Tuesday, October 30, 2007

Money, Money, Money, Money

People really don't understand anything about how money is created, yet it is so very simple. I was amazed at the magic myself until I finally understood it. Fully one half of every transaction in almost everything we do involves money, and yet I had no idea where money originated or how it is worth anything. The most amazing thing is, we don't even care. Millions of people make their living dealing with money every day and most of them don't even know why money is money. It is truly amazing. Sigmund Freud suggested that there is a psychological connection between money and feces; he said we grew up thinking shit was valuable. (In fact they used to call outhouses "vaults") Maybe that is why we guard such smelly truth, and don't even want to discuss it.

Right now our money system is so benignly fraudulent that we call anyone who criticizes it a "conspiracy theorist". Amazing, for Ron Paul is right on, and he is considered crazy. If he could have his way, everyone would be better off. Even those who think he is “insane”, even the bankers. The only place that money gets into society is through a bank, and every time a bank issues money, they demand it back with interest. Why is it strange to think that it cannot work forever? Maybe it is because it has worked for so long, even though it really hasn’t. Why is it strange to think that whoever controls the bank, eventually owns whatever, and controls whatever else they want? Including bribery, donating to campaigns, buying off news editors, running the education system, and intimidating or even killing someone who threatens them? What a cash cow. What would you do if you had this power, would you rather be president of the United States?

There are two fundamental problems with our money system, and both have been around much longer than the Federal Reserve. But the Federal Reserve monopolized and multiplied it instead of fixing it. The fundamental problems are:

1- Fractional Reserve banking,
This allows a bank to loan out much more money than it has, and that money is backed mostly by the IOU documents written up at the time the loan is made. Only a small percentage of their own money is used to "back" the loan. Right now reserve requirements are between 8 and 16 percent. This, in any other business, is fraud; but in banking it is merely a regulated rule. The problem is when a loan defaults, it deletes the IOU but not the money, and as a result all money becomes worth less. This has been a practice of bankers for hundreds of years, but it is not common knowledge even today. Every single bank failure in history would not have happened if this practice was illegal.

2- Treasury Securities
This is the national debt chopped into little pieces and sold. There are different types of securities and they are a great investment to buy because they are guaranteed by the government to earn interest. The problem is, they are a burden to all taxpayers and give the rich a desire for the nation to stay in debt. Individuals are limited in how much they can buy, but banks are not. The Chinese central bank buys approximately $2 billion of these every day. This market, called the bond market, has caused (along with fractional reserve banking) all money in circulation to lose gold backing completely. Today all money is backed only by these government IOU's. The Federal Reserve has the very most "debt paper" as its assets. These "assets" are the backing to our Federal Reserve notes. (Yes, it is magic) When Alexander Hamilton first instituted this scheme within the first year of the constitution, Thomas Jefferson said:

“America is being transformed into a gaming table…Already the new national government is imperiled by the financial mania. Furthermore their gamester ethic will corrode the traditional frugality and industry that defines the American character”

The real problem with this type of government debt is the immorality of it. Those who are in government are less likely to curb government spending when they know that they can profit personally from the debt. As Hamilton said to the First National Bank president Robert Morris “A national debt, if not excessive, to us is a national blessing” For some reason, I am glad that Aaron Burr won that duel. I only wish it would have happened twelve years sooner. This system was eliminated by Andrew Jackson, but then restored during the Civil War, and has been with us ever since.

Wouldn’t it bee cool to see debtless money enter the economy through farming, manufacturing, and natural resources? Will it ever happen? I doubt it.

