Adonis Diaries

Posts Tagged ‘International Monetary Fund

IMF was Not set up to give the people any priority: A tool for “Moral Entity” of multinational financial conglomerates

“In the history of the IMF, the people have never been a priority” says Juan Valerdi, previous advisor to the Central Bank and professor of macroeconomics at the University of La Plata, Argentina, in our latest #DebunkingIMF video.

Since this joint campaign with ANND started, we have managed to bring nuance to the public discourse on IMF bailout programmes and to highlight their high social costs and negative impact.

Watch the video for more of Prof. Valerdi’s insights, based on the Argentine experience with the IMF.

The latter have notably protected local oligarchies and funded capital flights – issues that are strikingly similar to those of Lebanon – which thus contributes to maintaining the status quo rather than provide solutions  to the needed poorer classes.

Note: Argentina, like Lebanon, is being squeezed by the US and Israel in order to permit easy immigration of Jews to greener pastures, such as Patagonia.

Actually, Patagonia has been the prime destination of middle class Israelites, fleeing this tiny and inhospitable Palestine.

For more on our stance regarding international bailout programmes, refer to this post:

Arab NGO Network for Development Universidad Nacional de La Plata | UNLP

Lebanon PM, Saad Hariri, ready to sell Lebanon

And let it be under International Monetary Fund (IMF) mandated power

*نفّذوا الشروط الأمريكية أو إختاروا الكارثة …

قد يظن البعض أن سعد الحريري سجل إنتصاراً بالنقاط في لعبة حرق الأسماء ليفرض بعد ذلك شروطه على العهد، أي حكومة تكنوقراط بشروطه ؟

لكن واقع الحال غير ذلك تماماً ، فسعد الحريري هو أضعف طرف في الأزمة اللبنانية حالياً، وأغبى طرف فيها وللأسف هو (الحراك الثوري …؟).

عند عودته من الإمارات أبلغ سعد الحريري من يعنيهم الأمر في الطائفة السنية، بما فيهم رؤساء الحكومة السابقين حجم *الضغوطات والكارثة الآتية ، إذا لم يتم تنفيذ الشروط (الدولية ..؟).*

ولمّا أصرّ الحريري مؤخراً على فكرة حكومة التكنوقراط التي يطبّل ويزمّر لها الحراك، والتي *هي بالأساس من إعداد (شينكر وفريقه)،

* جاء جبران باسيل والخليلين وابلغوا الحريري بأنه لا مانع من أن يكون التيار والحزب خارج الحكومة لكن ما هو البرنامج ؟ وما هي الصلاحيات الإستثنائية ؟

الحريري لم يفصح عن كل المشروع التي تبلّغه من الأمريكيين، لكنه قال: “حكومة من ١٤ وزير، عشرة منهم أنا أختارهم للوزارات الأساسية وأربع وزراء دولة غير حزبيين تقترحهم الأحزاب من خارجها”.

مشروع حكومة التكنوقراط كما سرّبته مصادر قريبة من بيت الوسط هو كالتالي :

*- تعيين الوزراء التكنوقراط يتم من قبل صندوق النقد الدولي حصراً،*

وبالمعلومات تسلّم الحريري لائحة ب ١٨ اسم لمختلف الوزرات على أساس أن ينتقي منها.
*- يقوم صندوق النقد الدولي بتسمية وزراء التكنوقراط وقد سلّم الأسماء للحريري.*

– جمعية المصارف تعمل بوحي من المراقب الامريكي : (بيلنسغي).
*- الإتيان بوصاية دولية تدير المطار والمرفا ومصرف لبنان وتسيطر على المعابر الحدودية مع سوريا.*

*- تصفية وبيع قطاع الإتصالات والطاقة بما فيها النفط والغاز.*

*- إنهاء ملف التوطين (الفلسطيني) ودمج اللآجئين السوريين.*

الصلاحيات الإستثنائية لمشروع حكومة التكنوقراط هي من أجل :

*أ – القيام بإتفاقات لترسيم الحدود البرية والبحرية برعاية أممية (امريكية)، بدون الرجوع الى مجلس النواب لإقرار أي إتفاقية. مما يعني التنازل عن الحقوق في حقلي النفط والغاز ٩ و٨ في الجنوب لصالح اسرائيل.*

*ب – تعديل القرار ١٠٧١ بطلب لبناني ليشمل الحدود السورية.*

*ج – أن تجري إنتخابات نيابية مبكرة بقانون جديد (تغيير الأكثرية الحالية).*

وهكذا نلاحظ طوال هذه الفترة *أن كل الإعلام والصحف التابعة والمموّلة خليجياً وامريكياً في لبنان، يكون لسان حالهم نقل الرسائل الامريكية التهديدية كما هو حال كلام المطران الياس عودة ، ومقال طوني عيسى في الجمهورية اليوم ، وسام منّسى في صوت لبنان وصحيفة الشرق الاوسط ، وسركيس نعوم في النهار الذي نقله عن مايكل يونغ “معهد كارينغي”،

وكلها تتمحور حول خطاب واحد : نفذوا الشروط الآمريكية أو إختاروا الكارثة …؟*🤚


If most States are reeling under Sovereign debt, including USA and Japan, from where credit is supplied?

