Overall Contents for All Blogs and Posts

http://unclesamenterstheendgamepart1.blogspot.com/

Most posts are alphabetized by subject starting at the bottom of each blog except for the first one. To get a feel of the overall intent of the blogs and posts please read the first post below.

Introduction and an Idea of how to navigate through the blogs and posts.

Contents for Sources of Funding for New World Order

From Soft to Hard Tyranny

Government Officials Speak out on Corruption and/or the New World Order Part 1

Government Officials Speak out on Corruption and/or the New World Order Part 2

Contents for Health Care Trends

Contents for Hidden Powers, Hidden Interests

Introduction

Links to Corruption, Tyranny and Trends Toward A New World Order Part 1

Links to Corruption, Tyranny and Trends Toward A New World Order Part 2

http://unclesamenterstheendgamepart2.blogspot.com/

Links to Corruption, Tyranny and Trends Toward A New World Order Part 3

National Debt

The above 3 posts Links to Corruption, Tyranny and Trends Toward a New World Order, Part 1, 2 and 3 contain just the links from all the posts with very little political commentary or analysis.

http://unclesamenterstheendgamepart3.blogspot.com/

News About the Fed, Banking and Finance Part 1

News About the Fed, Banking and Finance Part 2

Quotes Over Time About Monetary Policy and Banking and Finance in Relationship to Liberty and Tyranny

Slow Response/Gulf Oil Spill

Social Security and Other Entitlements

Solutions

Symbols of Occult Power

The Modern Art and Science of Enslaving Others

The Constitution Verses Tyranny

The Relationship Between The Military Industrial Media Complex, Defense Spending, Semi-permanent and Permanent War and the Rise of Tyranny

http://unclesamenterstheendgamepart4.blogspot.com/

Trends Toward a Tyrannical New World Order Part 1

Trends Toward a Tyrannical New World Order Part 2

Trends Toward a Tyrannical New World Order Part 3

The United Nations in Relationship to the New World Order Part 1

The United Nations in Relationship to the New World Order Part 2

http://unclesamenterstheendgamepart5.blogspot.com/

Barter and Local Currency Survey

Members, Activities and Meetings

http://unclesamenterstheendgamepart6.blogspot.com/

The War on Food

The War on Food Part 2 This section has a lot more in depth scientific studies.

In all the blogs the titles for each of the articles are colored coded red, orange, green or black based on my subjective belief of how likely they are to be true.

Red title and bold font means I believe the article is very likely to be true and is very important!

Red title and regular font means I believe the article is very likely to be true but is less important.

Orange title and bold font means the article is likely to be true and is important!

Orange title and regular font means the article is likely to be true but is less important.

Green title and bold font means I believe the article could be true and is very important!

Green title and regular font means I believe the article could be true but is less important.

Black title and bold font means I have no opinion on the article because I have not researched it so I have no opinion on its veracity. However it is important!

Black title and regular font means I have no opinion on the article because I have not researched it so I have no opinion on its veracity or truthfulness. It is of lesser importance.

Contents Banking Finance and News About The Fed

Tricks The Federal Reserve and the Banks Play to Gradually Consolidate Wealth and Enslave Us 2

Missing Details Amusing Video 2

Banking History For Idiots 3

An Overview of How the Banking System is

Enslaving Us 4

The Beginning of Money and Banking 12

The First Bank and How Banking Changed 13

The Money System in Modern Times 15

Money as Debt Money Creation Until Fairly

Recently 16

A Brief Synopsis on the Fed and Banking 18

Good Books About Banking and the Fed, Recommended

By Liberals and Conservatives 18

Treasury and Fed Profit on Wall Street Rescue 18

Lenders Agree to Prop up Shore Bank that Has Close Ties

to Obama/Fox News 18

Weekly Wall of Shame Wall Street Lobbyist

and your Money 19

Assessing Impact of New Global Bank Rule 20

Money Creation When Banks need to Keep 10% and

2% of Money they Lend on Reserve 22

Jean-Claude Trichet European Central Bank Chief Announces Formally Nazi Owned BIS to Become Primary

Engine of Global Government 41

Uncontrolled Fed Printing of Money to Lead to Empty Store Shelves 43

History of Fed Reserve/Creature From Jekyll Island Video 42

U.S. Senate Investigates Goldman Sachs Knowledge of 2008 Meltdown and Fraudulent Activities 42

First time in History Federal Reserve buys Mortgages NPR/Money Planet Video 42

Senate Rejects Plan to Break Up Banks/Includes List of Senators that voted For the Bill 43 and 44

See chilling article Fed/Large Banks Practice Economic Terrorism to Avoid Investigations p. 43 and How I know Fed Reserve/Banks Killing U.S. to See How Wall Street Blackmailed Congress

Into Submission

Fed Lends Money to Greece and Other European Banks in Bail Out 44

Senate Passages Regulations Allowing Broad Government Access to Our Private
The articles and links are found in the post, News About the Fed, Banking and Finance Part 2
Financial Regulations in Treasury Controlled Agency 46

Quotes on Money/Finances/Federal Reserve 47

Fed/Large Banks Practice Economic Terrorism to Avoid Investigations 50

How I Know Fed Reserve/Banks Killing U.S. 52

Cities Municipalities Maybe Next for Bankruptcy 54

Federal Reserve Buys Between 850-900 Billion in Treasury Bonds 55

As Foreigners Buy less U.S. Debt Fed Reserve Now Buys 70% of U.S. Debt! Financial Times 3/9/2011 56

Inside Job: A Searing Look At Wall Streets Role in 2008 Meltdown 56

SENATOR LEVIN’S PERMANENT SUBCOMMITTEE ON INVESTIGATIONS STUDIED WALL STREET’S ROLE IN THE 2008 FINANCIAL CRISIS. 57

Recent Decline of Dollar as a Store of Value 59

Congress Over Time Speaks Out on Fed 61

Banks Filing Fraudulent Foreclosure Notices. FBI Director Robert Mueller States Fraudulent Loans Rise 5% in 2009. 14 Billion in Fraudulent Loans Originate in 2009 62

William Black Author of, “Best Way to Rob a Bank is to Own One” Describes Epidemic Fraud in Banking System March 19, 2010 62

Sixty Minutes/Banks Lose Mortgage Documents then Create Fraudulent Documents To Complete Foreclosures 63

Powerful Banks And Elites Corrupting Government 65

IMF Calls for Global Currency SDR’s to Replace dollar as World Reserve Currency 66

China Using Debt to Influence or Control U.S. Government/Reutors 67

Defendant Prosecuted For Creating Own Currency 67

Utah Brings Back Gold Standard as Hedge Against Collapsing Dollar 67

Bloomberg News Wins This Round/Federal Reserve Must Disclose Where Fed Spent Trillions in Bailout This Article From Bloomberg Discloses How Fed Lent Money During Crisis/Data From FOIA Request 68

Wall Street Aristocracy Obtains 1.2 Trillion in Fed Loans 69

Alex Jone’s Movie End Game/How the Banks Take

Over the World to Set up the New World Order! 69

Tricks The Federal Reserve and the Banks Play to Gradually Consolidate Wealth and Enslave Us

This is a silent you tube video of a power point presentation that I gave several times. It describes the techniques and tricks that the Federal Reserve and the Banks have played on us over the last century to consolidate wealth into fewer and fewer hands, corrupt our constitutional form of government and gradually to enslave us. I cover several abstract economic concepts presented in a simple way using text, pictures, games and activities that laypersons can understand.

There is no sound and for the slides with a lot of writing you will have to stop the movie to read all the material on the slide.

http://youtu.be/jlZYs-qvqWA

Here is a brief but seemingly accurate account of the banking heist from the Dylan Ratigan Show on MSNBC. Federal Reserve Scam

http://www.msnbc.msn.com/id/21134540/vp/36233217#36233217

Our Central Banking System is notorious for doing things under our noses but we don’t see what they are doing. I think the hidden powers in our system understand this principal very well. This video below is not about central banking but it shows in a fun dramatic way, how people can miss what is happening right in front of their noses. It is about 10 minutes long. This is pretty neat, shows how easy it is to miss 'details'.

http://www.youtube.com/watch?v=IGQmdoK_ZfY&feature=player_embedded

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Banking History and

Operations For Idiots

This material is based on an animated video by Paul Grignon called Money as Debt. It can be found on You tube. Today on January 7, 2010, NPR’s This American Life substantiates some of the unbelievable information I first heard in Money as Debt. www.thisamericanlife.org/radio-archives/episode/423/the-invention-of-money Below I summarize what I found in Money as Debt. Anyone who finds this interesting check out the video because the visuals might help you understand some of the complicated concepts. After reviewing a detailed report created by Wright Patman the Chairman of the Subcommittee on Domestic Finance, Committee on Banking and Currency from the House of Representatives called A Primer on Money and after reading various other government documents and news reports, this video seems pretty accurate! Also the other NPR story in this file also collaborate information in these other documents. However NPR does not explore how this banking system is incredibly dangerous to our representative government!

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A very entertaining yet information packed 3 and ½ hour video also on you tube explores this danger in depth as well as the history of money and banking. Google Money Masters and you will be taken to about 22 different video clips.

Overview of How Banking System Is Enslaving Us

In the next 10 pages I briefly explain using simple examples describing how the banking financial system is enslaving us. Then in other places in this file I go into greater depth and detail describing the various processes. The ingenious modern system for total enslavement through banking and finance in its present form developed over 3 centuries ago and is easy to understand if you have the correct mindset. In order to comprehend this system you need to think like a parasite and a predator, visualize the process occurring over hundreds or thousands of years and further recognize the masters of the system are very meticulous in setting up the system. You must comprehend the basic characteristics of the system and visualize the different processes and concepts allowing the system work. As far as I can tell the basic processes of the financial banking total enslavement system are debt, inflation, interest and magic.

In 1694, English government officials exhausted and bankrupt from 50 years of war pleaded with their bankers for money to continue their political objectives. The bankers agreed to lend the government the money they needed if certain conditions were met. Remember these conditions for they allowed this bank slowly over time to dominate and control the nation. All banks today operate under the same conditions thus they increasingly control people throughout most of the world.

The moneylenders demanded that they be allowed to form a national bank where they create the currency and control the interest charged on the currency. In addition, the bank would lend the government all the money it ever wanted provided that the people would be taxed directly to pay the interest on the debt. The final important characteristic of this bank and all

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future banks modeled after it, is the ones running and controlling the bank are its hidden investors who reap most of the profits generated for the banks.

These simple conditions have allowed the banks and the financial institutions that grew up around them to become the most powerful political force in the world corrupting all governments it touched. Understanding this corrosive process perhaps may help us resist and overthrow the totalitarian system gradually being implemented to control every aspect of our lives. Unfortunately, few realize how this system obtained its immense power so below I will provide some examples to show how the Federal Reserve and other central banks have amassed the almost unlimited power they have today through debt, interest, inflation and magic.

