Forum Post: One of the Biggest Threats to Our Nation's Sovereignty
Posted 12 years ago on Feb. 13, 2012, 2:38 p.m. EST by TrevorMnemonic
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This content is user submitted and not an official statement
One of the biggest threats to our nations sovereignty is the Federal Reserve, agencies like Standard and Poors, and the big banks and the power over our country and government. It makes ZERO sense to let such organizations hold so much power over our country.
Over 10 trillion created from nothing for their private interests since 2008. That's more than half the nation's debt.
Democrat Dennis Kucinich speaks to Congress about the threat of Big Banks and the Federal Reserve's power over the government.
(Dennis Kucinich in congress) - http://www.youtube.com/watch?v=X1dkZShYP78
Tell your congressmen to endorse Kucinich's HR 2990.
The purposes of this Act are as follows:
(1) To create a Monetary Authority which shall pursue a monetary policy based on the governing principle that the supply of money in circulation should not become inflationary nor deflationary in and of itself, but will be sufficient to allow goods and services to move freely in trade in a balanced manner. The Monetary Authority shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
(2) To create a full employment economy as a matter of national economic defense; to provide for public investment in capital infrastructure; to provide for reducing the cost of public investment; to retire public debt; to stabilize the Social Security retirement system; to restore the authority of Congress to create and regulate money, to modernize and provide stability for the monetary system of the United States, and for other public purposes.
(3) To abolish the creation of money, or purchasing power, by private persons through lending against deposits, by means of fractional reserve banking, or by any other means.
(4) To enable the Federal Government to invest or lend new money into circulation as authorized by Congress and to provide means for public investment in capital infrastructure.
(5) To incorporate the Federal Reserve System into the Executive Branch under the United States Treasury, and to make other provisions for reorganization of the Federal Reserve System.
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Dear Taxpayer, this current system is not working. -- http://www.youtube.com/watch?v=-o9BBNUBs1w
Economic Fascism and the Bailout Economy
by Gary North
There are old-line anti-Communists who still insist that it was all fake, that it is all a deception, that the Communists are still running the show in Russia. They do not understand the difference between fascism and Communism. The Russian system is fascist to the core: State-run capitalism.
We are now seeing what hard-core liberals always predicted would happen: the economic convergence of the two systems, USA and USSR. The system of economic convergence is fascism. That was what the liberals always wanted, but called it something else: "economic democracy" or "the government-business alliance."
SEPTEMBER/OCTOBER 2008
The second event that I regard as almost comparable in importance to the collapse of the Soviet Union was the collapse of the American banking system that took place in September and October of 2008.
No one saw that collapse coming in August. The senior rulers of the United States — I do not mean politicians — have watched in horror as institutions that had survived since the mid-19th century went down: investment banks. These were banks that did not take deposits from the general public. They pooled large quantities of capital from private, wealthy investors. Within a matter of weeks, that business model collapsed. The investment banks scrambled to restructure their legal operations so as to be defined as commercial banks and therefore become eligible for the Federal bailout money. Meanwhile, huge commercial banks almost went bankrupt. They did not go bankrupt only because of government intervention and because larger banks absorbed them. Wachovia went down. Washington Mutual went down. The share prices of the two largest banks in the United States, the Bank of America and Citigroup, are still close to penny share status.
Anyone who does not understand the magnitude of what is taking place is an economic ignoramus. I have plenty of these ignorami contacting me, telling me it was all planned by the insiders. The conspiracy has won again! In their worldview, the conspiracy always wins. That is because they believe that the conspiracy has the attributes of God. It is omniscient, omnipotent, and omnipresent.
Here is their intellectual problem. They do not believe in the free market. They cannot conceive of a social institution based on voluntarism that can break the backs of government planners and central bankers. They will believe anything but this. They think of themselves as defenders of the free market. But they do not grasp the power of the free market to enforce consumers' decisions.
The conspiracy of well-placed insiders is now tottering. The whole structure of the national American political system has rested on the solvency of the largest American banks. These banks have all been called into question. They are now gutted.
The thought that commercial bank insiders actively demolished trillions of dollars of their own equity as part of a conspiratorial plan is so imbecilic, so outrageous, so ludicrous, that I am convinced that these conspiracy worshippers have lost whatever remained of their minds. They have been gutted intellectually, just as the banks have been gutted financially.
Some of them probably think that Communists still run Russia. Ex-Communists do: bureaucrats, mobsters, and KGB agents. But Communism is dead. How do I know? Look at a map of Russia. Look for the old names: Stalingrad and Leningrad. Gone. Maps tell a great deal about a civilization. Russian maps tell us that Communism is dead.
