On November 27, Bloomberg News reported the results of its successful case to force the Federal Reserve to reveal the lending details of its 2008-09 bank bailout. Bloomberg reported that by March 2009, the Fed had committed $7.77 trillion in below-market loans and guarantees to rescuing the financial system; and that these nearly interest-free loans came without strings attached.
The Fed insisted that the loans were repaid and there have been no losses, but the Bloomberg report said the banks reaped a $13 billion windfall in profits; and “details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.”
The revelations provoked shock and outrage among commentators. But in a letter to the leaders of the House and Senate Committees focused on the financial services industry, Fed Chairman Ben Bernanke responded on December 6th that the figures were greatly exaggerated. He said the loans were being double-counted: short-term loans rolled over from day to day were counted as separate cumulative loans rather than as a single extended loan.
The Fed, it seems, was doing only what banks and the money market do for each other every day: making “liquidity” available at very low interest rates. In 2008, bank liquidity dried up after Lehman Brothers collapsed, and the banks could not get the cheap, ready credit on which their lending scheme depends. The Fed then stepped in as “lender of last resort,” doing what it had to do to keep the banking scheme going.
Keeping the banking system afloat is all well and good. What is wrong with the existing scheme is that it allows the Fed to play favorites. As Alan Grayson observed in a December 5th editorial:
The main, if not the sole, qualification for getting help from the Fed was to have lost huge amounts of money. The Fed bailouts rewarded failure, and penalized success. . . .
During all the time that the Fed was stuffing money into the pockets of failed banks, many Americans couldn’t borrow a dime for a home, a car, or anything else. If the Fed had extended $26 trillion in credit to the American people instead of Wall Street, would there be 24 million Americans today who can’t find a full-time job?
All in the Name of Liquidity
What is this need for “liquidity” that justifies such extraordinary measures on behalf of the banks? Why do banks need cheap and ready access to funds? Aren’t they the lenders rather than the borrowers of funds? Don’t they simply take in deposits and lend them out?
The answer is no. Today when banks make loans, they extend credit FIRST, then fund the loans by borrowing from the cheapest available source. If deposits are not available, they borrow from another bank, the money market, or the Federal Reserve.
Rather than loans being created from deposits, loans actually CREATE deposits. They create deposits when checks are drawn on the borrower’s account and deposited in another bank. These deposits can then be borrowed back at the Fed funds rate—currently a very low 0.25%. A bank can thus create money in the form of “bank credit,” lend it to a customer at high interest, and borrow it back at very low interest, pocketing the difference as its profit.
If all this looks like sleight of hand, it is. The process has been compared to “check kiting,” defined in Barron’s Business Dictionary as:
[An] illegal scheme that establishes a false line of credit by the exchange of worthless checks between two banks. For instance, a check kiter might have empty checking accounts at two different banks, A and B. The kiter writes a check for $50,000 on the bank A account and deposits it in the bank B account. If the kiter has good credit at bank B, he will be able to draw funds against the deposited check before it clears, that is, is forwarded to bank A for payment and paid by bank A. Since the clearing process usually takes a few days, the kiter can use the $50,000 for a few days and then deposit it in the bank A account before the $50,000 check drawn on that account clears.
Setting Things Right
As suspicious as all this appears, the economy actually needs an expandable credit system, and an expandable credit system needs a lender of last resort. What is wrong with the current scheme is that it discriminates against Main Street in favor of Wall Street. Banks can borrow very cheaply, while individuals, corporations and governments pay “whatever the market will bear.” The banker middlemen take their cut in a scheme in which money is actually manufactured in the process of lending it. The profits are siphoned off to the 1% at the expense of the 99%.
To fix the system, the profits need to be returned to the 99%. How that could be done was suggested by Thom Hartmann in a recent editorial:
Have the central bank owned by the US government and run by the Treasury Department, so all the profits . . . go directly into the Treasury and you and I pay less in taxes . . . .
For a model on the local level, he pointed to the Bank of North Dakota:
The good people of North Dakota . . . established something very much like this—the Bank of North Dakota—and it’s kept the state in the black, and kept its farmers, manufacturers and students protected from the predations of New York banksters for nearly a century. It’s time for every state to charter their own state bank, just like North Dakota did, and for the Treasury Department to either buy the Fed from the for-profit banks that own it, or simply nationalize it.
We have been distracted here and in Europe by a sudden panic over our “sovereign debt” crises, when the real crisis is that our debt is NOT sovereign. We are indentured to a Wall Street money machine that creates our money and lends it back to us at interest, money our sovereign government could be creating itself, with full democratic oversight and accountability to the people. We have forgotten our roots, when the American colonists thrived on a system of money created by the people themselves, debt-free and interest-free. The continued dominance of the Wall Street money machine depends on that collective amnesia. The fact that this memory is surfacing again may be the machine’s greatest threat—and our greatest hope as a nation.
Filed under: Ellen Brown Articles/Commentary |
WEB OF DEBT BLOG 
To implement a debt-free, interest-free, and tax-free public monetary system, we must paradigm shift out of economic analysis and into criminal prosecutions of the perpetrators.
I agree and we need to start with this …… Corzine Hiding what happened to MF Global Money with loop hole in 2005 Bankruptcy & Consumer protection law?