Our money in our pockets exists because of debt and through this ingenious system the hidden investors utilizes this debt to gain control of all of our resources and wealth over a very long period of time. To understand how it works I will simplify some things then add them back in later. Pretend you live on an island with 11 adults and 3 children and 1 of the people convinces you that he is going to set up a bank using money to facilitate the exchange of goods and services. He is very smart so you and the others go along with him. You and the others decide you want used cars that the car dealer on the island is selling for 10,000 dollars a piece. You go to your friend the banker and tell him you need $10,000 dollars. He loans you the money for the car at 10% interest per year by clicking a mouse on the computer and the computer generates your $10,000 dollars that did not exist before the click of the mouse. You sign a paper stating that you will pay the 10,000 dollars back plus 10% interest during the year. Your 9 other adult friends on the island do the very same thing and the banker gives each of them 10,000 dollars so by the end of the day the banker created $100,000 out of thin air.

Let’s say for simplicity sake no one has to pay their $10,000 back for a year. But when they go back a year later with their $10,000 dollars each, there is a problem. Each of the people owe an additional $1,000 dollars due

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to the 10% interest rate. The banker originally created $100,000 dollars to cover the 10 car loans. Now during the year he must generate another $100,000 so the people can earn the money they need to pay the bank back for the original money that they borrowed. and generate $10,000 more and put it into circulation so the customers can pay the $10,000 they owe as principal and the $1,000 they owe in interest.

Before discussing the profound implications of the above scenario, realize this is how the banks operate. There are many banks but they are part of our central bank that operates under the above principle. It is possible for a bank to open that is not part of the Federal Reserve system but your money is not insured unless you bank in the in a bank under the Federal Reserve System so such a bank is likely to have few customers.

Since banks can create money almost out of thin air and charge interest on this low risk money this power has profound implications! First, the bank generates a loan from a computer mouse then lends it to someone, almost always the hidden investors owning the bank get back more money than they lend out! In our hypothetical example the bank generated $100,000 dollars but a year later it got back $110,000 dollars because of the interest even though the bank created the new money practically from nothing. Occasionally people default on loans but usually when banks loan out money they get the money back plus the interest! Most of this interest on loans ends up in the hands of the banks hidden investors or owners. In the 3 centuries that the debt based banks have existed the hidden investors have generated huge profits loaning out very low risk money.

Dr. Bartlett created a video called The Most important Video You Will Ever See, showing the power of compounding interest. In it he gives an equation for growth that shows how long it takes bacteria, a quantity of money etc. to grow given different rates of growth. DT=70/GR. DT in the equation stands for doubling time. GR = growth rate of the quantity over a set period of time, or in the case of money the interest the money acquires in

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growth every year. Interest rates also show how money grows over time. Let’s say you have $1,000 dollars and you wonder at 10% interest, how long would it take to double in size. DT= 70/10 DT = 7 Your thousand dollars would grow to $2,000 after 7 years. In 7 more years it would double to $4,000 and so on.

What I am about to show you in my opinion is the reason why I believe banks and their allied business interests have become the most powerful dangerous force on the face of the Earth. You would not understand this unless you look at trends that occur over centuries that I will do now! Let’s look at doubling times for interest rates of 7% because if you average interest rates over time the average interest rate would fall somewhere between 5 to 8%. A 7% interest rate on a quantity of money would mean it doubles every 10 years which is easy to compute. So let’s say The Bank of England creates a million dollars in 1694 and lends it out over time. Let’s see what happens to that money growing at 7% interest by the time of the American Revolution about 82 years later. If the money doubles every 10 years then it will have 8 doublings by the time of the revolution. After 10 years it would double to 2 million. In 20 years it would be 4 million. After 80 years it would be over 240 million dollars at a constant 7% interest rate by 1776!

Let’s continue to follow the growth of the million dollars. By the beginning of the civil war in 1861 the million would have doubled 16 times to grow to 61 billion 440 million dollars. By 1904 the amount will have doubled 21 times to 1 trillion 966 billion and 80 million dollars. By 1913, 9 years later this amount would almost double to close to 4 trillion dollars. Can you see the power of interest over time! Some claim the Bank of England spent millions in order to buy enough members of Congress in order to get the Federal Reserve Act passed in 1913. Just based on interest rates and time, this is very possible because the bank would have massed immense sums of money though compounding interest.

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Just for curiosity lets continue to watch the money grow at 7% starting at 3.9 trillion in 1914 rounding the number lower. So the actual amounts would be somewhat higher. 3 trillion would be a number followed by 12 zeros. By the Great Depression in 1934 after 24 doublings the million would reach 15.6 trillion. During the Second World War in 1944 the amount would increase to 31.2 trillion with its 25 doubling. In 1964 as we were escalating our involvement in Vietnam and the civil rights movement is in full swing, the million dollars would have doubled 27 times to 124.8 trillion dollars. By 1974 when we were withdrawing from Vietnam the 28^th doubling would be 249.6 trillion. In 2004 the original million would undergo its 31^st doubling to more than 1,996 trillion 800 billion which is a number I can not fathom. The actual number I come up with is 1,996,800,000,000,000.

When you take the long view of watching money grow at interest over the centuries you begin to understand the concept of how powerful the banks and the hidden investors of the banks become amassing great masses of money at interest!

Now over the centuries, the Bank of England and the Federal Reserve that is now almost 98 years old and all the banks associated with these central banks created far more than a million dollars so their wealth is far greater than is indicated by my example. The banks obviously did not use their trillions over the years just growing interest. Money was spent on buying and corrupting politicians in the executive and legislative branches as well as spent buying off the press, media outlets and academic institutions. This is why the laws favor the banks and you don’t hear about how the banks really operate from mainline media!!!

In the previous paragraphs we discussed how the debt money system works and the incredible power of interest over time to the hidden investors that control the banks. Inflation is the other hidden tax that operates in conjunction with interest rates. Remember the example of the banker on the island creating the $100,000 dollars to give 10 people $10,000 dollars each to get 10 used cars. For a year after the banker provided the 10 loans to the

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10 people, there was $100,000 dollars in the island’s money supply. Each dollar at that point was worth a dollar. A dollar would get 1 dollar worth of supplies. After a year, the customers had to pay the banker for their loans plus the interest. They could not do so unless the banker created more money so his customers could pay off the original loans. The first $100,000 the bank created is now in the car dealer’s account. Now the customers owe the bank a total of $100,000 dollars for the original loans plus the $10,000 in interest that the 10 owe the bank one year later. The banker increased the money supply on the island by 110% so instead of having $100,000 in the money supply now there was $210,000 in the money supply. In this island the amount of goods and services did not change so more money was added to the money supply meaning the purchasing power of each dollar went down because there are more dollars to spend. So now each dollar is worth 45 cents instead of each dollar being worth 1 dollar. This is how inflation works. People mistakenly blame unions and others for raising prices. It is actually the banks creating more money.

The insidious nature of the debt money system is that when the 10 people had to come back to the bank to pay interest on the cars they had to borrow more money from the banker to pay the interest on their loans so they had to apply for new loans that they will again have to pay interest! The system generates more money for people to pay off previous debt and in the process they create new debt that can only paid off by creating new money. It really is a giant panzi scheme skimming wealth from lower and middle classes. If you look at the money supply since the creation of the Federal Reserve it has always increased over time and the purchasing power of the dollar has decreased over time. One of my sources claim that the dollar has lost 96% of its purchasing power since 1913 with the Founding of the Federal Reserve.

Here is another simplified example of how the banks and government work in collusion to generate larger and larger debt generating huge profits to the banks hidden investors!! If you look at the American voters today they

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are almost equally divided between republicans and democrats. Republicans favor stronger defense and help for businesses while democrats favor domestic programs to help the poor and funding for education. This is oversimplifying the landscape but it is basically true. In order to get elected in such a place one must get the majority of the vote. A politician can almost guarantee reelection if they satisfy both types of constituents so they spend money for defense and wars yet take care of the poor and provide for social programs.

Politicians cannot provide the funding through taxes alone because taxes would be too high and many would rebel. However, they can go to the Federal Reserve and borrow money. People won't feel it in their taxes and it takes a while for the debt to build up as it has done in our nation. Eventually however, even the interest on the debt become impossible to pay and the nation goes bankrupt.

The above explains the relationship between the Federal Reserve and the Federal Government. When a certain portion of the population wants more money spent on defense than most people are willing to pay in taxes and a different segment of the population wants more money spent on education and social or medical programs to help poor people than most people are willing to pay through taxes, government borrows the money from the Federal Reserve. The Federal Reserve prints the money practically for nothing and the money is almost risk free since there is very little risk creating the money. However the taxpayers must foot the bill to pay the interests on this gigantic debt that grows over time and through inflation because of the increasing money supply the taxpayers are taxed again because the purchasing power of their money decreases over time. As the taxpayers lose purchasing power during this inflation their loss is the hidden investor’s gain for they profit obtaining the interest that the taxpayers have to pay on the loans.

However, I go back to the bankers for the other way they makes huge

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amounts of money throughout the centuries is by supporting both sides during a war generating huge debts again generating massive amounts of interests for the hidden investors. Some of my sources claim that providing loans to both sides in wars is the greatest way the banks make money for nations at war pile up huge debts! There is also an international agreement among nations that a conquering nation assumes debts of those it conquers so the banks almost always get their interests on their debts. Remember these huge profits go to the hidden investors of the central and large commercial banks.

Many high level government sources claim that the Federal Reserve and other banks not only lent money to the United States and our allies during the 2 World Wars and the cold war but to the Nazi’s, the Russians and Chinese during their communist revolutions. There is no way for us to be sure because in the 98 years of the Federal Reserve’s history the Congress has never allowed anyone to audit the books of the Federal Reserve. To see more evidence from government officials relating to the Federal Reserve funding nefarious causes go to the Post Quotes Over Time, About Monetary Policy, Banking and Finance in Relationship to Liberty and Tyranny. On pages 20 and 29 you will find quotes from Representative Louis T McFadden a Republican from Pennsylvania the former chairman of the House Banking and Currency Committee from 1920 – 1931. He died under mysterious conditions in 1936.

I finally make the astounding claim that the Federal Reserve Central Banks, the large commercial banks and their financial allies use magic to enslave and overpower us through the centuries. I can’t figure out any other way to explain it. Americans seem to be in a sleepy trance watching their sports and entertainment programs without questions or resistance while the banks continue to enslave them. People willingly pay 2 and ½ times or more the value of their houses, cars, or educational costs in loans to the bank without even questioning how the banks use the money. Americans willingly

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pay 20% interest on their credit cards with little protest or resistance. Despite knowing that the banks committed greater acts of fraud and deceit than ever before in American history during the 2007 meltdown, Americans did not resist or protest when none of the bankers were prosecuted for their crimes. Nor did they protest or resist when these criminal actions resulted in the lost of millions of jobs leading to millions of foreclosures. In addition, there was little response from Americans when Congress passed laws allowing the banks causing the meltdown to become larger.

