Who Controls The Money? An Unelected, Unaccountable Central Bank Of The World Secretly Does“…

An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe.  It is called the Bank for International Settlements, and it is the central bank of central banks.  It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City.  It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws.  Even Wikipedia admits that “it is not accountable to any single national government.”  The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system.  Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does.  Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”.  During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on.  The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

The role that the Bank for International Settlements is playing today was envisioned by the global elite long ago.  In another previous article, I quoted from a book that Georgetown University history professor Carroll Quigley wrote in 1975 entitled “Tragedy & Hope” in which he discussed how the BIS was to one day become “the apex” of the global financial system…

[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

And it is interesting to note that Professor Quigley was not against the system that the elite were setting up.  He was just an academic that was trying to accurately convey what he had learned about how the global system works.”—The Head Of ‘The Central Bank of the World’

Knowing which central bank basically controls the “money powers” so used by most major nations of the world, either by coercion or sophistry(no doubt both), does very little to solve the actual problems people face today. People ask, why do the politicians never go after the arrogant crooks robbing the people at every turn? And the simple answer is that politicians will never bite the hand that feeds them.

Most of the modern system is a complex production of procedure over substance. How much cash is in that bank drawer, or the number of digits in every electronic account is just proof of system processes. Accounting rules do not prove that the Notes, tokens, digits are good or bad, or even a question of real money versus fake. All that really matters is the ‘actions to results’ can be measured mathematically, to the extant necessary to produce verification as needed. Essentially, a fantasy system is just as real by the processes involved, not any actual physics inside some lenders magic box.

Dollars of “paper” do not need to be materially valuable to work as intended by decree. The system could use monopoly money in the place of FRN’s without any differences to the physical actions. A piece of paper with a number can replace any fed note as physically exchanged, and so long as the accounting functions do not change, the inputs and outputs as used, are quite valid in all operations of the exchanges.

A dollar weight of silver or gold does not follow the same rules, as a paper dollar. After all, there is no such thing as a coin of paper. A plastic credit-token-card does not replace a Unit of Silver as a weighted dollar, but forced acceptance sure does negate the actual rules. What is naturally accepted as the exchange of “money value” is the golden rule of its use.

Typically, governments simply declare (fiat) this (X) will be accepted as a tax payment and people will now need to get (X) to satisfy that decree. Whatever can be exchanged for (X) creates supply and demand (The Market) and governments will generate revenue accordingly. No money value is technically created by the system rules only the underlying “Tension Function” to force economic actions otherwise idle. I came up with the term “Tension Function” to describe the emotional component of money as expressed by psychological tension. Economic decisions resolve emotional tension. Which is why “Irrational exuberance”  can exist at all.

Since the government demands tax payments (or else) people are forced to accept the fiat ‘medium of exchange’ regardless of how good, or bad, it may be as produced, or used. Bad money has long since replaced good money, because good money is way too expensive by sheer volume for public use.

[The Labor dollar by law needs to be the “Unit of Account dollar” which is silver, not paper.]

A simple thought experiment can verify the basic principles of acceptance. Lets say, Bob goes to the corner market where he is well known. He sets up an account with the store owner and funds it with a check for fifty dollars. He lets the owner in on his plan to help his kids learn about being responsible with their money. They agree to terms and he goes home. He tells his kids that every time they complete their chores on time he will pay them in monopoly script. Each day the kids receive their play money, and then at the end of the week, the family heads over to the market. The kids pay for their purchases with their play money and the manager updates the family account accordingly. So long as the “acceptance” is agreed upon in every step, all parties are satisfied with the exchanges as completed. On the macro-scale the federal is the Market Store and the Fed notes are no better, or worse than any other form of lets play money.

Monetary transactions can become as sophisticated as human ingenuity and needs demand and will evolve such exchanges of value accordingly. Computers have allowed nonphysical exchanges to advance to a level of complexity simple physical exchanges cannot emulate. A tractor-trailer full of cash cannot be instantly teleported around the world to satisfy complex deals with multiple parties.

Moving physical components of money is just not the same as sending electronic bits around the world at the speed of light, even while involving complex monetary time-equations, requiring indirect operations of abstract, fiscal policies. At the end of the day all that matters is that every party received what they agreed to accept. Why each party accepts the “deal as agreed” is as unique or ordinary, as the consideration of value between parties warrants.

When a bank simply enters numbers into an account a procedural record of activity masks primary functions of money for the actual consideration of value. How hard a man worked to receive that payroll check is never recorded, only the upward or downward movement of account numbers. Highly paid number-crunchers can stare at their screens, hours on end, analyzing every little detail of hundred of accounts, by dozens of metrics and theorems, and never once need to know what money is— more so than some bum drinking his life away on a filthy, street corner. Numbers are merely the digital shadows of the money dancing around inside the mind.

Most people can easily imagine what they would do with more money to spend. What they will not ordinarily do is imagine what they would do with more debt to pay. If someone were to say walk out to their mailbox and find an official letter stating they now owed fifty-thousand dollars, payable upon receipt of the letter, they would be furiously pissed. Especially, if that debt was just random, and not connected to anything they purchased or agreed upon by any contractual obligation.

Debt which is disconnected from personal choices has no element of personal reality, save for the negative demand itself [Tension]. Impersonal government debt is an economic abstraction which is rather disconnected from those tasked with its perpetual repayment. It is the emotional reactions people feel which gives force to monetary actions. This form of negative Tension across society drives negative expectations not positive ones.

Government debt is basically used to scare the crap out of the American people[a negative Tension Function]. Like a two-headed monster out of the darkest depths it rises, spreading fear and terror into the minds of the people, who must toil like peons in its ever growing shadow. Despair and depression does not galvanize, or inspire people to be happy, such negative tensions will only push people to artificially increase their happiness.That profitable black market for drugs is quite purposeful to that demand.

So while the talking heads sell the woeful shame of debt, the hard-heads threaten to inflict even more pain for anyone not paying that fair share of those wonderful services. And yet, the system runs on fiat-debt like a bloated, gas guzzler. In the monetary world fiat-debt runs like a river only up-hill, always going back to the source of that fiat-credit, from where it came. The fiat-system is quite unnatural, which causes extreme confusion about what it really does, or even why. It is a perverse game whose actual rules are well hidden by contextual complexity.

