Posts Tagged ‘Oliver Ellsworth’
Genesis of Banks and Financial transactions: And this Credit system alternative…
Posted by: adonis49 on: June 14, 2012
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: https://adonis49.wordpress.com/2012/05/15/super-nationalist-zionism-contributed-to-the-rise-of-the-third-reich/
Adonis Diaries 