Few people would allow strangers to come into their houses and walk off with their possessions without resistance yet they willingly allow the banks to rob them blind without protest or resistance. The only other possibility is that the citizens have been thoroughly brainwashed. I am still trying to figure it out. Below is a more detailed explanation of some of the banking processes and banking history.

Beginning of Money and Banking

I obtained most of the information below from the videos, Money as Debt and Money Masters. In the beginning people used items for money such as feathers, shells, or pretty stones. Eventually some cultures used silver or gold. Over time goldsmiths stored their neighbor’s gold and charged them a small fee for their services.

Eventually people got tired of lugging gold and silver coins around to buy goods and services because these coins are very heavy. So when people brought their gold to store, the goldsmith gave the customer a claim check verifying the gold was being stored. Eventually when people went to buy goods and services they presented the claim checks instead of the gold. This was easier than lugging all the coins around. Eventually this idea lead to the creation of paper money based on gold.

Meanwhile the goldsmith created another business charging small amounts of interest to lend out his own gold, for people to borrow. Over time the

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goldsmith realized that not all of their customers withdrew all their gold at the same time. As industry expanded more and more people asked the goldsmith for loans. Knowing that few of his depositors removed their gold, at the same time, he not only lent out claim checks borrowing against his gold but also against the gold of his depositors as well. As long as the loans were paid off no one would ever know.

Allowing people to borrow against his gold as well as the gold of his depositors allowed the goldsmith to rake in nice profits. Over the years the goldsmith grew steadily richer and their customers began to wonder why?

The First Bank

The depositors decided that the goldsmith was stealing their gold to buy his fancy clothes and nice house. They demanded that he come clean concerning his activities or they threatened to withdraw their gold. So the goldsmith took them in and showed them that their gold was still in the vaults. The depositors demanded to know how he got so wealthy so he explained the process of charging interest on the loans and how he not only loaned against his own gold but the gold of his depositors as well.

Instead of withdrawing their gold the customers demanded a piece of the action. They demanded some interest from the goldsmith for storing their gold. The goldsmith in turn charged higher interest for loans so that he could still turn a profit.

How Banking Changed

So banks gave a low rate of interests to their depositors for allowing the bank to use their money. At the same time a higher rate of interest was charged to the borrower to cover costs and profits. However, banks did not work that way for long.

The goldsmith or banker, was not happy with his profits and because of the increasing pace of industrialization, the demand for credit (or borrowing) was growing fast. The amount he could lend was limited by the amount of

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gold depositors had in his vaults. This predicament led to a new idea. He was the only one who knew how much gold was in his vaults. He could lend out claim checks on the gold that wasn’t even there. As long as the depositors didn’t come at the same time and demand their gold, how would anyone find out?

This new scheme worked out very well and the banker became rich on the interest paid on the gold that didn’t even exist! The idea that the banker would create money out of nothing was just too outrageous to believe. So for a long time even into the present, the thought has not occurred to the majority of people that the banker was charging interest on nonexistent money. Eventually long ago the customers became suspicious.

Some borrowers demanded real gold rather than paper money. Soon wealthy customers came to remove their gold. This caused all the customers to come and demand their gold. The bank could not give the gold back. This is known as a run on the bank that is dreaded by all banks. This phenomenon ruined many individual bankers and ruined public confidence in the banks.

It would have been straight forward to outlaw the practice of creating money from nothing, but the large volume of credit, (borrowing) the banks were offering had become essential to the success of European commercial expansion. So instead the practice was legalized and regulated. Bankers agreed on the amount of fictional money that could be loaned out. Quite often the ratio was 1 real dollar in gold in the bank to 9 fictional dollars that could be lent out. This is known as the fractional reserve system. This new system was enforced by surprise inspections and in cases of runs, central banks would back up the troubled bank with infusions of gold. Only if there were runs on many banks at once would the bubble burst.

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Modern Banking

Operations For Idiots

Again this material is based on an animated video by Paul Grignon called Money as Debt. It can be found on You Tube. I do not know how accurate it is. Any bankers out there please set me straight? I summarize it here because some of it is kind of complicated. Anyone who finds this interesting go check out the video because the visuals might help you understand some of the complicated concepts.

The Money System in Modern Times

Over the years, the fractional reserve with its integrated banks backed by a central bank has become the dominant monetary system throughout the world. At the same time the fraction of gold backing the money has steadily shrunk to nothing. Money once represented value. Now it represents debt. In the past, a paper dollar was a receipt that could be redeemed for a fixed amount of gold or silver. Today a paper dollar can only be redeemed with another digital or paper dollar. This kind of system is called a fiat system. Fiat money is money created by government decree. The courts also decree that this money must be accepted for payment of debt or the courts will not enforce the obligation.

Now the question is, if governments and banks can both create money, then how much money exists? In the past the total amount of money depended on the amount of gold, silver etc. that was in existence.

Today money is being created as debt. New money is created whenever anyone takes a loan from the bank. So the total amount of money that can be created has only 1 limit, the total amount of debt.

Governments place an additional statutory limit on the creation of money known as fractional reserve requirements. In the past banks were required to keep 1 dollar of gold in the vaults to back every 10 dollars in debt.

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Today the ratio of debt money no longer applies to gold on deposit. Now the ratio exist between new money and existing money in the bank. Now a bank’s reserves are based upon 2 things. The amount of government cash or equivalent that the bank has deposited at the central bank plus the amount of already existing debt money the bank has on deposit.

Money as Debt Bank Operating Until Fairly Recently

To illustrate this in a simple way lets pretend a bank is opening up and it has no depositors yet. However, the bank’s investors have already made a reserve deposit of $1,111.12. of existing cash money at the central bank where the required reserve rate is 9:1. Here is Step 1. The new bank opens and welcomes its first loan customer. This person needs $10,000 to buy a car. With the 9 to 1 reserve ratio, the new bank’s reserve at the central bank, also known as high powered money allows it to conjure into existence 9X that amount or 9 X $111.12 =$10,000 dollars on the basis of the borrower’s pledge of debt. This $10,000 dollars is not taken from anywhere. It is simply brand new money typed into the borrowers account as bank credit. The borrower then writes a check on that bank credit to by the used car.

Here is step 2. The seller deposits this newly created $10,000 dollars at her bank. Unlike the high-powered government money deposited at the central bank, this newly created money cannot be multiplied by the reserved ratio of 9:1. Instead it is divided by the reserve ratio. $10,000 divided by 9/1 or 10,000 X .9 resulting in a new possible loan of $9,000.

Here is step 3. If that bank or different bank loans out the $9,000 dollars and that $9,000 is deposited by a third party at a bank it becomes the legal basis for a third issue of bank credit. This time $9,000 X .9 = $8,100 or a loan of $8,100. This same process continues in the same way to completion generating almost 100,000 dollars from the original 111.12 high powered seed money placed in the central bank. All this new money was created completely from debt.

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Under this ingenious system, the books of each bank in the chain must show that the banks have 10% more on deposit as it has on loan. For example, if it has 100 million in deposits. The books show 90 million on loan. This gives the banks the incentive to seek deposits in order to make loans, supporting the general but misleading impression that loans come out of deposits.›

Now unless all of the successive loans are deposited at the same bank, it can not be said that any one bank gets to multiply it’s initial high money power reserve almost 90X. 111.12 X 90 = $100,000. However, all of the banks operated under the Federal Reserve Banking System so in a way it is like one bank.

Modern Banking Over the Last Decade or So

Unfortunately I found out recently that modern banking actually did not follow the rules in the previous paragraphs over the last decade or so. There was a really interesting article in the Arizona Daily Star on 9/14/2010 called Assessing Impact of New Global Bank Rule. azstarnet.com/business/local/article_a93e0867-3ac1-5851-b6ba-d2f469b3ca0b.html?mode=story. Banks during this time only had to keep 2 dollars on deposit for every $100 dollars that they lent out. So after the first $10,000 was lent out, the bank had to keep $200 dollars on deposit and then the bank could lend out $9,800 dollars Under this system for every 10,000 on deposit they could produce over $450,000 new low or no risk money.

Now according to the new rule released Sunday by the Basel Committee on Banking Supervision aims to fortify banks worldwide and prevent the kind of global crisis that happened in 2008. Now banks need to keep 7 dollars on deposit for every $100 they lend out unlike the prior rule used for centuries allowing banks to keep $10 dollars on deposit for every hundred they lent out.

Another video to help you grasp the impact that banks had throughout history and now is the video Money Masters. You can google and watch it online at You Tube.

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A Brief Synopsis on the Fed and Banking

Go to WWW.Zeitgeistmovie.com and click on first Zeitgeist movie. In about the last third it gives a good synopsis of the Federal Reserve and the banks using newscasts, government officials and government documents. Here is a link to the movie, http://vimeo.com/13726978 The second movie of the 3 movies at www.zeitgeistmovie.com also discusses Federal Reserve policies starting at the 4 minute mark.

Good Books About Banking and the Fed, Recommended

By Liberals and Conservatives

The Trillion Dollar Conspiracy by Gary Allen

Web of Debt by Ellen Brown (From her Website).

Lost Science of Money by Steven Zarlenga (From Moneyorg.)

The End of Money Tom Grecco

Bad Money by Kevin Phillips

National Economy by Arian Nevin (www.nationaleconomy.net)

Secrets of the Temple by William Greider (thorough review of the Fed)

Creature From Jekyll Island by G. Edward Griffin also http.//video.google.com/videoplay?docid=6507136891691870450)

The Secrets of the Federal Reserve by Eustace Mullins and sponsored by Erza Pound

Austrain Economics Von Mises A friendlier website is Fee.org

Treasury and Federal Reserve are Making a Nice Profit on Wall Street Rescue. However taxpayers are losing lots of money on the bail out of Fannie May and Fannie Mac according to an article in the Washington Times on 4/27/10. www.washingtontimes.com/news/2010/apr/27/treasury-has-profited-from-big-bank-bailouts/

Monday, May 17, 2010 Lenders Agree to Prop Up Ailing Shore Bank By Charlie Gasparino Here is a summary of the article Many of the nation’s largest banks are chipping in to save this bank which is community lender with close ties to the Obama administration according to the Fox business News.

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Goldman Sachs, Citigroup and JP Morgan and other banks are chipping in 140 million to rescue the bank. The government is providing millions more for the bailout. Some of the Wall Street lenders claim the were pressured politically to contribute to the bailout. Under normal circumstance the bank would have failed

It's still unclear how much the federal government (MY NOTE: NO, taxpayers!) will contribute to save the bank because it's unclear exactly how much is needed to save the institution, which without the bailout would have been taken over by the FDIC.