The secret of that bloody money-box is of course self-accreditation. (accreditation is an ‘abstract notion of a formal authorizing power’ and as used here the Sovereign right to issue money, and in what form.)  The one thing ordinary people are never allowed to do is the simplistic secret of the high priests of the remorseless money powers. People cannot create self-credit and therefore, pay themselves.

While the private institutions may have evolved the three-step procedure, to give official legitimacy to the usury function, the truth has always been right there in plain site. The reason why monetary self-accreditation had to be hidden, is due to the basic fact that no “consideration of value” actually comes from the modern Lender, who is only entering numbers on a screen. Money out of thin air is always a form of self-accreditation.{Keep in mind that the use of the term is not usually used to describe this specific function of money creation in economic theory.}

Therefore, in the really old days, no interest[usury] on fiat-money so lent(by principle) was legitimate. A fiat-paper dollar has no time value(or it would never be destroyed), or intrinsic material worth(it is always destroyed). A piece of paper is always just a piece of paper no matter how fancy the graphic-printing process becomes.

Consider this alternative explanation of government finance:

—“Now comes Warren Mosler with a small book, setting out
his reasoning on seven key issues. These relate to government
deficits and debt, to the relation between public deficits and private savings, to that between savings and investment, to Social Security and to the trade deficit. Warren calls them the “Seven Deadly Innocent Frauds” – taking up a phrase coined by my father as the title of his last book. Galbraith-the-elder would have been pleased.

—“The common thread tying these themes together is
simplicity itself. It’s that modern money is a spreadsheet! It
works by computer! When government spends or lends, it
does so by adding numbers to private bank accounts. When it
taxes, it marks those same accounts down. When it borrows, it
shifts funds from a demand deposit (called a reserve account)
to savings (called a securities account). And that for practical
purposes is all there is. The money government spends doesn’t
come from anywhere, and it doesn’t cost anything to produce.

—“The government therefore cannot run out.

—“Money is created by government spending (or by bank
loans, which create deposits). Taxes serve to make us want
that money – we need it in order to pay the taxes. And they
help regulate total spending, so that we don’t have more total
spending than we have goods available at current prices –
something that would force up prices and cause inflation. But
taxes aren’t needed in advance of spending – and could hardly
be, since before the government spends there is no money to
tax.

—“A government borrowing in its own currency need never
default on its debts; paying them is simply a matter of adding
the interest to the bank accounts of the bond holders. A
government can only decide to default – an act of financial
suicide – or (in the case of a government borrowing in a
currency it doesn’t control) be forced to default by its bankers.
But a U.S. bank will always cash a check issued by the US
Government, whatever happens.

—“Nor is the public debt a burden on the future. How could
it be? Everything produced in the future will be consumed
in the future. How much will be produced depends on how
productive the economy is at that time. This has nothing to
do with the public debt today; a higher public debt today
does not reduce future production – and if it motivates wise
use of resources today, it may increase the productivity of the
economy in the future.

—“Public deficits increase financial private savings – as a
matter of accounting, dollar for dollar. Imports are a benefit,
exports a cost. We do not borrow from China to finance our
consumption: the borrowing that finances an import from
China is done by a U.S. consumer at a U.S. bank. Social
Security privatization would just reshuffle the ownership of
stocks and bonds in the economy – transferring risky assets
to seniors and safer ones to the wealthy – without having any
other economic effects. The Federal Reserve sets interest rates
where it wants.

—“All these are among the simple principles set out in this
small book.

—“Also included here are an engaging account of the
education of a financier and an action program for saving the
American economy from the crisis of high unemployment.
Warren would do this by suspending the payroll tax – giving
every working American a raise of over 8 percent, after tax; by
a per capita grant to state and local governments, to cure their
fiscal crises; and by a public employment program offering a
job at a modest wage to anyone who wanted one. This would
eliminate the dangerous forms of unemployment and allow us
to put our young people, especially, to useful work.

—“Seven Deadly Innocent Frauds of Economic Policy

1. The government must raise funds through taxation or
borrowing in order to spend. In other words, government
spending is limited by its ability to tax or borrow.
2. With government deficits, we are leaving our debt burden
to our children.
3. Government budget deficits take away savings.
4. Social Security is broken.
5. The trade deficit is an unsustainable imbalance that takes
away jobs and output.
6. We need savings to provide the funds for investment.
7. It’s a bad thing that higher deficits today mean higher
taxes tomorrow.

—“How does the Federal Government Tax?

Let’s start by looking at what happens if you pay your
taxes by writing a check. When the U.S. government gets your
check, and it’s deposited and “clears,” all the government does
is change the number in your checking account “downward”
as they subtract the amount of your check from your bank
balance. Does the government actually get anything real to
give to someone else? No, it’s not like there’s a gold coin to
spend. You can actually see this happen with online banking
– watch the balance in your bank account on your computer
screen. Suppose the balance in your account is $5,000 and you
write a check to the government for $2,000. When that checks
clears (gets processed), what happens? The 5 turns into a 3 and
your new balance is now down to $3,000. All before your very
eyes! The government didn’t actually “get” anything to give to
someone else. No gold coin dropped into a bucket at the Fed.
They just changed numbers in bank accounts – nothing “went”
anywhere.

—“And what happens if you were to go to your local IRS office
to pay your taxes with actual cash? First, you would hand over
your pile of currency to the person on duty as payment. Next,
he’d count it, give you a receipt and, hopefully, a thank you for
helping to pay for social security, interest on the national debt,
and the Iraq war. Then, after you, the tax payer, left the room,
he’d take that hard-earned cash you just forked over and throw
it in a shredder.

—“Yes, it gets thrown it away. Destroyed! Why? There’s no
further use for it. Just like a ticket to the Super Bowl. After
you enter the stadium and hand the attendant a ticket that was
worth maybe $1000, he tears it up and discards it. In fact, you
can actually buy shredded money in Washington, D.C. So if the government throws away your cash after collecting it, how does that cash pay for anything, like Social Security and the rest of the government’s spending? It doesn’t.

