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Is it time for the FED to restore interest rates?

Discussion in 'Economics, Business, and Taxes' started by Days, Oct 14, 2015.

  1. Days

    Days Governor

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    He learned that from his Secretary of Treasury, whom he later made Supreme Court chief justice. Which, coincidentally, also provided the nation with some pretty good rulings for the later part of the 19th century.

    Ever since Lincoln, the nation has known the president can print money. We really didn't know that, before Lincoln. When Jackson killed the central bank, he sent the nation's money to state banks; a nice kickback for the states! We had no debt, we didn't need to print money. But today, we are in dire straits, much more dire straits than Lincoln was in when he fired up the printing press. Every leader knows it and every leader is too afraid to use it. So we try to pay a debt in the trillions with an income tax in the billions... we can barely pay the interest.
     
    Last edited: Oct 29, 2015
  2. georgephillip

    georgephillip Governor

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    Would this be a good time for a 21st century version of Jubilee?
    "The Jubilee (Hebrew yovel יובל) year is the year at the end of seven cycles of shmita (Sabbatical years), and according to Biblical regulations had a special impact on the ownership and management of land in the Land of Israel; there is some debate whether it was the 49th year (the last year of seven sabbatical cycles, referred to as the Sabbath's Sabbath), or whether it was the following (50th) year. Jubilee deals largely with land, property, and property rights. According to Leviticus, slaves and prisoners would be freed, debts would be forgiven, and the mercies of God would be particularly manifest."
    https://en.wikipedia.org/wiki/Jubilee_(biblical)
     
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  3. Days

    Days Governor

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    yes it would be! And what does the 21st century version look like? Well, the real deal is when Jesus returns and destroys those who are destroying the earth (the bankers) - but in the mean time, we could pay off our outstanding bonds with Treasury issue and stop collecting that illegal income tax. Then all we need is another 100 million jobs that pay a fair wage and we might start feeling free again!
     
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  4. georgephillip

    georgephillip Governor

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    [​IMG]
    ????
     
  5. Days

    Days Governor

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    Has Bernie promised to print our own money in our mints? Doubt it, even Ron Paul wouldn't have done that for us. Even our communists won't give us honest to God communism, which might be the only answer for our housing depression. Sheila Blair (head of the FDIC) called for zero interest Treasury loans (that should be done through a GSE, and the Treasury could fund those loans through their own issue)... why can't we do that?

    Whenever someone says they are going to be a populist candidate, I search for the actual change in their hope and change. Obama gave us another 8 years of Bush, he even kept Gates for his first term. The president can begin issuing our own money a variety of ways, with the stroke of a pen, he doesn't need Congress' permission to run the Treasury. He does need the courage and fortitude to stand up to the central bank. I don't see that, at least, not in the mainstream candidates.
     
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  6. georgephillip

    georgephillip Governor

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    I have the same doubts you have about The Bern. I don't think he will challenge Wall Street or the Pentagon in any fundamental way unless he gets a massive groundswell of public opinion forcing him to do so. Maybe that is why god created the Internet? Could you flesh out your contentions concerning 0 interest Treasury loans for those of us without Economic degrees?:confused:
     
  7. Days

    Days Governor

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    Even people with degrees in finance are kept ignorant of our money creation system and its history. 99% of our money creation is happening in computers, only 1% of it is printed up on Notes. We don't even print the $500 bill any more, its just pocket change for running around town and most of that is happening with your debit card, even paying for the taxi to the airport. So if we have all this electronic "money" ... where does it come from?

    The short answer is LOANS. When banks loan out "money" the so-called money is created right there. Once upon a time, the banks would issue a coupon, redeemable for gold or silver, nowadays, its just authorization for a loan. When I did mortgages, the Lender would e-mail authorization to Title for the loan, and the money was created by that authorization. No truck pulled up with bars of silver, no real money is connected to the game, the bank issued the "money" just by saying it existed.

    Well, the Treasury is not supposed to be a bank, but it can do the same thing. It can issue money just by saying it exists. But the Treasury is not staffed to do mortgages, so when someone calls for zero interest Treasury loans, that would require FANNIEMAE and FREDDIEMAC to make the actual loans at zero interest (since they were in receivership at the time, aka, the govt took them over, owned them) and to keep all the accounting tidy, you could fund the program through the Treasury, but the whole game pivots around not taking a loan from the FED. Ultimately, all money comes from the Treasury, because the FED derives its authority to create money from the Treasury, the FED even prints its money in the Treasury's mints.