Corzine is Hiding the fact of what happened to the MF Global Money with this Loophole I bet . You know what is Ironic about this is that Corzine when he was in the Senate voted against the 2005 Bankruptcy Bill that he NOW is using to hide the MF Global Money Loss behind and claim stupidity by .
I bet this loop hole in the 2005 Bankruptcy and Consumer protection reform law helped Pelosi make a killing off insider trading too , http://market-ticker.org/akcs-www?post=198650 , because each time a bank collapsed Pelosi’s bank investments gained from these failed banks and investment firms assets and private citizen bank accounts that are seized in the Collapse which would make the Stock prices rise in the To Big to fail banks that Pelosi would have investments in this I Bet like was reported on 60 minutes , right ??
’60 Minutes’ Uncovers Pelosi’s Insider Stock Trades
http://www.newsmax.com/InsideCover/pelosi-stock-insider-60minutes/2011/11/13/id/417848?s=al&promo_code=D800-1
http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/
We can create more Jobs by amending the 2005 Bankruptcy and Consumer Protection bill and close the Loop Hole that is allowing assets to be swallowed up by Derivatives holders like the Multi-National banks because the bill allows them to be first in line to seize these assets .
Here is why this 2005 Bankruptcy and Consumer Protection Law is so bad for the Middle Class , all the small banks that have gone broke, see here, http://www.fdic.gov/bank/individual/failed/banklist.html ,or will have had their assets and those assets that belong to Middle Class people swallowed up by the International Bankers because of this 2005 Bankruptcy Law and that Directly infringes on the State sovereignty and commerce laws .
Ellen this makes the case for State banks to compete for the financial markets of Main Street American because all these 2 big 2 fail outfits are doing is playing between themselves !!
Here is what the TOO BIG TO FAIL are doing to Inject cash to themselves , How BOA can use the 2005 Bankruptcy Law to steal depositors money.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114×92402
Money is a financial asset created by millions of journal entries. All financial assets are backed by a financial liability (or debt) held by another party.
So debt free is impossible. It does Ellen’s credibility no good at all by promoting the impossible.
If Ellen means interest free money say so. And then explain how this will not cause moneatry inflation
When the system is all the time being Gamed and NO ONE does anything about the Fraud abuse and corruption its NO WONDER it is Failing , like MF Global look at that , Enron , I mean The Idea that Creating a Banking system that can Spread the ability of Organized Crime out to a state by state owned banking idea makes great sense so these organized criminals cannot organize their dirty little deeds !!!!! LOOK at this !!!! What is this stuff on Romney about ? It even has Jack Abramoff’ in it where the Heck is the NEWS media asking the questions ????
http://tinyurl.com/dxwtmbt http://tinyurl.com/d5a8bwp
“…the real crisis is that our debt is NOT sovereign. We are indentured to a Wall Street money machine that creates our money and lends it back to us at interest, money our sovereign government could be creating itself, with full democratic oversight and accountability to the people. We have forgotten our roots, when the American colonists thrived on a system of money created by the people themselves, debt-free and interest-free.”
I am sorry but I just cannot envision “our sovereign government” these days. Our government has become the Wall Street money machine. Our lawmakers have been legislating in favor of the globalist banksters interests at least the early 1970s. I cannot see how all of a sudden we are going to be able to have some good guys at the state level caring about restoring a production economy for the USA.
I also think fractional reserve banking is no good, even when done by a “state bank of North Dakota” type bank. It is creating fake money and it is inflationary. Also the loaning of money, even fake money, is usury and is cruel and immoral.
PLEASE,PLEASE,read “The All Inclusive Solution.The Federal Bank of America” http://www.justaluckyfool.wordpress.com-
be careful what you wish for,may it come true.
On 60 minutes (12/11/11) ,President Obama said,”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.”
AMERICA SHOW HIM THE WAY!
Subject: The All Inclusive Solution.The Federal Reserve Bank of America.
As Thomas Jefferson said,”I believe that banking institutions are more dangerous to our liberties than standing armies.If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power (of currency) should be taken from the banks and restored to the people,to whom it properly belongs,”
“THE ALL INCLUSIVE SOLUTION. THE FEDERAL RESERVE BANK OF AMERICA” (www.justaluckyfool.wordpress.com)
HOW DO YOU EAT A 80 TRILLION CALORIE (read dollar $) SANDWICH?
ANSWER:ONE BITE AT A TIME.
**Please this is a little lengthy,but worth one bite at a time**
THE FIRST TWO BITES TO THE SOLUTION:
1. AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA,RESTORE MONETARY POWER BACK TO THE PEOPLE ,ADD ABSOLUTE TRANSPARENCY.
2.ESTABLISH A ONE PAGE INCOME TAX FORM,AN INCOME TAX THAT STARTS WITH 0% FOR ANNUAL INCOME OF UP TO $75,000.
THE FEDERAL RESERVE BANK OF AMERICA
The Federal Reserve Bank of America will be the maker of all loans,not guarantee them for others, they will be the maker of these loans and will retain all profits. Profits which by law will be turned over to the US Treasury,as funds for Congress for government expensive’s.
The Federal Reserve Bank of America:
-Will no longer allow the paying of interest for the use of its own money.
-Will not take deposits from anyone other then the US Treasury.
-Will not be involved in any financial investment services.