—“Can you now see why it makes no sense at all to think that
the government has to get money by taxing in order to spend?
In no case does it actually “get” anything that it subsequently
“uses.” So if the government doesn’t actually get anything
when it taxes, how and what does it spend?

—“How the Federal Government Spends

“Imagine you are expecting your $2,000 Social Security
payment to hit your bank account, which already has $3,000
in it. If you are watching your account on the computer
screen, you can see how government spends without having
anything to spend. Presto! Suddenly your account statement
that read $3,000 now reads $5,000. What did the government
do to give you that money?

—“It simply changed the number in your bank account from 3,000 to 5,000. It didn’t take a gold coin and hammer it into a computer. All it did was change a number in your bank account by making data entries on its own spreadsheet, which is linked to other spreadsheets in the banking system. Government spending is all done by  data entry on its own spreadsheet called “The U.S. dollar
monetary system.”

Here is a quote from the good Federal Reserve Bank Chairman, Ben Bernanke, on 60 Minutes for support:

SCOTT PELLEY: Is that tax money that the Fed  is spending?

CHAIRMAN BERNANKE: It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed.

—“The Chairman of the Federal Reserve Bank is telling us in plain English that they give out money (spend and lend) simply by changing numbers in bank accounts. There is no such thing as having to “get” taxes (or borrow) to make a spreadsheet entry that we call “government spending.” Computer data doesn’t come from anywhere. Everyone knows that!

—“Where else do we see this happen?

—Your team kicks a field goal and on the scoreboard, the score changes from, say, 7 points to 10 points. Does anyone wonder where the stadium got those three points? Of course not! Or you knock down 5 pins at the bowling alley and your score goes from 10 to 15.
Do you worry about where the bowling alley got those points?
Do you think all bowling alleys and football stadiums should
have a ‘reserve of points’ in a “lock box” to make sure you
can get the points you have scored? Of course not! And if the
bowling alley discovers you “foot faulted” and lowers your
score back down by 5 points, does the bowling alley now have
more score to give out? Of course not!

—We all know how data entry works, but somehow this has gotten turned upside down and backwards by our politicians, media, and, most all, the prominent mainstream economists. Just keep this in mind as a starting point: The federal government doesn’t ever “have” or “not have” any dollars.

—It’s just like the stadium, which doesn’t “have” or “not have” a hoard of points to give out. When it comes to the dollar, our government, working through its Federal agencies, the Federal Reserve Bank and the U.S. Treasury Department, is the score keeper. (And it also makes the rules!)

—You now have the operational answer to the question:

—“How are we going to pay for it?” And the answer is: the same way government pays for anything, it changes the numbers in our bank accounts. The federal government isn’t going to “run out of money,” as our President has mistakenly repeated. There is no such thing. Nor is it dependent on “getting” dollars from China or anywhere else. All it takes for the government to spend is for it to change the numbers up in bank accounts at its own bank, the Federal Reserve Bank.

—There is no numerical limit to how much money our government can spend, whenever it wants to spend. (This includes making interest payments, as well as Social Security and Medicare payments.) It encompasses all government payments made in dollars to anyone. This is not to say that excess government spending won’t possibly cause prices to go up (which is inflation).
But it is to say that the government can’t go broke and can’t be
bankrupt. There is simply no such thing.

—So why does no one in government seem to get it?

—Why does the Ways and Means Committee in Congress worry about “how we are going to pay for it?” It could be that they believe the popular notion that the federal government, just like any household, must somehow first “get” money to be able to spend it. Yes, they have heard that it’s different for a government, but they don’t quite believe it, and there’s never a convincing explanation that makes sense to them.

—(1-I know you’ve got this question on your mind right now. I answer it a bit later in this book, but let me state the question and give you a quick answer to tide you over:

Question: If the government doesn’t tax because it needs the money to spend, why tax at all?

Answer: The federal government taxes to regulate what economists call  “aggregate demand” which is a fancy word for “spending power.” In short, that means that if the economy is “too hot,” then raising taxes will cool it down, and if it’s “too cold,” likewise, cutting taxes will warm it up. Taxes aren’t about getting money to spend, they are about regulating our spending power to make sure we don’t have too much and cause inflation, or too little which causes unemployment and recessions.)

—What they all seem to miss is the difference between spending your own currency that only you create, and spending a currency someone else creates.“—WARREN MOSLER

“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” – Major L L B Angus.

The following is a typical example of how the governments finances are publicly explained:

—“In most years, the federal government spends more money than it takes in from tax revenues. To make up the difference, the Treasury borrows money by issuing bonds. Anyone can buy Treasury bonds, and, in effect, lends money to the Treasury by doing so. In fiscal year 2015, the federal government is expected to borrow $583 billion to make up the difference between $3.18 billion in revenues and $3.8 trillion in spending. Borrowing constitutes a major source of revenue for the federal government. Down the road, however, the Treasury must pay back the money it has borrowed, and pay interest as well. In 2015, the federal government will pay $229 billion in interest on the national debt. For more on this topic, see Federal Budget 101: Borrowing and the Federal Debt.”

A sharp-eyed reader had to have noticed the subtle dance around the actual truth. The Treasury borrows money by issuing bonds? And in “effect” those who buy are lending the money? In whose currency are the bonds being purchased and in whose currency are they then repaid? And yet the borrowing is a major source of federal revenue? Is debt revenue to be lent again or merely spent as credit?

—“U.S. Government Debt Is THE Biggest Ponzi Scheme In History sums up accordingly,

“The reason this is a true Ponzi is because at every Treasury auction, held twice a month, the Government issues enough debt to repay the existing debt that is maturing and issues even more debt in order to fund Government overspending . . . In contrast, if the Chinese and Japanese decide they’d rather not keep putting an increasing amount of money into financing our Governmental spending juggernaut, the Fed can just print money under the orders of the President to keep the gerbil going on the wheel.”

—So when the Treasury raises the national debt level and authorizes additional borrowing, in essence they are going to the Fed for a new loan. Think about this process and ponder at length the absurdity of going to shysters at a privately owned central bank for credit, which requires payment of interest.

