As detailed in our last post, the international banking cartel sees itself as the rational overlord of planetary operations and the direction of human evolution. The core problem with this point-of-view is that these individuals are handicapped by their left-brain only approach to reality.
By describing those at the top of the power pyramid (see illustration of this pyramid in previous post) as handicapped because their consciousness rarely extends beyond the real estate of their left brain, we mean to say that they lack the ability to think and behave holistically. The brain--like the heart from which it stems during the very early stages of mammalian genetic replication, and like light itself, from which everything in the universe is made--is a dualistic phenomena. While there continues to be a healthy debate over left and right brain functionality, in general, the left brain emphasizes cause and effect (causal logic), ego, time, and money, while the right brain emphasizes simultaneity (acausal logic) and our connection to others. So, those with low right-brain functionality are generally disconnected from others. Much like babies who are not held and do not bond with other humans, the financiers behave as if they are the only ones that matter (see "Economic crisis – impaired brain function a major cause?" and "Wealthy Stockbrokers More Dangerous Than Psychopaths"). They believe that they are "the best and brightest" and "the smartest people in the room," but their nearly exclusive left-brain functionality reveals they are only half-wits.
Since these self-described "Illuminati" are devoid of attachments to human beings outside of their own limited circles (if that), they possess no filter to limit their crimes against humanity. The focus of this attack is "the masses" (labor), or, as the outlaw bankers see it, the slaves they require to create product and spend their earnings (or have their earnings taken from them) to consume those products. As we have noted in earlier blogs, the money supply and the markets are manipulated so that an increasingly higher percentage of the currency ends up in fewer hands. This theft is accomplished in three principal ways:
In the first instance, theft is accomplished by destroying sovereign currencies worldwide and replacing them with various private banknotes, all of which can be exchanged for "Federal" Reserve Notes, the private banknotes that were established in 1913 and became the world reserve currency in 1944. So, the financiers own the printing press for world currency and can literally buy whatever they want simply by creating and transferring funds, since there is no public oversight of these transactions.
In the second instance, theft is accomplished by charging their slaves compound interest rates to use these private bank notes.
And in the third instance, theft is accomplished by using control over currency and credit to manipulate markets (stocks, bond, housing, commodities, derivatives, mortgages, etc.) to steal liquid and capital assets. This includes control over "the government sector," by which profiteering--from war, disease, education, insurance, etc.--is enabled across multiple populations.
The bankers' business model is FRAUD--steal trillions; pay fines of mills on the dollar; and then repeat. (See a list of recent frauds here.) This is their standard operating procedure around the globe. So ubiquitous is this criminal conspiracy that they are in the process of outlawing all alternatives.
For example, take the Trans Pacific Partnership (TPP) agreement that was negotiated in secret. As noted by Sam Knight:
Publicly owned enterprises, for example, are being targeted by negotiators. One such entity in the United States that has been the subject of considerable interest in recent years is the Bank of North Dakota (BND) -- the only fully publicly owned financial institution in the country. The BND, which is only allowed to lend wholesale, was a stabilizing force that helped keep the already energy-rich state insulated from the shock of the financial crisis (Alaska, for example, didn't fare as well). It has also brought a small fortune to the state's treasury -- $340 million in net tax gain between 1997 and 2009. Legislators in at least 13 different states have proposed studying or emulating the North Dakota model -- state-owned development of central-bank style institutions guaranteed by tax revenue. But if the TPP is passed, that option might not be available. (Barbara) Weisel (the United States Trade Representative's chief TPP negotiator) said that State Owned Enterprises (SOE) are routinely "competing directly with private enterprises, and often in a way that is considered unfair.""Some of the advantages that can be conferred on State Owned Enterprises are things like preferential financing," Weisel said. "Those are things that wouldn't be provided to private companies -- preferential provision of goods and services provided by a government."
She said that "State Owned Enterprises -- which in some cases can comprise a significant percentage of an economy -- can be used to undermine what we're otherwise trying to gain from this free trade agreement."