Tuesday, October 23, 2007

Advice for Ron Paul

I would love to be Ron Paul’s PR director. I could help him get his awesome message out without looking so fringe. After watching the debate on Sunday, I couldn’t help noticing that he did not seem clear or concise, and was trying to get a lot of words into a short answer. (a.k.a. “rambling”) (Of course that did not keep me from voting for him via text message.) I also couldn’t help noticing how much more relaxed and clear the other candidates were, even though they obviously were talking on issues that to most Americans seem pointless, or frightening. After the debate, Ron Paul was much more relaxed and clear when he was being interviewed by Sean Hannity and Alan Colmes. That was great, but I wish he would have done that during the debate. I am positively convinced that his success is shocking even to himself and he really does not know how to make the next step and turn the anti-terrorist crowd to the anti-war side; even though I know it is possible. So here is my advice for Dr Ron Paul:

1- Stop worrying about your message more than your temperament. You ARE top tier, and in this day and age of “image is everything” you need to be more confident, when someone says insulting things or says something that is really horrible, be calm and stern rather than angry and excited. Ignore the bell more.

2- Disarm the critics, laugh at their stupid insinuations and smear tactics, but still take them down quickly. You could make your point better by answering the question with the one they should have asked. EVEN IN THE DEBATES

3- Reason with the war crowd, for they have been taught that we would be cowards if we saved more troops from getting killed. They believe that. Get specific about the DIFFERENCE between ending terrorism and the war on terror. Tell the people that the terrorists WILL win if we let 9/11 take away our freedoms, privacy or sovereignty.

4- Proclaim that you are for a STRONG national defense every chance you get, and that you advocate a better foreign policy that will make us safer, NOT WEAKER. Specify that you would like to build up the bases here at home, that you want to push missile defense, and better treatment of our veterans etc.

5- Use personal stories in the debates; they take away antagonism from disagreement. Babies and hero’s come to mind.

6- Realize that even though you are brilliant, and your policies would be awesome in making our Country the envy of the world again and accomplishing exactly what those who attack you want. You MUST BACK OFF the FBI, the CIA, and the Federal Reserve in your speech. In this I mean call it “reforming” rather than “abolishing”. Everyone knows that we need intelligence, investigation, and monetary policy at the Federal level, even though they have done some bad things.

7- Bring up intelligent truth’s that people like me didn’t realize. Such as Letters of Marqe and Reprisal, the 1998 Iraqi liberation act, the Declaration of War that you proposed that was voted down, and other things people are amazed enough to actually think about.

I want Ron Paul to win, it would be the best thing this country did for itself in a long, long time. But I want everyone to realize that he is one candidate among four, and if you take all three of the others and make them into one, he will lose in the primary and Hilbillery will win in the General. He is the only hope we have. No pressure man.

Sunday, October 21, 2007

Ron Paul is right about the Middle East

In 1953 the CIA overthrew democratically elected Prime Minister Mohammed Mosaddeq in Iran. Why? He was very popular for standing up to the oil companies, and their treatment and pay to Iranian workers. In 1952 he used his power to nationalize the oil fields. The CIA bombed cleric’s and blamed him, and paid mobs and police to overthrow him. The Shah then became dictator of Iran. From 1953 to 1978 Iran bought $18 billion worth of military arms from U.S. arms manufacturers. Half of the oil was owned by U.S. oil companies. In 1978, David Rockefeller and Henry Kissinger persuaded Jimmy Carter to allow the Shah to come to the U.S. for medical treatment. Because of this, the Iranians overthrew the Shah and took hostages from the American embassy where the 1953 “Operation Ajax” was run. This was the “Islamic Revolution” that changed Iran from a dictatorship to an Islamic Republic. The U.S. traded arms for those hostages. Israel was the middle man. The Iran-Contra scandal in 1984-85 showed that the CIA was selling arms to Iran even up to that time, while diplomatically supporting and selling arms to Iraq.