—This construct is not known or is dismissed by most of the public. Yet, it is the single most important element that explains the utter futility of establishing economic prosperity in the age of universal financial servitude.

—Regular readers of BATR articles are well schooled in the prurient nature of debt bondage that tortures and rapes every taxpayer and consumer on the planet. The phenomenon of facilitating the enslavement of mankind has been uninterrupted since the passage of the 1913 Federal Reserve Act.

Illustrating this fact, Mr. Jeffrey continues with quoting current Treasury Secretary Jacob Lew.

“In testimony before the Senate Finance Committee in October 2013, Lew explained why he wanted the Congress to agree to increase the federal debt limit—and why the Treasury has no choice but to constantly issue new debt.”

“Every week we roll over approximately $100 billion in U.S. bills,” Lew told the committee. “If U.S. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance.” Ponzi roll over Treasury debt

“When people of this (banker) class are stricken by guilt feelings while plotting world wars and economic depressions which will bring misery, suffering and death to millions of the world’s inhabitants, they sometimes have qualms. These qualms are jeered at by their peers as “a failure of nerve”. After a bout with their psychiatrists, they return to their work with renewed gusto, with no further digressions of pity for “the little people” who are to be their victims.” Carroll Quigley, Tragedy and Hope, Macmillan 1966, New York, p. 326

—“Here’s the budget math. Between 1946 and 1974, debt-to-GDP fell from 121 to 32 percent, even though the government only ran surpluses in eight of those years (and the surpluses were generally much smaller than the deficits). That’s because nominal GDP — just the cash size of the economy — grew much faster than debt did. As Greg Ip of The Economist points out, fast nominal GDP growth, and the easy monetary policy that requires, is the only way governments have ever successfully reduced debt ratios in the past. Austerity alone will fail. (See Europe).

–Okay, so maybe endless debt and deficits aren’t a problem, but won’t bond markets go Galt on us if we don’t start to get our fiscal house in order? And even if the bond vigilantes turn out to be more like Godot, won’t ever-increasing debt lead to ever-decreasing growth?

—Well, as Mike Konczal of the Roosevelt Institute points out, the oft-cited Rogoff-Reinhart 90 percent debt-to-GDP threshold, after which growth supposedly slows, hasn’t been proven. It’s just a correlation. If anything, it probably gets the causation backwards, with low growth driving deficits and debt, not vice versa. Now, high deficits during high growth could crowd out private investment, and raise interest rates — the fabled bond vigilantes — but it couldn’t bankrupt us a là Greece. We borrow in a currency we control, so we can never run out of it; we can always inflate as a last resort. This money-printing escape hatch protects us from the kind of self-fulfilling run –– where markets push up borrowing costs on fear of default, which, perversely, makes default more likely — that had plagued Europe before ECB chief Mario Draghi promised to do “whatever it takes” to save the euro. The worst we have to fear is some kind of replay of 1992, with rising interest payments forcing some combination of tax hikes and/or spending cuts. There’s a little bit more to fear than fear itself, but not too much more.”—Why the U.S. Government Never, Ever Has to Pay Back All Its Debt

 

Printing notes fiat style out-of-thin-air is self-accreditation, pure and simple.  And the Bond arrangement, so documented by Mr. Walbert in 1899 is still being used today for the exact same reasons. “The debt, that capitalists will see is to be made out of the war, most be used as a measure to control the volume of money. To accomplish this the bonds must be used as a banking basis.”  Nothing has changed and people are still being forced to pay on that never-ending debt as if that was the only reason for their collective existence. No other economic model has ever been allowed, for the simple reason where there is no debt owed to a Foreign Power, people can live a life free of their damn evil, remorseless money control.

Speaking of control.

The next excerpt is from “Why You Can’t Trust the IRS” a report which is just as true today, as it was in 1995 :

—“On August 4, 1993, the General Accounting Office released its findings in the first audit of the IRS ever.[68] That the IRS was audited just once in its 80-year history is amazing, and the findings of the audit are an indication of the impending breakdown of our income tax system.

—The GAO found widespread evidence of financial malfeasance and nonfeasance and, perhaps, outright fraud. Just for starters, the GAO could not even ascertain the correctness of the agency’s financial statements because “critical supporting information for billions of dollars was either not available or was unreliable.”[69]

—The specific problems discovered by the GAO include the following:

  • The IRS significantly overstated its accounts receivable. The GAO found the IRS guilty of consistently overstating its accounts receivable ledger to Congress. Instead of the $105 billion in receivables alleged by the IRS, the GAO found the number to be closer to $65 billion. The IRS is using tax gap data, among other things, to win appropriations from Congress. The data are, however, unreliable.
  • Important revenue information was unavailable or unreliable. GAO auditors were able to ascertain how much money was collected, but they could not “audit the components of revenue because IRS systems could not provide the detailed transactions supporting the revenue balance, which is a serious limitation.”[70] As a result, the GAO could not determine the specific amounts of excise and Social Security taxes collected. Further, the GAO was unable to distribute excise tax collections to the various trust funds, or the general revenue fund, to which they are assigned by law.
  • The IRS failed to “control access authority given to computer support personnel or adequately monitor employee access to this information.”[71] As a result, it seems that any IRS employee who wishes it has unfettered computer access to sensitive data on the tax returns and information of any citizen. Some employees “used their access to monitor their own fraudulent returns, to issue fraudulent refunds, and to inappropriately browse taxpayer accounts.”[72]
  • There was inadequate management of operating funds. That is the most far-reaching aspect of the IRS’s financial reporting failures. Of the $6.7 billion spent on the entire agency during fiscal year 1992, the GAO was unable to audit 64 percent, or $4.3 billion. The IRS could not account for 64 percent of its total congressional appropriation.

—The list of the IRS’s failures, oversights, errors, omissions, and misstatements goes on and on.

—Although the IRS continues to demand them, it is clear that new computers cannot help the agency. The typical government approach of throwing money at a problem will not solve this one. The problem is not lack of money. The IRS has received all the money it has ever required from Congress. Its budget has roughly doubled in the past 10 years.