An announcement on the bailout is expected Tuesday morning.

http://www.foxbusiness.com/story/markets/industries/finance/lenders-agree-prop-ailing-shorebank/

The Weekly Walk of Shame: Wall Street Lobbyists and Your Money

http://www.fool.com/investing/general/2010/06/23/the-weekly-walk-of-shame-wall-street-lobbyists-and.aspx

Ilan Moscovitz

June 23, 2010

This Motley Fool series examines things that just aren't right in the world of finance and investing.

According to the article, the bankers took much of their bailouts and their near record profits, not to extend credit to businesses, but to lobby Congress to pass laws more favorable to their interests. Here are a few interesting items from the article.

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Right-click here to download pictures. To help protect your privacy, Outlook prevented automatic download of this picture from the Internet.

Source	Lobbying Amount, 2009
JPMorgan Chase (NYSE: JPM)	$6.2 million
Visa	$6.0 million
Citigroup (NYSE: C)	$5.5 million
Bank of America (NYSE: BAC)	$3.6 million
Sallie Mae	$3.5 million
American Express	$3.3 million
MasterCard	$3.1 million
Wells Fargo (NYSE: WFC)	$2.9 million
Fidelity	$2.9 million
Morgan Stanley (NYSE: MS)	$2.9 million
Apollo Advisors	$2.9 million
Goldman Sachs (NYSE: GS)	$2.8 million
Blackstone	$2.8 million
Charles Schwab	$2.4 million
AIG (NYSE: AIG)	$2.3 million

The banks cut lending to small businesses paid their executives huge bonuses and spent record amounts lobbying Congress according to the Center for Responsive Politics.

In March, Elizabeth Warren the Harvard Professor overseeing the TARP Program noted that Wall Street hired 54 lobbying firms and spends about 1.4 million a day to weaken rules that would protect the economy from continued damage.

In other words, Wall Street is spending bailout money to protect their interest and create future more extreme bailouts.

Here are some of the winners.

Source: Center for Responsive Politics.

There was a really interesting article in the Arizona Daily Star today 9/14/2010 called Assessing Impact of New Global Bank Rule. azstarnet.com/business/local/article_a93e0867-3ac1-5851-b6ba-d2f469b3ca0b.html?mode=story. On its face the international agreement seems to make a lot of sense. To head off international meltdowns banks will be required to keep more money on hand to head off trouble. Banks need to set aside at least 7% of what they lend. Many had only kept 2% or less on hand. The idea is not bad. In fact they should set more aside I think. What is nice is that banks will have several years to comply with the edict.

My problem is that the edict was handed down by the Basel Committee on Central Banking Supervision. According to Wikipedia this committee is the

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regulatory group from the Bank of International Settlements. This raises several red flags. I don't remember this being debated in the papers or in the Congress so did we or Congress have anything to do with this? If not are we allowing our national sovereignty to be destroyed? If so shouldn't we at least talk about it first? Second the word Basel comes from Basel Switzerland and if I am not mistaken, that is the present headquarters of the Bank for International Settlements.

The board of directors who control the BIS include Federal Reserve chief Ben Bernanke and Bank of England head Mervyn King, as well as Trichet the chief of the European Central Bank. http://en.wikipedia.org/wiki/Bank_for_International_Settlements#Board_of_directors

Again some more red flags are raised. The Bank of International Settlements is just like the Federal Reserve but on an international scale. As you know from my previous rants the Federal Reserve may have funded not only Hitler but various communist revolutions resulting in the genocide and death through wars of over 120 million souls in the 20th century alone. Just google quotes by Representative Louis T McFadden a Republican from Pennsylvania who was the former chairman of the House Banking and Currency Committee from 1920 – 1931 who died under mysterious conditions in 1936. There are other in government as well. Right now we just can’t tell who is telling the truth because Congress won’t let us look at the Federal Reserves Books. Just imagine international elites running a bank just like the Federal Reserve with secret owners but having vastly more power and wealth since money is skimmed off all the people of the world!!! Visualize what can be done with such vast power.

The Bank of International Settlements is set up just like banks are set up in relation to the Fed. When a bank needs money, they go to the Federal Reserve. When the Federal Reserve or any other central bank needs a bail out they will go to the Bank of International Settlements. Isn't it wonderful that we have a grand system set up just like the Federal Reserve but on an international scale? Now these people stationed in Switzerland are going to dictate our new rules.

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Money Creation When Banks need to Keep 10% and 2% of Money they Lend on Reserve. What Does That Really Mean?

The analysis below gives in great detail how banks can generate over 450,000 dollars when they have a little over a thousand dollars in seed money, assuming they had to keep 2% of what they loan in reserves. This was the case for several years before the bubble burst in 2007 resulting in the Great Recession. Even with the new Basel rules from The International Bank of Settlements international banks can make a lot of money off of us. For every thousand dollars of seed money they can make way more than 100,000 dollars. For centuries banks were expected to keep at least 10% of what they loaned in reserve. So don’t think that The Bank of International Settlements is doing us some great deed by providing these rules.

Previously I sent this page in an email but I found out recently through NPR that some of my data was wrong. At that time, one of my radical associates mentioned that our Federal Reserve Bank no longer required banks to keep 10% of what they loaned in reserve in fact NPR stated that they kept 2% in reserves. Now I did not print that at the time but now even our moderate liberal friends at NPR are saying the same thing! They are hosing us far more than even I imagined!!! The NPR link is at the end of this long article and also below if you want to see for yourself!

http://marketplace.publicradio.org/display/web/2010/09/30/pm-how-basel-iii-will-affect-bankers-and-consumers/

Unfortunately NPR does not tell you what it means when the banks only need to leave 2%, 10% or 7% of their money in reserve when creating loans. I wish to give you some idea by creating this long detailed report below.

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How Money is Created By the Federal Reserve and Commercial Banks For Loans

Creating $475,000 Out of Thin Air from $1,111.12 keeping 2% of their money in

Reserves Brief Synopsis

Step 1 Creation of Seed

Money

Investor from Federal Reserve deposits $1,111.12 seed money for bank or Federal Reserve creates seed money from thin air

Your Commercial Bank

Step 2

You come to the bank and ask for a loan of $10,000 dollars for a used car. Your bank is allowed to multiply the seed money with a click of a mouse by 9. 1,111.12 X 9 = approximately $10,000.

Step 3

You take your $10,000 and pay the previous owner of the car who deposits the $10,000 at the bank

Step 4

The bank is allowed to multiply this amount by .98 so $10,000 X .98 = $9,800.

This amount created out of thin air with a click of a mouse is then loaned to a different customer.

Step 5

Customer 2 takes the $9,800 loan and buys something from customer 3. Customer 3 deposits the check to the bank. The bank is allowed to multiply the deposited $9,800 by .98 to loan out roughly $9600 to the next customer.

Step 6

This process continues until you reach 0. When you add all the sums from all the steps to the original $1111.12, approximately $475,000 dollars can be created out of thin air.

Results

This process is called creating money out of debt. For customers to pay the interest and the loan more money must be created over time.

· This process is always inflationary so over time money in retirement and savings account is always worth less.

· More money has to be created all the time to pay off old debt. Eventually economies collapse from huge debt.

· The main job of the Federal Reserve is to slow down this inflation. It does this by contracting the amount of money in circulation resulting in the downturns in the business cycle.

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Detailed Explanation of How Banks Create Money Here’s How it was Done for a Century or More

I will attempt to explain this in concrete terms below. First the seed money of $1111.12 from the Federal Reserve is multiplied by 9, to get the 10 thousand dollars the bank loans to the first customer. Previously once the bank made a loan they needed to keep 10% of the loan on deposit so once the seller of the used car got his $10.000 in exchange for the car he brought the money back to the bank. The bank was required to keep 10% of the 10 thousand dollars on deposit so they put $1,000 in deposit and created $9,000 dollars from thin air loaning it to the second customer. Once the 9,000 dollars was loaned to the second customer and he bought something the seller took the $9,000 and deposited in his account at the bank. Again the bank was required to keep 10% or $900 dollars in deposit but they could then create a new check for $8,100 and this process continues until you reach 0. If you add the sums of all the checks you can generate until you reach close to 0, the bank in this process can create approximately $100,000 dollars from the initial seed money of $1111.12. My understanding was this system of fractional reserve financing was practiced pretty much in this way for 2 centuries up through much of the 20^th century. To get a more detailed but entertaining version of the above information on you tube search for Paul Grignon’s Money as Debt.

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For the Last Several Years Banks Have Reduced the Amount on their Loans They Need to Keep on Deposit

However according to the recent Market Place money report, during the last several years banks have reduced their amount of deposit on their loans to 2%. So for example, if you received a $100 dollar loan from the bank the bank would only be required to keep $2 dollars on deposit for that loan. According to the market place article the new Basel rules from the World Bank that are to apply to banks throughout the world will require that all banks keep on deposit no less than 7% of what they loan out.

Although NPR throws out these numbers they do not show the magnitude of the power of the banks to create vast amounts of very low risk money almost out of thin air which they then turn around and charge interest on making vast profits with very little creation of useful goods or services to whom they charge interests! By the way, keeping less money on deposit for loans allows banks to make a greater number of loans as the tables below will show. This in and of itself maybe largely responsible for the economic malaise we suffer from now. I am going to attempt to show you in concrete terms the process of money generation almost out of thin air that happens when the banks only kept 2% of what they loaned on deposit.

Before we start however, money is not printed out of thin air. Here is a quote I found on several sites. It has to be backed by someone or something. Every dollar printed is backed by collateral-that collateral being a US treasury bond which is sold off by the federal reserve to a buyer like your grandma, China, a pension fund, etc. That means every dollar is borrowed and has to be paid back with interest. How do we pay it back? We pay it back with your tax dollars. Part or all of your federal income taxes goes to pay these bond holders back. That's how it works.

Keep the above in mind when you read below how the Federal Reserve and the commercial banks create money. First the table below shows the first 30 checks generated from the initial $10,000 dollar check that was created when the initial $1111.12 donated from the Federal Reserve was multiplied by 9. After the first customer receives his loan and buys the used car the seller deposits the 10,000 in the bank. Because the bank only needs to deposit 200 or 2% of that check, it can multiply the $10,000 by .98 to create a new check of $9,800. The same process can be followed to create the next check of approximately $9600. Because the reduction of each succeeding check is so small, only 2% close to 400 checks can be created before the checks reduce in value to near 0. In the table below are the approximate amounts of the 1^st 30 checks. I rounded off some of the numbers for ease of calculations

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Table 1 The First 30 Loans Generated From the Initial 10,000 Dollars When Banks Are Allowed to Keep Only 2% of Loans on Deposit

10,000	The Next Sum is the Present Sum X .98
9,800	So 10,000 X .98 = 9,800
9,600	9,800 X .98 = 9,6004 which I rounded
9,400	off to 9,600. The process proceeds in
9,200	the same manner for all succeeding
9,000	sums.
8,820
8,644
8,471
8,301	Tenth loan created by bank
8,135
7,972
7,813
7,656
7,503
7,353
7,206
7,062
6,921
6782	Twentieth loan created by bank.
6,646
6,513
6,383
6,255
6,130
6,007
5,887
5,769
5,654
5541	Thirtieth loan created by the bank From the original $10,000.

