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Old 11-13-2006, 10:38 AM
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Awesome Essay on the Federeal Reserve

What Most Patriots Don't Get About The Federal Reserve

To all WhoRU group members: Please read the following essay and then call in on the Aaron Ruso "America From Freedom to Fascism" conference calls (info below), and confront Fred Smart and the other promoters of this movie about what I present herein below.

I challenge anyone and everyone to find any significant error in what I present herein below, including G. Edward Griffin, LB Bork, Luis Euing, Eustace Mullins and any and every other person claiming to be knowledgeable on the Federal Reserve.

The solutions I set forth herein below must be included in Aaron's sequel if any true benefit is to accrue therefrom!!



Author: Eric WhoRU - http://groups.yahoo.com/group/whoru ewrbn@yahoo.com

Each week night at 7:30 PM, Central time, there is a conference call for those who support and promote Arron Ruso's movie, "America, From Freedom to Fascism" (702) 851-4044 access code 1626356#.

I listened in four nights last week and apart from the enthusiasm expressed among those participating there was not much meat - Where is the BEEF??

One quite often heard comment was something to the effect that, "We must get rid of the Federal Reserve!!" With absolutely no thought expressed as to what the country would use as a money system as a replacement.

I want to make it clear at the outset that I do not like the Federal Reserve, most especially I do not like the fact that the Federal Reserve is privately owned and purports to charge interest on the principal the Fed creates to monetize the future income of its customers, while at the same time the Fed provides no source from which its customers can obtain the additional Federal Reserve Notes they need to pay the interest surcharge on the Fed's issue, thus, as a privately owned entity, the Fed operates a closed end money system, which has an inherently impossible aspect, an ability to take a profit called interest, with FORECLOSURES being the Fed's only true source of "profit".

That being said - I contend that the Federal Reserve is the most important and most contributory factor in raising the standard of living of the populous of the United States. The issuance of paper money by the Federal Reserve has done more to facilitate the rise in the standard of living of the middle class than the invention of the wheel, while at the same time the private ownership thereof has enabled the Banksters to own almost everything, including the people themselves!!.

How do I reconcile these apparently contradicting postulations??

Easy, I did a personal study and evaluation of all of the adverse claims made against the Fed by its enemies and found that virtually none of the enemies of the Fed have any actual understanding as to how the Fed actually works in 2006-7-8-9 or whenever, going back at least 30 years and most probably, all the way back to 1913!!

What are the negative claims (myths) against the Fed (in no particularly significant order)??

1. The Fed creates money out of thin air - WRONG!!

2. The Fed makes an interest profit on the money it creates - WRONG!!

3. The paper money the Fed creates has no backing - WRONG!!

4. The Fed manipulates the circulating supply of money in order to intentionally cause recessions - WRONG!!

5. Federal Reserve Notes are evidence of debt - being nothing but worthless IOUs - WRONG!!

6. Debts cannot be paid with Federal Reserve Notes - only discharged - WRONG!!

7. The inflation inherent in the use of Federal Reserve Notes is a hidden tax - WRONG!!

8. The Fed just prints money and pumps it into circulation - WRONG!!

9. Federal Reserve Notes are nothing but FIAT money - WRONG!!

10. The Fed is privately owned - RIGHT!! Well, one out of ten being right is about par for most patriots - which is why I call them patri - idiots.

So what is the truth about all these Fed myths??

FALSE Myth # ONE -

The Fed creates money out of thin air.

It is certainly true that the Fed does create money - but out of this air - not hardly. The only time the Fed creates money is when a qualified borrower applies for a loan, then the Fed creates the principal to fund the loan. The principal is created based on the borrowers proven ability to repay the loan - this "proven ability" is called the borrowers credit rating. The basic fundamental purpose of money in the first place is to lubricate commerce - how better to lubricate commerce than to "kick start" it by monetizing the future income of the borrower??

The Fed is totally incapable of creating money, that is, to enable money to enter circulation without a qualified borrower making an application for an advance on his future production.

FALSE Myth # TWO -

The Fed makes an interest profit on the money it creates.

Although it is true that the Fed does purport to charge interest and it is also true that borrowers pay interest - it is a mathematical impossibility for this designation of interest to constitute a profit to the Fed.

The reason this is true is because the only way any Federal Reserve Notes can ever enter circulation is as the principal created by the Fed to fund borrowers' loans - that is - the maximum number of FRNs in circulation could never be more than the total created by the Fed to fund loans, so it therefore reasonably and logically follows, that the maximum number of FRNs that the Fed could ever receive back would be no more that the Fed created in the first place - as loan principal - so no matter what the borrowers nor the Fed might designate the payments to be - principal or interest - as far as the profit to the Fed is concerned it would be a mathematical and/or a physical impossibility for the Fed to take a profit called interest.

So then, how does the Fed take a profit?? Quite simple - through foreclosing on pledged assets.

FALSE Myth # THREE -

The paper money the Fed creates has no backing.

