CHAPTER FIVE
MONEY
And [said unto them], What will ye give me, and I will deliver him unto you? And they covenanted with him for thirty pieces of silver. (Matthew 26:15)
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WHAT IS MONEY vs. FEDERAL RESERVE NOTES
“A Federal Reserve Note (is) merely an IOU.” Here’s how it works. When the politicians want more money, they dispatch a request to the Federal Reserve for whatever sum they desire. The Bureau of Printing and Engraving then prints up bonds indenturing taxpayers to redeem their debts. The bonds are then ‘sold” to the Federal Reserve. But note this unusual twist. The bonds are paid for with a check backed by nothing! It is just as if you were to look into your account and see a balance of $505 and then, hearing that government bonds were for sale, write a check for $1billion. Of course, if you or I did that, we would go to jail. The Federal Reserve bankers do exactly that, with no fear of losing their freedom. In effect, they print the money that enables their check to clear.” – James Dale Davidson, Director, National Taxpayers Union
“The creation of a loan is little different when you go to your neighborhood bank. Again, the ‘money’ that is loaned is created out of thin air, with nothing more than a book entry! Let us see how a bank
creates a mortgage lien on a house: A man who owns a building lot and has $20,000 needs an additional $75,000 to build a house. If the banker finds the collateral sufficient, he may credit the man’s checking account with $80,000 – minus several ‘points’ for expenses – against which checks can be written to pay for construction. When the house is completed, it will have a thirty-year lien at 12 or 15 percent. After working 30 years to liquidate the debt, the owner will have paid perhaps $300,000 for something that did not cost the banker a dime in the first place. This is the magic of fractional reserve banking.” – The Battle for the Constitution, Dr. Martin A. LarsonSome 97% of the money supply is made up predominantly of book entries, about 3% actual coin and paper currency. The system needs a continuous and increasing cycle of borrowing, debt, and refinancing, or the entire system will collapse:
“If all the bank loans were paid off tomorrow morning, no one would have a bank deposit and there would not be a dollar or coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp
of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.” – Robert Hemphill, former Credit Manager, Fed Bank of Atlanta (in testimony before the Senate)
IMPOSSIBLE TO PAY THE NATIONAL DEBT
“The one aim of these financiers is world control by the creation of inextinguishable debts.” – Henry Ford
The money to pay the interest on a debt must come from the same source as the debt principal. The only problem is that the money to pay the usury has never been created! Loan repayments to banks reduce the money supply. The Federal Reserve removes the money from circulation when a debt is repaid. To keep the money supply from shrinking, more borrowing is necessary. It is mathematically impossible to pay off the debt principal plus the interest. In your attempt to avoid the day of reckoning, you are forced to take on increasing amounts of debt to pay not only the principal of the debt, but the onerous interest. Your debt escalates until you are forced into bankruptcy. This phenomenon is not unique to government borrowing; it also applies as well to individuals and businesses. We need to recognize the perils of a private sector debt that is now at least five times greater than that of the Federal government’s debt!
A Myth We Live By – The reason we have a $6 trillion national debt and $17 trillion private debt is because people, government, and business have spent beyond their means, right?
Wrong!
The fact is, our monetary system guarantees that debt must increase regardless of what people, business or government do or do not do, whether or not they balance their budgets. Suppose I lend you ten ball bearings, the very last ten in existence, with the condition that you return ten to me plus one more ball bearing as interest. If you knew there were only ten in existence, you would not accept this offer. But suppose you are naive about the creation and circulation of ball bearings and you accept the terms; when repayment time comes, you possess only ten, having been unable to get the nonexistent eleventh ball bearing. You lose your house, which was pledged as collateral.
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A silly story, you say; no one would do that. Don’t be so sure; our monetary system works the same way! Another example: Suppose you deposit $1,000 into a bank at 10% compound annual interest, which means that each year you will make interest on the interest. In 145 years you will have over $1 billion – an exponential growth of 1,000,000 times. The moral: A small amount, held as a perpetual debt, quickly compounds to astronomical amounts.
Our money supply was loaned into existence, and you don’t pay back a money supply. Compound interest payments will cause this debt to rise to astronomical amounts (it already has). Furthermore, just like my ball bearing example, there is always more debt than there is money to pay it back, so it can never be paid back. The best we can do is refinance it.
Explained another way:
How the Federal Reserve creates money out of thin air.
Centuries ago in the city of Babylon, a goldsmith named Jebidiah had the only safe in the entire city and was proud to show it off to all of his friends. The friends were so impressed with Jebidiah’s safe, they asked him if he would take their gold for safekeeping, as crime was on the rise and they feared its loss by burglars.