—While the government is quick to hold private enterprise liable for its errors, oversights, and occasional fraudulent conduct, it seems unwilling to hold its agencies to the same standards. As the GAO pointed out, “IRS’s lack of fundamental recordkeeping is inconsistent with recordkeeping requirements placed on taxpayers.[73] Unfortunately, the IRS is unwilling or unable to meet the same high standards of financial accountability it requires the average citizen to meet.”—

Now think about what is being revealed by the GOA— If the government was actually dependent on that revenue stream from the IRS hitting the right buckets, on time, the IRS would be routinely audited to ensure the “money” went to where it lawfully belonged. Think about your own checking account— why would anyone allow money owed to them to be lost routinely by the bank itself. If the banks accounting worked anything like the IRS your checking account would never be accurate, and the lost funds would cause you serious grief. No account holder would ever tolerate their money being taken by unknown parties operating on the banks own accounts.

The reason why Congress, does not seem to care about what the IRS does(eighty years is quite the astounding proof of that)  must be due to the fact the government already has what it needs to operate. What officials tell the public is never the whole of the truth. Clearly, what is actually occurring behind closed doors (all this time) was something the public was never intended to know.

Here is another more recent report which also provides support for the fact the entire taxing system costs the public more than it delivers in revenue benefits:

—“Executive Summary: To pay taxes, the costs taxpayers actually incur are far greater than the net sums the government collects. Individuals and businesses as taxpayers must pay substantially more than $1 in order for government beneficiaries to receive $1 of federal government services. Before individuals and businesses pay their tax liability (TB in Figure ES1), they must first spend time collecting records, organizing files, and wading through the tax code (B in Figure ES 1) to determine exactly what their tax liability is.
—In addition, individuals purchase products and services, such as
tax software or an accountant, to assist them in determining their tax liability. These are tax compliance outlays (C in Figure ES 1). Thirdly, in effect, taxpayers must also pay the administrative costs needed to run the IRS etc., solely for tax collection purposes (D in Figure ES 1).
—Still there is more.
—Businesses, large and small, hire teams of accountants, lawyers, and tax professionals to track, measure, and pay their taxes. This tax infrastructure is also used to optimize the tax liability of the business. Individuals and businesses change their behavior in response to tax policies, hiring tax experts to discover ways to minimize their tax liabilities.The efficiency costs from both legal tax avoidance and illegal tax evasion are difficult to quantify, but could be the highest costs of all (A in Figure ES 1).
—This study creates a comprehensive estimate of the total administrative costs, time costs, and direct tax compliance costs created by the complex U.S. federal income tax code. This paper deals only with Segments B, C, D and E from Figure ES 1. One can only imagine what the full burden of government on the well-being of society might be. In our analysis we estimate that U.S. taxpayers pay $431.1 billion annually, or 30 percent of total income taxes collected, just to comply with and administer the U.S. income tax system. This cost estimate includes:
• Approximately $31.5 billion in direct outlays (e.g. paying a professional tax preparer such as H&R Block or purchasing tax software) (2010 data).
• Total IRS administrative costs of $12.4 billion (2010 data).
• The Taxpayer Advocacy Service of the IRS estimates that individuals and businesses also spent 6.1 billion hours complying with the filing requirements of the U.S. income tax code. We estimate the dollar value or cost of these hours to be $377.9 billion as of 2008. The 6.1 billion hours number was estimated by multiplying the number of copies of each form filed in tax year 2008 by the average amount of time the IRS estimated it took to complete the form.
• Individuals spent 3.16 billion hours complying with the income tax code, which weighted by time spent by income group, costs the U.S. economy $216.2 billion annually.
• Businesses spent 2.94 billion complying with the business income tax code, which costs the U.S. economy $161.7 billion.
• Comprehensive audits also impose an additional taxpayer burden of at least $9.3 billion annually.
* According to the IRS, total gross individual income tax collections in 2008 were $1.4 trillion;   Although as of this writing total tax collections from 2010 are available, the detailed breakdown of income taxes paid by adjusted gross income are only available through 2008. For consistency, data on tax collections from 2008 are used throughout this study.
–(According to the Office of Management Budget, Historical Tables the “Gross Federal Debt” of the federal government in 2011 is estimated to be $15.5 trillion. $4.6 trillion of this debt is estimated to be held by the federal government itself. The total debt held by the public—or the net national debt—is estimated to be $10.9 trillion. Total debt held by the public represents the out-standing liability that the federal government must pay to someone else and represents the federal government’s actual financial iability.) See the Office of Management and Budget.

—Some criteria for judging the efficiency of a tax system were summarized by the 19th century American Economist Henry George: The best tax by which public revenues can be raised is evidently that which will closest conform to the following:

1. That it bear as lightly as possible upon production—so as least to check the increase of the general fund from which taxes must be paid and the community maintained.
2. That it be easily and cheaply collected, and fall as directly as may be upon the ultimate payers—so as to take from the people as little as possible in addition to what it yields the government.
3. That it be certain—so as to give the least opportunity for tyranny or corruption on the part of officials, and the least temptation to lawbreaking and evasion on the part of the taxpayers.
4. That it bear equally—so as to give no citizen an advantage or put any at a disadvantage, as compared with others. Complex tax systems violate all four of Henry George’s principles. Complex tax systems impose large burdens on taxpayers in excess of their tax liability, thus violating the first two principles. Complex tax codes also create opportunities for individuals to hide their taxable income in ways that may or may not be legal. As Krause (2000) illustrates, tax “complexity undermines the IRS’s ability to distinguish among intentional evasion, honest misinterpretation
of the tax code, and legitimate tax avoidance.”
—Therefore, tax complexity violates principle three. Complex tax codes contain provisions that favor one constituency over another. For instance, our current tax system offers a tax break to  homeowners but not to renters. As a consequence, a homeowner can pay less tax than a renter even if both individuals earn the exact same income and face the exact same expenses. Complex tax systems, therefore, violate principle four, which is also referred to as horizontal equity, or the notion that the tax system should treat similar taxpayers in a similar  manner.
The President’s Advisory Panel on Federal Tax Reform found evidence that the complexity of the current U.S. tax code actually
hurts low-income individuals as opposed to helping them. For instance, low-income individuals must file tax returns in order to receive the Earned Income Tax Credit (EITC) payments, but, nearly three-fourths of the families claiming an EITC had to hire a tax preparer in order to receive their payments because the EITC is one of the most complex parts of the tax code.”—The Economic Burden Caused by Tax Code Complexity

 

A rough total of federal receipts from here Tax Facts  starting from 1990 through 2016 gives a figure of fifty-four trillion dollars. The outlays for the most part are slightly greater, which creates the spending deficit, adding to the aggregate debt all Americans hear about continuously. The outstanding debt is a political tool to make Americans angry and fearful, thus easier to manipulate. But there is yet another side to the story that never receives any attention in the news  media. People really need to pay attention to details:

—“The Biggest Shell Game for Theft in World History!