Although it is certainly true that there is no gold or silver backing that does not mean there is no backing for FRNs. Federal Reserve Notes are nothing but a piece of paper, with so much ink printed on both sides it is difficult to find room to write a phone number thereon - but never the less millions and millions of these paper notes are used every day by millions and millions of people to purchase every variety of commodity imaginable, with never a concern that the paper notes are worthless. The noted are backed by the promises of the borrowers, made at the time the loans were funded, to produce goods and services equal, not only to the principal borrowed, but also equal to the added interest charged on the loan principal. What better backing could be desired?? Even gold would not be a good - what does gold do?? Why is gold perceived to have value?? Is it not because humans are willing to produce goods and services equal to the perceived value of the gold?? So what is t! he actual difference between gold and paper??

FALSE Myth # FOUR -

The Fed manipulates the circulating supply of money to cause recessions.

Although it is certainly true that the Fed manipulates the circulating supply of money, the Fed does not do so in order to cause recessions - quite to the contrary - as recessions are an inherent aspect of a closed end privately owned money system the Fed does not have to manipulate anything in order to cause recessions - to the contrary - the Fed manipulates the money supply, by raising and lowering the interest rate - in order to discourage or encourage borrowing - but this manipulation is not to cause recessions but rather, to lessen the negative impact of the inevitable recessions, in order to insure that there will be another boom cycle - what the Fed does is not unlike a farmer saving back seed corn to plant the next seasons crops.

Although recessions may very well be influenced and manipulated by interest rate adjustments the recessions are not in any way CAUSED BY the manipulation of interest rates. The recessions will occur no matter what the Fed might do with interest rates - the recessions are an inherent aspect of and are inevitable in a closed end money system where interest is purportedly charged on principal created to fund loans.

"Interest is purportedly charged"??" That is correct - "purportedly charged"!! What is interest??

Interest must be defined from two different points of view, (1) from the point of view of the borrower and, (2) from the point of view of the Federal Reserve lender. This is generally understood as follows: (1) For the borrower, interest is an additional amount added to the principal borrowed, that the borrower must pay, as a fee, for using the Federal Reserve lender's money; (2) For the Federal Reserve lender, interest is the fee added to the principal lent to the borrower, which the borrower must pay, for using the Federal Reserve lender's money.

So what is wrong with this picture??

The general public will not understand the error in this explanation because the explanation seems to cover everything relative to explaining what interest is and, at the same time the general public will presume that the interest paid to the Federal Reserve lender by the borrower will, in and of itself, constitute a profit to the Federal Reserve lender - WRONG!!

It is totally, absolutely, completely, 100% physically and mathematically impossible for the interest paid to the Federal Reserve lender by the borrower to in any way constitute a profit to the Federal Reserve lender!! It would not matter one iota, if the interest rate were 100% - the interest could still not be a profit to the Federal Reserve lender!! And, ultimately, it would make no difference if the money loaned were paper Federal Reserve Notes loaned by the privately owned Federal Reserve or were 100% pure gold coins, loaned into circulation by the private owners of gold!! Interest on loans is not the ultimate true actual source of the lender's profit!!

So why would the Fed loan money if the Fed was not going to take a profit (please take note of my use of the word "take" as opposed to "make" or "earn").

Before I explain how the Fed actually takes its profits I am first going to explain why and how it is totally impossible for interest on loans to constitute a profit to the Fed. The reason is because of what I call the "Single Source Doctrine"; The single source of any item cannot receive back any more of the item than the single source creates and causes to enter circulation.

For example: Everyone knows that the single source of all Chevrolet automobiles is from General Motors - neither Ford, Chrysler, BMW, Volvo or any other automobile manufacturer makes Chevrolets - the single source of all Chevrolets is general Motors. If general Motors were to do a general recall of all Chevrolets - how many Chevrolets could GM possibly receive back?? There is no way to know the actual total possible number but it is clear that GM, being the single source of all Chevrolets, could not possibly receive back more Chevrolets than were manufactured in all of GM's Chevrolet plants - that is a fact and is totally irrefutable!!

Apply the exact same logic to any item that issues from a single source and the results will be the same - no single source of any item can receive back more of the item than the single source issued out in the first place.

The Single Source Doctrine applies to the single source of any and every item that issues from a single source and the Federal Reserve is no exception!! Every single GE refrigerator comes from GE; every single Kenmore washer comes from Sears; every single RayOVac battery comes from RayOVac; Every single Federal Reserve Note in circulation entered circulation from the Federal Reserve itself or through one of the local branches of the Federal Reserve (every local bank in the United States is a branch of the Federal Reserve - no exception).

The next very important point here in understanding the impossibility of the Fed taking a profit called interest is to understand that every single Federal Reserve Note in circulation entered into circulation as the principal created by the Fed to fund a loan applied for by some borrower.

Now, how many Federal Reserve Notes do you suppose the Fed would create to fund a loan of $1,000.00?? As the borrower only applied for a loan of $1.000.00. Is it not most logical to assume that the Fed would create only $1,000.00?? Why would the Fed create more than $1,000.00? The borrower of $1,000.00 would expect to receive only $1,000.00, right? If the Fed gave the borrower more than $1,000.00 would the borrower be surprised?? Has this ever happened?? Can you imagine it ever happening??