The Federal Reserve Bank of America will be the sole lender of legal tender. Any financial institution that wishes to loan American Dollars must acquire any legal tender that it may need from the Federal Reserve Bank of America,as all loans must be backed with a 100% reserve from either dollars on hand or borrowed from the FRBA.
The Federal Reserve Bank of America may raise or lower rates of interest to insure the quality and quantity of the American Dollar.
To insure the funding of this great society and insure prosperity there would be three streams of income.
THE FIRST INCOME STREAM:
1. REVENUE (INTEREST) FROM DOLLAR LOANS.
Lets use a start figure of $51 trillion in loans,that which is already in circulation.(guesstimate,hope it is more)It will go on the balance sheet as $51 trillion loan assets. This asset will double every 18 years….1 X 18 = 102 trillion,2 X 18 =204 trillion. Private Banks will be the only source for deposits and savings. Private Banks will no longer be allowed to do fractional banking . All loans will require 100% deposit backing. PRIVATE BANKS WILL BE ENTITED TO TO PROFITS SINCE THEY WILL BE RISKING THEIR OWN MONEY AND MONEY THEY ARE INSURING THEMSELVES. Banks may borrow from The Federal Reserve Bank of the United States of America (HOPE THEY NEED ANOTHER $51 TRILLION) and use that borrowed money for their own account for their own investing;at the prevailing rate and terms. NO MORE FREE RIDE !( Some say they may need over $200 trillion to unwind their derivatives.)
Good-bye income taxes as they are known today.
The Return on Investment could be $3 to $5 trillion a year. US TREASURY INCOME to be used to pay off debt,promote the general welfare .
Good-bye income taxes as they are known today.
THE SECOND INCOME STREAM:
2. A one line form, INCOME TAX :” 0-10 . Annual income of up to $75,000,pays 0% taxes .Annual income of $75,001 and up, pays 10% taxes .There will be no need for any value added tax or consumer or sales tax.
THE THIRD INCOME STREAM:
3. A business tax.The business tax is also a one line item; ALL profit over a deduction of the actual salary of up to $100,000 per employee is taxed at 10%.All income from FRBA loans is deductible.
THREE INCOME STREAMS:
1-FEDERAL BANK LOANS:Taxpayers people and “people”(read corporations) paying interest
2-PERSONAL INCOME TAX: 0-10.
3-BUSINESS PROFIT TAX: Profit @ 10% minus employees salary up to $75,000 each.
THESE THREE WOULD AVERAGE OVER $5 TRILLION DOLLARS A YEAR.
We the people would demand the debt be paid off ,end the possible servitude of our heirs.
We the people would demand a balanced budget.
We the people would demand a real monetary reserve be left in THE FRBA.
We the people would demand the general welfare,life,liberty,pursuit of happiness,for all the people.
May God continue to bless America,
justaluckyfool@aol “Anyone who attempts to predict the future is a fool;if correct justaluckyfool.”
N.B.,This article contains no original material and has no copywrite.It is a compilation of thoughts and ideas that are on the internet.Please post
Please edit,change,challenge,then endorse and post.CHALLENGE ENTIRE POST :
http://www.justaluckyfool.wordpress.com
“2.ESTABLISH A ONE PAGE INCOME TAX FORM,AN INCOME TAX THAT STARTS WITH 0% FOR ANNUAL INCOME OF UP TO $75,000.”
OK BUT… You also need a ceiling tax rate, e.g. 100% on income above $10m (I would set it lower myself).
12/16/11
With a thanks from justaluckyfool because of CHALLENGES,
The All Inclusive Solution has been amended.
“AMEND Federal Reserve Charter and NEW INCOME TAX, 0%;FICA 0%”
With an income that could exceed $5 Trillion a year by replacing
funding by interest earned there would be no need for any taxes.
As for inflation this same interest (income ) charge would also control that.
READ THE LATEST,IMPROVED “www.justaluckyfool.wordpress.com.
AND CHALLENGE IT,OR ENDORSE IT !
The theft of the U.S.Treasury under the private Federal Reserve Bank is beyond belief. Unrestrained and repeated financial sodomy against the American people, who now live like refugees in their own land, must be dealt with by filing a massive class action lawsuit against the corrupt Federal Reserve Bank and its cartel shareholders. Additionally, criminal actions should be brought under the R.I.C.O. Act. to those who have enabled this misery to with us for nearly 100 years.
Google: CLASS ACTION LAWSUIT AGAINST THE FEDERAL RESERVE BANK
Or go the the below link for the plan to drive a stake into the heart of the beast.
http://www.zerohedge.com/print/365866
STOP FINANCIAL SODOMY NOW….END THE FED.
The Euro countries have given up their central bank. It was a terrible decision by these countries. They have all given up their most valuable asset and will continue to pay a very heavy price for this
Ending the Fed (the US central bank) would achieve nothing and could destroy the US and the world economy with it.
The FED is the most valuable asset the US owns. Only those ignorant of money and banking would want to close it down
The simpletons in Europe has just bypassed the people in allowing the central banks to install appointed technocrats to replace their elected Prime Ministers in Italy and Greece. By destroying democracy with debt, even someone dropping acid can view the next move on the board with relative ease.
The assumption that any government needs a corrupted central bank to deceitfully harness the people with an illegal odious debt built on the cunning fraud and theft by deception found in all central banking precepts, is in itself, an insult to logic and all of mankind.