Except China, Norway, Sweden, Denmark, Netherlands and Syria (before the world war on it in 2011), almost all the states in the UN  are reeling under Sovereign debt. The USA alone is over $20 trillion under and Japan over $3 trillion under.

Question: if recently China managed to be a creditor, whatever saving China made, cannot cover a tiny part of world’s debt, (excluding the USA and Japan debts that are beyond comprehension in any scale), then how this financial system is still working?

The USA ceased to be a productive country around 1967 and rom the Gold. Since then, most of US goods , are produced by a third country, and US consumers are relying on third parties to supply their demands.

In fact, the USA has been functioning within a Ponzi system: country buy US treasury bills because the dollars is the world main currency, and the US use this influx to pay its civil servants and its military infrastructure.

Do you know that Japan with a huge sovereign debt buys US treasury bills by the trillion every year? Sure China also buys these bills by a trillion each year. and at a lower scale follow Britain and Saudi Kingdom.

Obama warned the British before the Brexit vote (Exiting the EU):Do Not rely on the USA to back you in your troubles years“. The tiny Brexit majority didn’t take his warning seriously.

Donald Trump has dropped the mask on this Ponzi scheme that has been going on for 6 decades. Trump has started to blackmail any country with surplus money if they still want to rely on US (psychological) military support.

Recently, Trump demanded from Japan and South Korea to pay for US military presence, though Japanese masses have been pressuring the US to withdraw their forces for decades now.

Trump even backed down on his will to withdraw his military presence in Syria in order to exploit the Syrian oil fields, and for free (US highway robbery that doesn’t give a damn of any UN principles).

With shortage of money to buy ridiculous weapons they don’t need, the Saudi Kingdom and the Gulf Emirate are reverting to finance US mercenaries for protection of their unstable “absolute monarchic” powers

So far, US federal budget is covered by China and Japan buying treasury bonds by the trillion.

The Western colonial powers have been supporting one another through short loans at very low interest rate (less than 3%) and then re-lending to the developing nations at 8%.

Now and then, the USA creates a world financial crisis in order to erase part of its past sovereign debts through financial “engineering” malevolent practices that punish the poorer classes around the world, with No exception.

And the USA then rely on the International Monetary Fund (IMF) to lend money at exorbitant interest rates with conditions to charge the poorer classes to cover the deficit in their States.

Actually, Not a single State that borrowed from the IMF managed to deal with its conditions without a major mass upheaval. Even European countries are No exceptions.

This mechanism of transferring fictitious wealth through engineered financial transactions is at an end, as China and Russia have decided to have their own financial transaction scheme.

Lebanon, a non-productive tiny country with no raw material, is Not the first State that lived on a Ponzi scheme for 3 decades. The USA has been sustained in a Ponzi scheme for 60 years by now, since it ceased to be a productive country.

So far, the financial structure in the world is still functioning under a Ponzi scheme, a scheme that cannot be sustained. Basically, Asia Far Eastern countries (China, India, Viet Nam, Malaysia, Cambodia, Indonesia….) are shouldering the burden by hard working productive activities.

Once China decides that great “growth” is Not the name of the game, but enough productive scale for self sufficiency and to satisfy its close allies, then China will desist from buying US bonds, and the US will have to face this calamity of relying on its Ponzi mechanism.

World World III is not possible against direct war with China or Russia, and China will play the “deep pocket” for the countries resisting US military hegemony.

Note: In all of the financial crashes of 1982, 1990, 1997 and the 2008… the presidents of central banks of the (colonial powers) meet in Bale (Switzerland) to swap papers. The rich get richer and the small creditors are buried under papers

Any peaceful State outside of Lebanon?

Question: Do the citizens of these unstable States have any hope in the future?

Mass upheaval almost everywhere in the world, from Latin America, Europe, Hong Kong, Africa, The Sahara States, Middle East… and most of these upheavals are the result of the USA policies and its International Monetary Fund.

Since October 17, Lebanon mass upheaval didn’t witness any killing by the Army who basically was safeguarding the uprising from the hooligans of the civil war militia “leaders”.

Note that the Internal security Forces refused to get out of its barracks, simply because it is meant to protect the investment of the militia/mafia in Beirut, and mainly those of the Hariri clan and Nabih Berry (chairman of the Parliament)

Most of these States can conceive of a “brighter” future, but can the Lebanese dare to elevate their wishes for a sustainable Lebanon?