Now, when the borrower borrowed the $1,000.00, the borrower agreed to pay back the $1,000.00 plus interest - say of 10% - for a total obligation to pay $1,100.00 to the Fed - but the Fed only created $1,000.00 so how much could the borrower possibly pay to the Fed?? According to the Single Source Doctrine the maximum the borrower could repay would be the total issued out by the Fed - or $1,000.00 - MAX!! So how could the Fed ever take a profit on this loan?? - NEVER!!

Oh, but that is not the way it actually works - well that is exactly the way that it works but is is just not that obvious because there is not just one loan of $1,000.00 - there are literally millions and millions of loans spread out all over the United States so what actually happens is as follows:

Because the Federal Reserve did not become the single source of all money in the United States at any single point in history, but was imposed gradually over many years, the facts as to how the Fed actually operates and takes its profits were obfuscated.

With millions of loans in place many borrowers are able to make payments including both principal and interest and many borrowers do actually pay off their entire loan obligation including both principal and interest but in order for those borrowers to pay the interest portion of their loans they must pay back more than they borrowed; they must pay back more than was created by the Fed to fund their individual loans, so where do these borrowers get the additional Federal Reserve Notes they must have in order to pay back more than was created to fund their loans??

As the only source of Federal Reserve Notes in circulation is from those created as loan principal to fund loans - there is only one source borrowers can draw upon in order to pay their total obligation - the borrowers must obtain possession of Federal Reserve Notes created as principal to fund other borrowers loans. This causes the total circulating supply of Federal Reserve Notes to shrink faster than the total obligation of all borrowers.

Suppose there were 1,000 borrowers who wanted to finance their purchase of a new home and the prices of all the homes were $100,000.00 each; that would mean the Fed would create $100,000,000.00 (one hundred million). If the interest were 10% the borrowers total obligation would be $110,000,000.00 (one hundred ten million), Most people would understand this to constitute a ten million dollar profit to the Federal Reserve but where does the extra ten million come from when the only source of FRNs in circulation is from the Fed, as principal to fund loans??

Most people would never ever think about this as an impossibility because all of the 1,000 borrowers will be able to make payments - for a while - actually, even for many years, because when the loans were all funded the Fed would have created one hundred million and the entire one hundred million would have entered circulation. If the mortgages were all for ten years at simple interest (instead of the common much higher compound interest), the monthly payments for each borrower would be $916.67, so each month the original one hundred million dollar circulating supply of money would shrink by 1,000 borrowers times $916.67 each, for a total monthly amount of $916,670.00, for a total yearly amount of $11,000,040.00 (eleven million 40 dollars) shrinkage of the circulating money supply. After nine years the circulating supply of money would only be $999,640.00, but the borrowers, as a group, would still have a total obligation to the Fed of $10,999,640.00.

So all of the 1,000 borrowers could make one more monthly payment each which would reduce the circulating supply of dollars to $82,970.00, so the following month only 90 of the 1000 original borrowers could make their monthly payments so 910 borrowers would be foreclosed on and the following month the other 90 would also be foreclosed on and the Fed would become the owner of all of the 1,000 homes and that is how the Fed TAKES its profit!!

But that is NOT how it actually works in the real world because all borrowers do not take out their loans on the same day and many borrowers make more money each month than others so they are able to pay off their loans more quickly so these more fortunate borrowers are not foreclosed on - many borrowers actually paying off their entire loan obligation but when they do they still do reduce the circulating supply of money which results in some borrowers being foreclosed upon much sooner than nine years (most home loans are 30 year contracts and the total interest amount obligated (due to compounding of interest), would be about $300,000.00 on a $100,000.00 home. This could all be resolved with public ownership -of the Federal Reserve which would make the Fed into an open ended money system.

Also, when borrowers are foreclosed on those borrowers are no longer making payments so the money originally brought into circulation to fund these loans is still out there for other borrowers to use to make the interest portion of their loan payments.

The Fed does adjust the interest rates to manipulate borrowing. The Fed will raise interest rate to discourage borrowing, especially when the number of qualified borrowers has been diminished because they took out loans - the purpose of this is to delay these borrowers from going into debt at a time when the economy is entering or is in the down side of a cycle, entering a recession, so that later, when there is a sufficient number of qualified borrowers to pull the economy back up out of a recession, these borrowers will still be there to help create the boom cycle. When this occurs, the Fed will lower the interest rate to encourage borrowing.

During the bottom of the bust cycle is when the Fed TAKES its profits - by foreclosing on pledged assets - not in any way through the collection of interest! The purported collection of interest certainly does play a critically important part in creating the down cycle so the foreclosures will take place but there is no possible way that the interest itself can constitute any part of the Fed's actual profits whatsoever.