    What people do not understand, and what the banks play on their ignorance, is that the banks are creating our money for us. We do not create our own money, all we do is take loans from the banks, the banks create the money when they create the loans. So, when someone says, Treasury loans would inflate the money supply, that is massive ignorance; the same amount of money is going to be created, whether the loan is created by Treasury issue or bank issue, but because the banks want that money (whoever creates the money is owed the money) (aka, whoever makes the loan is owed the loan) they float total lies; rumors in the media, that Treasury issue would inflate the money supply. Actually, bank loans have 100% interest over a 30 year term, so bank loans inflate the money supply twice as much as a Treasury loan.

    The damage is already done with our Treasury loans (bonds) written for the whole world. These are not Treasury issued loans to the banks, these are bank issued loans to the Treasury. Talk about slight of hand, the FED derives its authority to create money (remember, the money is created by authorization) from the Treasury, then uses that authority given to it from the Treasury to make loans back to the Treasury; in essence, the Treasury is borrowing its own money(authorization) from the banks. The least the Treasury could do is pay off those loans with its authority, but they don't, they force an illegal personal income tax upon US citizens to supposedly pay for those loans. (that they never needed to make in the first place)
     
  8. georgephillip

    georgephillip Governor

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    I would say the "money" comes from private for-profit lenders whose usefulness may be a thing of the past:
    http://www.publicbankinginstitute.org/
    "PUBLIC BANKS:
    * Make affordable loans to small businesses, farmers, government entitites, and students
    * Save taxpayers up to 50% on critical infrastructure like bridges and trains and schools
    * Eliminate billions in bank fees and money management fees for cities and states
    * Support a vibrant community banking sector
    * Enable sustainable prosperity"
    Ellen Brown introduced me to the concept of public banking a few years ago by writing about the state bank of North Dakota; should such an institution become established in a large state like California, mortgages could be obtained for 2% interest with credit cards capped at 6%, or so I'm told.

    There is currently a move afoot to resurrect the Postal Savings System which provided low cost public banking to Americans between 1910-1966. Payday loans would disappear from poor neighborhoods today if such a program resumed.
     
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  9. Days

    Days Governor

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    There's a million ways to rebuild the infrastructure, and every one of them is the same; take our money back. When banks were actually holding real money and loaning it out for business, they were useful. You'd think after 400 years of getting scammed, the people of the world would figure out that bank coupons are counterfeit. If you really wanted to go back to the republic laid out in the Constitution, you have to do away with paper money. The problem with that is, the banks already stole all the real money. Would if we threw a financial revolution... left the jails alone... but marched the military into all the banks, killed the devil worshipers in the back room, took all the gold and marched it over to the mints? Then used it for capital investment rebuilding our old factories into modern factories? Build a real communist state where the people actually rule; where the state owns the businesses and turns all the profits over to the employees at fair ratios (CEO's make 6:1, not 1000:1) and then we wouldn't need any banks. You do realize how easy it would be to structure a corporation that way? If people were making that much money, you could set up a real trust fund for each individual, in their name, so their money put aside is solely for themselves. And since it is their money, let them draw upon it whenever they please; like a real savings acct works... who would need a bank?
     
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    Last edited: Oct 30, 2015
  10. georgephillip

    georgephillip Governor

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    During the US Civil War European central bankers wrote the following to their New York cousins:
    "'The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.' The Rothschild brothers of London writing to associates in New York, 1863."
    http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking/

    I'm not clear on the "advantage that capital derives from the system." I know European elites were happy the war power was destroying chattel slavery because they knew capitalism provided a more cost effective means of controlling labor, but I'm not sure if "system" refers to capitalism itself or capitalism under control of private central bankers?:( Any thoughts???
     