The American conspirators have lost the one thing that they thought they had: control over the nation and the nation's finances by means of the fractional reserve banking system. That system is coming unglued, just as Ludwig von Mises said it would, just as Murray Rothbard said it would, and just as those other Austrian economists who understand the enormous weakness of the fractional reserve system had said would eventually take place.
http://www.lewrockwell.com/north/north683.html
I do not support the Federal Reserve.
And to show my support for auditing or shutting down the "FR", I will be voting for Ron Paul in 2012.
Not that I am a fan of some of Ron Pauls other policies, but his policy on the Fed is one thing I like about him. Other than that, probably his take on foreign affairs which is basically... mind our own business...
That said, I do not see myself voting for him. The man also plans for massive deregulation and a minimal taxation which will decimate our budget. Given how divisive his policies are, even if he (hypothetically) gets elected... nothing he proposes will pass muster in Congress...
Based on this part of your post: "and a minimal taxation which will decimate our budget"
I want you to consider a few things. Things that I can substantiate further, if you like.
1) The U.S. budget is money that the government "has". It is that money, after all, that is given out for all of the expenditures in the budget.
2) The Federal Reserve sets the interest rate on money. That money is therefore a loan. Further, the Federal Reserve loans money to the U.S. government. They charge interest on this loan.
3) The U.S. government then needs to pay back the loan, with interest. How are they able to pay it back? The answer is through Federal Income Tax.
So, as we know: Ron Paul wants to eliminate the Federal Reserve. He wants to put the "ability to coin money" back in the hands of Congress. And in doing this, we will then no longer need to pay interest to a 3rd party (the FR) to create and "use" our own money.
Did I explain this in a manner that is easy to understand?
Do you believe what I am saying to be truth?
"The U.S. budget is money that the government "has". It is that money, after all, that is given out for all of the expenditures in the budget."
Not sure what you mean there. It is money that the US govt is spending. Whether it pays with cash or gold. It needs to have that cash or gold before it can spend it. Or else it will be forced to print more cash.
So lets say we toss the FR and are not paying interest. Great. Govt will still need some kind of income to pay for the budget right? Or is Congress just going to keep printing money every year?
So. My question is simple. With a significantly reduced source of income. How does the govt continue to function? Even if we toss the FR... I am assuming they will want to collect on their loans...
"Not sure what you mean there. It is money that the US govt is spending. Whether it pays with cash or gold. It needs to have that cash or gold before it can spend it. Or else it will be forced to print more cash."
Gold is usually only used when paying to certain foreign governments. For spending within the U.S., the Federal government delivers it in paper dollars.
"So lets say we toss the FR and are not paying interest. Great. Govt will still need some kind of income to pay for the budget right? Or is Congress just going to keep printing money every year?"
Yes, they will still need money. Congress can still print it, by way of the Treasury. However, without the Federal Reserve, "we the people" will not need to pay interest on those additional infusions of currency. As an example, I like to use the game of Monopoly. When that games goes really long, the bank runs dry and you often have to find "other money" to use. But in adding new money, the Monopoly players are not charged interest on it.
"So. My question is simple. With a significantly reduced source of income. How does the govt continue to function? Even if we toss the FR... I am assuming they will want to collect on their loans..."
They will still have the source of "creating money", that power would just be transferred back to Congress ("the people") - and not put into the hands of a private, central bank.
See below for "The Power of Congress"
"To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"
That is from the Constitution: Article 1, Section 8:
Better get ready to start cranking those presses then. I have always maintained that the FR should go.
Wonder how the rest of the world will take it when their $ holdings suddenly become... well... worth less... hopefully not worthless...
But without at least maintaining current levels of taxation, I think we will see a slide in $ value that could be catastrophic...
Paul wants to get rid of both the FR and taxation. I don't see a way for that to work.
increase tax on imports? a lot. that would work
There would still be various forms of taxation, and they would be acceptable. (Property tax going to local schools, roads, etc. Cigarette and Alcohol taxes to help pay for health services. Telephone taxes to help pay for... ?)
And the federal government would still be able to charge Import and Export tariffs, as they always have.
And there would still be a "medium of exchange" (money). There will always be things of value for people to exchange, those resources are all around us.
The only negative thing is going to this: The elite bankers will be stripped up their enormous power.
Check out this post: http://occupywallst.org/forum/printing-presses/