FALSE Myth # FIVE -

Federal Reserve Notes are evidence of debt - being nothing but worthless IOUs

What is it that actually constitutes "evidence of debt"?? If we were on a 100% gold coin money system and borrowers borrowed real gold coins and spent the coins in the economy no one could tell by looking at the coins that the only reason the coins were in the economy was because some borrower had borrowed them - thus - such coins would be the fruit of debt no matter that such could not be determined from the appearance of the coin - would that in fact cause such coins to not be "evidence of debt"?? Would that fact make certain gold coins worth less that other gold coins??

Please do not interpret the following question as an advocacy of debt, but just, exactly, what is wrong with properly managed debt?? Is it not a fact that our entire economy operates on debt?? Would this fact in any way change if by some magical way all paper Federal Reserve Notes could immediately be replaced with actual gold coins - like "poof"?? Would the borrowers not still be obligated to repay the loans?? If all of the money circulating were gold coins and had been borrowed into circulation would debt then be OK?? What is actually wrong with properly managed debt?? Is it not true that debt problems only really occur when borrowers borrow beyond their ability to repay what they borrowed?? Is it not true that when any borrower applies for a loan the lender only makes the loan when the borrower has a reasonably sound credit rating?? So then, why do so many borrowers later get into debt trouble?? Is it not because of the closed end money system which causes boom and bust ! cycles that I explained in the previous myth?? Is it not because of the interest charged on loans made by a privately owned closed end money system??

Is it not true that all loans made by the Fed to borrowers in the private sector are "guaranteed" by the promise to repay made by private sector borrower?? Is it not true that virtually all private sector borrowers strive to their utmost to keep their promise to repay their loans?? Is it not true that these promises made by private sector borrowers constitute a substantial backing for the paper money that serves to facilitate their promises??

What is wrong with an IOU made by an honorable person?? If the good and honorable reputation of the maker of the IOU is well known who would be harmed by accepting his IOU??

On the other hand, it the reputation of the borrower were sorely tainted, then who would want to accept an IOU from such a maker?? What if the disreputable IOU maker were able to make its IOUs appear identical to the IOUs of honorable makers of IOUs?? Would such a condition not taint the reputation and reliability of all IOUs??

As I have established herein above that IOUs made by honorable private sector makers are quite worthy and as it is well known that the "honorable" financial reputation of the US government is quite dubious and is sorely tainted, and as the US government issues its worthless Federal Reserve Note IOUs in a format identical to the Federal Reserve Note IOUs placed into circulation by private sector borrowers, is it not self evident that the reason why the private sector Federal Reserve Note IOUs are of questionable value because the US government is the entity that is issuing counterfeit worthless IOUs and is it not true that the reason that Federal Reserve Note IOUs in general circulation are of dubious value is because of the debasing fiscal activities of the US government and not in any way because of any inherent lack of value in IOUs just because they are printed on paper?? And, more to the point, is it not true that the actual genuine value of the Federal Reserve Note IOU! s issued to fund private sector loans is the only reason that the IOUs issued by the US government are accepted at all?? And is it not also true that it is the rampant and dishonest unrestrained spending by the US government that has destroyed the public's faith in the Federal Reserve Notes lent into circulation to borrowers in the private sector.

FALSE Myth # SIX -

Debts cannot be paid with Federal Reserve Notes - only discharged.

All the reasoning I set forth herein above regarding gold borrowed into circulation applies to this myth also.

As an additional point however, has there even been even one instance where a seller who offered an item for sale valued in Federal Reserve Notes, where the seller received and accepted Federal Reserve Notes in payment for the item, where the seller ever sued the buyer, claiming the item had not been paid for because the purchaser tendered Federal Reserve Notes as payment??

FALSE Myth # SEVEN -

The inflation inherent in the use of Federal Reserve Notes is a hidden tax.

Taxation is a euphemism for armed robbery - the collection of taxes is ultimately enforced at the point of the government's gun; no borrower is ever forced to borrow from any lender so this myth is technically untrue, however the damage caused by this myth is that it takes the focus away from where the focus needs to be placed - on the government's uncontrolled spending as it is the government's uncontrolled spending that constitutes the inflation of the money supply and the resulting increase in commodity prices. It is misleading and unfair to place the blame for increased prices on paper money or the Federal Reserve.

Inflation is not in any way an inherent aspect of the use of Federal Reserve Notes - inflation is the increase of the circulating supply of money caused when the government spends money into circulation that the government did not collect through normally approved funding channels. Taxation, although widely used to fund government , is not an appropriate means of funding a government of a people who purport themselves to be free.

FALSE Myth # EIGHT -

The Fed just prints money and pumps it into circulation.

I have fairly well addressed this myth above but I hear this claim quite often and I challenge anyone who makes this claim to set forth a detailed explanation of the means whereby the Fed has any ability to cause Federal Reserve Notes to enter circulation in any other way other than as the principal to fund borrowers' loans. The flip side of this myth is that the Fed also pulls money out of circulation to cause recessions. Both of these myths are FALSE!!