Iraq became a nation after WWII and had ties with the Soviet Union until 1978. It nationalized its oil in 1972. Sadaam Hussein became President in 1979 although he had been prominent since 1964. He was a reformist secular leader who abolished most Sharia law courts. In 1978 he ousted the last of the Communist Party from the political structure. His internal police was brutal to opposition and although he was westernized, he was hated by his own people. In 1980, the U.S. supported and sold arms (including chemical) to Iraq in Sadaam's attempt to conquer Iran. Sadaam declared himself "winner" in 1988. He used biological weapons supplied by the U.S. on the Kurds within his country who were attacking Iraqi military. Kuwait gave $30 billion to help Iraq in its war with Iran and Iraq wanted the debt cancelled, but Kuwait refused. Kuwait was also “slant drilling” into Iraqi oil fields. So in 1990 he thought he could conquer Kuwait and have U.S. backing. Oops.

The Saudi government who supported Iraq during the Iraq-Iran war, allowed the U.S. to build (using Bin Laden and Sons Construction) and use bases within Saudi Arabia to attack Iraq in 1990. Saudi Arabia is the holiest of holies for the Muslim religion. Many religious zealots in the religion issued a Jihad against America. Osama Bin Laden was a Saudi who was a central figure to many Muslims for his great ‘win’ against the Soviet Union in keeping occupiers out of Afghanistan. The CIA supported him and funded him. Then he saw the U.S. as the great new evil. 15 of the 19 hijackers responsible for the attack on 9/11 were Saudi, as is their leader.

THOSE DARN JIHADISTS JUST HATE OUR FREEDOMS, OUR WOMEN’S RIGHTS AND OUR CHRISTIAN RELIGION

Imagine Ron Paul as President. Removing all troops from the Persian Gulf and ignoring the UN. Selling food and everything else to Iran, Iraq, and every other country in the region. Signing new treaties with each country, and formally apologizing to the Muslim community. THen Congress issues a Letter of Marqe and Reprisal against Osama Bin Laden, putting a $1 Billion price tag on his head.
Our troops would be honored by the vanquished as truly good will soldiers instead of invaders, and our troops would be honored by us. Good will never fails, but it never is considered good will by using guns. National Defense is never National Offense, and 9/11 should not change us for the worse.

Friday, October 19, 2007

Ron Paul and money

Whenever you become indebted, you loose some fundamental freedom. You tie yourself to that person or institution that you become indebted to in somewhat of a master-servant relationship. Whether that is fundamentally right or wrong depends upon individual opinion. It really depends who you become indebted to, and whether you like being in debt to them or not. Our financial system is based on debt. The fundamental unit of the dollar is debt, or the use of credit. Credit is merely trust. Our dollar is based on the trust that the Government can pay back it’s debt to the Federal Reserve. The dollar is based upon the IOU treasury notes issued by the United States treasury. The fundamentals of this system are severely flawed, and practically unfixable. Right now there are $22 in debt for every $1 in circulaion! Although it is fixable, it would take a massive education effort first; for if the majority of people do not know what the problem is, they cannot fix it. Here is the problem: Fractional reserve banking, and private central banking. Our government issues debt "bonds", "bills", and "notes" to fund their over budget spending, and the Federal Reserve issues paper money into the banking system by loaning it at interest to the Government and other banks. Then the other banks loan out many times that amount. For every $1000 the Fed issues (by loaning it to the government), the banks can loan out $100,000 Realizing this is true you can see that it is impossible to get out of the debt and have any money left. There is no money created to cover the interest, and that has been the case since before the Federal Reserve. In fact the Federal Reserve bank was created to fix the problem!
There is a solution, and it is not impossible to do without severely rocking our economy. The first thing that must be done is end fractional reserve banking, money creation should be done by government if it is not gold, or silver. We must completely eliminate the fraudulent fractional reserve policy. Of course the gold standard is the absolute best money system in history, and it is the only money that is legal tender in the Constitution, but it is limiting for a people and a government. You cannot spend gold that you do not have, even if you need something and the one who has that thing wants something from you. If you do not have gold as money to complete the exchange, you are severely hampered.
One solution is the “Greenbacks” the way Abraham Lincoln did it. Congress, by the authority of the Constitution has the right and the power to coin money, and regulate the value thereof. The problem is the trust people have in a completely fiat currency is very weak. Congress can have absolute power over inflation by regulating the value of the dollar directly, but they would not have something to exchange for it, (which is the case now). But it would take debt out of equation. This way congress is responsible for inflation, completely, rather than just being blamed for it.
Another solution is to print dollars from the value of not exclusively gold, but to silver, land, and a host of other real tangible things; even commodities, and energy. Congress can authorize the printing of money based on the value of these things.
Another possibility is to charter a second Central Bank, called the Social Security Bank, and allow only citizens to deposit money there and then loan that to banks and the government as the Federal Reserve does; at interest, and make fractional reserve banking illegal. The Treasury would deposit all of its money here in the only checking account of the Federal Government. Interest would all be in paid only on retirement, but accumulate throughout the time the money stays there. They would issue “Social Security Notes” that are adjusted against Federal Reserve Notes every day at the Federal Reserve bank, thus removing devaluing inflation. If money gets scarce than this bank can issue loans to other banks that is based on credit too, but that should be only very short term. The interest would become property of the Treasury, completely, and a source of income for the government.