بالأمس مساءً، أيّ بتاريخ ١٧ تشرين الثاني ٢٠١٩، قمت بجولة إخبارية على محطات التلفزة العالمية : Euronews, CNN, BBC, TF1, …وتأكدت بأن كلّ بلدان الكرة الأرضية خربانة وولعانة…

عددوا معي:

– مظاهرات وإعتصامات في بوليفيا، التشيلي، المكسيك، البرازيل، غواتيمالا، البيرو…هذه في أميركا الجنوبية…

– قتلى وجرحى بالعشرات في عمليات إطلاق نار في الولايات المتحدة الأميركية…

– مظاهرات في مقاطعة كيبك في كندا للمطالبة بالإستقلال الذاتي…

– مظاهرات وإعتصامات في بريطانيا…

– القمصان الصفراء Gilets jaunes... كسّروا بعض معالم باريس وأقفلوا الطرقات في معظم مدن فرنسا…

– مقاطعة كاتالونيا (Catalonia) تطالب بالإنفصال عن إسبانيا من خلال عصيان مدني شامل…

– مظاهرات وإعتصامات في سلوفاكيا، والبانيا، وكرواتيا، والمانيا، واليونان…

– حروب ومظاهرات ونزوح وقتلى وجرحى في تركيا، والعراق، وسوريا، وإيران…

– مظاهرات وحروب في الجزائر وليبيا والمالي وبوركينا فاسو …

حرائق مدمِرة وقتلى في أوستراليا…

مظاهرات وعصيان مدني في هونغ كونغ…

– … ولبنان على شفير الحرب …

لا يوجد آمان في أيّة دولة في العالم … فالنظام الذي أوجدته الدول الكبرى بعد الحرب العالمية الثانية ينهار بالكامل…

أيها اللبنانيون… الهجرة ليست الحلّ… الحلّ هو بالتعقّل والحوار وقبول الرأي الآخر والعمل بصدق على إعادة بناء وطننا الحبيب لبنان …

Christine Lagarde (IMF chief) pays No taxes?

And why she insist on attacking Greeks?

Philip Aldrick, Economics Editor, posted in May 2012:

Ms Lagarde was forced to publish an embarrassing climbdown on her Facebook page over the weekend after being bombarded by hundreds of Greek people who felt insulted by her suggestion that the country’s crisis was partly due to “all these people in Greece who are trying to escape tax”.

On Tuesday she had to admit that her $467,940 (£300,000) annual salary and $83,760 of additional allowances are entirely tax-free as the IMF is an international organisation.

An IMF spokesman said: “Salaries, like those in most international organizations, are paid on a lower, net of tax basis to ensure equal pay for equal work regardless of nationality.”

He added that Ms Lagarde, 56, does pay all other “taxes levied on her, including local and property taxes in the US and France”.

Ms Lagarde earns more than President Barack Obama and David Cameron, both of whom pay taxes.

Andrew Bossone shared this link

Hypocrite. IMF chief Christine Lagarde attack on Greeks, blaming them as tax avoiders, backfires as she pays no tax

Christine Lagarde, the International Monetary Fund managing director who provoked an angry reaction from the Greek people after telling them to pay their…

How the Federal Reserve Bank behaved since early 20th century?

The US Federal Reserve Bank, an owned private institution, was created on December 23, 1913. It was planned at a secret meeting in 1910 on Jekyll Island, Georgia, by a group of Zionist bankers and politicians.

The power to print money was transferred from the US Government to a private group of Zionist bankers.

The Federal Reserve Act was hastily passed just before the 1913 Christmas break. Congressman Charles A. Lindbergh Sr. warned: “This act establishes the most gigantic trust on earth. When the President signs this act the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized. The new law will create inflation whenever the trust wants inflation….From now on, depression will be scientifically created.”

Three years after signing the Federal Reserve Act into law, US President Woodrow Wilson made the following statement:

Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world–no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of small groups of dominant men.”

During the Great Depression people who had gold in the banks wanted the banks to honor their contract to redeem the paper currency for gold…

The fraudulent nature of fractional reserve banking was at risk of being exposed because there was not enough gold on deposit in the banks to redeem all Federal Reserve Notes issued promising payment in gold.

That was when US President Roosevelt declared a national emergency and closed the banking system for two days as recommended by the Board of Directors of the Federal Reserve Bank of New York.

Congress passed the Emergency Banking Act declaring it illegal for US citizens to own gold under penalty of up to a $10,000 fine and/or up to 10 years in prison.

The people exchanged their gold and gold certificates for Federal Reserve Notes of created dollars based on debt, which stated a promise of redemption in lawful money.

Gold was now removed from the system, leaving silver dollars as the only lawful money available. Silver was eventually eliminated from the money system in 1965, leaving the public with a totally scam money system of irredeemable paper currency and copper-nickel clad tokens.

This money system represents a debt owed to the owners of the Federal Reserve Banking System, the payment of which is guaranteed by the collateral of all property and income of all US citizens.

When banks cannot honor their contract to redeem their notes for gold or silver coins, they are bankrupt. The contract between the people and the Federal Reserve printed on each bank-note promising to pay in lawful money was invalidated because:

1. the system went bankrupt and

2.  the amended version of the “Trading with the Enemy Act of 1917” placed all US citizens in the category of enemy, and no contract is considered valid between enemies.

American citizens were declared to be the enemy by their own government.  Indeed they would be the enemy if the people ever discovered what had happened to their money.