The Fed facilitates the addition of FRNs by lending to qualified borrowers during a boom cycle; FRNs are removed from circulation as borrowers make payments on their loans, this causes the recessions or bust cycles. These are normal occurrences under a privately owned closed end money system and although the Fed does adjust interest rates to speed up or retard the economic surges, the Fed has no ability to directly add or remove money from circulation.

The boom and bust cycles could/would be totally eliminated if the Fed ownership was assumed by the people of the United States and then, under the new ownership, all interest collected on loans would be credited to the Federal Treasury and to all state, county and municipal treasuries, thus allowing the entire elimination of all taxation in the entire Federation.

The Federal Reserve should not be totally eliminated but should be kept in operation pretty much as it is now, with just the simple changes I have delineated in the previous paragraph!!

Opponents of a Central Bank point out that the Federal Reserve is the fourth or fifth central bank that the United States has been cursed with - this may very well be true so why does the United States continue this cycle of implementing and rejecting a central bank?? Isn't it about time that we recognized that as long as there are greedy humans around and our Federation is functioning on a gold coin money system that there will always be those pushing and manipulating things to impose another privately owned central bank - if we were to impose a publicly owned central bank then that would make it impossible for the greedy would be banksters to impose their own privately owned closed end bank.

When are we going to come to a realization that it is not paper money that is the problem and it is not the creation of money to fund loans that is the problem but rather, it is the charging of interest on loans made in a privately owned closed end system that is the cause of all of our economic ills??

When are we going to come to a realization that if we were to somehow go to a 100% gold coin money system in 2006 or 2007 or 2008 or whenever, it would be inevitable that the money changers who currently own vast hoards of gold, would still be in a position to implement their dirty little boom and bust cycles?? How could we expect otherwise?? Would not the money changers then lend their privately owned gold into circulation?? Would the lenders not charge interest on their gold lent to borrowers?? And just exactly where would the borrowers get the additional gold coins to pay the interest?? I suggest that you go up above and reread the paragraphs in Myth FOUR, where I describe in considerable detail the evil way that interest on loans made in a closed end lending system causes boom and bust cycles and inevitable foreclosures.

When I present this plan I am always besieged with arguments that gold to pay the interest on borrowed gold is available from other sources, that there is still more gold "out there" in nature, just waiting for borrowers of gold to go pick up off the ground to use to pay the interest on the gold they have borrowed at interest - and yes, I suppose a lot of that gold "out there" is already coined up just laying on the ground waiting and ready to just be picked up and presented to the gold lenders - yes, I am sure - at least in the wild dreams of those who fail to think!!

But, yes, there is some considerable quantity of gold coin in thousands of smaller private caches which the owners thereof will be able to spend into circulation without borrowing at interest, so those who do borrow gold at interest will be able to use this from these smaller private caches as a source of gold to make the gold coin interest payments on their gold loans - yes, that is certainly true - and how long will that gold last?? How long will it be before the gold lending Banksters become the owners of all those smaller caches of gold?? And then we will be right back where we are now - except even worse, because with a 100% gold system there will be a natural limitation on how much gold there is to be lent to qualified borrowers so that many otherwise qualified borrowers will not be able to obtain the funding necessary to finance their entrepreneurial endeavors, thus effectively stifling economic growth!! And what do you suppose that would do to the interest rates cha! rged on the lent gold??

FALSE Myth # NINE -

Federal Reserve Notes are nothing but FIAT money

Just what exactly is FIAT money?? Fiat money is paper money created by government edict, without any gold or silver backing, and is usually just spent into circulation by the government. Even under our present privately owned Federal Reserve system, this is untrue. The government of the United States does not just print and spend money into circulation; the government must provide US Treasury Bonds, T Bills or other negotiable interest bearing instruments to the Fed in exchange for the FRNs the Fed credits to the Federal treasury, so, technically, we do not have a FIAT money system.

The reason I am making an issue over the technical inaccuracy of this myth is not merely because it is technically incorrect but because those who tout this myth totally fail to acknowledge or in any way recognize that we actually have two separate and distinct money systems operating in the United States; (1) the money system of the private sector and (2) the money system of the government.

As I mentioned herein above, it is the value imbued into the FRNs borrowed into circulation by the promise of private sector borrowers that allows the FRNS spent into circulation by the government to have any value at all. If the FRNs spent into circulation by the government were RED and the FRNs spent into circulation by private sector borrowers were GREEN - who in their right mind would accept any of the RED money??

Most but not all of the ills attributed to the Federal Reserve and paper money are caused by the manner in which the US government misuses and abuses the Federal Reserve!! These government abuses cause the entire system to become suspect and hated by those who fail to take the time to do an actual personal evaluation of how the Fed actually works!! Those ills not caused by the US government are explained in considerable detail herein above, and are caused entirely by the fact that the Fed is a privately owned closed end money system. All of these ills can be cured by the assumption of the ownership of the Fed by the people of the United States, and at the same time all taxation in the entire Federation can be phased out!!

Myth # TEN - RIGHT!!

The Fed is privately owned.

I have mentioned this so many times herein above that no further explanation is required however, I do still have words I have not used.