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  11. Days

    Days Governor

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    I think this was the planning stage for another central bank in America? Only this time, they were going for the throat... the money creation process. So, in context to that letter, the central banker is saying that his NY attaches need not worry about replacing the nation's real money with bank notes, because after all, the people who understand what they are pulling are already on board and the masses can't tell the difference between debt currency and real currency. IOW, the bankers are taking away their money and placing them in debt to the banks, but the people will still think they are holding ten dollars in their hand. The masses are incapable of grasping that the new system enslaves them to the banks. The masses are incapable of understanding the tremendous advantage of the real money they are currently holding, which is that it can't be debased by the system; hence "the tremendous advantage that capital (real money they are using) derives from the system."

    The burdens that the people would bear to the new central bank would be to finance it's cash flow with an income tax on their wages. Income is a word used in business for a corporation's balance sheet; incoming money is on one side of the equation, and when it exceeds debits, payroll, et all on the other side of the equation, what is left is called profits. The income tax was a tax on corporate profits, never a wage tax. The very idea of taxing a wage is theft, it isn't honest government. Stealing money from wages to provide cash flow for the new central bank is the way the new system was going to be inimical to the people's interests.
     
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    Last edited: Oct 30, 2015
  12. georgephillip

    georgephillip Governor

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    And those New York bankers reading the Rothschild letter in 1863 waited 50 years for their payoff, just in time for the War to End All Wars. Imagine if a majority of US voters ever became convinced they could end war AND income taxes? Where's Huey Long when we really need him...still dead, I guess?o_O
     
  13. Days

    Days Governor

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    In function, it's a plutocracy, not a republic, so it doesn't matter any more what the people think. Back in 1863, it mattered, not any more. I think the internet will wake up the majority of US voters... and they will not be able to change a thing. But they will understand fully why the Lord Jesus killed all the top bankers when he returned and why he gave them all their money back. This generation knows they have been shafted, they might not understand the intricacies, but they know the banks are ripping them off.
     
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  14. EatTheRich

    EatTheRich President

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    My proposals:

    1. Nationalize the means of credit.
    2. Make loans available at low interest to family farmers and small business owners.
    3. Institute a sliding scale (indexed to inflation) of wages.
    4. Cancel all municipal bonds and student loans.
    5. Cancel the third world debt.
     
  15. EatTheRich

    EatTheRich President

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    Not just the money system ... first and foremost, the industrial system which gave rise to it. The capitalist market is "controlled" in the sense a Las Vegas casino is controlled ... the bankers always get ahead (unless they go to war, trade war or shooting war, with other bankers) ... but the process is anarchic and in fact requires continuous upheaval in every aspect of not only production but consumption and, hence, culture as well. But the capitalists do not have it that under control ... their greed, or rather the imperative that every firm maximize profit or be destroyed, in fact condemns their system, which after all relies on disruption and upheaval, to crisis after crisis, from the crisis of recession/depression, to the crisis of hyperinflation, from the crisis of industry-wide collapse to the crisis of bankruptcy, from the crisis of housing collapse to the crisis of bank failure, from the crisis of fascism to the crisis of war. And each of these threatens not only their profits but also their continued economic and political control.
     
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  16. EatTheRich

    EatTheRich President

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    Because then you'd have to redeem the notes. Presumably immediately.
     
  17. EatTheRich

    EatTheRich President

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    Indeed it is. The goal of a business is to enrich the shareholders. The goal of the state, according to some, should be to enrich the state treasury (for example, by getting rid of the public debt). But the only justification for the state's existence is to violently impose the will of the majority on a minority that threatens to usurp our freedoms. It is only with this conception of the state in mind that questions of monetary policy, public debt, a national bank, etc., can be answered.
     
  18. EatTheRich

    EatTheRich President

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    The income tax which you call "totally illegal" is specifically authorized by the Constitution. Of all taxes, except perhaps certain targeted luxury taxes, it falls most heavily on the rich and least heavily on the poor. If only unearned income were taxed, as in the original income tax, it would barely affect the poor at all and likewise have small if any impact on much of the middle classes.
     
  19. EatTheRich

    EatTheRich President

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    It's certainly part of the government in the sense that it helps rule us. The administration is also formally selected in Washington. However, the ownership and the benefits are private.
     
  20. EatTheRich

    EatTheRich President

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    Sounds like we could use a national housing program something like the one in Cuba that eliminated homelessness, outlawed foreclosure, eliminated housing debt, and replaced everyone's mortgage payments with a small rent paid to the government.
     

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