Being unable to trade in wealth such as gold and silver coin enslaves the people to those who create and control what is being called money. All it took to rob the public was to convince the people that “paper and credi”t are money.

The Federal Government and the Federal Reserve have the power to create unlimited amounts of credit because credit does not exist. Credit is not a tangible substance, but an idea represented by bookkeeping entries and computer symbols.

To pay means to deliver a tangible substance as money like gold and silver coin. Where there is no substance, there is no payment. There is only pretend payment.

Banks do not really lend money, they only pretend to lend money. They put no money in a borrower’s account. They only make bookkeeping entries that are reduced as the borrower writes checks against imagined deposits.

When the banks charge interest on a loan they do not make then banks impart psychological value to numbers of nothing. Charging interest sustains the illusion that banks loan something of value, when all they do is rent the appearance of money.

The Secretary of the Treasury is not the US Secretary of the Treasury because:

1. the US Treasury was bankrupted in 1933.

2. The Secretary of the Treasury is not paid by the United States Government. The Secretary serves as US Governor of the International Monetary Fund as receiver of the bankrupt United States, collecting the debt from US citizens.

The Federal Reserve Bank has provided the needed sleight-of-hand credit financing to involve America in every foreign war during the twentieth century. The net result of America getting involved in one foreign war after another has been a consequent steady decline in personal freedom; the growth of a highly centralized, bureaucratic and fascistic government.

A horrendous rise in taxation and the planned destruction of the gold standard, which used to give some degree of protection to American citizens against an out-of-control, profligate, high-spending government in Washington.  

The value of the US$ in 1940 was worth 17 times more than the value of the US$ now as a result of the Federal Reserve’s long-term monetary policy, which has quietly cooperated with the federal government to finance government deficits with Federal Reserve credit.

The Federal Reserve made extensive usage of the misleading words “Federal” and “Reserve” and has over time replaced our system of real money of gold and silver coin with worthless paper, which is against the law according to the US Constitution.

Alan Greenspan, served as Chairman of the Federal Reserve from 1987 to 2006, stated at the annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research on December 5, 1996:

 “Augmenting concerns about the Federal Reserve is the perception that we are a secretive organization, operating behind closed doors, not always in the interests of the nation as a whole. This is regrettable, and we continuously strive to alter this misperception.”

The only solution to this problem is to do away with the Federal Reserve and go back to the way it used to be and have American money system based on gold and silver coin.  The only solution to the problem is honest money.

Thomas Jefferson saw it coming more than 150 years ago and wrote:

“If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered.

The Ninth Circuit Court adjudicated in 1982:

“Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately owned and locally controlled corporations.”
– Lewis vs. U.S., 680 F. 2d 1239, 1241]

Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee, delivered a speech on the floor of the House of Representatives, June 10, 1932:

“We have in this country one of the most corrupt institutions the world has ever known.  I refer to the Federal Reserve Board and the Federal Reserve Banks.  

Some people think the Federal Reserve Banks are U.S. government institutions.  They are not government institutions.  They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers.  

The Federal Reserve Banks are the agents of the foreign central banks.  

The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.” End of quote

Congressman Wright Patman, Chairman of the House Banking & Currency Committee, speech on the House floor, 1967:

“In the united States we have, in effect, two governments….We have the duly constituted Government….Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution.”

Teddy Roosevelt said:

“These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and the columns of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.”

Americans have to ask themselves why they were not taught the truth about the Federal Reserve in school.

The US Congress initially defined a lawful money “dollar” as being and consisting of (at least) 371.25 grains of pure silver.  Before 1965, anyone could exchange one paper dollar for one real silver dollar.  

However, in 1965 the united States’ mint stopped minting silver dollars.  When this occurred inflation began to skyrocket.  Now it takes an entire fist full of paper dollars (i.e., “Federal Reserve Notes”) to buy one real silver dollar.  

It now takes two working parents to support a family and the national debt is shooting over 12 trillion dollars!  And this is not even counting the private debt by individuals and corporations, which is somewhere over 50 trillion dollars.

The paper and digital currency that bankers create out of thin air is backed by nothing. The more paper “dollars” they roll off the printing presses or digital “dollars” created by computers, the less each one is worth.  Therefore, it takes more of ’em to buy the things people need, so the price of everything has to go up and up and up in endless inflation.  

Wages for most people will not increase fast enough to stay ahead of the game.  But not to worry, the international bankers have created plastic credit cards – VISA, MasterCard, American Express etc., to help the people out.  Of course, they don’t bother to tell us that they do not create enough paper/digital currency to pay off the debt plus interest so mathematically the economy will eventually collapse as has always occurred in history with paper currencies.

The Federal Reserve system was created by international banking families such as the Rothschild, Wartburg and Rockefeller.  This international banking cartel creates “money” out of thin air.  It only costs them a few cents to print each Federal Reserve Note “dollar bill”, and then they “bill” the American people for the full face value of the note.  