In assuming the public ownership of the Federal Reserve it is imperative that Congress and the Field Marshall er President (Chancellor Bush), and all others who have anything to do with the spending of money, be kept as far away as possible from participating in the operations of the Federal Reserve!! The current Board of Governors of the Federal Reserve seem to be doing a fantastic job for the private owners of the Fed so does it not seem reasonable to keep them right where they are - doing the same fine job for the public owners?? I may be mistaken but this seems to be a good idea to me.

Where we, as a people, seem to continually err, is in our failure to acknowledge that some humans are inherently dishonest - and that it is virtually impossible to tell the honest ones from the dishonest ones but like most sub-species - the dishonest humans seem to congregate together and run for public office.

When will we learn to never trust elected or appointed government servants??

This essay is the intellectual product of Eric WhoRU, and is protected in its entirety by common law copyright. This essay may be reproduced and disseminated in its unedited entirety but not in dissected segments. Any dissemination or reproduction must include an acknowledgment of the author and a link to the author's WhoRU Yahoo group: http://groups.yahoo.com/group/whoru/
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Old 11-14-2006, 05:08 AM
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Old 11-14-2006, 05:17 AM
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Old 11-14-2006, 05:56 AM
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agreed

Dear Rentiap;


I agree that Aaron Russo's America; Freedom to Fascism is just an emotional machine. It is completely ineffective. Here is an example:

Representative Ron Paul speaks extensively in an interview with Aaron.

However no mention survived the cutting room floor of Ron's 2002 bill to sunset the Bretton Woods Agreements.

http://www.ecclesia.org/forum/images...s/1-HR3812.jpg
http://www.ecclesia.org/forum/images...s/2-HR3812.jpg
http://www.ecclesia.org/forum/images...s/3-HR3812.jpg
http://www.ecclesia.org/forum/images...s/4-HR3812.jpg

Your observations are correct - America FTF is nothing more than lip service like offered by Ron Paul. The hope of Congress abolishing the Fed is false.

We must do it ourselves as detailed in this DVD which was produced in counterpoint to Aaron's film.

http://friends-n-family-research.inf...ublicMoney.wmv

http://friends-n-family-research.inf...ney_case_1.jpg
http://friends-n-family-research.inf...ney_case_2.jpg
http://friends-n-family-research.inf...ll_juliard.jpg

People are doing it. Even some members here have made up the rubber stamp.

The most prominent point I read was:

Quote:
3. The paper money the Fed creates has no backing - WRONG!!

The FRNs are backed by debt. That means the "Government bonds" mentioned on March 6, 1933 by FDR. Our endorsment is like swearing out an oath and that is confirmed by swearing out testimony under the penalty of purjury on the 1040 Form. I kind of wish I had thought to explain it that way to the Quatlosers when arguing that all citizens of the US are federal employees - - Nah!! [They are a lost cause.]




Enjoy destoying the Fed together,

David Merrill.


Quote:
To commit a perjury you have to FIRST be under oath (or
affirmation). You know that. It's common knowledge. So, to be
punished for a perjury you'd need to be under oath, right? Right.

There's no other way, unless you pretend to be under oath. To
pretend to be under oath is a perjury automatically. There would
be no oath. Hence it's a FALSE oath. Perjury rests on making a
false oath. So, to claim to be "under penalties of perjury" is to
claim that you're under oath. That claim could be true, could be
false. But if false, and you knowingly and willingly made that
false claim, then you committed a perjury just by making that
claim.
Attached Files
File Type: doc History of Oaths.doc (83.5 KB, 81 views)
File Type: doc Bond seminar.doc (131.5 KB, 88 views)

Last edited by David Merrill : 11-14-2006 at 06:01 AM.
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Old 11-14-2006, 07:40 AM
Levi Philos Levi Philos is offline
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William Gouge 1833 report to President Andrew "Stonewall" Jackson

This report (first posted as an image file in pdf format on Devvy Kidd's site) has been converted to rtf format and posted in the files at this forum: http://www.suijuris.net/forum/downlo...do=file&id=281

It is also found in the files of the ALD yahoo group.

It is found in html format here: http://www.complementarycurrency.org...eport_1833.htm

The other image file found at Devvy Kidd's site - the Wright Patman report PRIMER ON MONEY has been optically scanned and converted to rtf format and is presently being proofread for final display. Have patience.

Levi Philos
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Old 11-14-2006, 07:57 AM
Levi Philos Levi Philos is offline
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Mr. Williams seems unaware that what is being stolen is all true capital - ownership of industry and natural resources - and even placing liens on your future labor - through this system of interest bearing hypothecated debt as money.

I don't know how did the condensation of Auriti's thesis - or if I have simply missed the original source somewhere, but this post is relevant to the Williams piece:

Quote:
Post #88, page 9 of Sui Juris thread "Follow the Money"

http://www.suijuris.net/forum/banks-...w-money-9.html


The GREAT USURY

After proving that money is, simultaneously, a measure of value and the value of the measure, it is unquestionably true that the monetary mass constitutes a mirror-like duplicate of the value of real goods, measured or measurable in terms of their value. This duplicate value can have the positive sign of an asset (and in this case, it doubles the people's wealth), or the negative sign of a debt (in which case it creates a desperate and agonizing situation because of inevitable insolvency).