—Organized Governments at all levels have been holding back their true Financial Statements, their Comprehensive Annual Financial Report from the people of America for over 50 years! Every city, county, state, and the federal government openly talks about the “budget” but keeps a virtually hidden, SECOND SET OF BOOKS which track the investments and Enterprise ventures worth TRILLIONS of dollars in tangible wealth they have built up and are spending from these virtually hidden portfolios as a result of investing YOUR skimmed money for over 50 years in everything from real estate to the stock market.

—When looking at the “big picture,” only 1/3 of government’s annual revenue comes from taxes, 2/3 comes from return on investments and enterprise / venture projects. To offset taxation, not $1 of that non-tax revenue is tied directly into the annual “budget” that is supported by taxation!

–Your city, county, state, and federal governments have played the Enron Creative Accounting Game; they LIED TO YOU for decades. With administrative restructuring of government, there would be NO NEED FOR TAXES. Our governments are not broke, they are rich beyond measure with OUR money, and they are hiding it from the American taxpayer, investing, AND SPENDING IT while pleading they are broke and need more taxes, bonds and levies to survive. This being done as they blindly justify their obscene growth. BS! There is enough aggregate wealth owned by our government agencies to abolish ALL property and income taxes TODAY. You are being conned, lied to, ripped off, and financially raped.

—Are You Ready For The Biggest Wake Up Call Of Your Life?

—Composite Revenue Totals:

—Total Annual Personal income in the USA, 1999, was 8.2 trillion dollars. All income – Wages, and investment return from Bill Gates, government employees, to the local Paper Boy.

—Federal tax Income: 1.8 trillion; Local Gov tax Income: 1.6 trillion (Composite CAFR Reports) TOTAL: Disclosed Government general purpose tax income: (Revenue from direct Taxation): 3.4Trillion

—TOTAL Personal INCOME: 8.2 – 3.4 (taxation) = 4.8 trillion dollars. THE NET Personal Income after all taxation from both Federal and Local governments.

—SOURCE: Federal 1999 Combined Financial Statement (CFS)

—Now for the revelation. (Estimated): Investment / enterprise income not disclosed in the general fund accounting, both Federal and local government, would bring Federal and Local governments annual TOTAL income up by another 5.1 trillion (GOVERNMENT’S NON-TAX income), or total income of 8.5 trillion, or for the real earth shaker of the mind’s comprehension, government income twice that of the total annual net personal income after taxation of the entire nation.

—Estimate of the standing liquid, fixed, and equity investments, both Federal and Local Governments is a conservative: 60 Trillion dollars  **PERSONAL NOTE: If you were making $100,000 per year, and you put 25% ($25,000) each year into an investment fund generating 14% annual return, how long would it be with compounded interest before your return was greater than your income?  A little over 8 years.   [14% is a conservative figure being that most state pension retirement funds have accomplished in most cases an average annual rate of return of 16 to 18% over the last 7 years. The 25 year average is 9 to 11%. Washington and Oregon State governments retirement funds did a 22 and 23% return last year]

—Composite government Pension Funds generated a return last year of about 4.3 trillion dollars. More revenue generated than all collected taxation in this country combined.

—PS: Government Employees realized only a fraction of that return in most cases being that their pension funds were strictly “Participatory.” The individuals investing or controlling the surpluses had a field day of personal empire building.

—Let’s look at the state of California, with approximately $12 trillion under management. Now, under the Comprehensive Annual Financial Report you’ll see about, oh, a total of maximum of about $3 trillion. But when you start tracking down the cities, the counties, all the revenue base, you’re up to about $12 trillion.

—Now, in California, say, for example, one of the investment managers who is handling, say, $400 billion in funds, and he had, say, $150 billion -with Shearson Lehman Hutton American Express institutional banking. That’s a very powerful position. If that individual contacts the director of the institutional banking, and said his brother in Argentina needed a $120 million loan in Argentina for a sugar cane energy development project, unsecured, do you think he’s going to say NO? I don’t think so. He’ll have one of his associates from another company that he deals with closely cut the loan. If it’s defaulted on he’ll just make up the difference on some business he’ll do with that firm.

—The power mongering and the elbow rubbing that takes place here is obscene! And it’s not just one group, one organization, doing it, it’s the principle of operation.

—Since we started our national disclosure 18 months ago I’ve had thousands of phone calls from people all over the country. I’ll get a call from New York, “Walter, I just got the New York through-way Comprehensive Annual Financial Report. They had $31 billion in liquid investment funds and -they’re still charging us.” I’ll say, “Don’t worry about it.”…I’ll get, a call from Anchorage, Alaska, “Walter, I just got our Comprehensive Annual Financial Report for our city. They’re making $100 million more a year than they’re showing on their budget report.” I’ll say, “Don’t worry about it.” I said, “Stop focusing in on a leaf, branch or tree in the forest. Start focusing in on the forest; understand the principle of operation of the forest.

—There are ten thousand of these operations going on all over the country.” I said, “If you’re going to apply your efforts, apply your efforts to change the principle of operation of the forest, which will affect every leaf, branch and tree in the forest. ” That’s the bottom line here, folks. We’re not talking any gray areas; there’s no speculation here.

—This is black and white.