To add insult to injury, they charge Americans interest to borrow their so-called “money”.  If you or I did this, we would be arrested for counterfeiting and fraud.  This system was instituted gradually, starting with the Civil War and culminating with the fraudulent passage of the Federal Reserve Act in 1913.

The passage of the Federal Reserve Act was unconstitutional because:

1) the US Constitution prohibited “bills of credit” (i.e., paper notes) and

2) the US Constitution would have to be amended to go off the silver and gold coin standard for money.  The US Constitution, the supreme Law of the Land, can only be amended pursuant to Article V.  The US Constitution cannot be amended by statute.  These unlawful actions by a criminal Congress remind me of a quote by Alfred E. Neumann of Mad Magazine fame: “America is that land which fought for freedom and then passed laws to get rid of it.”

The Federal Reserve is also a monopoly– in a country where monopolies are supposed to be illegal.  

The US income tax department – Internal Revenue Service (IRS) – deposits people’s income tax payments directly in the Federal Reserve Bank (not in the United States Treasury).  Therefore, the Internal Revenue Service (IRS), an unconstitutional entity, is merely the collection agency for the international bankers.  

Over the years the IRS has become a tool of the elite banking families to financially attack and/or imprison people who expose the Federal Reserve.

If you take out a paper dollar and look at it, you will notice that it states at the top of the “bill”:  “FEDERAL RESERVE NOTE”.  A “note” is, by definition, an “instrument of debt” and “evidence of debt”.  

According to BLACK’S LAW DICTIONARY (Sixth Ed.) “MONEY” is defined:  

“In usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate.”  

Now this may come as a shock to some people, but those paper “Federal Reserve Notes” are not money and they are not dollars.  Federal Reserve Notes are merely an informal document acknowledging debt.   There is nothing backing these “bills” except debt.  However, people voluntarily use them as instead of money and as dollars.  The key word is “as” – The smallest words can have the biggest meanings.

Banks can create this phony “currency” out of thin air.  Banks can loan out “currency” that they don’t even have.  When you apply for a loan from a bank, the bank does not have anything to back up that loan because they are allowed to loan out about 7 to 10 times more “currency” than they have on deposit.  

This is not mere speculation; this is a matter of court record, testimony under Oath, by a former lawyer for the Federal Reserve.  In other words bankers create “currency” with just the stroke of a pen or the keystroke of a computer.  These bankers then charge you “interest” to borrow this “currency”, which is nothing more than some numbers typed on a piece of paper!  If American People ever did this they would be spending many years in an US federal prison.  

Unfortunately, they do not print enough currency to pay the interest so more pseudo-dollars must be borrowed to pay off the interest, resulting in ever-increasing debt that cannot be paid.” End of quote

Countless preemptive wars were waged, and many political and physical assassinations of leaders and Presidents in the USA were direct results of preserving this privately owned Federal Reserve Bank.

Seek knowledge and get engaged to change mankind’s lot.

Note 1: The article is a section of a lengthy reply by Nalliah Thayabharan in response to my post:

Genesis of Banks and Financial transactions: And this Credit system alternative

Thomas Jefferson said:
“If the America people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered.

There are only two economic systems: They are barter and credit.

1. Barter is the trading of one thing of value for something else of value. Throughout history, many different things have been used for bartering because money, in and of itself, does not exist. Something must be used as money. People have traded for goods and services using farm animals, large rocks, shells and crops.

All things used as money have had one thing in common, they were all tangible wealth. They were all things you could touch. They were all things you could weigh and measure.

Gold and silver have been used not long ago as money worldwide for a couple of thousand of years. A money system using gold and silver coin is a barter system.

A $20 gold coin is twice as heavy as a $10 gold coin.

2. Credit is intangible wealth. You cannot touch credit. You cannot weigh and measure it because there is no substance to weigh and measure. It is all imagination.

Credit is not wealth. No work is used in the creation of credit other than a booking entry.

Credit is an idea, not a thing. It is expressed by bookkeeping entries and computer symbols. The manipulation of words and their meaning is the key to controlling what people think.

Thousand of years ago, people would pay the local goldsmith to store their gold for them in his vault. He would then give them a receipt for the amount of gold that was stored.

The receipt was not money, it was a money substitute. It was later common for people to use the receipts as payment for goods and services since they could be exchanged for the gold held in the vault at any time.

The goldsmith found out that only a small amount of the gold was ever claimed since people just kept exchanging the receipts. The goldsmith started writing receipts for more gold than he had, using some of the receipts to buy things and loaning the rest at interest, while taking title to real property as collateral.

It is recorded that the City-State of Venice created the official institution named Bank

The gold for these extra receipts did not exist. By adding to the amount of receipts in circulation, the goldsmith stole from the people with the real receipts and decreased the value of the real gold receipts by creating inflation.

The more of something there is, the less it is worth and the more of it is needed to trade it for something else.

Paper currency is a money substitute, it is not money. It is only valid when the number of paper currency equals the amount of real money that it is a substitute for.

By manipulating the number of receipts in circulation, the goldsmith stole the wealth of the town without anyone figuring it out.

