What the Government Doesn't Want You to Know

Kudos to Chuck Katlic for his enlightening letter to the editor of the Weatherford Telegram on July 15, 2009 regarding historic consequences of banks opening their printing presses to print money. We should all take heed to the historic truths he alluded to. Especially, we should take note that he correctly identifies the Federal Reserve as a private bank, not a Federal one.

What is disconcerting to me is a related Ray Perryman article in the July 20, 2009 Weatherford Telegram. He completely ignores the historic facts pointed out by Katlic. He recited selected machinations intended to support his premise that “a strong central bank is essential to weathering storms”. Then he recites, what I would describe as politically correct misstatements concerning actions of the Federal Reserve and the opening of the printing presses, the subject of Mr. Katlic’s letter.

His machinations include: (1) the Federal Government almost bankrupted itself in 1812; (2) Andrew Jackson and other politicians were blindly opposed to centralizing bank power (i.e. no monopolies); (3) an allegation that the impressive American industrial revolution was restrained by the lack of a cohesive centralized monetary policy; (4) excessive lending policies by state chartered banks contributed to speculative bubbles that burst and caused depressions; and (5) intervention of a private citizen, J.P. Morgan, was necessary to prevent a meltdown. All of this is nothing but 2009 political spin put on a 17th century scam first introduced in Europe and inflicted on all of us.

Historic records present data which throws an entirely different perspective on the Federal Reserve. The U.S. Constitution gives Congress the authority to coin money, not print money. Hence, it allowed a gold and silver standard for U.S. dollars. In 1913, Congress passed the Federal Reserve Act and the Federal Income Tax Act. The Federal Reserve Act allows the U.S. Treasury to issue its notes to the Federal Reserve in exchange for printed U.S. dollars. This was a skillful trashing of the gold and silver standard. The Federal Income Tax Act allows the Federal government to tax profits. It does not provide for the taxation of wages and salaries.

In the years leading up to the passage of the Federal Reserve Act, a group of Wall Streeters and wealthy Europeans were slicing up territories and fixing prices to monopolize financial markets in the U.S. In 1910, they held secret meetings in North Carolina with the Republican leader of the U.S. Senate. They drafted the blue prints for creating the “Federal Reserve”. Their idea was to legalize a wealthy monopoly and create a way for the government to tax citizens through the hidden tax of monetary inflation to complement its impending ability to tax profits. J.P. Morgan et al used the power of their wealth to usher and pressure a misunderstood, camouflaged Federal Reserve bill through Congress. Their tactics skillfully included a rush, rush, holiday deadline. The blue print draftees got what they wanted, a legalized corporate cartel cleverly named “The Federal Reserve”. They successfully perpetrated the 17th century scam.

In Europe, the scam was known as the “Central Bank Theory”. In concept, it is simple. The government wants more of your money to expand. It goes to the Central Bank (the Federal Reserve) who prints the wanted money on previously worthless paper and lends it to the U.S. Treasury. When the Treasury uses the money, the value of all dollars is diluted. This means your hard earned dollars are worth less in the market place. In effect, you are levied a tax without your knowing it. The government gets the diluted value of the dollars it received from the Central Bank and you can’t buy as much goods and services with your own dollars. WAKE UP AMERICA! You are effectively paying more taxes because of the printing of the dollars. Are you buying the hogwash that the rich will be the ones paying more taxes for an expanded government?

Katlic was giving you historic facts to mull over. He pointed out the effects and aftermath of hyperinflation resulting from overprinting of money. Perryman is giving you political spin. Contrary to his assertions, bank bailouts were not actually used to create liquidity. Lower interest rates of the Fed actually led to derivative bubbles and discouraged private sector investment. The ones who gained from the bank bailouts were the cartel owners/too large to fail banking behemoths. The rest of us suffered detrimental consequences.

The new cartel got paid interest on the U.S. Treasury bills in exchange for the money it printed (I.e. something for nothing). This is more cost to taxpayers. What’s worse is this initially worthless paper gets deposited in a bank, who, with power authorized by law, can lend it out with an additional nine times more printed paper and charge interest on the loan. This Ponzi scheme continues until loans are paid off. Again banks get something for nothing.

Our government has never told us where all the bank bailout money has gone. In fact, contrary to Perryman’s assertions of providing liquidity, initial feedback indicated the bank bailout money was not used in commercial credit activity. It doesn’t take much awareness to know that bank bailout money was being used to prop up derivative bubble bets. To the extent that any bank bailout money was used to reimburse banks for losses on any of the above described initially worthless paper loans, taxpayers are repaying banks for nothing. Not only have banks been given a license to steal, they are likely being handed additional loot by the Federal government.

How many of us are so dizzy from the spin that we can’t see what’s happening to us? Foreigners are not going to continue buying Treasury 1.1% bonds. The Wall Street manipulators are well on their way to wiping out the middle class. The next stock market drop could be debilitating.