Jebidiah was glad to share his resource with his friends, and issued them receipts in the form of shares.
One pound of gold on deposit would equal one hundred shares in the form of receipts. As more customers took advantage of the safe, the receipts were passed out among the townspeople for payment of services, and the need to withdraw the gold was nearly eliminated. Jebidiah noticed that there was never more than 10% of the gold ever withdrawn; 90% remained safe in the vault. So, in discussion with his wife, Jebidiah began issuing to many people receipts for gold, ten times the quantity of actual gold in the vault, while charging interest for the receipts. Needless to say, Jebidiah prospered. This was one of the first experiments with fractional reserve banking.
Unfortunately for Jebidiah the king signed, with his neighbor to the south, a trade treaty which removed all trade tariffs. The result was that all of the businesses in Babylon moved south to the neighboring country. There the labor rate was one tenth that of Babylon, and with no trade barriers the businessmen could send their products back across the border and make huge profits from the reduced labor costs and no tariffs. (Sounds a great deal like the NAFTA and GATT agreements, doesn’t it?) The businessmen,
however, needed capital to establish their new businesses in the new business community to the south.
They went to Jebidiah and presented him with their receipts to reclaim their gold. The other customers, to whom he had sold receipts, also wanted gold for them so that they also might invest and take advantage of this new treaty. The result was, of course, a disaster for Jebidiah. There was not sufficient gold on deposit to cover the demand. He was dragged from his shop and crucified on the spot.
That is how things were done in the criminal justice system of the time.
One night at the dinner table, Jebidiah’s two sons discussed the recent events and decided that their father’s idea was still a viable option if it were modified. The next day they opened their vault for business once again with a few changes. First, the brothers demanded up to 200% security for all of the receipts they issued to the customers who did not deposit actual gold with them. The borrower pledged twice the value of what he received and also paid an interest on the principle value borrowed. Another requirement was that the receipts would not be redeemable except by giving a 90-day notice of withdrawal. In addition, the brothers inserted on the loan contract a clause which gave them a right to declare the loan immediately due and payable, regardless of the due date on the note, and repayable only in gold.
Business, because of the treaty, was good for all and business prospered until the king had a dispute with the neighboring sovereign and canceled the treaty. The brothers began calling in the loans, foreclosed on all security, liquidated the securities at a discount for a profit of 60% and were still able to deliver to the depositors all of their gold within 90 days, per the deposit agreement. They grew rich beyond belief and began to branch out to other towns and countries. They were the worlds’ first fractional reserve bankers, and the business plan hasn’t changed substantially for centuries.
This is how the Federal Reserve Bank and all of your local friendly bankers operate today. Now you know how the system of fractional banking works and how destructive it has been to any nation that has been foolish enough to permit it.
Fractional reserve banking has been scientifically reconstructed for the present needs of today. The receipts are now legally determined by our government to be a replacement for the gold. If you look closely at your “money,” you will notice that it is a “Federal Reserve Note.” A note is a debt instrument. In the past, the receipt was an acknowledgment of the banker’s debt to you, and the gold you had on deposit was payable on demand. Your money (note) has no such payable on demand notice on it, and all you will receive from the bank on payment demand is a blank stare. What we have now is a debt instrument being used to pay off other debt instruments.
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When you make a loan, the money that you borrow is on ledger as a credit to your account by a journal entry on the creditor’s record. If you wrote a check on the account and deposited that check in another bank, Bank Two considers this new money, and it can lend against that deposit at a ten to one ratio. If Bank Two lends this new money to another individual who then writes a check on Bank One, Bank One lends against this deposit at the same ten to one ratio and the multiples of ten to one go on and on and on to infinity.
The courts or Congress have never repealed that provision in the Uniform Commercial Code, but go stone cold deaf and blind to the use of Federal Reserve Notes to pay off debt. When you mortgage your home for a loan by executing a mortgage deed, whether you receive a credit on your account or are given the cash (Federal Reserve Notes), you have given the bank something of value – your promise of labor – in return for nothing of value.
All across the country, property owners are having their mortgages canceled because they can prove that no equal consideration was given for their support of the mortgage. The banks are scared to death you will find out about this fraud. When a government owns the press and can print an unlimited number of worthless notes and can borrow with no limit on the notes it legalizes, there is no need to tax the citizens. The only reason for the government to go through the ritual of taxing you is to control you. The sole purpose of the tax they exact from you is to get all of that worthless paper out of circulation; otherwise inflation would consume the economy within a matter of months. The Federal Reserve can create inflation or deflation at its whim. It creates prosperity, inflation or depression anytime it wishes. IT CONTROLS ALL OF US.