A spokesperson for the BND declined to comment on whether or not this outlook was perceived by the bank to be an institutional threat. But, depending on the report's language, foreign bankers could claim that the BND stops them from lending to commercial banks throughout the state.
Citigroup's Johnston, in response to another question from the audience, said that corporations weren't exactly enamored of competition with publicly owned enterprises -- and that they are prodding TPP delegates into doing something about it.
"The companies that are running up against the problem and the challenges of the state-owned enterprises, they obviously feel strongly enough about it that the problem is being addressed within the negotiations," he said. ("Corporate-Backed Trans-Pacific Partnership Shrouded in Secrecy," Truthout, 19 March 2013)
In other words, as Rudy Avizius notes in "New World Order Blueprint Leaked," "If implemented, this agreement will hard code corporate dominance over sovereign governments into international law that will supersede any federal, state, or local laws of any member country." A recent example of this is the attempt to destroy the United States Postal Service, first by saddling it with the stipulation that it must fund its pension 75 years in advance (at the same time that banks and corporations are raiding social security and their own workers' pension funds), and now by gutting it. (see "Senator Carper introduces legislation to virtually end the USPS")
THERE IT IS, THE HEART OF THE BANKS' FAILURE: The inefficiencies of managing the world's resources for the benefit of a small group of sociopaths is laid bare; their criminal operations cannot compete with enterprises managed in the public interest, so they must attempt, with whatever faux legitimacy they can conjure, to make it illegal for public bodies to remain sovereign--independent of the banks and corporations--and manage resources in the public interest.
To do this, the usurers must ignore the U.S. Constitution, Article I, Section 8, which defines various government activities--including roads, armies, postal services, and money creation and regulation--as SOVEREIGN FUNCTIONS, not businesses. It's also worth noting that in Article I, Section 10, the Constitution forbids states from issuing "bills of credit" (paper currency or bank notes); so, there is no logical way to argue that the Congress can delegate the coining of money (i.e., minting coins OR printing paper money, according to general usage at the time the Constitution was written) to private parties, as was done over Christmas recess in 1913, with many Senators already having left on vacation. From that day on, the usurers have destroyed U.S. sovereignty, bit by bit, with TPP the latest and most insidious poison pill.
They do this because they know that to maintain power they must use smoke and mirrors to cloud the true effects of their policies. The fact is, any economy based on private currency and interest is certain to crash on a regular basis, after it has destroyed the livelihoods and lives of those whom it enslaves. This has been common knowledge for ages. That is why, as the Torah (what Christians call the Old Testament) notes, jubilee years were implemented, on a regular basis, to reset systems in which interest was practiced.
And what do the usurers put above the rights of people? Mammon. The Golden Calf. Gold. Capital (money that has been commoditized through usury). In the New Testament (or Christian bible), this issue comes to a definitive head in the story of Jesus driving the money changers from the Temple with a whip and calling them "Thieves!" Clearly, Jesus (or the author of that story, take your pick) understood that the moment interest is charged on money (which begins as a means of accounting for the value created by labor), money then turns into capital and becomes an object (commodity) that is valued above people, while labor is simultaneously devalued (i.e., the value of labor [money as a unit of account] < the value of labor + compound interest [money as a commodity, or store of value]).
The mathematics underlying this problem and its solution are relatively simple, but before your eyes glaze over at the mention of economic analysis, consider a choice quote on this subject:
If economists can’t say what they mean in simple, clear terms, then either there is something to be gained from mystifying what they are doing, or they themselves do not really understand what they claim to understand. --Rosa Luxemburg
Now let's look at a few permutations and combinations of private and public currencies and banking and see (in what amounts to a couple of pages of text and graphics) which combination is capable of producing a sustainable economy:
Commentary: T = Time, so the events above the dotted line represent the initial interval or event, and the events below the dotted line represent the subsequent interval or event.