We need central banks like we need cancer.
The Federal Reserve Bank needs to undergo a through investigation under the criminal conspiracy laws found in the R.I.C.O. Act.
Then its assets attached under a civil class action lawsuit for damages done to the American people for nearly 100 years of compounded misery.
Concur. Please read my Economy and Foreign Trade planks.
To fully understand the level of contempt I have for central banking, please review the proposed treaty the Europeans are considering as they continue to melt. I would recommend they all shoot themselves twice in the head before ever agreeing to this sick equation.
Sit down before watching;
Thanks, Paul.
“To fix the system, the profits need to be returned to the 99%. How that could be done was suggested by Thom Hartmann in a recent editorial:
Have the central bank owned by the US government and run by the Treasury Department, so all the profits . . . go directly into the Treasury and you and I pay less in taxes . . . .
For a model on the local level, he pointed to the Bank of North Dakota:”
TO FIX THE SYSTEM IS ONE SIMPLE STEP:
*,IT IS NOT “END THE FEDERAL RESERVE !!
*,IT IS TO AMEND THE FEDERAL RESERVE CHARTER!!!
*,IT IS TO MAKE THE FEDERAL RESERVE THE FEDERAL RESERVE BANK OF AMERICA!!
As you have written,
Stop the stupid practice of paying interest on our own money.Stop having to pay taxes on income,when “the most powerful force in the universe” could fund our properity.
PLEASE READ AND CHALLENGE :
http://www.justaluckyfool.wordpress.com ‘s
“THE ALL INCLUSIVE SOLUTION.THE FEDERAL BANK OF AMERICA”
As Thomas Jefferson said,”I believe that banking institutions are more dangerous to our liberties than standing armies.If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power (of currency) should be taken from the banks and restored to the people,to whom it properly belongs,”
“THE ALL INCLUSIVE SOLUTION. THE FEDERAL BANK OF AMERICA” (www.justaluckyfool.wordpress.com)
AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL BANK OF AMERICA,RESTORE MONETARY POWER BACK TO THE PEOPLE !
PLEASE READ AND CHALLENGE ;CORRECT;then endorse and post.
http://www.justaluckyfool.wordpress.com ‘s
“THE ALL INCLUSIVE SOLUTION.THE FEDERAL BANK OF AMERICA”
“AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL BANK OF AMERICA,RESTORE MONETARY POWER BACK TO THE PEOPLE !”
It will make zero difference. As FED profits are returned to the treasury. How about focusing on real issues.
We must do this before its too late and this happens to our Infrastructures ability to retool the loss of Imports when the world rejects the dollar as reserve currency ,
HOW CAN YOU justify saying,”IT WOULD MAKE ZERO DIFFERENCE”?
The citizens paying ZERO taxes,ZERO FICA,and the Treasury turning over to Congress $5 trillion a year for funding “the general welfare!
You GOTTA BE KIDDING?
justalucky@aol.
The treasury should create a 1 trillion dollar coin. A simple brass coin would suffice. A coule of these coins should then be used to pay back the debt of the American people to the private bank known as the Fed.
This is fair considering how the debt was created in the first place.
[…] Brown Web of Debt Share this:FacebookStumbleUponRedditPrint About Ellen BrownEllen Brown is an attorney, […]
The story is the same throughout history:
“The refusal of King George to allow the colonies to operate an honest money system, which would have freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution”. Benjamin Franklin
“The refusal of US representatives to operate an honest money system, which would free the ordinary man from the slavery of the money manipulators, will come to be known as the prime cause for the occupy movement and the end of reign for the Banksters and Polichickens who turned their backs on the American People”. J Glenn Lowe
All we have to do is turn our backs on the money manipulators (Boycott the “too big too succeed” banks) and create our own local based barter systems; excluding international banking families and favoring localized economies and trade whenever possible.
YES,YES, but as Einstein said,”make it simple”
Amend The Federal Reserve Charter and please,please, make it TRANSPARENT,yes,THE FEDERAL RESERVE BANK OF AMERICA .The bank that will collect interest IN LIEU OF TAXES ! ! !
I am still confused over the “OWS” people. Why didn’t they perform their major rally in D.C. because that is where the puppets are for the big banks. Cut them off from the bankers and then the bankers are nothing. Great article!!
[…] “the most powerful force in the universe ” and how it may be used. justaluckyfool, on December 8, 2011 at 8:40 am comment on article on Web of Debt website. .quote “To fix the system, the profits need to be […]
Scathing, elegant and precise. Ellen knocks it out of the park AGAIN!
[…] Pulling Back the Curtain on the Wall Street Money Machine Posted by admin Economy Thursday, December 8th, 2011 by Ellen Brown | Web of Debt […]
[…] Germans Set To Unleash Capital Controls As European Companies Prepare For Euro End | ZeroHedge Pulling Back the Curtain on the Wall Street Money Machine ———- Post added at 08:12 ———- Previous post was at 07:26 ———- Al Gore is a […]
Why not default on all money printed and loaned by the FED since the FED is a private corporation in violation of the US Constitution? Start a new currency the way it was supposed to be, printed by the US government, like the greenback. One subject I have knowledge is the oil business. There is no oil shortage and anyone who believes in peak oil is a sucker for Big Oil propaganda. Big Oil is behind Iraq, Libya, Iran and all the other wars to take oil off the market. Their hustle is to increase the price of oil to destroy they world’s currencies. The FED by engineering the 2008 economic meltdown is doing what it has been doing for years, running businesses out of business. Zero interest rates destroys the middle class and runs businesses out of business because banks are not lending money. Paulson’s 13 Trillion to banks was a cash injection probably not to save them, another lie, but cash to big banks to steal assets cheap. My guess is Paulson’s money to big banks is to aid them in stealing European assets.