The people in control of the presses (FED) can pay old debts with the inflated currency. They just keep the presses rolling. Just to survive, the rest of us are then required to spend all that we have before its devaluation makes it worthless. Mexico, Argentina and Brazil are prime examples of what awaits this country. In a central banking system, the only ones who profit are the owners of the central bank. If our government officials had one honest bone in their body, which is doubtful, they would buy back the Federal Reserve franchise and do what they are Constitutionally-required to do: print money by and for the Treasury, interest free.
Legal taxes on things properly taxable would be ample revenue to secure that money. It is not a widely published fact, but America has been in bankruptcy since 1933. (12 USC 9 (a); Executive Orders 6073, 6102, 6111, 6260).
Our Secretary of the Treasury is both the receiver in that bankruptcy and the Governor of the International Monetary Fund. This organization, made up of international bankers, pays the Secretary’s salary, not us. Doesn’t that make him an agent of a foreign power? You bet it does, and I can assure you that the Honorable Secretary has the best interests of the bankers in mind and not that of We the People. If he is an agent of the International Monetary Fund, then are not his sub-agents the IRS also foreign agents? You bet they are. By law, a foreign agent who does not file as such is committing a felony. (Section 64 of Title 22 of the United States Code) You now know how the FED creates money with the stroke of a pen. Now I will explain mankind’s eternal curse – usury, commonly known as interest.
Many civilizations have lived productive lives on this earth having no knowledge of interest or the repayment of money loaned. Men such as Jebidiah’s sons developed the concept of usury in order for them to get rich on their brethren’s labor. Usury is illegal in the Moslem world and punishable by death if detected.
Outlawed in Europe and other continents for over three centuries, the penalty for anyone charging interest was severe: sometimes the death penalty was administered to those lazy and greedy loan sharks who wished to inflict usury on their neighbors.
How I long for the good old days once again!
William Patterson, an English banker, coined the term “interest” in the year 1694. The Crown, in need of additional revenue sources, gave license to Patterson to form his private bank. The Crown would authorize the money and the credit provisions of usury for the innocent English citizen.
This is a fair representation of what happened next. The first month that Patterson opened his bank, he made loans to ten farmers who needed the money to buy seed stock, livestock and supplies. The farmers borrowed one hundred pounds for one year at an interest rate of six percent. That was simple interest, as the concept of compound interest had not as yet been visualized. After one year the farmer was required to repay the hundred pounds plus the interest of six pounds. The only problem was that Patterson had created only a thousand pounds, and some of the farmers, although able to repay the original hundred pounds, were unable to come up with the additional six pounds. They tried to borrow it from some of the other farmers, but they too were having difficulty trying to find the interest.
One of the farmers had died and Patterson had taken the farm as the security for the loan. The deceased farmer’s family had used some of the money to live on and was holding on to the rest of it because now they had no provider. So, in the village, there were some of the farmers who were able to sell products or services to the deceased farmer’s family for some of Patterson’s
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money and to repay the loan principle and interest. There were six farmers who could not come up with the interest. Patterson foreclosed on their farms and, under the protection of the Crown (for the King’s unlimited credit), became the first central bank. Patterson realized that if he did not create any more money than he loaned out for the debt interest of the borrower, a large percentage of his customers would not be able to repay the loan and he could take their property at great profit to himself.
If you were to take this example and apply it to our present time, multiplied by the trillions, you can quickly see why the national debt will never be repaid.
The money for the repayment has never been created, and if they were to print money for it, that created money would have no money created to pay it off. This monstrous system is perpetual in its destruction. It has destroyed entire nations. The time has come for We the People to understand the system and demand a stop to this dishonest finance forever.
I prepare many bankruptcies each year. The large majority of these are the result of credit card purchases and abuse. The interest on the debt compounds itself, and the lender loves it when you pay only the minimum payment each month. Once caught in the interest trap of credit cards, the only way out for many is to file bankruptcy, but Congress has passed new legislation that will not allow for an individual to remove his credit card debt through bankruptcy. Credit cards should be made illegal, and our nation must return to the honest and Constitutional no-interest Treasury note, or we will not survive into the new millennium as a free people.
