Linked with Stephen Lendman – USA.
Published on Global Research.ca, by Stephen Lendman, May 23, 2009.
One serving everyone, not powerful moneychangers alone, the so-called Money Trust cartel of Wall Street bankers looting the national wealth for themselves and heading the country for bankruptcy, tyranny and ruin. Stopping them is Job One, and only mass activist outrage can do it.
At the Chicago Democratic National Convention, William Jennings Bryan won the nomination saying:
“(W)e believe that the right to coin money and issue money is a function of government .. I stand with Jefferson (and say), as he did, that the issue of money is a function of the government and that banks should go out of the governing business….(W)hen we have restored the money of the Constitution, all other necessary reforms will be possible, and .. until that is done there is no reform that can be accomplished.”
No Fed existed at that time. If one did and operated like today, Bryan would have said abolish it or make it truly federal. As a US government agency, money created would go directly to the Treasury. But that’s only 3% of the money supply. What about the other 97% in the form of commercial loans? Would that put government in the commercial lending business? …
… Government without Taxes or Debt:
Only a “radical shift in our concepts of money and banking will save us from the cement wall looming ahead” – an abyss otherwise named. Letting bankers hold “an illusory sum of gold,” to be multiplied many times over by fractional reserve alchemy, entraps everyone in debt bondage. “The result was a (giant) Ponzi scheme that has pumped the global money supply into a gigantic credit bubble” now imploding.
Everything of value is at risk, including our futures and that of our loved ones – unless we can reverse the corrupted system entrapping us, and think of the benefits: expanded government services and prosperity, inflation and tax free.
Today’s “web of debt” is based on fraud, deceit, and manipulative sleights of hand, including:
- fractional reserve alchemy – pure hocus-pocus witchcraft hokum;
- the gold standard of an earlier time letting bankers dangerously inflate the money supply “on the same gold reserves;”
- the private banking cartel Federal Reserve owned by major banks in each of 12 Fed districts empowered to create money and charge the government, business, and individuals interest on it – the result being everyone put in permanent debt bondage to world-class predators;
- the federal debt and money supply; both continually expand under a highly inflationary scheme;
- the federal income tax to pay interest to bankers;
- the FDIC and IMF to ensure mega-banks get bailed out no matter what unwarranted risks they take; the IMF is also a sort of knee-cap breaking enforcer for the monied interests – extracting multiple pounds of flesh in as part of a giant extortion racket;
- a “free market” for those who own it under a corrupted, manipulated system of socialized risks and privatized profits, enforced by the Pentagon’s long arm;
- the Plunge Protection Team (PPT) and Counterparty Risk Management Policy Group (CRMPG) – created to rig and manipulate markets along with colluding Wall Street bankers bailed out whenever they get in trouble; the notion that markets move randomly is rubbish – about as real as the tooth fairy or Mother Goose;
- “floating” exchange rates – for more manipulation and collusion in international currency markets;
- short selling – for speculators in all type assets; when used against currencies, it can artificially force them down enough to cause economic havoc the way it was done to Asian Tiger countries in 1997 and many others as well;
- “globalization” and “free trade” – a predatory system benefitting America and the West under WTO rules; countries also become vulnerable to speculative assaults when their currencies are convertible and economies opened to “free trade;”
- inflation myths – money creation isn’t the problem; speculative currency attacks force destructive devaluations, meaning prices rise as a result; American inflation is “caused by private banks inflating the money supply with debt,” not by printing money; also by productive growth not keeping up;
- the “business cycle” – responsible financial managements produce stable prosperity; when irresponsibly done by a private banking cartel, booms and busts result; it’s an unnatural “monetary scheme in which money comes into existence as a debt to private banks for ‘reserves’ of something lent many times over;”
- the home mortgage boondoggle – monetizing home mortgages today creates most money; borrowers think they’re using “pre-existing funds, when the bank is just turning one’s promise to pay into an ‘asset’ secured by real property;” when paid off, the interest usually exceeds the original loan, and in cases of default, banks seize the homes;
- the housing bubble – it was caused by easy credit in the 1990s and post-2000 by an irresponsible Fed and Wall Street bankers’ plan, including massive fraud like issuing up to 10 mortgages on a single home when its owner had only one;
- adjustable rate mortgages (ARMs) – affecting about half of all US ones, it was a scam through subprime lending and low “teaser” rates, later ratcheted to unaffordable levels and catching buyers unawares;
- the secret bankruptcy of banks – they gambled hugely on risky derivatives and housing loans, far afield from traditional banking of borrowing low and lending higher for modest, stable profits; the result – all major banks are insolvent with only government bailouts keeping them afloat;
- “vulture capitalism” and derivatives – the former amounts to predatory banks and hedge funds “buying out shareholders and bleeding businesses of profits, using loans of ‘phantom money’ created on a computer screen” out of thin air; the latter turned banks into casinos making huge bets that went sour; and
- moral hazard, once called the “Greenspan put;” substitute Bernanke and Geithner now for the maestro of misery; it lets banking giants take outsized risks knowing bailout backups await any that go sour.
Conclusion – private commercial banking practices are corrupted, destructive and obsolete, and vulture capitalist investment banks are parasites on productivity, serving their interests at public expense. Congress should and must either close down insolvent banks or put them in receivership as step one. Then “claim them as public assets, and operate them as agencies serving” public depository and credit needs.
The federal debt is another problem – at “its mathematical limits, (it’s) forcing another paradigm shift if the economy is to survive.” We have a choice: let a debt-based house of cards collapse or have it be a wake-up call for radical change. Again, imagine the possibilities:
- ending personal income taxes and stimulating stable economic growth at the same time;
- eliminating the federal debt entrapping us and future generations in permanent bondage;
- returning money creation power to the government as the Constitution mandates with a cornucopia of benefits to follow;
- strengthening universal Social Security for everyone in place of disappearing private pensions;
- fostering stable, inflation-free prosperity with no booms and busts;
- keeping borrowing costs fair and affordable, not subject to private bank manipulation; and
- ending destructive currency devaluations and economic warfare for private gain; with stable exchange rates, the “dollar becomes self-sustaining, and the United States and other countries become self-reliant,” free from foreign creditors and one-way market rules benefitting the strong over the weak.
Impossible? Only for non-believers, but it won’t happen magically. It’s for organized people to challenge organized money enough for government to reclaim its money creation power.
Nothing short of a populist revolution for radical change is needed – bubbling up from the grassroots to an unstoppable force. “Reviving the ‘American system’ of government-issued money” would return us to our colonial roots, and like Dorothy in the Wizard of Oz, “we the people would finally have come home.”
More on that topic in a follow-up article. (full long text).