Money

Money




The second most important issue facing our nation is intimately intertwined with the first and that is money. As a child, I can remember my father telling me that when it came to politics you could have guns or butter but you could not have both. Guns were shorthand for war and foreign policy involving conflicts and butter meant social services,education and building projects here at home.


In the past, a nation's coffers only had so much gold for it to spend on either guns or butter. You could only pay for one but only at the expense of the other. Tons of gold could be spent on a war or that same money could be used to build bridges and roads or promote education. The gold could only be spent in one place at a time. However, that was before the Federal Reserve (The Fed).


It was once thought that the government had to choose between providing guns or butter, now, with the Fed, it is realized that no such choice is ultimately necessary. Politicians get together and agree to logroll so each special interest is able to get what it wants. Guns, butter, and everything else under the sun, including endless bailouts of failing businesses as well as foreign aid for the world, are all provided sources of the money machine … The Fed is what has made this … possible, for without the money machine … none of this would be possible. The American people would have to be taxed, and I doubt that they would stand for too many tax increases along these lines. Disguise this tax increase in the form of monetary expansion and you can provide government funding and spread the costs through society. (Paul, 2009: 69-70).



War and money are intimately intertwined. One can not be had without the other. If war is the most important thing our nation faces, money is a close second. The entity which makes never ending warfare possible is the Federal Reserve.


The Federal Reserve, or The Fed for short, is a banking cartel which was created in the earlier part of the last century. It is a private entity not beholden to the government or the citizens. None of its officials are democratically elected by the people yet it controls the nation's money.


In the past people would have to do something in order for money to be created. Someone would have to mine gold. Someone else would have to labor to receive the gold as their pay. Someone else would have to save it before it could be loaned out to someone else.


With The Fed, none of the above is even necessary. It creates money out of nothing or more precisely out of debt. It is backed by nothing valuable except the full faith and credit of the United States. Something I also never knew was that because the money is created out of debt, if there was no more debt, the whole system would collapse.



If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of 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 … 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 situation is almost incredible — but there it is. (Plummer, 2014:103).



The federal government has made it impossible to use anything but dollars as a means of exchange by creating legal tender laws that say as much. Although there are many other things which are valuable and have, or can be used as currency (Bitcoin, gold and silver, even cigarettes), because of government fiat, legally one can not use anything other than dollars to pay for all debts public or private.


This gives the government and The Fed, a monopoly on the use and creation of money. Using the guns of the government, people are forced to use this, increasingly worthless, commodity to use in an exchange for goods and services. Forcing people to use money created by The Fed is a boon to bankers and the government, however, it hurts the common man.


“Bankers … were able to dominate both business and government. They could dominate businesses … because … they had the ability to supply, or refuse to supply, capital … they took seats on the boards of directors of industrial firms, as they had already done on commercial banks … they funneled capital to enterprises which yielded control, and away form those who resisted … The History of the last century shows … that the advice given to governments by bankers … was consistently good for bankers, but was often disastrous for governments … and the people generally.” (Plummer, 2014: pp. 70-71).


Because The Fed can simply create money out of nothing, instead of having to choose guns or butter, the government can have both. The Fed has allowed our government to fund the longest war in America's history in Afghanistan. A war that lasted twenty years with the only thing to show for it is our service members coming home physically and mentally scarred, a national debt in the trillions of dollars and the animosity of other nations.


In school I was never taught about The Federal Reserve. I remember reading a paragraph about it in a social studies class. It was a very short, very vague paragraph. It led one to believe that The Fed was a good thing that smoothed out the economy and that chaos would ensue if it was not around.


When I talk to friends and family, they have no idea how it even works. This subterfuge is no accident. The Fed has an ingenious, insidious way of creating money out of nothing, then loaning that same nothing, or debt, to us for a huge fee as they collect interest on — nothing.


Rather than spend money into our economy, they loan money into our economy. This enables the Network to steal purchasing power from us twice: once when they create new money and again as they collect interest on the entire money supply … by creating money when a loan is made, and then destroying that same money (removing it from circulation) when the loan is repaid, the Network has designed the perfect debt trap. Any meaningful attempt to escape this debt trap, by paying down the debt, will trigger an automatic “correction mechanism” that guarantees failure … as the nation repays its banking debts (and refuses to take out new loans), the economy’s debt-based money supply will shrink . This will cause disruptions in the economy; initially the disruptions will be minor, but they will inevitably become intolerable if new money isn’t injected via new loans. (Plummer, 2014: 102).


In the past wars and conflicts went on only as long as there was gold to pay for them. Now with The Fed printing an inexhaustible supply of cash wars could go on forever. This idea is illustrated clearly when we look at World War I. Many thought that the war would be over in a matter of months because the countries involved would run out of money (gold) to pay for expenditures. However, they suspended the gold standard and were able to continue it indefinitely.


All the Great Powers were on the gold standard under which … paper money could be converted into gold on demand. However, each country suspended the gold standard at the outbreak of war. This removed the automatic limitations on the supply of paper money … each country proceeded to pay for the war by borrowing from the banks. The banks created money which they lent by merely giving the government a deposit of any size against which the government could draw checks. The banks were no longer limited in the amount of credit they could create because they no longer had to pay out gold for checks on demand … the problem of public debt became steadily worse because governments were financing such a large part of their activities by bank credit. (Plummer, 2014: 87-88).


The Federal Reserve actually encourages war because large corporations that manufacture weapons and munitions and the military-industrial complex profit from continual warfare.