At exactly 6:00 p.m. on December 23rd, 1913, three United States Senators who had been recruited by Colonel House to commit treason voted into law the Federal Reserve Act of 1913 by voice vote only. America had been betrayed. Our Founding Fathers must have rolled over in their graves with anger. America was on a fast track to financial destruction. At the time of the FED’s creation there was no National debt, and now we are approaching debt in the unbelievable amount of ten trillion dollars.
I was discussing a newspaper article with a friend who was concerned with what the paper described as the reason the Federal Reserve was going to replace the existing money with new issue notes. The reason given in the article was that Iran was in the counterfeit money business and the new currency would put an end to their plans. My friend believed that the paper was correct in the given explanation that if this were not done, the phony money would wreck our economy.
The newspaper and my friend would have been correct if the Federal Reserve notes were indeed backed by gold held by the Treasury. But the FED
has no such gold reserve requirement and the Iranians don’t charge us any interest for the money they print.
The Federal Reserve charges us 100% of the face value of the currency printed, which costs them 9/10 of a cent regardless of the face value amount, and Federal Reserve Notes give no consideration in return. Heaping on us another indignity, we are charged an additional surcharge of 10% for every dollar of our money they print. Every one of their dollars drags us further into debt. This being the case of two opposing criminal factions, one of which does not charge you for its product and the other one which does; who is the worse enemy of this country, the Iranians or the Federal Reserve Bank? I personally appreciate all the extra DEBT FREE money in circulation at no cost to We the People.
Iran, keep it coming! Run three shifts; I’ll spend as much of it as you will give me. That’s a promise!
In 1933, as expressed in Roosevelt’s Executive Orders 6073, 6102, and 6260, the United States first declared bankruptcy. The bankrupt U.S. went into receivership in 1933. America was turned over via receivership and reorganization in favor of its creditors. These creditors, the International Bankers, from the beginning stated their intent, which was to plunder, bankrupt, conquer and enslave America and return it to its colonial status.
Congressman Lewis T. McFadden, Chairman of the House Banking Commission, speaking to Congress at the very time the conspiracy was taking place said, “We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the People of the United States for the benefit of themselves and their foreign and domestic swindlers, rich and predatory money lenders.”
McFadden died mysteriously in 1936 after three attempts on his life.
At the time of the passage of the Federal Reserve Act of 1913, Congressman Charles Lindberg, Sr., said, “This Act establishes the most gigantic trust on earth. When the President signs this Act the invisible government by the Money Power, proven to exist by the Money Trust Investigation, will be legalized. The new law will create inflation whenever the trusts want inflation. From now on, depressions will be scientifically created.”
And then we have an admission from Franklin Delano Roosevelt, in a letter to Colonel Edward Mandell House, the chief architect of the Federal Reserve Act and the fraudulent 16th Amendment, revealed in The Intimate Papers of Colonel House: “The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the
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U.S. since the days of Andrew Jackson. History depicts Andrew Jackson as the last truly honorable and incorruptible American Presidents.”
At least I must give FDR some credit in admitting that profound statement. The shame of it is that it is still true.
If we don’t force Congress to rectify the matter soon, the whole house of cards is going to fall down around our heads in a few short years. The inevitable result is depression or hyperinflation, the worst possible economic crisis. Those who refuse to learn the lessons of history are bound to repeat the mistakes. History is replete with examples of nations whose governments permitted private centralized banks to control and debauch their currency. The ultimate mathematical equation is complete and total bankruptcy for all but the elite few. Widespread poverty, lawlessness, anarchy – much the same environment as paved the way for the second World War – is being visited upon us again and by the same people. When, not if, our own economy collapses, the people will accept anyone, even a despot like Hitler, who claims he can save you from financial ruin.
The International Bankers have historically been responsible for crisis after crisis and have invariably had their man waiting in the wings with the “solution” for the “problem” they created.
“In the case of the federal government, we can print money to pay for our folly for a time. But we will just continue to debase our currency, and then we’ll have financial collapse. That is the road we are on today. That is the direction in which the ‘humanitarians’ are leading us. But there is nothing ‘humanitarian’ about the collapse of a great industrial civilization. There is nothing ‘humanitarian’ about the dictatorship that must inevitably take over as terrified people cry out for leadership. There is nothing ‘humanitarian’ about the loss of freedom. That is why we must be concerned about the cancerous growth of government and its steady devouring of our citizens’ productive energies... I speak of this so insistently because I hear no one discussing this danger. Congress does not discuss it. The press does not discuss it. Look around us, the press isn’t even here! The people do not discuss it – they are unaware of it. No counter-force in America is being mobilized to fight this danger. The battle is being lost, and not a shot is being fired.” – Congressman William E. Simon, in a speech to the House of Representatives (April 10, 1976)
“I believe that if the people of his nation fully understood what Congress has done to them over the past 49 years, they would move on Washington, they would not wait for an election... It adds up to a preconceived plan to destroy the economic and social independence
of the United States.” – Senator George W. Malone, speaking before Congress about the Federal Reserve Bank (1962)
“The best way to destroy the capitalist system is to debauch the currency.” – Vladimir Ilyich Ulyanov, commonly referred to as “Lenin.”