How Much Money Can be Created From the First 30 Loans Generated From the First $10,000 Check

You can see if the bank only has to back their loans with 2 dollars for every 100 dollars loaned out, a lot of checks can be generated. In this case more than 400 loans can be generated before the loans are down to close to 0. What I will do next is determine the sums of all these checks to determine how much money the bank has created in just these 30 transactions and loans. Next I will compare the total sum of the first 10 checks to the total sum of the next 10 checks to see by what % the value of the sums drop. Next I will compare the sum of checks 11-20 to the sum of checks 21-30 to determine by what percent each succeeding sum drops by. In table 2 below I will add the sums of the first 30 loan transactions generated by the bank and figure out the total amount of money created virtually out of thin air.

Page 27 and 28

Table 2 The Total Amount of Money Created From the First 30 Loans Starting With $10,000

Adding the Sums	Loans and Sums
10,000	1^st loan
+9800	approximate 2^nd loan
19800	sum
+9600	approximate 3^rd loan
29,400	Total sum
+9,400	approximate 4^th loan
38,800	Total sum
+9,200	Approx. amount 5^th loan
48,000	Total sum
+9,000	Approx. amount 6^th loan
57,000	Total sum
+8.820	Approx. amount 7^th loan
65,820	Total sum
+8,644	Approx. amount 8^th loan
74,464	Total sum
+8,471	Approx. amount 9^th loan
82,935	Total sum
+8,301	Approx. amount 10^th loan
91,236	Sum 1^st ten loans
+8,035	Approx. amount 11^th loan
99,371	Total Sum
+7,972	Approx. amount 12^th loan
107,343	Total sum
+7,813	Approx. amount 13^th loan
115,156	Total sum
+7,656	Approx amount 14^th loan
122,812	Total sum
+7,503	Approx. amount 15^th loan
130,315	Total sum
+7,353	Approx. amount 16^th loan
137,668	Total sum
+7,206	Approx. amount 17^th loan
144,874	Total sum
+7062	Approx. amount 18^th loan
151,936	Total sum
+6,921	Approx. amount 19^th loan
158,857	Total sum
+6,782	Approx. amount 20^th loan
165,639	Total Sum 1^st 20 loans
+6,646	Approx amount 21^st loan
172,285	Total sum
+6,513	Approx. amount 22^nd loan
178,798	Total sum
+6,383	Approx. amount 23^rd loan
185,181	Total sum
+6,255	Approx. amount 24^th loan
191,436	Total sum
+6,130	Approx. amount 25^th loan
197,566	Total sum
+6007	Approx. amount 26^th loan
203,573	Total sum
+5,887	Approx. amount 27^th loan
209,460	Total sum
+5,769	Approx. amount 28^th loan
215,229	Total sum
+5,654	Approx. amount 29^th loan
220,883	Total sum
+5541	Approx. amount 30^th loan
226,424	Sum total of 1^st 30 loans

Page 28 Continued

Now that I Know How Much Money the Commercial Bank Created From the First 30 Loans, Is There an Easier Way to Estimate the Money Created by the Other Approximately 370 Loans That Could be Generated?

So from the initial 10,000 that the first customer borrowed for his used car the bank conjured out of thin air from clicks from their computer 216,424 dollars if you subtract the original 10,000 dollars for their 1^st 30 loans. Given a situation as described on NPR the value of the 1^st 30 loans would look something like the table above given the possibility that the bank only needed to keep $2 on deposit for every $100 dollars they loaned out. However, probably around 400 loan transactions could occur before the loan amounts would approach 0. How could one figure out the amount of each loan then sum all the loans to determine the actual amount of money that the bank could create if they actually kept generating loans until they reach 0? I do not have the time to continue this table to 400 loan transactions or more and I do not have a computer program to generate the data for me. To be intellectually honest I do not know how to do this kind of math but here is my guess about how it might work.

I do know however, each transaction is 2% smaller than the previous transaction. Since each succeeding transaction is always 2% smaller I predict that when I compare the total sum of money generated by the 1^st 10 loans to the sum of money generated by the second 10 loans, the second sum will be a certain % smaller than the first sum. When I compare the sum of money generated by the second group of loans for loans 11-20, to the total sum of money generated by the third set of loans 21-30, I predict that the amount of money generated by the third sum will also be approximately the same percentage smaller as the second sum was compared to the first. I think this can be represented by the

Page 29

following algebra equations. Sum 1 times X = Sum 2. Sum 2 times X = Sum 3. X= the amount of percent that each cluster of 10 loans reduces in value in terms of how much money they generate for the bank when they only have to keep 2% of their loans on deposit. To start this process lets look at the sums for the 1^st 10 loans, the first 20 loans and the first 30 loans in table 3. This information of course was taken from Table 2.

Table 3 Total Amounts of Money Generated for The First 10, 20 and 30 Loans

Total Amount of Money Generated For 1^st 10 loans	$91,236	Amount of money For loans 11-20
Total Amount of Money Generated For 1^st 20 loans	$165,639	$74,403
Total Amount of Money Generated For 1^st 30 loans$	$226,424	Amount of money For loans 21-30
		60,785

In the first group of 10 loans the bank conjured approximately $91,236 out of thin air. In the second group of 10 loans 11-20 the bank conjured $74,403 with clicks of their computer mouse. I want to determine by what % the second sum shrank as compared to the 1^st sum. To make calculations easier I will round off the numbers to the nearest thousand and make a ratio equation 74,000/91,000 = X/100. I will take away the three 0’s in the first ratio because that does not change the value of the ratio so the equation becomes 74/91 = X/100. Then I solve the problem for x. X = .78. So the second sum is about 22% smaller than the first sum

The third group of 10 loans magically generated $60,785 for the bank. I compared this group of loans to the second group of 10 loans having a total value of $74,403. So I compare the ratio 60,785/74,403 = X/100. Again I will round off to the nearest thousands in the 1^st ratio so I get 61,000/74,000 = X/100. I take away the 0s in the first ratio and the equation becomes 61/74 = X/100. X = 82. I believe the differences in X occurred because of the rounding off that I did and because for the loans I also rounded off numbers. Since my first X = 78 out of 100, and my second X = 82 out of 100, I estimate that if I did not do all the rounding off that I would guess that each succeeding group of total sum of 10 loans would reduce in value about 20%. I predict that set 4 of 10 loans will be about 20% less than set 3 in terms of its total monetary value. Table 4 is the same as table 3 but I predict what the values of all sets of 10 loans after the first 3 sets.

I was later thinking about the problem described above and realized if each succeeding loan depreciates by 2% then by the tenth loan of each batch the depreciation should be 20%. I can’t quite visualize how that works when you add the batches of loans but I am going to assume that it does.

Page 30-32

So considering the algebra equations I presented several paragraphs earlier, let’s consider what we know. We know that when we place Sum2/Sum1 = X/100 then X = 78. So Sum2/Sum1 = 78/100. In the next problem Sum3/Sum2 = X/100. In this case X =82. The average of X = 80%. On average the sum of the monetary value of the second group of 10 loans is about 80% of the value of the first group of 10 loans. Likewise the monetary value of the sum of the 4^th group of loans is approximately 80% of the monetary value of the third set of 10 loans. So the monetary value of each succeeding group of 10 loans is approximately 80% of the value of the group of 10 loans prior to it. Previously I presented the equations Sum1 Times X = Sum2. Sum2 times X = Sum3. Since each succeeding group of 10 loans reduces in money generated by 20% from the prior group of 10 loans, X = .8. The equations would read then, Sum1 times .8 = Sum2. Sum2 Times .8 = Sum 3. Sum 3 times .8 = Sum4 and so on. This is the pattern I followed to make the predictions for sums 31-40 all the way to sums 371-380 in Table 4.

Table 4 The Amount of Money Generated For the 1^st 30 Loans and the Predicted Amounts of Money Generated For Each Set of 10 Loans 31-40 through the Set of 10 Loans 371-380

Total Amount of Money Generated For 1^st 10 loans	$91,236
Total Amount of Money Generated For loans 11-20	$74,403
Total Amount of Money Generated For loans 21-30	$60,785
Predicted Total Amount of Money Generated for loans 31-40	$48,628
Predicted Total Amount of Money Generated for loans 41-50	$38,902
Predicted Total Amount of Money Generated for loans 51-60	$31,122
Predicted Total Amount of Money Generated for loans 61-70	$24,898
Predicted Total Amount of Money Generated for loans 71-80	19,918
Predicted Total Amount of Money Generated for loans 81-90	$15,934
Predicted Total Amount of Money Generated for loans 91-100	$12,748
Predicted Total Amount of Money Generated for loans 101-110	$10,198
Predicted Total Amount of Money Generated for loans 111-120	$8,158
Predicted Total Amount of Money Generated for loans 121-130	$6,527
Predicted Total Amount of Money Generated for loans 131-140	$5,221
Predicted Total Amount of Money Generated for loans 141-150	$4,177
Predicted Total Amount of Money Generated for loans 151-160	$3,342
Predicted Total Amount of Money Generated for loans 161-170	$2,673
Predicted Total Amount of Money Generated for loans 171-180	$2,139
Predicted Total Amount of Money Generated for loans 181-190	$1,711
Predicted Total Amount of Money Generated for loans 191-200	$1,369
Predicted Total Amount of Money Generated for loans 201-210	$1,095
Predicted Total Amount of Money Generated for loans 211-220	$876
Predicted Total Amount of Money Generated for loans 221-230	$701
Predicted Total Amount of Money Generated for loans 231-240	$561
Predicted Total Amount of Money Generated for loans 241-250	$449
Predicted Total Amount of Money Generated for loans 251-260	$359
Predicted Total Amount of Money Generated for loans 261-270	$287
Predicted Total Amount of Money Generated for loans 271-280	$230
Predicted Total Amount of Money Generated for loans 281-290	$184
Predicted Total Amount of Money Generated for loans 291-300	$147
Predicted Total Amount of Money Generated for loans 301-310	$118
Predicted Total Amount of Money Generated for loans 311-320	$94
Predicted Total Amount of Money Generated for loans 321-330	$75
Predicted Total Amount of Money Generated for loans 331-340	$60
Predicted Total Amount of Money Generated for loans 341-350	$48
Predicted Total Amount of Money Generated for loans 351-360	$39
Predicted Total Amount of Money Generated for loans 361-370	$31
Predicted Total Amount of Money Generated for loans 371-380	$25

Now we have some idea of how much money can be generated out of thin air from 10,000 dollars. In table five lets add up the total and see. I will start with then number $226,464 which is the total from the first 30 loans. To it I will add all the money generated from the loans 41-50 through loans 371-380.

