Introduction to Devaluation and Demonetization
The current financial crisis is a great opportunity to teach peace. Wars may be about land, or energy, or power, but they require vast expenditures of money. The object of this article is to explore the role of money, a subject wrapped in secrecy agreements. A key message is the US dollar is being devalued and over a period of less than a decade demonetization leading to a global currency is a very real possibility.
Americans are beginning to see the Teach Peace bailout grand theft warning is accurate. A JPMorgan Chase executive has confirmed the bailout funds are not to help homeowners but to consolidate power in anticipation of what could become a depression. The banks listed to the right are using taxpayer funds to buy smaller banks.
A powerful signal confirming our September warning occurred in early October when Treasury Secretary Paulson, the former CEO of Goldman Sachs, paved the way for bank mergers with multi-billion tax breaks allowing banks to immediately deduct the losses of acquired banks.
People are increasingly waking up to see what the Federal Reserve is and who it really serves. The opportunity we now have is one that can unite all Americans and benefit everyone who cares about our country.
This article has five parts. The first part includes definitions needed to understand the financial crisis. Next are specific warnings that summarize key themes in the article. The third part explains why we are on the path to devaluation and demonetization. The fourth is an explanation of the Federal Reserve. The fifth identifies specific actions to solve current problems and prevent even bigger ones.
Devaluation and Demonetization
Part 1 – Definitions
To understand the financial crisis, and an even greater one on the horizon, one needs to understand these financial terms:
Bank for International Settlements – The Bank for International Settlements (BIS) was established by the Hague agreements of 1930 and is headquartered in Basel, Switzerland. The privately owned BIS coordinates with 55 member central banks.
Cartel – A small group that agree to manipulate prices. The Federal Reserve and the Organization of Petroleum Exporting Countries (OPEC) are examples.
Credit default swap – An insurance contract between two or more parties to transfer credit exposure. The buyer receives credit protection and the seller guarantees the credit worthiness of the product.
Credit derivative - A security whose price is dependent upon or "derived" from underlying assets. A credit derivative contract's value is determined by fluctuations in the value of the underlying assets. When home foreclosures increase, credit derivative contracts with home mortgages as assets are deemed toxic.
Debt –The amount of money borrowed.
Deficit – An amount when spending exceeds revenues.
Demonetized dollar – The withdrawal from circulation of the dollar. Demonetization can include substituting new notes of the same currency or completely replacing the former currency. The European Union’s adoption of the euro is an example of completely replacing the former currency. EU citizens had between January 1, 2002 and February 27, 2002 to exchange former currencies. This means that the former currencies are objects of no value except as a historical curiosity.
Depression – A prolonged recession with high unemployment, restricted credit, numerous foreclosures, volatile market fluctuations, deflation or hyperinflation, and lost confidence resulting in economic collapse.
Discount rate - The interest rate banks pay to borrow short-term funds directly from the Federal Reserve.
Federal Reserve – A privately owned banking cartel chartered by the U.S. government with the passage of the Federal Reserve Act in 1913. The Federal Reserve is explained in more detail in part four below.
Fractional reserve banking – A lending scheme currently used by banks where only a fraction of bank deposits are backed by assets. During the Great Depression many banks failed because depositors attempted to withdraw deposits at the same time. Financial service deregulation, including Glass-Steagall and the Commodities Futures Modernization Act, have undermined safeguards that can now destroy thousands of banks.
Gresham’s Law - Bad money drives out good. Bad money refers to "fiat" money. Fiat is from the Latin "let there be." The U.S. dollar is an example of bad money because it is not backed by gold or silver. The classic example of good money is a gold or silver coin.
Gross domestic product or GDP – The monetary value of all the goods and services produced and often measured annually. GDP is an indicator of economic health.
M3 – The broadest measure of money including physical currency, demand deposits, savings deposits, money-market funds, large time deposits, short-term repurchase agreements, and other large liquid assets. M3 helps people understand how policies will affect interest rates and growth. Military overspending is an example of increasing M3 in a way that hurts the economy and devalues the dollar.
Recession – A period generally under 18 months of declines in housing, employment, production, trade, and real income. The technical definition is two consecutive quarters of negative economic growth as measured by a country's gross domestic product.
Reserve currency – An anchor currency held by many governments as part of their foreign exchange reserves and the international pricing currency for global commodities such as oil and gold. The dollar is 64% of the reserve and the euro is 27% of reserve. Together they are over 90% of the total global reserve currency.