When money was made from gold, the bearer was also the owner. Since the advent of "nominal money", he has without realizing it become a debtor. All "nominal money" is issued by the banks in the form of loans. Thus, all money in circulation is burdened with debt to the central banks. Therefore, if someone wants to pay off a debt of money with money, it would be the same as paying a debt with another debt. IT CANNOT BE DONE. In the long run, he is forced to pay with his own capital and with the produce of his labor.

With the discovery of induced value as a legal value, it is not only proven that money must be considered as the property of the national community, but, also that currently the central bank, by loaning out what is in fact due, imposes a cost of 200% on money, at the act of issue: the initial 100%, because it expropriates the community of the induced value (only an owner can lend money), and a further 100% by forcing the national community into debt to the same extent.

Furthermore, it is also evident that banks and other credit institutions "create" money in a surreptitious way. Applying the principle of so-called credit multiplication, they lend money in an increased proportion to the sums which have been deposited with them. For example, they lend 100% with a 20% monetary liquidity reserve. All this can be done because a great part of the lent money is deposited in a bank, again, so that a reserve of 20% is usually sufficient to satisfy a request for money. Hence, it is evident that a bank can lend money which it does not have to an amount of 80% of the loan.

Consequently, this difference of 80% is, in fact, induced value (not credit value), which should be represented by legal-tender, paper money, not by instruments of credit. Properly considered, its ownership should be attributed to the community (not to the banks), who could then deposit it in a bank as creditors and not as debtors.

This principle of credit multiplication expropriates the people and causes debts to the extent of the induced value as explained above, thus it results in "debt multiplication", which was a consequence and a corollary of the scheme developed by Paterson in 1694 for the Bank of England, founded with the aim of making loans using the "notes of the bank" (i.e. bills of exchange) in place of money (gold). These bank-notes were "nominal money" and also "debt-money".

As a result of these practices, the people of the world have been dispossessed of their own money, forced into debt, without receiving anything in return.

By Prof. Giacinto Auriti

http://home.hiwaay.net/~becraft/ProfAuriti.htm
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Old 11-14-2006, 07:28 PM
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Response to private E-Mail I sent to Author of Essay Eric WhoRU

Hi Craig -

I have no intention of engaging idiots!!

Neither do I have any intention of wasting my time responding to posts on open posting Yahoo groups where my valuable work will be quickly lost down some spurious thread, and forgotten.

I will respond to anyone who sends me an email to my Yahoo group, provided they are a member of my WhoRU group, and sincerely interested in working toward a realistic means of eliminating all taxation while at the same time correcting the problems we have in the money system currently functioning in the United States. Is seems fairly clear that none of the foregoing applies to whoever wrote the gibberish you sent to me.

My Yahoo WhoRU email address is available to members of my group. I do not want to create lengthy responses to emails where my response only reaches the individual person.

And, if anyone can present an improvement to what I wrote in this particular essay, I will be more than agreeable to acknowledge same but I will not engage in a "pissing contest"!!

I certainly have no objection to your posting my work wherever you choose but I do insist that it be presented in its entirety in order to avoid the confusion that always results in the minds of readers who encounter portions that are sniped out of context, particularly when the snipping is done by idiots with a private ego driven agenda.

Feel free to post this response if you choose.

Cheers,

I'm Eric WhoRU
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Old 11-14-2006, 08:04 PM
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rentiap rentiap is offline
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David;
It looks as though you are also on the same page.Thanks for the links that you posted.
I (Me,myself,Craig who did not write the essay)also agree on the observation that Aaron Russo's America From Freedom to Facism is just an emotional machine without an answer to get rid of all taxation.which his (Aaron Russo's)next movie needs to concentrate on.
But Eric is on that path and is striving to give some answers.


Quote:
Enjoy destoying the Fed together
How about instead of destroying the FED.They seem to be doing a pretty good job for the private banksters. How about changing the structure of where the profits or proceed in interest go to .
Instead of it just going into the banksters pockets and then not recirculating to the economy.
All interest should go to the treasury of the people and then be spent back into circulation and back into the economy.
Then there will not be any reason for armed robery(All Taxes)! to fund the government.
Quote:
Originally Posted by David Merrill
Dear Rentiap;


I agree that Aaron Russo's America; Freedom to Fascism is just an emotional machine. It is completely ineffective. Here is an example:

Representative Ron Paul speaks extensively in an interview with Aaron.

However no mention survived the cutting room floor of Ron's 2002 bill to sunset the Bretton Woods Agreements.

http://www.ecclesia.org/forum/images...s/1-HR3812.jpg
http://www.ecclesia.org/forum/images...s/2-HR3812.jpg
http://www.ecclesia.org/forum/images...s/3-HR3812.jpg
http://www.ecclesia.org/forum/images...s/4-HR3812.jpg

Your observations are correct - America FTF is nothing more than lip service like offered by Ron Paul. The hope of Congress abolishing the Fed is false.