Here is what I propose:
FIRST pass a law increasing the commercial bank’s required reserves at the Central Bank and in their vaults at a steady rate per year, say 5-10%.
SECOND, create a second silver value currency that the government issues to pay it’s debts and have that backed by gold and silver, the value of government property, say, National Park dollars, Highway dollars, and Capital building dollars etc. with that money completely debt free.
THIRD, as interest at banks rise because of the rise in reserve requirements, the Social Security bank can lend money it borrows from the new hard asset currency that the Treasury creates.

A Central Bank that was truly owned by the Government, with branches in each state and territory, each raising their own money and lending it at interest to other banks would be great, it would be interest income for the government and would pay for things with much less taxation.

We all can dream can't we?

Monday, October 15, 2007

The Ron Paul Party

THE INDEPENDENT AMERICAN PARTY

1- Reform the Banking System, and put value back into money
The Federal Reserve System creates money backed by storage of debt. Banks multiply this money by monetizing other debt on top of this. Interest is added and there is not enough money in circulation to cover it, and there never will be as long as it continues. Inflation comes from fractional reserve banking and that needs to be completely eliminated. Gold, silver, and any storable commodity such as oil, steel, or even farm products and real estate can be monetized by government storing them, all based on their value in gold. Let money enter the marketplace in several sectors, through the several Departments of the government, not just banking through credit. The Federal Reserve needs to be a Department of government, and interest generated by loaning money to banks should become property of the United States Treasury. A branch of the Federal Reserve Bank should be in each state.

2- Abolish the personal income tax
This tax was originally a tax on interest income, dividends, and foreign earned income. It has grown to be the tool used to enslave the American People. There should be no tax on wages. Corporate Income Tax and General Tariffs would easily make up the difference.

3- Reform the Election Process
Term limits on congressional and Senate seats should become law by amending the constitution. Our elected officials pander to the media and special interests because of their desire to be re-elected. The election process is more often dictated by major media focus on certain issues, and many in office change their vote to be re-elected because of it. Smart people should be in government who can use their heads in spite of current public opinion from the focus group media and lobbyist’s. The seventeenth amendment should be repealed and Senators should be elected by State Legislatures, and the President should be elected by electoral votes that are separated by congressional district and each state legislature should have two votes. No elected official should get a pension longer than their term in years, and none should get more money than their salary. Any who accept bribes should be kicked out and imprisoned immediately. Any Federal officer who breaks their oath of office would be tried for treason. On the ballot in the year the President is elected, each citizen votes for a presidential elector for their congressional district, while the state legislatures shall elect two presidential electors total, these electors will vote for the President of the United States.

4- Reform the United Nations and Get out of treaty “Organizations”
The United Nations is now the government of the world, it now dictates more than peace between nations and exchange rates of currencies. More and more it is dictating the economies and internal laws of nations. All treaties should be treaties expressly designated under the Constitution, and no treaty "organizations" should be entered into by the United States, these organizations preside over Constitutional government. The United States government should be prohibited from entering into them.