Since the Bank of England was chartered long ago we are faced with the following.
Our banks are controlled by their owners/principal shareholders.
The banks control the money supply…everywhere.
This is the basis for our world today. The bank is the leverage point for controlling/managing humanity.
Money is used to control the politicians. A politician cannot be elected without the support of the money holders. And the money holder controlled media.
The politicians control the political system…in all countries. They do the bidding of their masters.
The media is controlled by a small group of families who are also the same small group of families who own the controlling stock in the banks.
If you own the newspaper you can control the editor…if you can’t? You fire him and hire one you can control.
Murdoch controls all of his TV news production. He owns the network.
This is our system today. The owners of the Fed control the money supply in our country.
The owners of the Fed control our politicians.
The owners of the media and the owners of the Fed eat lunch at the same table.
I suppose we could just call “them” the “owners.” As long as we give them the tools to control us, they will.
It is difficult to defeat their media and their political machine until we all agree on the truth.
Once most of us understand this structure and are engaged in relaying this truth to those who actually believe the media, politicians and education system, there may be a chance to REPLACE their system with a just one, a moral system.
Would a system of state owned banks help? Yes, as they would be able to fill the vacuum created by the removal of the federal reserve system.
The “old” system cannot fall until the new one is ready to take its’ place. Look at history. The “owners” have always obeyed this principle.
With a network of state banks what would our future hold?
The ability to manage us would be out of the hands of the “owners.” Our money supply would be stable and free of their manipulation.
What would happen with the politicians?
I assume a properly informed population would vote them out and
vote in a new group of volunteer public servants. These new political leaders would stay home and work their own jobs. They would attend brief legislative sessions arranged in the evenings or on weekends when they are available. All public spending decisions would be handled by monthly voter referendums, relieving the politicians of this onerous responsibility. The goal would be to remove money power from the political system. The lobbying system would cease to exist as politicians would be removed from money decisions.
Finally, the media. Know all of you that the media on planet earth is centralized into TWO principal news aggregators. These filtering tools are owned by you know who.
We think to ourselves…”well, at least we have the alternative media…”
The so called underground or alternative media has done NOTHING
to discuss, explain or educate anyone about the above truth. If they did, we would not be where we are today. This so called alternative media has had this information before them for thirty years and have done nothing. They would fall under the same legal statutes as the mainstream media’s editors and news producers. They would be charged with complicity in the criminal conspiracy that is outlined here.
This is a “bank website.” Understand what a bank is…it is a tool used to control our money and then, our media and political systems….and they do quite well thank you.
The All Inclusive Solution.The Federal Reserve Bank of America.
As Thomas Jefferson said,”I believe that banking institutions are more dangerous to our liberties than standing armies.If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power (of currency) should be taken from the banks and restored to the people,to whom it properly belongs,”
“THE ALL INCLUSIVE SOLUTION. THE FEDERAL RESERVE BANK OF AMERICA” (www.justaluckyfool.wordpress.com)
HOW DO YOU EAT A 80 TRILLION CALORIE (read dollar $) SANDWICH?
ANSWER:ONE BITE AT A TIME.
**Please this is a little lengthy,but worth one bite at a time**
THE FIRST TWO BITES TO THE SOLUTION:
1. AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA,RESTORE MONETARY POWER BACK TO THE PEOPLE ,ADD ABSOLUTE TRANSPARENCY.
2.ESTABLISH A ONE PAGE INCOME TAX FORM,AN INCOME TAX THAT STARTS WITH 0% FOR ANNUAL INCOME OF UP TO $75,000.
THE SANDWICH :
“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”
This is our Preamble to the US Constitution and it is being challenged .
If it were possible to sum up the single greatest flaw to the American form of its democratic capitalism ,it would be :It allows for the “most powerful force in the universe”… to quote Einstein,” compound interest” to be used against that democracy.
This “most powerful force” is being used only for the enrichment of a few (1%) and the servitude of all others (99%).
The lender becomes the owner of all the money based upon the act of compounding at any rate within a long period of time.The present system has to change .
Private banks are lenders to the taxpayers who become borrowers. They are allowed to charge interest to taxpayers for the use of their own money.
Private banks are allowed to “create money” by fractionation of money on hand and use that
newly created money to gain more money. A cycle that commands total money control or it must bust. The real kicker is that the borrower by today’s system guarantees the lender they will not lose their money by covering any of their losses. The taxpayers are guarantors of their own servitude !
THE SOLUTION:
ONE OF TWO.
The Federal RESERVE Bank of America,the melting pot for Federal Reserve.,FDIC,FHFA,and the GSE’s.
AMEND THE FEDERAL RESERVE CHARTER making it a people’s owned bank.