Why should we Americans be paying a consortium of private international banking families and their stockholders for use of what we have been led to believe is our own medium of exchange?
Why is it that we find ourselves indebted to these already incomprehensibly wealthy people?
Isn’t the U.S. Treasury responsible for the nation’s money supply? Doesn’t the U.S. Bureau of Engraving print the “money”?
Why then do we borrow it from a private banking system?
Do we somehow need the bankers’ permission to create and use our own money supply?
“The privilege of creating and issuing money is not only the supreme prerogative of Government, but is the Government’s greatest creative opportunity. By the adoption of these principles, the tax payers will be saved immense sums of interest.” – President Abraham Lincoln
United States Congressional Record March 17, 1993 Vol. #33, page H- 1303, Congressman James Traficant, Jr. (Ohio) addressing the House:
“Mr. Speaker, we are here now in chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth, hopefully, a blueprint for our future.
“There are some who say it is a coroner’s report that will lead to our demise. It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress in session June 5, 1933 – Joint Resolution To Suspend The Gold Standard and Abrogate the Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.
“The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund.
“All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for
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the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 read in part:
“The U.S. Secretary of Treasury receives no compensation for representing the United States.”
In the United States Congressional Record, May 4, 1992, page H 2891, Chairman of the House of Representatives Committee on Banking, Finance and Urban Affairs, Henry Gonzalez (Texas) speaking on “NATIONAL AND INTERNATIONAL THIEVERY IN HIGH PLACES,” said:
“We are bankrupted. We are insolvent on every level of our national life, whether it is corporate, whether it is just plain you and I out there with the life of debt that we have all piled up, private debt, credit cards and what not, or whether it is the government. We are insolvent. How long will it take before that nasty Megatruth is conveyed?”
United States Congressional Record January 19, 1976, page 240, Marjorie S. Holt (Maryland):
“Mr. Speaker, many of us recently received a letter from the World Affairs Council of Philadelphia, inviting members of Congress to participate in a ceremonial signing of ‘A Declaration of Interdependence’ on January 30 in Congress Hall, adjacent to Independence Hall in Philadelphia. A number of Members of Congress have been invited to sign this document, lending their prestige to its theme, but I want the record to show my strong opposition to this declaration.
“It calls for the surrender of our national sovereignty to international organizations. It declares that international authorities should regulate our economy. It proposes that we enter a ‘New World Order’ that would redistribute the wealth created by the American people. Mr. Speaker, this is an obscenity that defiles our Declaration of Independence, signed 200 years ago in Philadelphia. We fought a great Revolution for independence and individual liberty, but now it is proposed that we participate in a world socialist order. Are we a proud and free people, or are we a carcass to be picked by the jackals of the world, which want to destroy us? When one cuts through the high-flown rhetoric of this ‘Declaration of Interdependence,’ one finds key phrases that tell the story.
“For example, it states that ‘The economy of all nations is a seamless web, and that no one nation can any longer effectively maintain its processes of production and monetary systems without recognizing the necessity for collaborative regulation by international authorities.’ How do you like
the idea of ‘international authorities’ controlling our production and our monetary system, Mr. Speaker?
“How could any American dedicated to our national independence and freedom tolerate such an idea? America should never subject her fate to decisions by such an assembly, unless we long for national suicide. Instead, let us have independence and freedom.... If we surrender our independence to a ‘New World Order’ ...we will be betraying our historic ideals of freedom and self-government. Freedom and self-government are not outdated. The fathers of our Republic fought a revolution for those ideals, which are as valid today as they ever were.
“Let us not betray freedom by embracing slave masters; let us not betray self-government with world government; let us celebrate Jefferson and Madison, not Marx and Lenin.”
A dollar is a measure of weight defined by the Coinage Act of 1792 and 1900, which is still in force today. A “dollar” specifies a certain quantity – 24.8 grains of gold, or 371.25 grains of silver. In Black’s Law Dictionary, Sixth Edition, Dollar: “The money unit employed in the United States of the value of one hundred cents, or of any combination of coins totaling 100 cents.” Cent: “A coin of the United States, the least in value of those now minted. It is the hundredth part of a dollar.”