—You know, the public has been complaining for the last 25 years. Every problem I’ve seen in this country to date has to do with extortion of revenue from the public. Period. It is the root of evil in this country – the wealth being taken from the populace. And one of the problems here is, a lot of people have been looking for the needle in the haystack, trying to find government corruption and wealth being stolen from us.

—Well, we’re not looking for the needle in the haystack here, folks. It’s the haystack sitting on top of the needle. All you have to do is look and start adding up the composite figures. Stop being distracted by one leaf or branch or tree in the forest. Start qualifying the forest. And when you do you’ll see the clear and unequivocal financial takeover of the wealth of this country by composite government, right from the city level to the state to the federal level.

—It’s power mongering it’s empire building. The boys that are in there on the inner circle; the wealth is absolute. Now, I’ll give you a few examples going back into New Jersey from ten years ago when I got New Jersey’s Comprehensive Annual Financial Report. It listed the state universities and colleges, and gave a composite total for all. I noticed right off the bat they had $8.5 billion in liquid investment funds – this is 1989. It also showed they made a $1.1 billion profit on their investment funds for the year.

—My next question to myself was, “I wonder what the total tuition’s are for all students attending colleges and universities in the state.” Total tuition base was $644 million. I said right off the bat, “Hey, they made a $1.1 billion profit and total tuitions are $644 million. They could have sent all students to school for free for the year and paid them to go to school.” In reality, what they did that year was sighting a shortfall of budgetary revenue, they had a 7% tuition increase.

—The game is absolute, and we’re talking there is so much money behind the game, and you have the participation of the syndicated media in the game, the public really has not stood a chance. The only way the public stands a chance is through full and open disclosure of the wealth – not being distracted, just sitting down crunching numbers. Not looking at one leaf, or branch or tree in the forest, start looking at the forest, adding up the totals, and it becomes evidently clear. Corrective action is needed and is needed immediately.

—With the scope of the financial takeover that is in existence today, they’re consolidating that ownership. Within several years you’ll have composite government owning 85% of the wealth in this country. And at that point in time the public may just become a liability – they don’t need them anymore. So, it’s very important that the public starts taking a serious look at what’s going on.”—Walter Burien narrativeHidden in plain site

The silence on how profitable the holdings of the government may be and to whom that money is known, is another indication that the real game has nothing to do with what is blabbed on the nightly news cycles. Knowledge is indeed power and keeping the general public in the dark is an effective barrier, especially when combined with social policies always emphasizing the wrong elements of the bigger economic picture. The high priests of the money power know fear and anger drives decisions [Tension Function] and they are never going to admit anything that decreases that procedural control away from themselves. How the insiders and major players are rewarded is the only real clue as to what is going on between the real power centers and those which are only there to fool the public.

—(Sidebar: Let me tell you where Bernie Sanders and I agree. He rails against the privileges of Wall Street, crony capitalists, corporate insiders, and lobbyists, and the political favors and laws they get passed that benefit them and not Main Street. The deck is stacked in their favor. In that he is right. But his and my solutions to the problem are not similar, as he wants to create even more regulation and taxation, and I would prefer to remove all of the tax preferences and greatly reduce the regulatory morass that favors large businesses over small. I don’t want the government involved in picking winners and losers; that’s the role of the marketplace.)

—So this is what it comes down to: The reigning academic theory/belief system is Keynesianism. The head Keynesians are signaling that they are going to give us negative rates. In fact, according to their theory, it would be irresponsible not to do so. They believe that if they sit back and allow the economy to sort itself out, the outcome would be far worse than anything that could be wrought by the intended and unintended consequences of negative interest rates.

—We can differ with those in charge, but the experiment with negative rates is going to happen, and we need to begin to adjust – to think through how to position our portfolios and our investment strategies, our businesses, and our lives.

—The Fed is run by True Believers. Just as Christianity or Islam or any other religion has believers that range across a spectrum of faith and beliefs, so does Keynesianism. At the Fed, these are deeply held beliefs: our central bankers are well convinced that the facts demonstrate the validity of their belief system.”—The Fed Prepares to Dive By John Mauldin February 22, 2016

 The potential to create an honest meaning of Money for the good of the society is unlimited. So long as the purpose, that such money must serve is real— so is the money as it is spent. When the social function of Money no longer serves the People, for which it is Created, the Equivalence of its Trust is broken. So what really is Money when separated from its transient use dependent upon its exchange?

Reduced to its most primal element: Money is simply [psychology] in Tension. Thus, money is a fiction of the Human mind and nothing else.Nature does not produce money and no law of nature validates economic theory by default. The manner in which money is used actually destroys its inherent potential to yield higher values. A fiat dollar is like a socket wrench that only turns in one direction: backwards. How dumb would it be to build cars with no forward gears? The system operates on a level of dumb and dumber, even as the math reaches new heights of dizzying complexity.

So as a rule do we really ever run out of our own imagination? No… Do we run low on thoughts and ideas while trying to solve difficult problems? Sure, but the science of money is lacking the appropriate measures of macro-human value on purpose, mostly to invalidate competing theories or models not based on entrenched monetary hierarchies. By simply pretending no other types of value-metrics can exist, the advancement and evolution of the system has been stopped for a very long time.

This insistence that officialized, mainline “economic theory” is the only way to do the job, even as the same mistakes are repeated over and over again, would be the equivalent of trying to put out a house fire with one bucket, filled with official water, while the entire crew argues about the book of procedures.

One only has to describe the psychological Tension between a husband and wife over money issues to know the truth of the power within that Tension. One is acting on the other at all times. Which is why people worry about [money] both by its gain and its loss. The need, the want, the desire, the love, or greed for money, all describe a psychological state, not an element dug out of the ground, much less, a credit entry on a screen, or a book. What good is money if it cannot fulfill even the most basic needs of those who earn its substitute?

Money is only an intangible potential without Mind to give it reason, structure and purpose. But it is the emotional tension bound in its expectations [good or bad] which makes it tangible and real. The functions of credit/debt/money equivalence is in the revolving, multidimensional quality of Money. A literal shifting from the in-material back to the material, to serve the diverse meanings of Money, which in turn places money purpose into productive results. Money needs resolution of its Tensions to balance the Equations of its multidimensional meanings in Reality.