Adam Smith’s “Invisible Hand” guided by Martin Gruenberg (Chairman FDIC) with a nod from Sheila Blair (former FDIC head,and Edward DeMarco (FHFA) with a nod from Brooksley Born (former head of CFTC) can restore the American financial system,and put America on the road to prosperity.As a settlement to the legal actions brought against banks, both the FDIC and FHFA can agreed to the banks insolvency ,they would place these banks into receivership! (11-01-11. This could read JPM Chase,or both BAC and JPMC.,but I am hopeing that BAC gets “thrown under the bus” ,OR ANY AND ALL BANKS ,as all banks should be placed in receivership that are insolvent. ) THE BANKS IN RECEIVERSHIP are to be placed along with Freddie,Frannie, Ginnie and Sallie,along with the FDIC, and FHFA, and the Federal Reserve into one new agency; “The Federal RESERVE Bank of America”(FRBA).
*All loans by any financial institution must be backed with 100% reserves.No more fractional reserve banking.
*The Federal Reserve will no longer be needed as its mandate will be passed on to THE FEDERAL RESERVE BANK OF AMERICA. Also the FDIC and FHFA as their mandates will no longer be required. Private banks will have to get their own insurance .
*THE FEDERAL RESERVE BANK OF AMERICA (FRBA) will be a fully taxpayer owned bank and by law must be FULLY TRANSPARENT. (“GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens.”_The Road to Oz)
. *It will be operated by the people,of the people and for the people.
THE FEDERAL RESERVE BANK OF AMERICA will be the source for the American borrower to acquire funds and the interest paid shall be revenue income for the funding of their government.
The first order of business will be securing of all deposits as allowed by the FDIC and the selling of these deposits to private banks along with all assets with the exception of any and all loans. All loans are to be retained by FRBA , as well as all offices and buildings as they will provide the brick and mortar for the new agency.
The shortfall,the amount of money needed to restore the loans to Fair Market Value could exceed $10 trillion. This includes the most recent transactions in derivatives and other market ventures,which an audit may show that are in an amount of over $80 trillion (That’s only Bank of America’s portion).Worldwide it is said to be more than $800 trillion,imagine a 10% loss;$80 trillion!.
THE FEDERAL RESERVE BANK OF AMERICA
The Federal Reserve Bank of America will be the maker of all loans,not guarantee them for others, they will be the maker of these loans and will retain all profits. Profits which by law will be turned over to the US Treasury,as funds for Congress for government expensive’s.
The Federal Reserve Bank of America:
-Will no longer allow the paying of interest for the use of its own money.
-Will not take deposits from anyone other then the US Treasury.
-Will not be involved in any financial investment services.
The Federal Reserve Bank of America will be the sole lender of legal tender. Any financial institution that wishes to loan American Dollars must acquire any legal tender that it may need from the Federal Reserve Bank of America,as all loans must be backed with a 100% reserve from either dollars on hand or borrowed from the FRBA.
The Federal Reserve Bank of America may raise or lower rates of interest to insure the quality and quantity of the American Dollar.
The Federal Reserve Bank of America shall be funded by the US Treasury which shall as mandated by Congress request the US Mint to produce a platinum “coin” with a DOLLAR VALUE of $100 TRILLION.This value will be electronically deposited to the account of the American people into the Federal Reserve Bank of America. The actual “coin” will be placed on display next to the US CONSTITUTION as it really has no practical value ,it is symbolic..
The board of directors shall be selected by a non-partisan vote. ONE SHARE,ONE VOTE,ONE CITIZEN.
THE SOLUTION:THE FEDERAL RESERVE BANK OF AMERICA .
FRBA will purchase ALL residential and commercial loans outstanding at Fair Market Value.
Any private lender may retain any loan it has by simply showing 100% reserve. The American people will be the lenders and no longer will they be the victims of private greed.No longer will they allow the banks that they have entrusted with their money to use that money to make profits for themselves .Profits will be made by the people,of the people, for the people. Taxpayers bailout for Taxpayers by Taxpayers paying compounded interest to Taxpayers . These loans would provide trillions of dollars as TAXPAYER PROFIT (REVENUE)!
Compound interest will cause any amount to double over a certain period of time.(Rule of 72). A 4% compound yearly interest rate will double the base amount in 18 years. The taxpayers will be the direct lender and make the profit (interest).This doubling alone will provide an enormous income stream. If loans are made for $100 trillion,the incoming payments would exceed $5 trillion a year. What a magnificent way to fund a government. Pay off all old debt and never need to go in debt again because we the people would demand that there be a reserve, as the income (payments )will be greater than the redistribution..
As Einstein said,“Make it simple.”
TERMINATE THE STUPID PRACTICE OF PAYING INTEREST ON OUR OWN MONEY TO PRIVATE BANKS .A PRACTICE THAT CAN ONLY END WITH A FINANCIAL BUST,OR SERVITUDE !
The Federal Reserve Charter as it stands now is a bank that is owned (shareholders) by other banks. This is the greatest banker fraud of all,and we know how Freddie and Fannie turned out.No more GSE’s. And because the present Federal Reserve Charter is the bankers bank,they are using taxpayers dollars to HELP THEIR BANKS more than to help people. When the banks made federal guaranteed loans,the FEDS guaranteed the loans with taxpayer dollars. Now they are supplying the banks with almost free money. This is exactly what we the people should do-become the owners of our money,the owners of the fruits of our labors.