Toxic asset – An investment where value has greatly depreciated. For example, with rising home foreclosures, credit derivative mortgage contracts are toxic.
Triggering event – An occurrence that causes another event to occur. For example, declining housing prices, a U.S. attack on an Iran, and rising unemployment are triggering events that impact the economy.
USDX – A measure of the strength of the dollar relative to a basket of currencies. The U.S. Dollar Index was created in 1973 after the Bretton Woods monetary system collapsed in 1971. The 1971 collapse occurred when the U.S. suspended conversion from dollars to gold making the dollar the major global reserve currency. The index started with a base of 100 relative to six currencies: the British pound, the Canadian dollar, the euro, the Japanese yen, the Swedish krona, and the Swiss franc.
Part 2 – Specific warnings
Thomas Jefferson, John Adams, Woodrow Wilson, and even Henry Kissinger provided warnings about the Federal Reserve.
President Thomas Jefferson highlighted the danger of the Federal Reserve with "I sincerely believe that banking institutions are more dangerous to our liberties than standing armies."
He also correctly warned about the private central bank of his time that "[The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries."
President John Adams noted the need for education when he said "All the perplexities, confusion and distress in America arises, not from...want of honor or virtue, but from the downright ignorance of the nature of coin, credit and circulation."
Accused war criminal Henry Kissinger has observed "Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world."
President Woodrow Wilson, the person who signed the Federal Reserve Act into law, subsequently stated:“A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom. This is the greatest question of all, and to this statesmen must address themselves with an earnest determination to serve the long future and the true liberties of men.”
The above quotes are helpful as people learning about the Federal Reserve sometimes express if this is true why haven't honorable leaders spoken up against it. The fact is, credible people have called to abolish the Federal Reserve but their efforts are countered by the owners of the system with what has proven to be extremely effective propaganda.
Part 3 – The end of the strong dollar money era
With the Fed lowering the discount rate to 1% on October 29, we may be witnessing the end of one money era and the beginning of another. Unfortunately, rebounds in the stock market and a stronger dollar are illusory, as government overspending is destroying the dollar.
This latest round of irresponsibility started in 2000 when the Commodity Futures Modernization Act was passed as an amendment to a larger government reauthorization bill. After the new investment products were introduced, respected investor Warren Buffett identified credit derivatives as “financial weapons of mass destruction.”
Early warning signs were everywhere and an especially noteworthy one was the discontinuance of the M3 money supply statistics in March 2006.Government economists say M3 was no longer meaningful, but the real reason is publishing M3 undermines confidence in the dollar.
On February 14, 2008 the Washington Post published Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers. The article by then New York State Governor Eliot Spitzer, charged "Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye." This article by Spitzer, with public testimony to Congress, and a national CNBC interview, fell from public attention when his involvement in prostitution became headline news.
In March 2008, a secret House session, the first since 1983, reportedly discussed the current financial crisis under the cover story of a Foreign Intelligence Surveillance Act meeting. A few months later the ranking Republican on the House Budget Committee, Rep. Paul Ryan (R-Wisconsin), said the U.S. is headed toward bankruptcy and "all the actuaries, all the objective scorekeepers of the federal government, are predicting this."
Taxpayers started receiving some of the $150 billion IRS stimulus package contributing to a dramatic money supply increase. On May 30, 2008 the failed Bear Steans was purchased by JPMorgan Chase. On September 7, 2008 Fannie Mae and Freddie Mac went into conservatorship. At this point many people began to realize the seriousness of this financial tsunami as Fannie and Freddie owned or guaranteed half of the U.S. $12 trillion mortgage market. The initial $200 billion for Fannie and Freddie could ultimately exceed $500 billion.
On a historical note, lack of transparency in finance is a formula for disaster. For example, Fannie Mae and Freddie Mac were the only two Fortune 500 companies not required to inform the public about any financial difficulties and now U.S. taxpayers are on the hook for their losses.
The following week, in mid-September, gold dealers claimed Vice President Dick Cheney held a secret meeting in Jackson Hole, Wyoming, with central bankers from around the world. Immediately following this meeting, mints around the world discontinued or rationed shipments of “good” money (i.e., gold coins). For the first time in decades the availability of gold coins is determined on a daily basis. At the same time, liquidity calls and failing hedge funds have forced institutional investors to sell precious metals bringing gold to a 13 month low. For students of history and Gresham’s law, this Jackson Hole meeting is a powerful signal that a major currency change is on the horizon.
The waves of disaster continued with the Lehman Brothers bankruptcy, followed by a distressed Merrill Lynch, and a failing AIG. AIG is the U.S.'s largest insurer and had it collapsed, the rippling effect on other financial firms would have likely resulted in the U.S. dollar being demonetized by the end of 2008. A demonetized dollar means dollars would no longer be legal tender.
Congress's top bookkeeper, the director of the Congressional Budget Office Peter R. Orszag, warned in testimony before the House Budget Committee on September 24th that the $700 billion bailout could worsen the current financial crisis.
As investors panicked, withdrawals put stress on banks. As a result, the biggest bank failure in U.S. history occurred on September 25, 2008 when Washington Mutual went into receivership. A $700 billion bailout package, summed up in an previous Teach Peace article as giving an addict more heroin, was rushed through Congress with little discussion in the media of the deeper problems originating from the Federal Reserve private banking cartel. Like the initial Bush administration Iraq War estimates of $50 billion that I estimated to be at least $1.9 trillion in my 2005 American Hiroshima book, I and others now calculate the $700 billion equates to increasing the national debt by over $5 trillion.
On September 28, 2008, Congress.org reported that over 91% of Americans opposed the bailout. The $700 billion was initially rejected by Congress. When the stock market tanked the following day, rather than pursue steps to solve the root problem, many panicked Americans swallowed National Public Radio and corporate media propaganda and went along with anything that they were told would stop losses in their 401(k) and investment portfolios.
On October 1, to side-step governor National Guard control, an active duty military force called the Consequence Management Force (CMF) was activated. The CMF's stated purpose is to contain civil unrest, although more recent press releases are focused on responding to nuclear terrorism. The Bush administration fears civil unrest may be sparked by the $2 trillion plus that has vaporized from 401(k) plans and other investment accounts. Historians may look back at October 1st as a tipping point. Congressman Brad Sherman's (D-OH) disclosure that members of Congress were told if the bailout did not pass there would be martial law definitely explains why the CMF was activated. The bailout was signed into law by President Bush on October 3. The grand theft helping international bankers is illustrated by Section 112 in the Emergency Economic Stabilization Act where taxpayer funds are buying "foreign troubled assets."
Relatively few Americans know about the Bank for International Settlements, who owns it, and its relation to the Federal Reserve. The infamous Section 8 secrecy language in the proposed September 29 bill reappeared in the Emergency Economic Stabilization Act with minor changes. Section 129C states "The information submitted to the Congress under this section shall be kept confidential (upon the written request of the Chairman of the Board, in which case it shall be made available only to the Chairpersons and Ranking Members of the Committees described in subsection (a))." A key takeaway from the bailout secrecy language is that while domestic distributions may make the news, distributions to international banks will remain secret.
On October 8, the central banks of seven nations lowered interest rates by half a percent. This was the first time that so many central banks lowered interest rates together. The global stock market officially ended the week down 20%, which is the technical definition of a global crash. On October 10, the G7 countries (U.S., Japan, Germany, Britain, France, Italy and Canada) announced coordinated efforts to infuse cash to stabilize banks. As a result of renewed investor confidence, the stock market had its best single day in history on October 13 with the DOW increasing by 936. The stock market continued to have major up-and-down swings as investors jumped from exciting buying opportunities to fear the sky was falling. Stocks trended down and foreclosure filings spiked by 71% relative to the prior year. Four days later a leading Chinese state newspaper called for the world to change to other currencies because the U.S. had plundered global wealth by exploiting the dollar’s dominance.
On October 28 the DOW had its best second day ever, rising 889 points or 11% to 9,065. More important than the DOW, on this same day reportedhome prices dropped for the 25th consecutive month, plunging a record 17.7% year-over-year in 10 major markets. In addition, consumer confidence dropped to an all time low with the Consumer Confidence Index at 38.
People are realizing that what the Bush administration is doing via the bailout is similar to a monetary attack by a foreign enemy. The bailout is similar to a CIA operation in Iraqduring the 1990s. Iraq was flooded with counterfeit money indistinguishable from Iraqi currency. The fake currency undermined the entire Iraqi economy. The Nazis planned something similar, called Operation Bernhard, in World War II. Had they succeeded in flooding the British with counterfeit notes, the British pound would have been devalued and destroyed Britain's economy.
Long-term, we are on a
path to have the dollar demonetized. Two
generations of Americans have lived in a world where a demonetized currency
was beyond imagination. Now the bailouts and bank consolidations have positioned
the economy to go over the cliff. Misguided actions by
Congress, intentional harmful actions by the President and the Fed, help the
financial crisis become a financial American Hiroshima. A great
depression may now be triggered by several catalysts including a U.S. attack
on Iran or declining housing
prices, or the existing toxic credit derivatives.
As columnist Will Hutton observed on October 12, "…the dark heart of the global financial system is the $55 trillion market in credit derivatives and, in particular, credit default swaps, the mechanisms routinely used to insure banks against losses on risky investments. This is a market more than twice the size of the combined GDP of the US, Japan and the EU. Until it is cleaned up and the toxic threat it poses is removed, the pandemic will continue. Even nationalized banks, and the countries standing behind them, could be overwhelmed by the scale of the losses now emerging."
The U.S. is especially vulnerable because we may be approaching the time when the interest on the national debt will be unserviceable and this may result in demonetization and the introduction of a new currency called the Amero.Adding the likely costs of the financial crisis puts the national debt over $16 trillion, more than the total Gross Domestic Product (GDP).
Congress has done nothing to address the structural flaws of fiat money. Furthermore, the financial crisis is being exacerbated by current wars and a possible war with Iran. Facing the truth means realizing military over-spending is a national security threat. Ever since the atomic bomb was created in 1945, and especially since the thermonuclear bomb was invented in 1952, fear has been used to mislead the American people that a large military is needed for self-defense. For decades the reality is that any enemy seeking to invade the United States would be quickly repelled and entire nations can be completely destroyed in 15 minutes. Will it take a depression for Americans to realize that excessive military spending, now over $20,000 each year for a family of five, is a threat to homeland security?
The Euro and potentially a basket of world currencies are in the process of replacing the dollar as the world's reserve currency. The Euro and gold already play a prominent role in international oil trades. With uncontrolled U.S. government spending and costly imperial adventures, the demise of the dollar accelerates.
In summary, a new era is upon us. The United States as we know it is experiencing unprecedented changes. The designers of the Federal Reserve and the financial institutions they influence are among the most powerful political action groups in the country. Bank consolidations are now aggressively underway to facilitate transferring the next round of losses to the American people. Solutions are waiting to be seized, but to appreciate them additional information about the Federal Reserve is essential.
Part 4 – What is the Federal Reserve or Fed?
The Fed is not owned or funded by the government. The Fed was designed in great secrecy by a banking cartel off the coast of Georgia on Jekyll Island in November 1907. The Federal Reserve Act was approved by Congress on December 23, 1913.
The Federal Reserve Act established 12 regional Federal Reserve Banks. The Reserve Banks issue shares to “member banks” that are non-government corporations. The shares issued can’t be sold or traded. Dividends are set by law at 6 percent a year. This unique provision preventing the public trading of Fed stock enables this banking cartel to operate with secrecy. Ongoing secrecy is facilitated because the Securities and Exchange Commission requires only publicly traded corporations to disclose major shareholder information.
On the surface, the Federal Reserve System is presented as neither government nor private because it does not seek to generate profits and is supposed to exist for the benefit of American citizens. The Fed earns money from buying and selling Treasury debt in the open market, on currency trades, on foreign debt interest paid, and via the discount rate. Congress, in order to avoid raising taxes, goes to the Fed to have the money created for what is more like a service charge than true interest on a loan. Fed-created money begins to grow the money supply which has a negative impact on the purchasing power of the dollar. The Fed returns most of the surface level earnings to the U.S. Treasury.
The majority of the money made is below the surface level. At the shareholder bank level and as documented in books by Kah, Mullins, and Shauf, the Fed is a phenomenal money-making machine for the banking cartel that created it. The banks benefit because the Fed created money, when deposited into a commercial bank, permits that bank to loan $9 for every $1 of deposits. Private banks earn interest, above the rate of inflation, on this much larger sum of money. Now that the smaller banks are being gobbled up by the larger Federal Reserve shareholder banks, the profits are increasingly concentrated. The process repeats with government overspending that results in the previously borrowed money being repaid with even bigger loans to pay the interest on the original loan.
A key point to note is the Fed is the agency of inflation. Inflation is a hidden tax because as new money is printed, money already printed becomes less valuable. This means everyone loses except the banks who benefit from charging interest on money they never had in the first place.
Sadly, via the above formula, the U.S. taxpayer is paying interest to private banks on government-borrowed funds instead of benefiting from a citizen-issued currency. The amazing truth is the Fed shareholders have a financial interest in increasing the U.S. debt, which is just one of many mind-boggling conflicts of interest.
Fed advocates claim the Fed is controlled by the U.S. government, yet there is little meaningful oversight of the Fed. Yes, the Fed chairman and members of the Fed’s Board of Governors are selected by the President and confirmed by the Senate. As documented by author William Greider in his book Secrets of the Temple, during President Carter’s administration the Wall Street forces that help a president rise to power have tremendous weight on Fed appointments. In addition, Fed board members have 14-year terms, which undermines any accountability to the White House or U.S. taxpayer. The Fed does have a requirement to send the Fed Chairman to deliver a public relations moment on Capitol Hill twice a year.
The money as debt game is believed to be kept in play in part because the private banking cartel hires economists and agents to promote confidence in the Fed. Wall Street executives almost always have secrecy agreements with their firms that discourage openness about a firm's internal operations. Nonetheless, many people have stepped forward with books such as The Creature From Jekyll Island by G. Edward Griffin.
Senator Louis T. McFadden
On May 23, 1933 the Chairman of the House Banking and Finance Committee, Senator Louis T. McFadden spoke out against the Federal Reserve owners:
“Mr. Chairman, we have in this Country one of
the most corrupt institutions the world has ever known. I refer to the Federal
Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed
has cheated the Government of these
United States and
the people of the United States out of enough money to pay the Nation's debt.
The depredations and iniquities of the Fed have cost enough money to pay the
National debt several times over.
This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.
In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.”
To access the Congressional Record withSenator Louis T. McFadden’s detailed criticism of the Federal Reserve, click here.
The Founding Fathers "planted the seeds"
Historian Alexander Del Mar, in his 1988 book The History of Money in America, explained how the Founding Fathers left the door open for private banks to issue currency and credit.
"Never was a great historical event [The American Revolution] followed by a more feeble sequel. A nation arises to claim for itself liberty and sovereignty. It gains both of these ends by an immense sacrifice of blood and treasure. Then when victory is gained and secured, it hands the national credit - that is to say a national treasure over to private individuals, to do as they please with it! ... Americans of the revolution had before them ... the historical examples of Greece and Rome. In all these states the main contention from first to last between the aristocratic and popular factions arose out of and centered in the monetary system; that greatest of all dispensers of equity or inequity."
Was the oversight in the Constitution, assigning the function of money creation to the federal government but not describing the mechanism for issuing currency and credit, intentional? The oversight was indeed intentional as the right to create currency and credit was one of the issues that led to the American Revolution. Just a few years earlier, in 1751, the English Parliament passed the Currency Act which banned New England colonies from issuing their own currency.
Who are the owners?
Federal Reserve shareholder names are a highly guarded secret. The fact that this information is not available to the American people should speak volumes.
Author Eustace Mullins in his 1983 book Secrets of the Federal Reserve, reported on page 179 that the top eight shareholders of the New York Fed were, in order from largest to smallest as of 1983, Citibank, Chase Manhattan, Morgan Guaranty Trust, Chemical Bank, Manufacturers Hanover Trust, Bankers Trust Company, National Bank of North America, and the Bank of New York. At first glance, the owners of the Fed are U.S. banks but the next question is who owns the banks?
What is the "veneer" of the Federal Reserve?
To determine how international bankers are connected to Fed ownership, a few blanks must be filled in. First in 1913 the Fed sold shares to banks in the district that the Fed operated in. All of these banks are U.S. banks (the veneer level) but this does not mean that they are owned by U.S. citizens.
Eustace Mullins reported that the top eight banks owned about 63 percent of the New York Fed's outstanding stock. Mullins then showed that many of these banks are owned by a dozen European banking organizations, mostly British, and most notably the Rothschild banking dynasty. Through their American bank ownership, they are able to select the board of directors for the New York Fed and to direct U.S. monetary policy. Mullins explained, "... The most powerful men in the United States were themselves answerable to another power, a foreign power, and a power which had been steadfastly seeking to extend its control over the young republic since its very inception. The power was the financial power of England, centered in the London Branch of the House of Rothschild. The fact was that in 1910, the United States was for all practical purposes being ruled from England, and so it is today." (Mullins, pp. 47-48).
Lewis v. United States
The courts have ruled that the Fed is a private corporation. For example, a 1982 court ruling regarding the Federal Reserve Bank (Lewis v. United States, 680 F.2d 1239) came to this conclusion. “Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Federal Reserve Banks are not federal instrumentalities for purpose of the Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations."
In the phone book the Federal Reserve is listed as a private corporation just like Federal Express.
Leadership is needed
Unfortunately both Barack Obama and John McCain have failed to address the key changes required to prevent further financial disaster. While John McCain's militaristic policies would accelerate the demise of the dollar, Barack Obama's endorsement of the Bush bailout is also leading to devaluation and demonetization.
Why are both candidates afraid to talk about abolishing the Fed? Woodrow Wilson and FDR told us why.
"Some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." Woodrow Wilson in chapter 1 of his 1913 book The New Freedom, published by Doubleday, Page & Co.
"The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson, and I am not wholly excepting the administration of W.W. (Woodrow Wilson). The country is going through a repetition of Jackson's fight with the Bank of the United States -- only on a far bigger broader basis." Written by President Franklin Roosevelt to Colonel Edward Mandell House, November 21, 1933.
There would be a revolution if people understood the relation between the banks receiving bailout funds and their relation to the owners of the Federal Reserve. Analyst Jon Markman, in the video to the left, correctly observes that a few large banks such as JPMorgan Chase are the big winners. JPMorgan Chase has already acquired Washington Mutual and Bear Sterns. JP Morgan Chase has $2.3 trillion in assets, the largest deposits, and the highest market capitalization of any U.S. bank. This "American" bank operates in over 60 countries and is firmly in the grip of the Rothschild banking dynasty. To keep the circle of secrecy closed, the Rothschilds are rewarding key executives from the acquired institutions with new assignments.
Until more voters realize the Fed is neither federal or a reserve, leaders like Congressman Ron Paul who do take on the Fed will continue to lose presidential primaries (he finished fourth in the2008 Republican presidential primaries). Ron Paul understands the Fed and testified, "Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy…It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government."
Part 5 - What you and I can do
To reach peace, we must teach peace. Start by understanding keysteps needed to end the recession and prevent a depression.
- Acknowledge the global bank cartel is real.
- Audit the Federal Reserve. To prevent future corruption, demand disclosure of the names of the private owners of this cartel and abolish the Federal Reserve.
- Restore regulations, especially Glass-Steagall, to protect consumers from seeking short-term profitability over long-term stability.
- Phase in "good" money and a reduction of fractional reserve rates in a systematic manner over a period of 10 years.
- Reduce military spending and bring U.S. troops home from bases in over 130 countries. Combined with abolishing the Federal Reserve, reduced military spending would “free up” trillions of dollars and restore national solvency within a decade.
- Declassify the March 2008 secret session of the House of Representatives.
- Require companies receiving taxpayer funded welfare to adjust mortgages for any mortgage holder with less than a $50,000 net worth (this would prevent speculators from receiving benefits and focus help on those most in need). In this situation their initial contracted interest rate would be maintained for five years. Home owners unable to afford these mortgage payments would have the option to remain as renters at market rates for five years.
- Prohibit campaign contributions from corporations and PACs.
- End the legal fiction that a corporation is a person.
- Terminate the North American military agreement signed in 2008 with Canada that is leading to a North American Union. The list of Security and Prosperity Partnership of North America agreements is astonishing.
Now that you know the problem and the solution, share this information with your friends and family.
The next president will have to act urgently. Initial steps include stopping military attacks in Syria, Pakistan, Afghanistan, and Iraq. The continued failure to acknowledge the bank cartel is real and the belief the Federal Reserve System is not part of the problem leaves a dark cloud on the horizon.
If we each do our part to help our democracy, what is great about the U.S. will fix what is wrong.Education is the key to a better world and one where Americans are born free instead of enslaved in debt.
Peace be with you! Dave Dionisi
Dave Dionisi is a former senior officer at Metlife and led personal financial planning for Prudential and Direct Advice. He is the author of Perfect Money Planning. His education in finance includes a BA, MBA, ChFC, and CLU.
The following resources are recommended to learn more.
2. The Lusitania: A classic example of war profiteering
17. CNBC Amero
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