Gold and silver were such powerful money during the founding of the United States of America that the founding fathers declared that only gold or silver coins can be “money” in America. Since gold and silver coinage was heavy and inconvenient for a lot of transactions, they were stored in banks and a claim check was issued as a money substitute. People traded their coupons as money or “currency.” Currency is not money, but a money substitute. Redeemable currency must promise to pay a dollar equivalent in gold or silver money. Federal Reserve Notes (FRNs) make no such promises and are not “money.” A Federal Reserve Note is a debt obligation of the federal United States government, not “money.” The federal United States government and the U.S. Congress were not and have never been authorized by the Constitution for the united States of America to issue currency of any kind, but only lawful money – gold and silver coin.
It is essential that we comprehend the distinction between real money and paper money substitute. One cannot get rich by accumulating money substitutes; one can only get deeper into debt. We the People no longer have any “money.” Most Americans have not been paid any “money” for a very long time, perhaps not in their entire life. Now do you comprehend why you feel broke? Now do you understand why you are “bankrupt” along with the rest of the country?
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Federal Reserve Notes (FRNs) are unsigned checks written on a closed account. FRNs are an inflatable paper system designed to create debt through inflation (devaluation of currency). Whenever there is an increase of the supply of a money substitute in the economy without a corresponding increase in the gold and silver backing, inflation occurs.
Inflation is an invisible form of taxation that irresponsible governments inflict on their citizens. The Federal Reserve Bank, who controls the supply and movement of FRNs, has everybody fooled. They have access to an unlimited supply of FRNs, paying only for the printing costs of what they need. FRNs are nothing more than promissory notes for U.S. Treasury securities (T-Bills) – a promise to pay the debt to the Federal Reserve Bank.
There is a fundamental difference between “paying” and “discharging” a debt. To pay a debt, you must pay with value or substance (i.e., gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of “good and valuable consideration.” Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.
Their lust is for power and control. Since the inception of central banking, they have controlled the fates of nations. The Federal Reserve System is based on Canon law and the principles of sovereignty protected in the Constitution and the Bill of Rights. In fact, the international bankers used “Canon Law Trust” as their model, adding stock and naming it a “Joint Stock Trust.” The U.S. Congress had passed a law in 1873 making it illegal for any legal “person” to duplicate a “Joint Stock Trust.” The Federal Reserve Act was legislated post-facto (to 1870), although post-facto laws are strictly forbidden by the Constitution (1:9:3). The Federal Reserve System is a sovereign power structure separate and distinct from the federal United States government. The Federal Reserve is a maritime lender and/or maritime insurance underwriter to the federal United States operating exclusively under Admiralty/Maritime law.
The lender or underwriter bears the risks, and the Maritime law compelling specific performance in paying the interest, or premiums are the same. Assets of the debtor can also be hypothecated (“to pledge something as a security without taking possession of it”) as security by the lender or underwriter. The Federal Reserve Act stipulated that the interest on the debt was to be paid in gold. There was no stipulation in the Federal Reserve Act for ever paying the principle.
Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages, until the Federal Reserve Act of 1913 “hypothecated” all property within the federal United States to the Board of Governors of the Federal Reserve, in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a “beneficiary” of the trust via his birth certificate. In1933, the federal United States hypothecated all of the present and future properties, assets and labor of their “subjects,” the 14th Amendment U.S. citizen, to the Federal Reserve System. In return, the Federal Reserve System agreed to extend to the federal United States Corporation all of the credit “money substitute” it needed.
Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their “economic slaves,” the U.S. citizens, as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national park forests, birth certificates, and nonprofit organizations, as collateral against the federal debt. All has already been transferred as payment to the international bankers.
Unwittingly, America has returned to its pre-American Revolution feudal roots whereby a sovereign holds all land and the common people have no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a sovereign in the guise of the Federal Reserve Bank. We the People have exchanged one master for another.
This has been going on for over eighty years without the “informed knowledge” of the American people, without a voice protesting loud enough. Now it is easy to grasp why America is fundamentally bankrupt. Why don’t more people own their properties outright? Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?
We are reaping what has been sown, and the results of our harvest are a painful bankruptcy and a foreclosure on American property, precious liberties, and way of life. Few of our elected representatives in Washington, D.C., have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt and the tyranny to enforce paying it.
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