Even now there is a plan (QE3) to purchase “toxic MBS’s”,$545 billion worth as starters. A good thing for the people and the economy,helping to save our homes and the housing industry.BUT BEING DONE IN A MANOR THAT IS AGAINST OUR RIGHTS FOR THE “PURSUIT OF HAPPINESS. THE FEDERAL RESERVE AS IT IS CHARTERED NOW ,WILL GIVE THE MONEY TO THE BANKS(OUR MONEY) AND ALLOW THEM TO CHARGE US INTEREST TO USE IT !!!
,The next wave of stuff that will hit the fan may be the “CRISIS in the derivatives market” if you think stuff was “too big to fail” before,join me in sleepless nights knowing the derivatives market is more than $800 trillion ! ! That’s $800,000,000,000,000 !
Lord Acton ,UK,”If I am correct, there are even bigger scandals to come when the tide goes out again, although there will be great efforts made to cover them up and excuse them ‘for the sake of public confidence in the system.’ The derivatives market is a scandal-in-process, and is likely to rock the US banking system and the Dollar to their foundations when it topples. “,
There may be even larger losses and anxiety for the unsuspecting who have misplaced their trust in false ideologies, slogans and theories promoted by a self-serving oligarchy.
“BUT WE CANNOT SAY “We were not warned” read Brooksley Born,
“WARNING”
Read: “Web of Debt” written by Ellen Brown ( Ellen Brown ,she turns her skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back).
Could you imagine the profit (read income revenue) The Federal Reserve Bank of America would make? Taxpayers paying interest as revenue income for the taxpayers government.
Put the insolvent banks in receivership.
The next set of banks that are to go into receivership by the FDIC are to have all assets that are not loans sold off.(read just in case Bank of America is “too big to fail” or read just in case JPMC and CITI refuse to sell them out.).FDIC will sell all assets ( minus loans) and keep the offices and all its branches.The renamed bank will be called “THE FEDERAL RESERVE BANK OF AMERICA . It will be funded by the US TREASURY.
The Federal Reserve Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
Just like that ,we the people may just have solved our
… financial crisis (read loan the financial institutions the money to unwind their derivatives to 100% asset based with a rate of 3% for 6 years.) ,
… housing crisis (read modify loans at fair market value with a rate of 4% for 72 years.Very low and affordable payments.)
….,monetary crisis (read pay off our debt at a rate of 10% or 10 equal payments per year,by using the income generated by The Federal Reserve Bank of America’s interest (revenue) bearing loans.
WE NEED TO CHANGE THE PRESENT SYSTEM AND START ON THE PATH OF A GREATER PROSPERITY.
SOLUTION TO FINANCIAL,HOUSING, MONETARY CRISIS AND CREATION OF MILLIONS OF JOBS (READ BUSINESS LOANS MADE AT 2% FOR 6 YEARS with no payment due till 1 year anniversary date.) IMMEDIATELY AT NO COST TO THE TAXPAYERS;RATHER AT A PROFIT (READ INCOME) TO THE TAXPAYERS.
THE FEDERAL RESERVE BANK OF AMERICA would be the only legal tender provider for all residential and commercial real estate loans,private personal and business loans.It would have branches in every state and territory.The FRBA shall control the money supply by setting terms and conditions for the loans,thereby fulfilling their mandate to control inflation,deflation,and stagnation. .Affordable loans at low rates and longer terms ( 2011 Private loans would be at 4% for 72 years as rates will be changed depending upon economic conditions .2011 Business loans would be at 2% for 6 (six) years with no payments for the first year.)This would create at least 4 million jobs immediately and may even reduce the unemployment to under 4% within that year by creating the jobs and homes and products needed for this new prosperity that would be a result of this new monetary policy.
The Federal Reserve Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
AMERICAN GOLD.
The American Dollar will be based upon THE AMERICAN TREASURE (“ITS GOLD”) !
That is the full faith and credit of the American people backed up by the US Constitution and all assets physical and intellectual. Americans shall and will pay all debts,foreign and domestic. The American people have tremendously more assets then the worlds gold. Why would we limit our future to only a single metal ?We have all the elements as assets that are greater and in more abundance than gold and intellectual assets that are limitless,why trade them for such a finite amount of gold,gold that is already owned by others?
We the people will create millions of jobs with commercial loans that will insure positive growth and employment.
We the people will have special terms and conditions for student loans that will insure the educational growth of all Americans .Extremely low rates, only used to cover losses. (read Ellen Brown”QE4- Jubelee”’ ).
Ben Franklin,Thomas Jefferson,and many more used this method ,the lending of taxpayers money , to start the colonies on the road to financial success. Then the lender banks took it away from the people by having legislators replace the practice allowing them to make the loans (make our money) and keep the interest for themselves,and at the same time guarantee that they the lenders get paid. We the people will no longer pay interest for the use of our own money,or guarantee lenders that they will be paid interest on our money for making loans.
THE SOLUTION:
TWO OF TWO,
To insure the funding of this great society and insure prosperity there would be three streams of income.