Page 32 and 33

Table 5 Total Predicted Money Created Out of Thin Air For Loans 1-310

$226,464	Money Generated 1^st 30 loans
+48,628	Predicted money created loans 31-40
275,092	Total sum
+38,902	Predicted money created loans 41-50
313,994	Total sum
+31,122	Predicted money created loans 51-60
345,116	Total sum
+24,898	Predicted money created loans 61-70
370,014	Total sum
+19,918	Predicted money created loans 71-80
389,932	Total sum
+15,934	Predicted money created loans 81-90
405,866	Total sum
+12,748	Predicted money created loans 91-100
418,614	Total sum
+10,198	Predicted money created loans 101-110
428,812	Total sum
+8,158	Predicted money created loans 111-120
436,970	Total sum
+6,527	Predicted money created loans 121-130
443,497	Total sum
+5,221	Predicted money created loans 131-140
448,718	Total sum
+4,177	Predicted money created loans 141-150
452,895	Total sum
+3,342	Predicted money created loans 151-160
456,237	Total sum
+2,673	Predicted money created loans 161-170
458,910	Total sum
+2,139	Predicted money created loans 171-180
461,049	Total sum
+1,711	Predicted money created loans 181-190
462,760	Total sum
+1,369	Predicted money created loans 191-200
464,129	Total sum
+1,095	Predicted money created loans 201-210
465,224	Total sum
+876	Predicted money created loans 211-220
466,100	Total sum
+701	Predicted money created loans 221-230
466,801	Total sum
+561	Predicted money created loans 231-240
467,362	Total sum
+449	Predicted money created loans 241-250
467,811	Total sum
+359	Predicted money created loans 251-260
468,170	Total sum
+287	Predicted money created loans 261-270
468,457	Total sum
+230	Predicted money created loans 271-280
468,687	Total sum
+184	Predicted money created loans 281-290
468,871	Total sum
+147	Predicted money created loans 291-300
469,018	Total sum
+118	Predicted money created loans 301-310
469,136	Total sum

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I stopped the process once the money generated went under $100 dollars. One probably could go through several more cycles but most of the money that would be generated has been generated by now.

I hope that through this more concrete process you obtain some idea of how powerful our banks have become. They are allowed to produce massive amounts of low risk money virtually without cost yet they charge us interest on this low risk money that they can produce out of thin air and in exchange for our paying of interests to them they provide us very little in the way of goods and services. If you still think that I am thinking magically or am being radicalized by some libertarian propaganda I suggest you go to the following NPR link, that discusses how the Fed created money out of thin air to help some with mortgage payments. www.npr.org/blogs/money/2010/08/26/129451895/how-to-spend-1-25-trillion Understand or do your own research to see that it is not the only time they create money.

For $1,111.12 with the rule that banks must keep 2% of what they loan on deposit, almost $459,136 new money can be created out of thin air! When you consider the interest they can earn on this free

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money, the profits they make and the power they accumulate is enormous. The question is, who owns these banks and what are they doing with the power they have obtained through deceit with the willing compliance and or ignorance of the rest of us.

The wonderful people at Bank of International Settlements are very similar to the Federal Reserve except they control central banks all over the world. They have come up with the brilliant Basel plan that by 2019 will require all banks through out the world to leave at least 7% of whatever they loan out, on deposit. This means that once the seed money say 1111.12 is deposited at the central bank, it can be multiplied by the bank by 9 to get the initial $10,000 for the first loan but instead of multiplying that number by .9 each time over and over to get approximately $100,000 of new money into the system, which was done for centuries, they can multiply it by .93. So they will still generate lots of new risk free cost free money somewhere between $100,000 and say $400,000. Perhaps somewhere around $200,000 to $250,000 dollars of new money can be produced for each $1111.12 provided by the Federal Reserve or by the Bank of International Settlements if they take over and we have a worldwide currency system.

Since both commercial banks and central reserve banks generate vast sums of risk free money in this way, what do they do with the vast sums of profits that they and they extremely wealthy hidden investors pocket? Money is a form of power that definitely talks to government officials. Money is a vast power. As a very small hidden elite becomes vastly wealthy at the expense of the rest of us, could you say that this small hidden elite gains enormous power while the rest of us lose power since money is a form of power? This article describing this process, can be found in the Post labeled, The Relationship Between The Military Industrial Complex, Defense Spending, Semi-permanent or Permanent War and the Rise of Tyranny. On page 26 is the article called, Monetary Policy’s Impact on our Economy and Form of Government. Lord Acton stated centuries ago that power corrupts and absolute power corrupts absolutely. If this is true then what is in store for us if we neglect to reverse this trend? One of the concepts discussed in the article is the difference between having the power to create money and control interests rates under private or government control. Aristotle mentioned over 3 thousand years ago that when the power to issue and control money is in private hands then governments become corrupt. Does it not seem odd to you that when our government needs extra money it goes to The Federal Reserve a privately owned central banking system to get a loan that you that tax payer is going to have to pay back through your taxes. Why doesn’t the government create the money it needs its self? Then at least we would not have to pay taxes to the hidden elites that own the banks. It has been done before. We generated our own currency during the Revolutionary War and Lincoln also generated 450 million dollars in greenbacks to fight the Civil War because the banks were going to charge him between 24-36% on any loans. If Lincoln had borrowed the 450 million he needed from the banks chances are we the taxpayers would still be paying the interest on that loan today!

What is in store for our economy if this trend is not stopped and reversed? Money in a healthy financial responsible nation serves at least two purposes one being a store of wealth if there is no inflation and two, a medium of exchange for goods and services. An economy definitely will not work well unless money is fairly exchanged for goods and services. I propose that today often it is not! Before getting into my logic, let’s review a little history. When the church became powerful throughout

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Europe for many centuries usury or the charging of interest for borrowing money was forbidden. Eventually it was realized that lending money involved a certain amount of risk so interest was allowed to cover that risk and to allow lenders some profit. Today most still labor under the mistaken notion that banks are taking risks when they lend money. They are not taking large risks at all because over the centuries in the U.S. and other countries, they have gradually manipulated both the laws and regulations so they can create vast sums of money at no or little cost to themselves. It may seem like they are taking risks but that is only because sometimes they make stupid loans. So my uncle or father lending me hard earned cash to help pay for a car or a house is far different then the cash or currency the bank produces to loan to me to pay the seller for my new house. They conjure this money into existence with a click of the computer mouse. However over the next 10, 15, 20 or 30 years I better pay the bank the loan plus interest or lose my house. Very likely the money they gave me was free for them being produced from thin air. Know that they make the money almost for free so to them the money has far less risk than the money from your uncle, aunt or father! So back to my statement that much money is not being exchanged fairly for goods or services when it comes to our banks. First the money they used to cover our loans for high expense items is not hard earned cash that they scrimped and toiled the old fashion way by working! More than 90% of it is created by a click of a mouse as is shown in the tables above. Yet this almost no cost money not obtained by the exchange of goods or services is loaned to more than 90% of the people living in many nations who cannot afford to buy their houses, cars, college educations or business loans with cash. Then the banks charge interest on these loans over 90% or more they created from thin air. Many of the people with house, car education or medical loans pay between 21/2 to 5 times the value of the loans by the time they pay off all the principle plus interest. This process is terrible for our economy for 2 reasons. First the banks got most of their money for free! They don’t have to obtain their money from the exchange of goods and services like the rest of us! Second many of us pay 2½ to 5 times the value of our loans to the bank. When you talk about all these loans some of us pay hundreds of thousands of dollars extra for the privilege of keeping our possessions. What services or goods do the banks provide us for all this extra money they get? In your opinion is the amount of labor and energy you use to pay the banks worth the same as the goods and services the banks offer you in return? In one of his early chapters in his book, The End of Money and the Future of Civilization, Tom Greco does a deep analysis of how the charging of high interests and other monetary practices hamper economic growth some of which is briefly described in the next paragraph.

However let’s say you are completely free from debt. Are you free from bondage from the banks? No! Probably more than 90% or more of the working population is paying off a house, college, car, business or some other kind of loan. If one of those people happens to own a business he or she must charge high enough prices to cover the cost of paying their loans! For this person profits must be higher than for a person that has not debts still to pay off. I have no idea how much of the prices we pay are directly related to the interests that the business owners and their employees must pay to cover their loans but it would be interesting to research. In 1964, the Chairman of the Subcommittee on Domestic Finance, Committee on Banking and Currency from the House of Representatives in a thick

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document called A Primer on Money, discussed this question and many others related to banking. Again with all the money we are sending to the banks owned by hidden investors I ask, “Do you think it is worth it?” I believe if we must pay such huge amounts of interest, the banks need to offer a commiserate amount of goods and services to justify their profits. Imagine our money system was structured in a different way so that either the loans were cheaper or more goods and services were offered. Imagine cheaper loans. Far more money would be available for more business ventures where money could be fairly exchanged for goods and services. Here is a link to Wright Patman’s document. Although it is long and in some places hard to read this Congressional Report backs up what I have to say about our monetary system. http://www.scribd.com/doc/18077819/Wright-Patman-Primer-on-Money

Another issue you need to explore now that you have some idea about how banks create money is inflation along with its hidden costs. Understand also that if I create counterfeit dollars I could be put in jail for a long time. However the banks have structured the laws so that they and the government can create money at will. To understand how banks create inflation lets pretend there is a small town Nirvana with a population of about a hundred working individuals some where deep in some remote mountains. This place is so remote that people rarely leave or visit. There is no need to leave because the workers of this little town produce everything they need. There is money in this town but it is only used to buy foods or medicines or whatever a person needs. Since the farmers are highly intelligent there is always enough fruit, grains, meat and vegetables and the doctors and healers always provide both the best preventative and medical care. The amount of money within this small society is only enough to facilitate the exchange of goods and services. The workers worked hard for about 4-6 hours a day but then they were free to be with their families or pursue other hobbies. Prices were cheap so any given worker roughly spent 10,000 dollars a year but the same money keeps circulating within the town. So roughly there is a million dollars circulating in the town.

Things hummed along like this for a long time but finally a young child named Rothschild was born who somehow did not bond closely to the rest of the town thus he became a socio-path. Unfortunately he was also a genius. Unlike the others he took a dim view toward working instead looking for quick ways or tricks to gain what he wanted. He realized that with money he could get anything he wanted. He understood very young if he could figure out how the money was made then he could make his own. Being a genius he soon created money looking exactly like the other money in circulation. To keep from getting caught he paid others to buy him things and he stored what he bought far away to no one knew what he was doing. However after a few years another million dollars was added to the money supply before the other members of the town realized something was wrong.

