"I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt."
-- Thomas Jefferson
The interest expense paid on the national debt is the third largest expense in the federal budget In Fiscal Year 2008, the U. S. Government spent $412 billion on interest payments to the holders of the national debt. The majority of those payments went to foreigners; and that trend continues. At the end of February 2009, the total interest spent so far this fiscal year is $148 Billion, and the debt has swelled to over $10 trillion without any sign it will soon stop, given falling revenues and rising deficits. And as debts rise, so does the interest earned by the international banksters.
So where is all the money to pay this interest coming from?
Largely out of thin air. When Congress needs a million, they ask the Treasury to sell bonds. The purchasers exchange money for the bonds and the government spends it. Bondholders are paid interest. Those who receive the money the government spends deposit it in banks. The banks then can lend up to some nine times the deposited funds to others who purchase goods and services and the sellers in turn deposit it and its relent, spent and redeposited until the original million becomes some $9 million.
The upshot of this: $9 million of new money the banksters collect interest from without having to put up any of their own!
This system of banking developed from a little understood fraud first perpetrated by goldsmiths in medieval times. Back then money usually took the form of gold or silver coins, or those precious metals in un-minted form. For safety and convenience, people would store their gold with the goldsmith who gave them a receipt pledging to return their gold upon presentation of the receipt. These notes in turn could be exchanged for goods and services from merchants in the community, or as you might recall from The Merchant of Venice, to guarantee trade.
Well it didn't take long before these money handlers realized that everyone didn't come at once to redeem their gold. They soon learned that not only could they buy bread and wine with their notes, but they could collect interest from people they provided notes or guaranteed payment for; even though they had insufficient gold to back them.
Practiced at the scale and in the manner we now do, one implication of the system is that the money supply must grow at least enough each year to create the money to pay the interest on old debt. Since all money is created by someone incurring debt, there must be enough additional new debt to stimulate the creation of new money to pay the interest on the old debt. And all the new money created, once deposited and loaned, multiplies itself in what ultimately becomes a vicious cycle that ends in inflation, speculation and defaults.
Now consider the money supply is estimated to be between $10 trillion and $18 trillion by various definitions, and that the interest to be paid on the national debt will soon be $1 trillion per year. Ask yourself what the interest expense will be as inflation kicks in and interest rates must rise. Calculate how much new debt will have to be created in order to create the money to pay the interest.
Now you must be asking yourself how is it all possible. The simple answer. It's not. And the financial crisis Obama et al are facing is just an early tremor before the big one. If even half of the upcoming interest paid on the national debt makes it into US banks, the money supply will inflate by some $4 trillion per year.
Remember, money is just another commodity like oil or housing. So who are the little wizards behind the curtain with the enormous voices, that is behind the scenes, inflating the mother of all bubbles?
They are the world's central banking cartel, including our so called Federal Reserve. These banksters are private entities who benefit in good times and in bad. They're the ones who give us the business in “the business cycle.” They tend the sheep, and then they shear them. They control the growth of the money supply, as it swells with ever increasing indebtedness which pays them interest. And when the time is right, they stop lending and own the farm.
When the financial system collapses, wealth is not destroyed. It just changes hands. A house is still a house, a farm a farm, and a pound of flesh will always be worth a pound of flesh.
So why don't we change things?
Obama's advisers, Geithner, Summers and Volker, prefer the status quo and their focus is on preventing bank failures without terminating the banksters' franchise. This is driven by old school ties and the usual buy in by aspiring elites.
If their bankster friends, and the investors in their banks aren't bailed out, and these wannabes don't cover their assets, where will they find work after Obama?
The biggest bankster of 'em all pointed out that the few who understood the system of credit and checking would be too interested in profiting from it, or too needy of its largess, to interfere in the fraud. The rest would just never figure it out.
There's lip service given the need to restore some regulation of banks, as if this is all that's needed. But there are few speaking to the real issue, reform of banking itself.
The problem is not banks. The real problem is banking based on a fraud: that the bank has enough reserves to return depositors' money if necessary. Since the last Great Depression it's been people's trust in the government, the FDIC, that was the band-aid on the fraud. Bottom line, the people have been taking the risk all along. But even full faith and trust in the United States will collapse in the next depression.
The banking system as constituted will never serve the country adequately. The reason is there's no incentive to do so. That's not how banksters profit. For the last century, and for the larger part of the preceding century, the creation of credit and the issuance of money has been surrendered to these private interests. They have taken the opportunity to manipulate the money supply and injure businesses and workers for their own profit.
At times they've broadcast their intentions shamelessly; including coordinating the restriction of lending that bankrupted countless farms in the 1930's. Their scheme? To grab the land and turn farmers into tenants as they had in Europe; a return to serfdom.
There is really no amount of tinkering with regulations that will harness the power given central bankers and cause them to serve the greater good and foster a stable economy. Only reclaiming control of the money supply, retiring the national debt and requiring lenders put up their own money, or borrow from and pay interest to the Treasury, will end the boom and bust cycles created by the cartel now in control of the banking system.
While some, like Rep. Ron Paul, advocate returning to a gold standard, this would be a poor policy if the goal is to escape the control and manipulation exercised by the international banksters. They have all the gold! Though silver could serve as a medium of exchange, and the US has great reserves of the same, why is it necessary?
History has shown that sticks, shells, feathers and even paper have proven successful media of exchange. All that is needed is trust in the instrument. Today we exchange slips of paper with nothing behind them. And we allow banks, with only a dollar of their own, to extend nine dollars credit and collect interest on money they create from thin air. At the heart of this system is trust in the people of the United States, and their government, to stand behind things when the going gets rough.
If people around the world can put their trust in Treasury's bonds, there's no reason they can't accept Treasury notes. Pay off the national debt with Treasury notes and end the use of Federal Reserve notes. We needn't keep paying interest to banksters. They can only issue money and credit because Congress let them. Yes, paying off the debt will put a lot of money in circulation, but to prevent inflation we need only raise the reserve requirements on banksters to prevent increased circulation.
Ultimately, the banking industry should become a combination of loan brokering and guaranteeing. Banks should loan their own money, from funds deposited for a similar term, or borrow from the Treasury and re-lend to individuals. We must retake control of our money supply. Otherwise under the influence of these international banksters we Americans will loose everything; even America.
With money and the economy in the hands of the international banksters, who really governs? To quote another famous bankster, "Give me the power to control the issuance of a nation's money, and I care not who makes its laws."
This international cartel has visions of a new world order made up of an international legislature, a world court, and a global banking system they control. The pieces are all in place. They are bleeding the third world mercilessly. We will soon be asked to surrender our sovereignty as the way out of the Great New Depression they've orchestrated.
"A government big enough to give you everything you want, is big enough to take away everything you have."
- Thomas Jefferson