5- Establish a North American Union through the Constitution
The Constitution of the United States is the greatest form of government on earth; it should stay that way or improve. Mexico and Canada could be invited to separate into states and become a part of the United States. If we keep it, Iraq should become a state. Cuba, Puerto Rico and The Virgin Islands should already be states. Any and all land controlled by the United States should become states, except the District of Columbia.

6- Disarm the CIA, FBI, BATF, and all other federal agencies not responsible for personal security of those in public office or police enforcement within the District of Columbia. Otherwise let only the military use weapons in the name of the Federal Government. State and local police forces should be well armed to enforce federal law.

7- Eliminate every Federal Department that is not expressly allowed by the Constitution. Some Departments are beneficial, but should be expressly permitted by an Amendment to the constitution. They should have elected officials running them. Make their boards elected by the STATE Legislatures every year with no term limit, while the chairman is appointed by the President as the Secretary of that department.

8- Add two other Amendments to the Constitution
a- The Federal Government cannot borrow money, except in time of war through Trust funds.
b- NO act of abuse or killing of any foreign person can be performed outside of the jurisdiction of what the Constitution expressly allows. Any President or military leader who disobeys this will be tried for assault or murder by federal law.

Friday, October 5, 2007

THE GREATEST PRESIDENT WE NEVER HAD

Here is the political views of a presidential candidate in 1844, who, only four months later was killed by a mob:

“For the accommodation of the people in every state and territory, let Congress show their wisdom by granting a national bank, with branches in each State and Territory, where the capital stock shall be held by the nation for the Central Bank, and by the states and territories for the branches; and whose officers and directors shall be elected yearly by the people, with wages at the rate of two dollars per day for services; which several banks shall never issue any more bills than the amount of capital stock in her vaults and the interest.
“The net gain of the Central Bank shall be applied to the national revenue, and that of the branches to the states and territories revenues. And the bills shall be par throughout the nation, which will mercifully cure that fatal disorder known in cities as brokerage, and leave the peoples money in their own pockets.
“Give every man his constitutional freedom and the president full power to send an army to suppress mobs, and the States authority to repeal and impugn that relic of folly which makes it necessary for the governor of a state to make the demand of the President for troops, in case of invasion or rebellion.
“As to the contiguous territories to the United States, wisdom would direct no tangling alliance. Oregon belongs to this government honorably; and when we have the red man’s consent, let the Union spread from the east to the west sea; and if Texas petitions Congress to be adopted among the sons of liberty, give her the right hand of fellowship, and refuse not the same friendly grip to Canada and Mexico. …..
“The Southern people are hospitable and noble. They will help rid so free a country of every vestige of slavery, whenever they are assured of an equivalent for their property. The country will be full of money and confidence when a National Bank of twenty millions and a State Bank in every state, with a million or more, gives a tone to monetary matters, and makes a circulating medium as valuable in the purses of a whole community as in the coffers of a speculating banker or broker.
“In the United States the people are the government, and their united voice is the only sovereign that should rule, the only power that should be obeyed, and the only gentlemen that should be honored at home and abroad……..
“When the people petitioned for a National Bank, I would use my best endeavors to have their prayers answered, and establish one on national principles to save taxes, and make them its controllers of its ways and means. And when the people petitioned to possess the territory of Oregon, or any other contiguous territory, I would lend the influence of the Chief Magistrate to grant so reasonable a request, that they might extend the mighty efforts and enterprise of a free people from the east to the west sea, and make the wilderness blossom as the rose. And when a neighboring realm petitioned to join the union of liberty’s sons, my voice would be: COME- yea, come, Texas; come Mexico, come Canada; and come, all the world; let us be brethren, let us be one great family, and let there be universal peace.”
---February 7, 1844

Undoubtedly had this policy been instituted, the United States would have been much, much better than it is, and we would not have had a Civil War.