Remember initially there was a million dollars circulating in this town and for many years there was only a million dollars in circulation because this was enough to facilitate the exchange of goods and services. A Nirvanian could go to the market and buy a quart of milk for 5 cents an apple for 2 cents and a steak for 10 cents. Then in a couple of years, Rothschild added another million dollars to the money in circulation. However the same amount of goods and services were created after Rothschild added his million dollars of counterfeit money. Now there is double the money in the town so the price of

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everything has to double. Now a quart of milk cost 10 cents, an apple cost 4 cents and a steak cost 20 cents.

Here is a different way to look at the same issue of inflation. Let’s say that a child of the diary farmer in Nirvana also became a socio-path. He observed his father producing milk for the whole town and wondered is there anyway I can make more money. Eventually the son took over the diary farm and discovered if he added water to the milk and mixed it just right no one would know the difference and he could increase the amount of milk that he sold. Of course the towns people only bought the same amount of milk but he discovered how to make other things with the left over milk like ice cream that the towns people liked and bought. Like Rothschild this man was very clever. At first he added only a little water to the milk so the towns people did not notice the difference. After a year or so he added a little more water to the milk but he did it slow enough that the people didn’t notice. Gradually over a period of many years, the man watered down the milk more and more.

How do these two examples relate to the banks and the exhaustive tables I presented to you regarding money creation? According to Money Masters a video that can be found on you tube, banks and national governments formed an unholy alliance starting in 1694 that exist into the present day relatively unchanged! England at the time fought two costly wars with Belgium and France and was broke. Government officials pleaded with the bankers for loans. They agreed to lend them any money that they desired as long as two conditions were met. First the citizens of England were to be taxed directly to cover the interest payments on any debts. Second the Bank of England was given the power to create money and the Bank of England would determine the interest rates to be charged on any loans. Now banks like Rothschild in the pretend town of Nirvana can create money out of thin air. Banks willingly do it for governments because taxpayers of any nation are taxed to pay the interests on the debts. But when you increase the money supply without increasing goods and services then prices must go up and the value of every one’s money must go down. According to the following link since the inception of our nation the value of the dollar has shrunk nearly 94%. As much as 80% of its decline occurred after President Richard Nixon took us off the gold standard in 1970. http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=11612:us-dollar-is-the-new-tulip&catid=42:rokstories Again Wright Patman’s Congressional Report, A Primer on Money also backs up most of what the Money Master’s video claims. See . http://www.scribd.com/doc/18077819/Wright-Patman-Primer-on-Money

Over the last several years the Federal Reserve’s printing presses have been virtually nonstop printing money. However the amount of goods and services produced have not been keeping pace with the increase of money supply so hyper-inflation likely looms down the road.

Liberty minded groups believe that our individual liberties and representative form of constitutional government are in deep jeopardy partly because of the financial irresponsibility of our governmental leaders and the apathy and ignorance of the electorate! A noted Scottish historian Alexander Tyler believed that democratic type nations such as ours last approximately 200 years before collapsing back again into tyranny. He described the process such nations progress through over 2 centuries. They start

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at bondage and progress through the following stages: faith, courage, liberty, complacency, apathy, dependence and then back to bondage. Once citizens discover how to get money from the public treasury the nation soon becomes bankrupt. Banks feed into this dependency because they are willing to lend the government whatever it asks for. Leaders in both political parties desire to be elected. They do so by promising their constituents everything they ask for. There are only two basic ways to fund the programs that various people treasure. One is to raise taxes. Yet to fulfill the promises that were made taxes would be raised so high that the politician would be voted out of office. Therefore the politician along with others in Congress, the Senate and the oval office borrow from the Federal Reserve. This is a form of hidden taxation without representation because sometime down the road the tax payers, their children, and or grandchildren will have to pay taxes on the interest generated from the debt. If the Federal Reserve does not have the money lying around they simply conjure it out of thin air. This is the process going on right now in 2010.

The Obama administration according to Michael Savage has generated more national debt then all the presidents from George Washington to Ronald Reagan to pay for the various programs his constituents desire. If Savage’s sources are correct then this would fit into Alexander Tyler’s view that we as a democratic nation may be near the end of our life. I have heard that nearly 48% of our people do not pay taxes and about the same number rely on government benefits. This would fit into Tyler’s pattern that once most of the people become dependent on government the nations descends into tyranny and bondage. Considering how much most of us owe in debt to the small hidden elite leaders who I believe really govern us, I believe we are very close to bondage if not already in it.

You might remember that in the third paragraph after the brief synopsis chart showing how money is created I mentioned that money can’t really be created out of thin air unless something or someone can back that money. Before 1970 gold partially backed our money. After that, treasury bonds were sold to individuals, corporations or countries to back the debt money. Today many of the holders of our debt are concerned about the massive debt being acquired by our Federal government so our leaders are trying to find other ways to back the debt they are creating realizing that one day the traditional buyers of our debt may no longer buy our treasury bonds. One of the answers that the Federal government is considering is buying and annuitizing peoples retirement funds then offering them a guaranteed income for life! That means the money in your retirement funds would be exchanged for Treasury bonds backing our increasing debt. If the people backing this proposal get their way this would be involuntary. In other words, the government will simply seize your funds and sell you the treasury bonds. Then they would offer you a guaranteed income for life. In September of 2010 the Treasury and Labor Department held public meetings to discuss this proposal. http://go2.wordpress.com/?id=725X1342&site=randysright.wordpress.com&url=http%3A%2F%2Fwww.dol.gov%2Febsa%2Fnewsroom%2F2010%2Febsa082610.html&sref=http%3A%2F%2Frandysright.wordpress.com%2F2010%2F08%2F29%2Fgovernment-wants-your-401k-hearings-set-on-plan-to-require-treasuries-in-automatic-ira%2F

If you trust the government to look after your interests, I have some great beachfront property in Arizona that I will sell to you real cheap. Our other entitlements of Social Security, Medicare and Medicaid have been looted by the Congress to pay for other programs. See the post called Social

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Security to see many links of government officials protesting the looting of our entitlement programs! Here are other links to government leaders that strongly back my statement. Google George W. Bush, Presidential Conversation on Social Security or go to Go to www.presidentialrhetoric.com/speeches, then click on image of George W. Bush on the top right side and click on it. It also says on this tab Speeches from the Bush Presidency. This takes you to another link. Under the picture, click on Speeches from George W. Bush’s Second Term. Then find the tab in the second column on the right that says February 10, 2005 Presidential Conversation on Social Security Blue Bell Pennsylvania and click on that. This will take you to the link with his entire speech. Paragraph 22 has the quote explaining that the social security trust fund has already been spent. If you know your history, The Social Security Program was created under Franklin Roosevelt’ s administration so that elderly would not live in poverty. A certain % of the money was paid by all workers to go into the trust fund only to pay the pensions of the elderly. Social Security was not part of the unified budget. Under the Johnson administration Congress changed the rules because we had such huge social security surpluses. Under the new rules social security surpluses could be used to pay for other government programs. Eventually the surpluses were spent and in 1980 Greenspan and others worked on a plan to raise FICA taxes on workers because the system again was running out of money and Congress still used surpluses to cover other government programs. In the Congressional Record dated July 22, 1998 starting at page S8715 and ending at page S8734 Senator Hollings and others propose an amendment to protect Social Security Trust Funds from looting from Senators and Congress to pay for other government programs. Also the looting of Medicare and Medicaid are discussed. Recently, according to an NPR interview with Congressman Paul Ryan we now we have over 74 billion in unfunded liabilities in the Social Security, Medicaid and Medicare Trust Funds. This is what the system will owe the clients in these programs in the near future but the money is not available. The only way the funds will likely be paid is if the Fed prints the money or we raise taxes. http://www.npr.org/templates/transcript/transcript.php?storyId=124637181 If you do a little history of the Entitlement programs I think you will find that my analysis of the government handling of the entitlements is correct. Knowing this then if I willingly turn over my retirement funds to government control then I am an ingnorant person or I just don’t care that much if people take advantage of me. For those who think that the seizing of retirement funds or other drastic measures are years away, think again.

If you have been following the news you will be aware that China one of the major holders of our debt is working with other countries to drop the dollar as the reserve currency of the world. A basket of various currencies would replace the dollar as the world’s reserve currency. Then the government would be forced to seize assets such as retirement funds to back their debt because our traditional foreign buyers of our debt would no longer buy it. At this point they would have several very harsh drastic options. They might create more money to pay off existing debt resulting in hyperinflation. They might raise taxes astronomically so the taxpayers would pay the interests on the debt. Finally, they might devalue or create a new currency. If they chose this scenario then you might be given the option of buying new dollars. Each new dollar might cost 10 of your old dollars. Thus the dollars in your retirement account would decrease in value by 90%.

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For those whom suffer from mental or physical or other conditions that preclude you from acting in your own defense this next part does not apply to you. For the rest of you, I have the following message. I believe I only have two choices, accept the system as it is and encourage my children to accept their bondage and slavery or resist, and regain my power and freedom. If I don’t then I should do the following. Now I don’t mean any disrespect to gays by saying this because by this action I would powerfully communicate my relationship to those who are in power over me if I choose to quietly accept their terms. By embracing my bondage through this act, at least my children and others will know where I stand then they can clearly make a choice for themselves. After investigating for yourself I think you will conclude as have I that you and I are being royally screwed over by some kind of hidden group.

Assuming I decide to accept bondage and slavery I will invite someone from the Basel Switzerland group or someone from the Federal Reserve System to meet with me. I would also invite everyone I can think of to attend this event including newspapers, television or radio so they could witness and broadcast the ritual. Taking a jar of vaseline, I would greet my new master then tell them, “I totally submit to your will.” Then demonstrating my sincerity I would invite them to royally screw me by turning around, dropping my drawers and grabbing my ankles. By doing this I will let everyone around me know where I stand and who knows I might actually enjoy it. If I actually get screwed I realize that what they are actually doing to me through our financial system is far worse and since I decided to embrace my bondage I would learn to get use to it because it is likely to happen more and more often.

This is how I fell about the terms that my predatory and parasitic brothers and sisters offer to me! God willing I will be given the strength and wisdom to resist this bondage and find my freedom and power. I hope my cousins or countrymen can do so also. I no longer choose to be apathetic, ignorant or politically correct. I am no longer comfortable with the way things are and although I know people are going to always take advantage of me, our world is different. Today not only do people take advantage of me but I believe my life, and liberty as well as the lives and liberty of others is threatened so my DNA calls me to act.

http://marketplace.publicradio.org/display/web/2010/09/30/pm-how-basel-iii-will-affect-bankers-and-consumers/

Chief of the European Central bank, Jean-Claude Trichet announced that the formally Nazi owned bank of International Settlements is to become the primary engine of the global government.

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Guess what! Many of the founders and early leaders of the Bank of International Settlements were Nazis who were convicted of war crimes. The bank was initially set up to funnel war reparations out of Germany but soon it funneled money into Germany to finance Hitler. Knowing this many countries wanted to disband the bank during and after the war. However Rockefeller Truman and other interests in America and Britain vetoed the idea even though we were at war with the Nazis at the time. Go to

http://www.prisonplanet.com/former-nazi-bank-to-rule-the-global-economy.html or research it on the internet. You will find it. You have to wonder, are some people of the same elk still in the bank?

On April 30, 2010 the chief of the European Central bank, Jean-Claude Trichet announced that the formally Nazi owned bank of International Settlements is to become the primary engine of the global government.

I feel so grand that they are there to take care of my children and I. Here is a link to the transcript to his speech. www.cfr.org/publication/21989/global_governance_today.html In the next link you have a video of the high lights of his speech and a video of his full speech. http://www.cfr.org/publication/21987/trichet.html

Uncontrolled Printing of Money By Fed Could Lead to Empty Store Shelves

The Fed at this time is printing money uncontrollably. If this leads to hyper-inflation it could have unforeseen consequences for all Americans one of which might be the emptying of store shelves before money becomes almost valueless. The video below explains this process in greater detail.

http://www.youtube.com/watch?v=BIVVL43qPXY&feature=player_embedded

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Creature From Jekyll Island/ History of the Federal Reserve Video

This is an hour and 10 minute video history about the Federal Reserve. I ran across this presentation audio and thought you might like it too. The guy is a great speaker, very informative in layman's terms and entertaining to boot. It's about and hour and 10 minutes, but you can just listen while doing something else. It's from 1994 but listen carefully at the 52:30 minute mark about bailouts.

http://video.google.com/videoplay?docid=-8484911570371055528&q=The+Creature+from+Jekyll+Island&total=29&start=0&num=10&so=0&type=search&plindex=0

The U.S. Senate Permanent Subcommittee on Investigations headed by Democratic Senator Carl Levin from Michigan They investigated the role that Wall Street and Investment Banks such as Goldman Sachs played in the financial meltdown in 2008. Goldman Sachs seemed to know about the looming crisis before hand because they continued to encourage their clients to buy assets containing toxic mortgages yet they themselves sold toxic assets to foreign banks, retirement funds etc. to reduce their exposure to risk. They were the only major investment bank that was least impacted by the meltdown when it hit. Press release was sent out by the committee on Monday 4/26/10

http://citywire.co.uk/clickout.aspx?TargetURL=http%3a%2f%2fhsgac.senate.gov%2fpublic%2findex.cfm%3fFuseAction%3dPress.MajorityNews%26ContentRecord_id%3d3bf9e7c2-5056-8059-7621-22bb68e8633b&Code=ContentVersionID_423149&Internal=False

For First Time In Its History Federal Reserve Buys Mortgages August 26^th 2010 NPR Money Planet Today some payments for mortgages go directly to the Federal Reserve. During November 2008 during the apex of the financial crisis a bunch of central banker wondered how to avoid a depression. They reduced short term interest rates to near 0 but the housing market was still tanking. Their solution: for the first time ever was to buy up mortgages. Over the next 15 months they created 1.25 trillion dollars out of thin air to buy 1/5 of all government backed mortgages. I told you so. http://www.npr.org/blogs/money/2010/08/26/129451895/how-to-spend-1-25-trillion

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Senate Goes to Bat For Wall Street, Rejects Plan To Break up Banks

By Zach Carter, AlterNet
Posted on May 7, 2010, Printed on May 8, 2010
http://www.alternet.org/story/146777/

Here are some major points from the article. The Senate rejected the single most important part of Wall Street Reform in a 33 to 61 vote rejecting the Safe Banking Act. The Act would break up the six largest banks and reduce the stranglehold of Wall Street and the economic elite. Other reforms of Wall Street maybe enacted but the most important, Too Big to Fail was not. The Senate also rejected a 50 billion dollar tax on Wall Street to fund the cost of shutting down a major failing bank.

President Obama who opposed both bills celebrated the Congressional action by hosting Jamie Dimon the CEO of J.P. Morgan for dinner at the White House. It is the largest U.S. bank and spent more on lobbying Congress than any other bank. House minority leader Boehner has also aggressively courted Dimon for campaign cash.

There is little evidence that megabanks help the economy. The debt disasters in Europe also lend evidence to the above. Adam Smith warned against the dangers of megabanks in the 18 century.

The giant banks that have been allowed to stand will make it increasingly difficult for Congress to regulate these giants in the future These are the senators who voted last night to preserve Wall Street's power. Senators in bold also voted for the bailout bill in 2008:

The names in bold also voted for the 700 billion economic bailout

Akaka (D-HI), Alexander (R-TN), Barrasso (R-WY), Baucus (D-MT), Bayh (D-IN),

Bennet (D-CO), Bond (R-MO), Brown (R-MA), Brownback (R-KS), Burr (R-NC),

Carper (D-DE), Chambliss (R-GA), Cochran (R-MS), Conrad (D-ND), Corker (R-

TN), Crapo (R-ID), Dodd (D-CT), Enzi (R-WY), Feinstein (D-CA), Gillibrand (D-NY)

Graham (R-SC), Grassley (R-IA), Gregg (R-NH), Hagan (D-NC), Hatch (R-UT),

Hutchison (R-TX), Inhofe (R-OK), Inouye (D-HI), Isakson (R-GA), Johanns (R-NE)

Johnson (D-SD), Kerry (D-MA), Klobuchar (D-MN), Kohl (D-WI), Kyl (R-AZ),

Landrieu (D-LA), Lautenberg (D-NJ), LeMieux (R-FL), Lieberman (ID-CT),

McCain (R-AZ), McCaskill (D-MO), McConnell (R-KY), Menendez (D-NJ),

Murkowski (R-AK), Nelson (D-FL), Nelson (D-NE), Reed (D-RI), Risch (R-ID),

Roberts (R-KS), Schumer (D-NY), Sessions (R-AL), Shaheen (D-NH), Snowe (R-ME),

Tester (D-MT), Thune (R-SD), Udall (D-CO), Voinovich (R-OH), Warner (D-VA),

Wicker (R-MS)

Zach Carter is an economics editor at AlterNet. He writes a weekly blog on the economy for the Media Consortium and his work has appeared in the Nation, Mother Jones, the American Prospect and Salon.

5/12/10 The Fed May be involved in bailing out Greece using our taxpayer money. There is no way to know because the bill to Audit the Fed was severely watered down so we do not know what the Fed is doing with the money that they have. Connect to the link below to see Ron Paul videos… an epitaph of sorts and the audit and a sober warning about DEBT from Ron Paul (although, there are other ways to stabilize currency without a gold standard)

http://www.youtube.com/watch?v=cFqNwby0U78 If Ron Paul makes sense to you can call this number 888-322-1414 and get a new update every Monday. Transcripts of his talks can be found at his website. When I googled Federal Reserve and Greece Bailout over 540,000 results came up.

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AP/Fed Joins IMF in Bailout

Friday May 14, 2010 In an article from the associated press, the Fed joined the IMF and other financial institutions to lend money to European banks to resolve the financial crisis in Europe especially the crisis in Greece that could spread to Spain and Portugal.

The package did not resolve the basic dysfunction at the heart of Europe's monetary union: Governments can still spend recklessly and saddle their partners with the bill.

http://finance.yahoo.com/news/Trilliondollar-euro-rescue-apf-644989406.html?x=0&sec=topStories&pos=3&asset=&ccode=

http://chooseliberty.org/c4ldonate5.aspx?pid=s22 A humorous but sad video on the state of European economy. Received Thursday June 4, 2010. Notes from http://chooseliberty.org/c4ldonate5.aspx?pid=s22 Greece owes 367 billion dollars to other members of European Union. Ireland owes 860 billion dollars to other members of European Union. Spain and Italy owe 1 trillion dollars each to mainly France, Britain and Germany. Spain owes Italy 1 billion dollars. Italy owes Spain 27 billion dollars. If all of these economies are broke where are they going to get a bail out? Wee! What a predicament!!! The Fed is still in business. Since our Congress and people are not willing to audit them, they can do what they damn well please as long as China backs up our debt.

This article I emailed on Saturday May 29, 2010. I took out some of the pictures but included the text. It shows how tyrannical powerful moneyed interests are slowly enslaving us.

I watch with awe and fear while the great predators among us slowly enslave and overpower us. Alas the distinguished Senator from Alabama may be correct in his analysis. Unfortunately my secretive brothers and sisters at the Federal Reserve have been skimming money from the poor and middle classes and depositing it to the very wealthy along with their ancestors starting with the dawn of the agricultural revolution and definitely since the founding of the Republic. Like the rise of Moordor in Middle Earth, the stench of their power overshadows the land. The only question in my mind is when will the all out attack begin? Could the Korean Crisis be a prelude?

First they must get as close to checkmate as they can. I can see below that they are about to seize another piece from their opponent Liberty in the chess match. I must admit it is a beautiful strategy. They pretend that the horrible Republicans under Reagan and the Bushes have allowed too much deregulation of business among other evils. Then, the savior Democrats usher in new regulations to protect us from the evil corporations. OOPS! Where will the money come from to pay for all the regulators?

Uncle Sam Enters the End Game Part 3

Sunday, September 25, 2011

News About the Fed, Banking and Finance Part 1

The Weekly Walk of Shame: Wall Street Lobbyists and Your Money

Senate Goes to Bat For Wall Street, Rejects Plan To Break up Banks

By Zach Carter, AlterNet
Posted on May 7, 2010, Printed on May 8, 2010
http://www.alternet.org/story/146777/

© 2010 Independent Media Institute. All rights reserved.
View this story online at: http://www.alternet.org/story/146777/

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Sunday, September 25, 2011

News About the Fed, Banking and Finance Part 1

The Weekly Walk of Shame: Wall Street Lobbyists and Your Money

Senate Goes to Bat For Wall Street, Rejects Plan To Break up Banks

By Zach Carter, AlterNet Posted on May 7, 2010, Printed on May 8, 2010 http://www.alternet.org/story/146777/

© 2010 Independent Media Institute. All rights reserved. View this story online at: http://www.alternet.org/story/146777/

No comments:

Post a Comment

By Zach Carter, AlterNet
Posted on May 7, 2010, Printed on May 8, 2010
http://www.alternet.org/story/146777/

© 2010 Independent Media Institute. All rights reserved.
View this story online at: http://www.alternet.org/story/146777/