In 1970 , the Lockheed Corporation, the nation’s largest defense contractor, was facing bankruptcy…A bailout plan was quickly engineered by Treasury Secretary John B. Connolly that guaranteed payment on an additional $250 million in loans … The government now had a powerful motivation to make sure Lockheed would be awarded as many defense contracts as possible and that they would be as profitable as possible. This was an indirect method of paying off the banks with tax dollars, but doing so in such a way as not to arouse public indignation. Other defense contractors, which had operated more efficiently would lose business, but that could not be proven. Furthermore, a slight increase in defense expenditures would hardly be noticed. (Griffin, 2010: 44-45).

In a bygone era when kings, emperors and warlords ran out of money oftentimes their military exploits ended as well. However, with The Fed, there is an inexhaustible supply of funding which made wars larger and prolonged.


Following the creation of the Fed … It would prove useful in funding war. It is no coincidence that the century of total war coincided with the century of central banking. When governments had to fund their own wars without a paper money machine to rely upon, they economized on resources. They found diplomatic solutions to prevent war, and after they started a war they ended it as soon as possible. (Paul, 2009: 63).



The Fed not only promotes warfare (guns) it also allowed the government to bail out failing banks and corporations in 2008 (butter). This sort of corporate welfare allows big banks and huge corporations to make risky investments and bad loans at taxpayer expense. And by taxpayers, I mean you and me.


In October of 2008, Congress passed a $700 billion bailout bill to save the largest banks in the nation, all of which were tottering on the edge of bankruptcy. Congressman who voted for this had received 54% more in donations from banks than those who voted against it. The White House urged news services to stop using the word “bailout” and say “rescue” instead. They Complied. (Griffin, 2010: 56).


You might think that after you and I bailed out failing banks and corporations that they would give something back to us as a “thank you.” Instead they took even more from us by moving their factories overseas and importing workers from other countries instead of keeping their business here in America and hiring American workers. As an example:


All together the auto companies were given $17.4 billion. Two months later, Ford, which already had plants in Mexico, Germany, and Spain, began producing cars in China. GM soon followed suit and announced that it, also, would build more cars overseas. (Griffin, 2010: 57).


Furthermore, as if to add insult to injury the Network, Corporatocracy and the bankers did all they could to make things even worse for the average American who footed the bill for the bailouts:


Among bailout recipients, it is common to see the money used in ways that destroy jobs for the same American taxpayers who pay the bill. During the time when U.S. banks were receiving more that $150 billion from American workers, they were requesting special visas to import 21,800 personnel from other countries to replace Americans in upper echelon jobs, including corporate lawyers, investment analysts, programmers, and human-resource specialists. This disdain for the American workforce is partly because of corporate pursuit of maximum profit above all else and partly because decision makers consider themselves. To be internationalists, with no special interest in America except as a cash cow to be milked as regularly and thoroughly as possible. (Griffin, 2010: 57).


While there is a close relationship with the military-industrial complex (with a revolving door between these corporations and government officials) there is a similar arrangement with the financial sector and government officials. As an example, Henry “Hank” Paulson is an American banker who served as the 74th United States secretary of the treasury from 2006 to 2009. Prior to this, he was the chairman and chief executive officer (CEO) of Goldman Sachs. G. Edward Griffin shows this relationship in his book the Creature From Jekyll Island:


Treasury Secretary Hank Paulson … was the epitome of the fusion between the banking cartel and government. As former CEO of Goldman Sachs, he was instrumental in using the power of his office to destroy three of his old rivals. He arranged the sale of Bear Sterns to JP Morgan Chase, allowed Lehman Brothers to collapse, and forced the absorption of Merrill Lynch by Bank of America, all the while providing a generous bailout for his alma mater, Goldman Sachs. This left only Goldman and Morgan as major investment banks. Documents obtained by a citizen watchdog group, Judicial Watch, revealed that Paulson had told bankers they must accept bailout money even if their banks were in fair condition and didn’t need it. The reason was so as not to “stigmatize” the weaker banks by allowing a comparison to well run banks. (Griffin, 2010: pp. 58-59).


When The Fed prints money it causes inflation and reduces the purchasing power of the dollar. In New Jersey alone the cost of a gallon of gasoline is over four dollars. A loaf of bread or a dozen eggs are getting close to the four dollar mark. And a gallon of milk is almost five dollars. I talk to my family and friends to see how they are doing and bar none we are starting to feel the pinch. With the country trillions of dollars in debt, it is going to get worse.


…using enormous amounts of other people’s money … bankers essentially purchased their way into powerful business and government positions. With each new position, they gained control of more money. With control of more money, they gained access to more positions (so on and so forth). Through this process they secured enough monetary power to enforce their “advice” on both businesses and governments alike, expanding the reach of their hidden dynasties each step of the way. (Plummer, 2014: 71).



There seems to be this disconnect with people. They see and hear the government bailing out banks and corporations, giving checks to everyone during the pandemic and ending a disastrous war only to start another one in its aftermath (Russia and Ukraine). Then prices start to rise dramatically with seemingly no end in sight. Is this what we want for our country? Is this what we want for New Jersey, our family and friends?


The ease of financing spending by the Congress with the help of the Federal Reserve makes huge deficits a foregone conclusion. It’s cheaper in the short run to inflate than it is to borrow and much more palatable than immediate taxation to pay the bills. If a country could not borrow or inflate its currency, its government would be much smaller and the country more prosperous and safer. Needless wars would not and could not be fought. Paul, 2009: 189).


If you are wondering why we have runaway inflation, why gasoline is over four dollars a gallon and food is so expensive the answer is The Fed.


To more wars, bailouts, debt and inflation, I say a resounding — NO! End The Fed so the politicians can not fund any more wars which drive us deeper into debt. End The Fed so the big banks and corporations can not be bailed out on our dime. End The Fed so we can get America and New Jersey back on their feet and promote peace and prosperity.


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