This is the problem with money abstractions where only the Sign($) is defining a meaning of money. There is no physical money in these electronic, debit/credit systems, just account demands, predicated on timed-debt contracts. Interestingly enough, this credit time function never works on behalf of people, especially on large-scale, credit value-units. If such a Treasury value-unit{Share}  was in place [in the opposite sense of the asset-debt-pool-bundle-Bond/securities] from way back when, people today would not be privately borrowing, at interest, private money. There would be no need to pay any interest for the privilege of using public [national currency] already owned, on a national level of money assets. People do not need to borrow into creation what they collectively already possess as a positive asset. People only need to decide how money is to be best used to fulfill the lawful metrics of its creation.

When all forms of credit/debt, is simply a function of data-entry, there is no opposite interest-charge constraint to balance the powers of money between the Lending Class and those dependent [often only by political fiat] upon them for their own property of money. Thus, an abstraction of contractual based national money can be lent well beyond any physical ability to earn by the hour rate. This key defect is also what drives the debt function to produce compound-interest profits to those at the top of the fiat-money pie. The entire system is engineered to work against those who labor for a living one hour at a time.

People have to earn their debt-dollars by a time-value constraint, by most standards(hourly), and cannot compete against bank credit which is just instantly created [self-accreditation] out of a promise to pay, with paper/ink, or electrons on a screen. Practically speaking, if Bob cannot earn new debt money, three times faster next year then today, he cannot stay ahead of the machine-created, debt-service costs. The time-dollar-unit constraint puts Bob, like everyone else so trapped, at a serious time-value disadvantage to the artificial, fiat-debt system that can create unlimited, contract debt time-values with absolutely no regard to the physical constraints of reality.

The odd fact is when economic periods are bad, the federal macro-function of money is always wound-up tight producing the worst quality of high-level, Negative Tension Function. Specifically, people are scared, frustrated, angry, highly pessimistic about their economic future because they are suffering today from high-prices, high-interest rates on tight credit, their wages are stagnant, diminished from decades of relentless inflation, even as jobs become more scarce and hours worked have become drastically reduced.

Meanwhile, the federal/state taxing combination on payroll and wages reduces effective take-home pay, exacerbating the very dire conditions which accompany wide-scale, long term economic depressions. Money is now so artificially scarce that further belt-tightening only increases the negative, downward spiral. And the officials in Washington, wonder why so many people think they are incompetent, dishonest boot-lickers of that remorseless money power?

On the other end of the Tension spectrum the opposite required function is purposely missing in action. Debt free money absolutely has to circulate during periods of weak, economic activity. The solution to the problem has been removed from the table. This macro-function of government has been disabled for so long people have been conditioned to falsely believe it is not possible to use.  This bold-faced lie is the root of evil, which has been harming the American people for over a century. 

Debt free currancy(fiat or otherwise) when allowed to circulate properly carries the opposite charge of the interest of its time use. When people are forced to use private issued notes the charge is negative to them. When the issue is public it is the money lenders who pay the negative interest for its use, back to the public Treasury not the banking syndicate. The system was engineered to keep the money powers in control of issue and credit. A staggering amount of wealth has been bled off this Nation (and any other under the same diabolical control) which would have been otherwise available for all economic needs. This would be the Lost Potential of Money.

How convenient that after stealing the Nations non-interest money by every dirty, rotten trick in the pirates hand-book that gold and silver standards of money issue were declared to be no longer real. The banking syndicate stole the peoples honest money to force them to use their own private issued bad money, and this dirty secret while called conspiracy theory is indeed a fact of history.

When times are back to positive economic growth, private issued money, properly regulated by interest rates, can return to its rightful channels of use. Conversely, applying negative interest places a constraint upon too much easy Credit for consumers to spend. Credit issuers need to pay higher income taxes as well for that privilege. Finding the correct Tension balance is decided by market forces. But those forces need to be real not manufactured like a widget in some secret bank basement.

A proper wealth Share system is also missing from the macro-balance between government and people. During economic downturns(like we are experiencing today) the government funds public wealth Shares, using metrics based on earnings history, along with other factors to eliminate any false additions, to achieve economic equilibrium. By elevating Purchasing Power by allocation of wealth Shares, people can regain full Market participation for all goods and services so produced.

If needed sales taxes can be increased during flush cycles to add revenue to State/county local economies, and decrease when those economies cool down. Market cycles and Tension Functions can easily follow Natural Law when allowed, due to the fact people are bound to earth cycles. When money creation is so disconnected from the natural rhythms of life that it becomes inherently destructive, economic theory must be re-appraised, or any such theory [so out-of-touch with reality] simply becomes an absurdity of its own false principles.

The other major factors which require immediate changes are the wretched, personal income-tax laws and the payroll tax skims. Payroll taxes have become grossly unconstitutional by application. Why? Simply put, “Any tax imposed without lawful consideration of its excess to Harm, and without any Constitutional constraints is void of principle.” Subjecting people to any form of Indebtedness by Peonage, regardless of how technical, or blurred those qualifying distinctions of Code or regulations may have become, are still Null and Void by the principle of the Law.

The abuse of taxing powers destroys the Law from which it derives its only legitimate use. Harming the public is not an enumerated power of Congress and to do such evils eventually removes the fiat-Congress from having any further fiat-powers. The general Public has never been able to grasp their greatest power is to remove from office those who abuse their Trust. Replacing, re-called, disgraced officials, with new incumbents is not exactly easy, but when nothing else works it is the only power left on the table.

A true cycle of interest and non-interest bearing notes is required to achieve balance of forces between macro and micro economic Tension Functions. A fiat system is simply self-accreditation and Congress can no more run out of spread-sheet money than economists can run out of numbers of Pi… the aggregate of wealth is the key factor to be studied not the savings function of government debt. Bad economic policy is what is ruining this Nation, and rotten institutions of evil men intend to keep it that way. Just ask the living kin of Nathan Rothschild… he certainly had no fear of that puppet King, so long as his private money supply kept that king on a leash.

Advertisements

Tags: , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: