Money fraud revealed as gambling

Monetary Fraud Omen of Economic Collapse

Stocks Over-valued
Market Gyrates Wildly

    On Tuesday, September 2, 1997, the Dow Industrials Average soared over 257 points to its highest daily gain in U.S. history. The upswing in the market followed a 130-point drop in August which some analysts viewed as a needed correction in an over-valued stock market. As the market surges wildly again, the harbingers of warning are disregarded in the rush to make profits in the world's largest pyramid scheme. Disregarded most of all is the simple sage advise, "There's no free lunch."

    It was just last December when the stock market took a dive as Fed Chairman, Allan Greenspan testified of the market's "irrational exuberance". Fears of higher interest rates caused the market to make a sharp drop. The Dow was in the 6,000 range at that time and when it hit the 8,000 range in July, Greenspan said, "Overall...there does not seem to be a problem which has created any concern on our part.... Recent performance of the economy...has been exceptional." It is beyond the reasoning of most market analysts how 6,000 can be "irrational", but 8,000 "does not seem to be a problem." "I would say that we are getting into an over-valued situation, but there seems to be nothing to stop the market," said James Miller, chief investment officer at Bank of America, to CNN in an understatement. Charles Crane, chief market strategist at Key Asset Management told CNN,"By virtually all statistical models that I've seen from Wall Street, this market is fifteen to twenty percent over-valued."

    Since December the stock market has demonstrated its instability by a major plunge in June and August, and then the huge surge of buying on September 2nd. Such wild gyrations scream that stock prices are not tied to honest equity values and that a major calamity is at the door of the world's financial markets.

    The out of control bull market is a phenomenon called "asset inflation", according to Mr. Bill Denman, an economist and political activist in the state of Idaho. It is a precursor to an inflationary wildfire that will consume the U.S. economy and bring down the global economy. It will be the final consequence of the policies pursued by the Federal Reserve Bank since its inception.

Government Financed by Credit - Basis of Fiat Currency

"The World is Awash in Money"

A flood of fiat money

    When the currency of the United States was taken off the gold standard, it became fiat money or paper whose value was determined by those who printed it. What was once a promissory note to pay real money, gold was itself declared to be real money. U.S. fiat money today is no different from the printed paper in the Parker Brothers' Monopoly game, with the exception that people believe "reserve" notes have value. The economies of every nation in the world are based on fiat currencies that are printed as fast as the printing presses can run. Ted Turner seemed to allude to this phenomenon in his speech before the United Nations Association-USA on September 18th when he said, "There are so many rich guys in the world, billionaires....The world is awash in money and nobody knows what to do with it."

    Because people blindly believe the Federal Reserve's valuation, U.S. fiat money has been used as a means of exchange for approximately seventy years. Just as people believe that paper reserve notes are real money, they also believe that the U.S. government taxes its citizens for the revenue it needs to operate. This is an illusion promoted by media outlets such as the ABC News segment "It's Your Money", which highlights alleged government misuse of taxpayer funds. Media propaganda promotes the belief that the government spends "real" money that it obtains from taxpayers, but this is a combination of blatant deceptions - the first being that the government is financed by taxes, and the second being that it is spending real money, "your money".

    On September 30, 1941, Congressman Patman questioned Fed Chairman Eccles before the House Committee on Banking and Currency. Chairman Eccles stated on the record that America's money begins with the Fed's right to create it. Rep. Patman asked the Chairman, "How did you get the money to buy those two billion dollars' worth of government securities in 1933?" Eccles replied, "Out of the right to issue credit money." Patman: "And there is nothing behind it, is there, except our government's credit?" Eccles: "That is what our money system is. If there were no debts in our money system, there wouldn't be any money."

inflated money supply, hundred dollar bills

    The government's mainstay is the collusive partnership it has with its chief benefactor, the Federal Reserve Bank. When the U.S. government needs funds, it goes to the Fed and asks for a certain amount to meet its day-to-day obligations. The U.S. Treasury issues a note as collateral and the Federal Reserve credits the Treasury's account. Where does the Fed get the money? It creates it out of thin air by crediting the government's bank account with a bookkeeping entry. There is absolutely no value whatsoever in the transaction - either in the promise to pay (treasury bill) or in the Fed's bookkeeping entry. However, this transaction creates an effective lean against future production in the nation's economy, as the "created" capital enters the economy and is used as a medium of exchange for goods and services.

    Whenever the government needs money to bail out Mexico, to pay the bill for a natural disaster or to wage a war, it does not suddenly increase taxes because that is politically unpopular. It goes to the Fed and obtains credit. The government spends the money, expanding the amount of money in circulation, creating inflation which is not higher prices, but an increased money supply which is later symptomized by an increase in prices. The gradual shrinkage of the value of the monetary unit through the creation of synthetic money constitutes a tax, and if applied to the thirty-five or so percent income tax paid by Americans, the total tax burden is about sixty percent of income.

    The "treasury bill" issued by the government obligates, by force of law, producers in the economy to accept credit that has no value whatsoever at the time of its creation at the Fed. Thus, through fraud on the part of the Fed and ignorance on the part of the public, the greatest system of slavery and theft ever invented is enforced.