By lowering the number of receipts, he could make money scarce, creating a depression where he could foreclose on the property and magnify his riches.

He could quicken economic activity and bring abundance by raising the number of receipts until his next rip off.

Traditional definitions are eliminated while new meanings are repeated over and over again until accepted.

The definition of dollar has changed to hide the fact that a dollar is not money, but a unit of measurement for gold and silver coin. For example:

1. Title 12 United States Code Section 152 says: “The terms lawful money or lawful money of the United States shall be construed to mean gold or silver coin of the United Sates.”

2. Title 31 United States Code, Section 5101 says: “The money of account of the United States shall be expressed in dollars.”

The recent equivalent to the goldsmith’s receipt for gold is the Federal Reserve Note. The word “Note” implies a contract, because legally a note must state who is paying, what is being paid, to whom and when.

Most people say something like, “I have a dollar bill”. But what is a bill?

A bill is a receipt of a debt owed by one person or company to another. Therefore, a “dollar bill” is a receipt (or bill) of debt of one dollar that is owed.

From 1914 to 1963, Federal Reserve Notes never claimed to be money, nor did they claim to be dollars. A note for five dollars read: “The United States of America will pay to the bearer on demand five dollars.”

How can a promise to pay five dollars be five dollars? To the left of the President’s picture and above the bank seal, it said: “This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank.”

In 1963, the Federal Reserve began to issue its first series of notes without the promise, while taking notes with the promise out of circulation. How can paper become what it promises by removing the promise?

To the left of the President’s picture and above the bank seal, it now read: “This note is legal tender for all debts public and private.”

A note is a proof of debt. It is not possible to pay off a debt with a debt. No debt can be paid in full unless paid in gold or silver, coined and regulated in value by Congress. The name “Federal Reserve Note” is a fraudulent label since each word claims to be something that in reality it is not.

By removing the promise to redeem the note in lawful money, the Federal Government in cooperation with the Federal Reserve, eliminated the monetary system of the United States as established by the Constitution and replaced it with something totally different.

If you are holding a one dollar Federal Reserve Note, the question is: “what is it one dollar of?”

The answer is absolutely nothing. The number one measures no substance.

The only thing that give paper money value is the confidence people have in it as is stated in chapter 30 of our textbook.

Depressions are the result of private bankers reducing the money supply by tightening credit and withdrawing currency, causing a drop in prices, unemployment and foreclosure of property. This is premeditated theft.

During the Great Depression people who had gold in the banks wanted the banks to honor their contract to redeem the paper currency for gold.. That was when US President Roosevelt declared a national emergency and closed the banking system for two days as recommended by the Board of Directors of the Federal Reserve Bank of New York.

Congress then passed the Emergency Banking Act declaring it illegal for US citizens to own gold under penalty of up to a $10,000 fine and/or up to 10 years in prison.

The Secretary of the Treasury is not paid by the United States Government. The Secretary serves as US Governor of the International Monetary Fund as receiver of the bankrupt United States, collecting the debt from US citizens.

The value of the US$ in 1940 was worth 17 times more than the value of the US$ now as a result of the Federal Reserve’s long-term monetary policy, which has quietly cooperated with the federal government to finance government deficits with Federal Reserve credit.

The US Congress initially defined a lawful money “dollar” as being and consisting of (at least) 371.25 grains of pure silver.  Before 1965 anyone could exchange one paper dollar for one real silver dollar.

Another myth that all Americans live with is the nature of the “Federal Reserve”: It it is not an agency (public institution) of the United States Government. (See details in link on note 3)

The name “Federal Reserve Bank” is not federal, nor is it owned by the government. It is privately owned.  Its employees are not in civil service. Its physical property is held under private deeds, and is subject to local taxation.

But that’s another story (See details in link on note 3)

The US national debt is shooting over 12 trillion dollars!  (This amount is equivalent of selling off all of France wealth). And the private debt by individuals and corporations, which is somewhere over 50 trillion dollars.

Yet, the US insists on extending financial advice to the European Union on how to manage the Euro currency…

Note 1: The Federal Reserve Act is hastily passed just before the 1913 Christmas break. Congressman Charles A. Lindbergh Sr. warned: “This act establishes the most gigantic trust on earth. When the President signs this act the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized.”

US President John F. Kennedy planned to terminate the privately owned Federal Reserve System. In 1963, he signed Executive Orders EO-11 and EO-110, returning to the government the responsibility to print money, taking that privilege away from the Rothschild. Shortly thereafter, President John F. Kennedy was assassinated.

Note 2: The article was from Nalliah Thayabharan in response to my post:

Note 3:

Can Capitalism be reformed? Part 1 of 4

Capitalism is based on four  foundations:

1. Private property of means of production;

2. free exchange (products, services…);

3. open free market for commerce;

4. and availability of a vast pool of people willing to work for salary.

The main driving force is that the owner of the means of production (the bank, the partners, the shareholder, or the family)  should earn as much as the total salary that all workers receive.