THE FIRST INCOME STREAM:
1. REVENUE (INTEREST) FROM DOLLAR LOANS.
Lets use a start figure of $51 trillion in loans,that which is already in circulation.(guesstimate,hope it is more)It will go on the balance sheet as $51 trillion loan assets. This asset will double every 18 years….1 X 18 = 102 trillion,2 X 18 =204 trillion. Private Banks will be the only source for deposits and savings. Private Banks will no longer be allowed to do fractional banking . All loans will require 100% deposit backing. PRIVATE BANKS WILL BE ENTITED TO TO PROFITS SINCE THEY WILL BE RISKING THEIR OWN MONEY AND MONEY THEY ARE INSURING THEMSELVES. Banks may borrow from The Federal Reserve Bank of the United States of America (HOPE THEY NEED ANOTHER $51 TRILLION) and use that borrowed money for their own account for their own investing;at the prevailing rate and terms. NO MORE FREE RIDE !( Some say they may need over $200 trillion to unwind their derivatives.)
Good-bye income taxes as they are known today.
The Return on Investment could be $3 to $5 trillion a year. US TREASURY INCOME to be used to pay off debt,promote the general welfare .
Good-bye income taxes as they are known today.
THE SECOND INCOME STREAM:
2. A one line form, INCOME TAX :” 0-10 . Annual income of up to $75,000,pays 0% taxes .Annual income of $75,001 and up, pays 10% taxes .There will be no need for any value added tax or consumer or sales tax.
THE THIRD INCOME STREAM:
3. A business tax.The business tax is also a one line item; ALL profit over a deduction of the actual salary of up to $100,000 per employee is taxed at 10%.All income from FRBA loans is deductible.
THREE INCOME STREAMS:
1-FEDERAL BANK LOANS:Taxpayers people and “people”(read corporations) paying interest
2-PERSONAL INCOME TAX: 0-10.
3-BUSINESS PROFIT TAX: Profit @ 10% minus employees salary up to $75,000 each.
THESE THREE WOULD AVERAGE OVER $5 TRILLION DOLLARS A YEAR.
We the people would demand the debt be paid off ,end the possible servitude of our heirs.
We the people would demand a balanced budget.
We the people would demand a real monetary reserve be left in THE FRBA.
We the people would demand the general welfare,life,liberty,pursuit of happiness,for all the people.
CAUTION: They will try FEAR tactics to keep US away from our rights. Remember ,”We have nothing to fear but fear itself”
They will use the fear producing words,”inflation, hyperinflation, stagnation”.
You can answer with the words,”I will not be enslaved by the most powerful force in the universe because we the people can use that most powerful force for the betterment of mankind and prosperity.”
We the people can use that “most powerful force in the universe to control inflation,hyperinflation and stagnation “! !
We the people will deal with the present possible economic tsunami,one tidal wave at a time .
We will eat this crisis -ONE BITE AT A TIME”
PERHAPS,WE NEED A MILLION CITIZEN MARCH ON WASHINGTON ORGANIZED FOR JUNE 2012 .
-WE NEED:
TO CHANGE OUR ELECTED CHOICES!
TO GET OUR CANDIDATES IN OFFICE!
TO GET THOSE ELECTED TO OFFICE AGREE TO THE ONE MOST IMPORTANT ITEM OF CHANGE;THEY WILL ENDORSE THE “AMEND THE FEDERAL RESERVE CHARTER,THE NEW INCOME TAX FORM WITH 0%-10%.
On 60 minutes (12/11/11) ,President Obama said,”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.”
AMERICA SHOW HIM THE WAY!
May God continue to bless America,
justaluckyfool@aol “Anyone who attempts to predict the future is a fool;if correct justaluckyfool.”
N.B.,This article contains no original material and has no copywrite.It is a compilation of thoughts and ideas that are on the internet.Please post
Please edit,change,challenge,then endorse and post.
quote:http://us1.institutionalriskanalytics.com/pub/IRAMain.asp
The Fed as the New Global Aristocracy: Walker Todd,
“In the case of the US, does anyone think that Barack Obama would be seeking a second term as POTUS had the largest banks been restructured by free market forces? The US housing sector would already be recovering, in part because the political shock wave of restructuring would have forced Congress to act long ago. Bank America and Citigroup would have been broken up and sold to new investors, and the US economy would be growing again without fiscal stimulus.”
The G20 are staging this world wide economic collapse because they see the world this way now and do not want to continue to finance its growth because it in their view is Pointless , so they are now going to convert us all into a collective system that will zero this growth , http://www.msnbc.msn.com/id/44990504/ns/us_news-life/
Here is what a Top Technocrat thinks about you , scroll down a ways to see the words that gives you a veiw of how these Bureaucrats think …..
http://ngm.nationalgeographic.com/2011/01/seven-billion/kunzig-text
Here is his quote ” I have understood the population explosion intellectually for a long time. I came to understand it emotionally one stinking hot night in Delhi a couple of years ago… The temperature was well over 100, and the air was a haze of dust and smoke. The streets seemed alive with people. People eating, people washing, people sleeping. People visiting, arguing, and screaming. People thrusting their hands through the taxi window, begging. People defecating and urinating. People clinging to buses. People herding animals. People, people, people, people”. —Paul Ehrlich .
And if you resist this will be the outcome for you , http://www.infowars.com/indefinite-detention-bill-heads-to-obamas-desk/
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Ex-CIA Agent Gives The Answer to S. 1867 and the Tyranny!
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