We must do it ourselves as detailed in this DVD which was produced in counterpoint to Aaron's film.

http://friends-n-family-research.inf...ublicMoney.wmv

http://friends-n-family-research.inf...ney_case_1.jpg
http://friends-n-family-research.inf...ney_case_2.jpg
http://friends-n-family-research.inf...ll_juliard.jpg

People are doing it. Even some members here have made up the rubber stamp.

The most prominent point I read was:



The FRNs are backed by debt. That means the "Government bonds" mentioned on March 6, 1933 by FDR. Our endorsment is like swearing out an oath and that is confirmed by swearing out testimony under the penalty of purjury on the 1040 Form. I kind of wish I had thought to explain it that way to the Quatlosers when arguing that all citizens of the US are federal employees - - Nah!! [They are a lost cause.]




Enjoy destoying the Fed together,

David Merrill.
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Last edited by rentiap : 11-16-2006 at 09:03 AM.
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Old 11-14-2006, 08:44 PM
PANICPASS PANICPASS is offline
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Quote:
One quite often heard comment was something to the effect that, "We must get rid of the Federal Reserve!!" With absolutely no thought expressed as to what the country would use as a money system as a replacement
.


Only Congress can replace the money system. When the people express their desire to get rid of the Federal Reserve that means we want Congress to start thinking about replacing our money system. Kennedy's executive order to put public money back into circulation back in 1963 threatened the survival of federal reserve. Congress could do that again, gradually phasing out the federal reserve, replacing FRNs with government issued money. Maybe it's not that simple anymore, I don't know-- but I do know that our main problem today is our corrupt Elected Officials.


"You see, the truth is, the Federal Reserve Bank was not only designed to undermine the sovereignty of the federal government by making it directly beholden to the "Banksters" (instead of the people) for "money" (thus UTTERLY DESTROYING THE REPRESENTATIVE NATURE OF THAT GOVERNMENT), it was also designed to undermine the sovereignty of the State governments BY DESTOYING THEIR POWER TO TAX WITHIN THEIR OWN JURISDICTION." Tax-freedom.com
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Old 11-15-2006, 05:27 AM
Levi Philos Levi Philos is offline
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The Ownership of the Bank Solution

Quoting post #6 Eric;
Quote:
Originally Posted by I'm Eric, WhoRU?
I have no intention of engaging idiots!! .... massive snip...then- idiots with a private ego driven agenda.

Feel free to post this response if you choose.

You are posting to the Sui Juris forum - a place where I personally find little evidence of "idiots."

Quoting Eric in post #7
Quote:
Originally Posted by Eric
How about changing the structure of where the profits or proceed in interest go to .

Instead of it just going into the banksters pockets and then not recirculating to the economy.

All interest should go to the treasury of the people and then be spent back into circulation and back into the economy.

Then there will not be any reason for armed robbery (All Taxes)! to fund the government.

A different solution is in existence, but few have heard about the experiment. This experiment was never mentioned in the book BINARY ECONOMICS, which I have, nor would Jeff Gates who wrote the OWNERSHIP SOLUTION give any lip service by written communication on the University of Colorado discussion series where the primary topics were debt and his book and the solution offered by both BINARY ECONOMICS and THE OWNERSHIP SOLUTION.

Mondragon, and the Mondragon Ownership of the Bank Solution


The Mondragon Cooperative of the Basque region of Spain was started about 1956 with a subscription of roughly $100,000 of local funds which were used to purchase a closed iron foundry. From the inception, the cooperative was designed to be owner operated by the membership with a secondary flow of income from annual profits from the foundry paid to the cooperative membership. Essentially, this is the model advanced by the two afore mentioned books.

However, Mondragon went one step farther. Shortly after the cooperative was started and the foundry put back in business, the Cooperative made application to the government of Spain for a commercial bank charter. This charter was granted. The reader should be aware of the time period which was just ten years after WWII and just 15 years since the Spanish Civil War, and the fact that the Basques have tried to gain independence from Spain both before this time period and after; so the bank charter may have been granted partially for political reasons that I will not speculate upon.

Here is the punch line. The bank charter and bank management were placed into a subservient position within the cooperative. This subordinate position meant that the bank could not venture outside of the immediate region and at the end of the year bank profits were distributed to the cooperative membership. This unique arrangement also translates into the primary customer for the bank is also the owner of the bank. Here in the United States when the Savings and Loan industry was liberalized, construction and real estate operators obtained ownership of these S&Ls just to engage in friendly "loans" which in the end created the so-called S&L "disaster."

The Mondragon management took a different approach. Every new business venture was analyzed for market and profit structure before startup. The one business venture that turned out to be a loser was shut down - essentially liquidated like any other bankruptcy.

The consequence is that today, the Mondragon cooperative has over 50,000 employees, industries on four continents, and they have built a hospital and a university in the home town, and their pension plans are very well funded.

More to follow.
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