Consequently, an employee is hired when the owner can generate profit, at least as equal to the total salary of the hired worker. Actually, members of the Board of Directors, owners of majority of share, and the highest in the hierarchy get first cut on 20% of the total revenue, and not on the gross profit basis as employees, workers…have to negotiate on.

The foundations of capitalism have proven not to function except within strong State institutions, which are almost totally controlled by the capitalist classes.

The judicial system obeys laws decreed by parliaments that are dominated by the richest classes, and the executive is intrinsically dominated by the aristocratic class.

This whole political system is called “capitalist democracy“, where people have the illusion of electing their representatives for a duration.  After election, people are to behave as spectators:  Any serious disturbances are crushed in the name of Law and Order.

Communism tried to abolish the first foundation by claiming that all means of production belong to the State (community property of means of production was a smoke screen and never taken seriously).  Communism also abolished the notion of internal market free exchange by the communes and State institutions:  the central plan or economic program for five years must be met at any cost to pain, suffering, and famine of the population.

Communism went even a step further by eliminating the right of citizens to quit the factory assigned to, move, and relocate to other places in the nation.  Basically, communism drastic economic ideology ended up destroying the foundations of capitalism until it was too late to changing people’s inclination to relying completely on State planning and resource distribution.

In this century, Western European States learned to reform capitalism by involving the government in instituting equitable wealth disparity (tax increase on the rich), encouraging barons of industries to negotiating seriously with syndicates, regulating the liberty of patrons in firing employees, and supporting unemployed until they find a substitute job.  These European economic capitalist systems are labelled “socio-democratic capitalism“.

China has reformed its communist economy one step at a time.  First, it allotted lands to family peasants to exchange the produce with the community; it worked and frequent famine occurrences receded.  Then, communist China allowing private ownership of means of production (and the subsequent financial facility supports) and then encouraging limited internal free exchange and commerce.  Workers are still not free to choosing where to work and to moving to other cities:  Movement of people are regulated.

Rural China is paying the heavy tax in hunger and suffering from the diversion of water and electrical power to the cities and industries and the building of giant projects that pollute and contaminate water resources.

The one foundation that all developed economic systems share is free global trade, which means the liberty to exploiting the developing countries in natural resources and cheap labor.  The developed States are allowed to subsidize their agriculture but the developing nations are not to do it and they cannot even if they witness the need to do it .  The developed States are to flood the markets of developing countries with affordable products with no “legal rights” for the developing nations to increasing import taxes in order to safeguarding their own means of productions.

The developed States can find financial resources at low-interest rates but not the developing nations.  In return for blatant exploitation, the developed States agree “voluntarily” to setting aside a small fraction of their GNP to developing the infrastructures in the poorer States; mainly, self-serving their interests to improving and facilitating exploitation efficiently.

Worst, all “international” institutions such as World Bank, International Monetary Fund, Commerce Trades are dominated by the US and a few European States; thus, transparency and access to timely information and intelligence data are denied the developing nations, or leaked slowly after persistent demand from conscious States.

Fact is, financial institutions (banks, insurance companies…) are the real owner of means of production in capitalist systems.  They own 30% of the total wealth of a nation and represent only 1% of the population.

This is NOT acceptable.  Fact is, financial institutions generate three times more money than the combined tax collected by the government.

This is NOT acceptable.  Any reforms should first target the level of profit that financial institutions are permitted to generate.  “Effective” interest rates should be lowered accordingly and tougher regulations imposed of these behemoths.  Community banks with excellent transparency in decision process and lending policies should be the norm.  The current status of financial institutions is generating abnormal profit with no risks whatsoever.

If capitalism needs salaried people it must secure the fundamental right to work, a wide range of jobs that satisfy varied opportunity, access to affordable education, safe workplace, universal health coverage, caring for the elderly, and justice for people who worked most of their life for a comfortable retreat.  Has capitalism satisfied the basic needs of its workforce?

States should start taxing according to the number of employees hired and to net revenue:  These two criteria are the most objective representatives of net profit and are easy to investigate and account for.

This gimmick of taxing on “net profit” is an accounting fraud that is not objective or fair.  Companies relocating for cheaper workers must be taxed according to the original “national wages” of the workers.  Companies substituting workers for robots should be taxed according to the number of workers substituted.  States will then be able to subsidize unemployed people until they find jobs and be imaginative enough to opening up newer job opportunities.

There is a trend for owners with strong ethics and moral to including employees as shareholders and participating in management decisions:  These companies are doing very well and not suffering from financial crashes.  Institutions and companies for profit are amoral and do not deal in ethical conducts.

Ethics and morality are individual characteristics:  the more such individuals gather in groups to reclaiming fairness and justice in actions the more institutions will be reminded of what is best for society.