Fed and Federal Government - Hand and Glove

    Most politicians like having money to spend on wars, social programs and bail outs without the political fallout of directly raising taxes and, even if these representatives are not owned outright by the large financial interests, they still benefit and use the system to promote their political aims. Talk of balancing the budget in Congress is only a smoke screen. As good as it sounds, the plan to"balance the budget" is merely a clever way for the government and the Fed to further enslave the masses now that every man, woman and child in the U.S. is over $116,000 in debt (based on 1994 figures of U.S. national debt of $31.1 trillion). This debt was created out of thin air by the Fed and the U.S. Treasury and robbed Americans through inflating the money supply and diluting the value of their currency. This debt should be repudiated, not paid back with the sweat of working people. "Balancing the budget" means that a greater percentage of the tax burden will disappear into the sucking vortex of compounded interest on the national debt, while there is a corresponding decrease in the collateral benefits Americans have derived from this system, such as "entitlement" programs and a large assortment of largess and pork. So-called "balancing the budget" is a neat way to transfer wealth from the many to the few, destroying the middle class and turning all of society into one great mass of poorly paid, overworked serfs working for the global landlord.

Disaster Deferred

    The consequences of this inflationary practice have been deferred by massive trade deficits against the U.S. The U.S. has imported foreign goods while exporting its fiat currency abroad. This enslaves third world countries while it destroys U.S. industrial capacity at the same time. Trade agreements have forced open the doors of developing nations who absorb the U.S. fiat currency like a sponge in exchange for goods made by slave labor. As of June, 1997, China's total trade deficit against the U.S. totaled over $21 billion, approaching that of Japan's which stood at $25 billion.

    On June 23 the Dow fell 192 points when a Japanese finance minister remarked that investors in Japan should sell some of their U.S. Treasury bonds. The U.S. is doing its best to see that this money, often traded in the form of U.S. government securities, does not come home to roost. But it is coming home to roost in the U.S. stock market, creating its own updraft which has also sucked in billions invested in American mutual funds and the like, over-valuing the stock and setting the stage for a massive collapse.

    Before long, massive inflation will rage unchecked based solely upon the fact that the Fed has been creating money out of nothing for many years. Even if the stock market doesn't fall first in the chain of events, the cash it is infusing into the public companies listed on the exchange will sooner or later make it into circulation, which will continue to inflate the money supply. Inflated prices, which are merely the symptom of an inflated money supply, are certain to come, possibly within a few months according to one economist. When they do, the other dominoes will fall, including the stock market which will trigger a collapse in the value of the U.S. dollar, resulting in a huge sell-off on the international currency exchanges. Americans will then see, as has the rest of the world at that point, that the U.S. dollar isn't even good for toilet paper.

How Government Steals Through Illusion of "Good Times"

    Franklin D. Roosevelt removed the U.S. from the gold standard about the same time his counterpart, Adolph Hitler, took similar measures in Germany. Hitler boasted that he had wisely tied the German mark to the size of the German economy rather than to gold. This was the policy of the fascists of the 30's, and continues to be the policy of the Fed today, as it bleeds away the lifeblood and labors of the masses through its government collection agent and through its inflationary policy. Hitler's Germany had the lowest unemployment rate that generation could remember, yet low wages, a fiat currency, and taxes drained away the quality of life Germans hoped to obtain.

    The Fed and its pet parrot, the news media, continue to deny that inflation is present because the symptoms have been deferred or covered up with smoke and mirrors, but effect will follow cause and this rigged pyramid scheme will collapse. They all do.

    Some economists and market analysts all pretend that a market "correction", as they put it, will result in lower stock prices or perhaps a recession, or some may even hint at a severe economic downturn. But the truth is that the world's system of finance is so overextended through the Fed's fractional reserve banking policies, and so honeycombed with bad debt and over-valued collateral that a severe downturn would bring everything right to the bottom. Few Americans know what that would mean for this country. It would mean the end of civilization.

Money in a mouse trap

    Last week in an interview with The WINDS, Congressman Ron Paul described the effects that the inevitable financial collapse would have on the United States. Concerning America's cultural inability to cope with a major crisis he said, "People in the 30's felt more responsible to their families, responsible to themselves. Most people lived outside big cities and it was a lot easier. I remember some of those times, where especially during the latter part of the depression prior to the war it wasn't unusual for my family to actually raise chickens, have a garden and take care of ourselves, [but] now the cities are going to explode."

    Economist Ludwig Von Mises described the role economics performs in social life in his book Human Action where he wrote:

    "The body of economic knowledge is an essential element in the structure of human civilization; it is the foundation upon which modern industrialism and all the moral, intellectual, technological, and therapeutical achievements of the last centuries have been built. It rests with men whether they will make the proper use of the rich treasure which this knowledge provides them or whether they will leave it unused. But if they fail to take the best advantage of it and disregard its teachings and warnings, they will not annul economics; they will stamp out society and the human race." (p.885).

    The warning of Von Mises was echoed by Robert H. Hemphill, Credit Manager of the Federal Reserve Bank, Atlanta, Georgia, who said:

    "This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."

    When America loses its civilization and its very existence, it won't be at the hands of an external invader, a natural disaster or a meteor from outer space. America will perish because she has "glorified herself, and lived deliciously...for she saith in her heart, I sit a queen, and am no widow, and shall see no sorrow. Therefore shall her plagues come in one day, death, and mourning, and famine.... and the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more.... For in one hour so great riches is come to nought." Revelation, Chapter 18.

Written 9/25/97

 

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