It’ll be the ‘DEBT’ of you!
(This is the second of a two part article. For part one, read A FEDERAL CASE?)
“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ― Winston S. Churchill
The State Of The Union
Article II, Section 3 of the U.S. Constitution states that the president “shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such measures as he shall judge necessary and expedient.” The first two presidents, George Washington and John Adams presented this address in person. Thomas Jefferson the third US president felt that proclaiming the state of the nation personally to congress was akin to a king addressing his subjects. Since the Revolutionary War was about freedom from tyranny, the similarity bothered Jefferson. He began the tradition of mailing the written State of The Union address to congress so that they may read it at their leisure and study its contents to best determine how to serve the national interests. This tradition lasted for more than a century.
“I turn to matters of domestic concern. You already have under consideration a bill for the reform of our system of banking and currency, for which the country waits with impatience, as for something fundamental to its whole business life and necessary to set credit free from arbitrary and artificial restraints. I need not say how earnestly I hope for its early enactment into law. I take leave to beg that the whole energy and attention of the Senate be concentrated upon it till the matter is successfully disposed of. And yet I feel that the request is not needed-that the Members of that great House need no urging in this service to the country.”– Woodrow Wilson, State of the Union Address December 2nd 1913
Progressive Democrat Woodrow Wilson was the 28th president of the US. One of his many personal goals to ‘improve’ the nation was to reform the banking system, and to establish a federal income tax. Wilson was so passionate about establishing a new national banking system that he decided to ‘buck the system’ and personally deliver his State of The Union address in person. He was the first president to do so since John Adams in 1800. Wilson believed that his oratory skills would convince congress to pass the bank bill. Unfortunately for our nation, he succeeded. In addition to getting The Federal Reserve Act passed In 1913, the 16th Amendment to the constitution was also ratified that same year, permanently legalizing an income tax.
Over a century of financial slavery!
All banks in the USA are required by law to be members of the Federal Reserve Bank, according to the Federal Reserve Act of 1913. As members, they are required to own debt to the Federal Reserve Bank A.K.A. ‘The Fed’ . The Fed is a privately owned bank, owned by private stockholders, and NOT affiliated with the United States government in any way, except for the fact that the US government must own a certain amount of debt to The Fed, and that the US president must appoint a chairman to The Fed. Candidates on the list for consideration by the president have been hand-picked by The Fed, and he is required to choose ONE from that list. He can’t pick anyone not of the list. So, based upon the candidates offered he would choose whom he felt was the best qualified, even if no one on the list has any qualifications to speak of what-so-ever. If you’ve ever wondered why the president appointed a certain person to chair The Fed, and not someone else, it’s because he never really had the choice to choose anyone else in the first place.
To explain it better think of when in the Bible, Pontius Pilate presented Jesus and Barabbas to the crowd and asked them whom they wanted set free. In all four gospel accounts, Pilate lobbies for Jesus to be spared his eventual fate of execution, and acquiesces only when the crowd refuses to relent. Pilate tried to stack the deck in Jesus’ favor by putting him up against a known murderer and insurrectionist. This should have made the choice an obvious one. Yet, the crowd chose to free Barabbas over Jesus, whom Pilate was then forced to crucify, and the rest is history.
The Paper Trail
Banks make money through service charges and debt-loans, the latter ranging from unsecured personal loans and credit cards, up to various secured loans such as home, auto, or business. These loans are provided by the magic of fractional reserve banking. Banks are loaning out more money than they have based upon the premise that the debts owed will return more money overtime than the original amount financed, thus earning a return on the investment, or ROI.
Nearly the entirety of the money banks loan out has, in turn been ‘borrowed’ from the Federal Reserve Bank, which sells the debt to the smaller banks. As for any cash deposits that banks receive from its customers, they are required to retain a fraction of the deposit, and they can loan out the rest. All deposits are insured up to $250,000 per account, so even if the bank should become insolvent and fail, the Federal Reserve will make good on the deposit.
Where does The Fed get all this money that it ‘loans’ to banks?
Roll the presses!
The US dollar is really just a promissory note, printed by the US Mint for The Fed. It is not backed by any form of precious metal such as gold or silver. It is just backed by goods and services equal to its value. The Fed tells you that the paper note they had the US Mint print has value, but in reality it’s just a paper I.O.U. Without a hard currency standard fixing its rate, the dollar is susceptible to inflation when the costs of goods rise, devaluing the dollar requiring you to need more dollars to buy the same item when the price is raised. So this essentially worthless paper labeled as a ‘Federal Reserve Note’ is merely a tool, a place-holder that is exchanged for an item of value despite having no real value of its own, only the say-so of the Federal Reserve telling you that it’s worth a dollar. Whenever a member bank requires a loan from the Federal Reserve Bank, the Fed either orders the Mint to print more money to be shipped to the bank for its needs if physical bills are needed, or just adds a credit note to the ledger of debts owed. Like when a credit card issuer tells you your credit limit has been raised so you can spend more money you don’t have on things you don’t really need.
Think of it as ‘robbing Peter to pay Paul’. It’s a vast ponzi scheme that could collapse at any point. This is why runs on banks cause mass hysteria when large numbers of customers try to withdraw all their funds at the same time, and the bank doesn’t have enough physical money on hand to meet the demand because they are only required to keep a fraction of collected money in its vaults while the rest is loaned out, and interest is changed.
An even worse realization is that the US Government gets all of its money directly from taxes collected , and any budgetary shortfalls short falls are borrowed from the Fed, which charges the US government interest on the loans. When you control the currency of a nation, you control that nation. The borrower is slave to the lender!
As the amounts of debt owed by the government now exceeds $25 trillion dollars, the interest alone is greater than the total amount collected from all tax payers! National security not only applies to a border wall to prevent illegal immigration, or a strong military to defend us from potential enemies, it also applies to financial security. Only a fool spends more money than they earn. This is why budget cuts are not only needed, but MUST be allowed to happen. The country is broke, and if our loan is ever ‘called’ this nation is in serious trouble. As always, I wish you success and happiness!