The crux for any serious changes in capitalist system is revamping the election laws and processes that will extend much better odds for middle and lower classes to being elected into representative chambers.  (To be continued)

International financial institutions, backed by the US government, created vast operations of fraudulent mortgage schemes as witnessed since 1990.  First, the Saving and Loans banks were “saved” by Bush Sr. infusing $500 billions with tax payers money.  The mortgages were estimated to have 100% probability of losing their entire values.  The federal government and the Saving and Loans banks knew what they were doing. The two powers knew that homeowners would never be able to pay the interest.  Then, a new scheme was invented called “re-financing”

Those junk mortgages were re-sold on the world market and packaged “as sure as treasury bonds”.  This re-packaging scheme was called “derivatives” (as drifting money operations).  James Kenneth Galbraith, professor at the university of Texas, labeled these schemes as “identical to forging money, no more no less”

First, the tax payers (the honest hard-working citizens) paid for the saving and Loans banks in 1990, then they re-paid these fraudulent “faked money” mortgages in 1997, and then, after the Big Financial Crash.  Over one trillion dollars covered the fraudulent operation under the knowledge and ascent of the successive US Administrations.

The US government have been forging dollars since Nixon uncovered the dollars that was seemingly supported by gold reserves. It is not over.  The forging of dollars is going strong and private investors are being scammed every day.

Every time, the US Treasury states that the US economy is strong; when the federal Reserve governor states that the financial state is stable; when the president states during the State of the Union that the US status is strong and secure then, you may say that the government is still forging dollars.

The dollars is disseminated by political pressures; because the US Administration controls the “World bank” and the “International Monetary Fund”; because the US aircrafts carriers roams all oceans and seas.

Wall Street is going strong and hiring.  Over new 160,000 jobs were opened by Wall Street that covers 20% of the budget of the State of New York and 12% of the City of New York.

Biter-sweet Euro: Before and after Greece; (Mar. 7, 2010)

Before Greece, you have the States of Lithuania, Hungary, and Ireland that suffered the same fate of a prematurely imposed Euro on States of weak economies. There are many articles analyzing the financial crisis in Greece. I thought that I can make sense in a short post for readers eager to know, but would refrain reading lengthy erudite articles.

There are two main factors for Greece financial problems; and there are two resolutions available, equally painful, but one is far better in shortening the pain and healing faster.

First, the common currency Euro forced weaker economies to relinquish their sovereignty over issuing money in time of shrinking economy in order to re-launch the inner trade.

Second, the US financial multinationals before the crash infused too much credit in a small economy that did not correspond to normal credit rating behaviors. This quick infusion of money inflated the sense of economic boom and generated laxity in financial control and management.  Greece is awakening to new demands for harsher financial control and imposition of higher taxes to straighten the budget balance sheet.

The first remedy is inviting the International Monetary Fund (IMF) to intervene and infuse $1.7 billion in the Greek coffer to pay the debts due this spring. This would be a bad decision. It is a worse alternative because even the EU is encouraging Greece toward that option. For example:

Lithuania GNP shrank 18% in the first year the IMF intervened with its draconian conditions: jobless rate climbed to 20%, the high level in health, education, and retirement suffered greatly. Actually, retired persons are bleeding and the socialist political parties lost ground.

In Hungary, the IMF intervention made sure that the people suffer and the socialist government be replaced by like-minded anti-socialist government headed by the former minister of economy.

If Greece ends up asking the “help” of the IMF, as the EU wishes too, then the socialist George Papandreou will start packing; a decision that will please Merkle PM of Germany.

Greece with budget deficit reaching 13% of GNP and growing, has a reasonable solution out of this mess if it wants to avoid 10 years of suffering and humiliation. Until the EU comes up with a financial recovery plan, Greece should revert to its national currency the drachma. Greece should regain its sovereignty in issuing money in this difficult period: Internal and external trades should not be hampered for lack of liquidity.

Since Greece imports amount to only 20% of its GNP, then better competitive drachma should enhance exports and reduce the loan deficit. With the already strict financial control in place, Greece will be able to shorten the period of its pain.  The EU will accept Greece currency to revert to the Euro in due time in order not to let other Euro member States to follow Greece decision.

Greece should learn how Argentina recovered.  After four years insisting of keeping the currency linked to the dollar, Argentina economy faltered entirely.  Argentina decided to float its currency and it devalued accordingly. Argentina was able to default on $100 billion of foreign loans. The government insured that bank deposits of consumers keep the same purchasing power by regular re-evaluation and re-fixing of the national currency.  People living in their own properties enjoyed the same financial facility at the rate of pre-devaluation.  Within a single semester, Argentina economy was back to normal and going strong.

Greece has choices: either the IMF intervention accompanied by ten years of suffering or reverting to the drachma until the economy is back to normal within a couple of semester.

Note 1:  I suggested in several articles that an internal Euro currency, Euro B, be created for European internal markets. In this case, smaller economies could issue Euro B to keeping liquidity available for their internal market. As the internal economy is functioning and creating jobs, harsh cuts in social budgets will be reduced.

Note 2: Spain, Portugal, and lately Italy have been experiencing bad economical and financial downturns.  If the “Euro B” was adopted, and the current Euro used for just exporting goods and dealing with foreign markets, this Euro would have been in better shape and more immune to currency exchange deals, mostly dominated by the US financial policies.




February 2023

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