In the first interval (T), a commercial bank creates a loan of $100, which temporarily increases the money supply by $100. When the loan is repaid (at 10% interest), the money supply is reduced by $100, with the original loan (bank money) being extinguished, plus a further reduction of $10 in the money supply (because the money to pay the interest is never created), which becomes the property of the commercial bank, to distribute or invest as it chooses.
In the second interval (T + 1), the commercial bank continues to inflate, then deflate, the money supply by choosing to leverage its $10 in interest income toward increasing its loan portfolio, so it loans $110 dollars and increases the money supply by that amount. When the loan is repaid (at 10% interest), the money supply is reduced by $110, with the original loan (bank money) being extinguished, plus a further reduction of $11 dollars from the money supply (since the money to pay the interest was never created), which becomes property of the commercial bank, to distribute or invest as it chooses. As you can see, after each interval, the money supply is reduced by an ever-increasing amount, which represents the growing private bank ownership over the money supply and the assets generated therefrom.
During the part of the cycle when the money created from loans is increasing, the process seems to work fine, because there is an increasing amount of money to pay the interest. But when the private banks choose to deflate the money supply by calling in their loans, the money supply is reduced by the principal of all the loans (bank money) plus the interest on those loans, which, if and/or when collected (during such contractions, defaults abound), will belong to the commercial banks, to distribute or invest as they choose. Under these conditions, there is no longer enough money to pay for all the principal and interest, leading to bankruptcies, foreclosures, and joblessness, which enables the commercial banks to buy the collateralized assets ("the fruits of our labor," which they have amalgamated through loans) at fire sale prices.
To recap, with privately owned banks and interest, an increasing amount of debt (loans) is needed to maintain or grow the money supply during the inflationary part of the "business cycle," to pay off the interest; following this, an event (say, the collapse of Lehman Brothers) is created as an excuse to constrain credit and reduce the money supply, thereby enabling the banks to repossess the collateralized assets backing the loans or, if these are insufficient to cover the losses, any asset that is not nailed down. Whether the big banks that own the Fed recover their losses in this situation is immaterial, since for them the privately owned central bank is the lender of last resort and is used by these private banks, which own it, as a backstop to prop them up following each crash and to reset themselves, fully liquid and ready to buy up assets for pennies on the dollar, after destroying massive amounts of value throughout the rest of the system.
Commentary: T = Time, so the events above the dotted line represent the initial interval or event, and the events below the dotted line represent the subsequent interval or event.
In the first interval (T), a commercial bank creates a loan of $100, which increases the money supply by $100. When the loan is repaid, the money supply is reduced by $100 and the public central bank (paying the 10% interest) makes a $10 deposit with the commercial bank.
In the second interval (T + 1), the commercial bank continues to inflate and deflate the money supply by choosing to leverage the $10 it made in interest income by increasing its loan portfolio, so it loans $110 dollars and increases the money supply by that amount. When the loan is repaid, the money supply is reduced by $110 and the public central bank makes an $11 dollar deposit (paying 10% interest) with the commercial bank.
In this scenario, when the commercial banks choose to deflate the money supply by calling in their loans (creating whatever excuses they believe the public will buy, with orchestrated coaxing from the mass media that they own), the money supply is reduced by the principal of all the loans, but not the interest on those loans, since the public central bank has added to the money supply by paying the private commercial banks an amount equal to the interest charged. The banks retain this interest income during contractions, to buy assets from the jobless, bankrupt, or foreclosed for pennies on the dollar. Therefore, the shrinkage of the money supply would be of a magnitude similar to the private central banking system in the previous example (illustrated above). However, in this case, the public central bank would have the option of providing counter-cyclical programs to replenish the money supply (though this would not cure the problem of inflation, since money [interest] was added to the supply without adding value [labor]); that is, more money is chasing the same amount of goods and services. In addition, inflationary pressures would be generated because there would continue to be an impetus for the private banks to expand and contract the money supply for profit and "asset acquisition." In other words, even with a public central bank, a system that includes for-profit banks and usury leaves private parties in in control of the money supply, i.e., its creation and regulation, and therefore its manipulation for profit.
The solution to the inflationary problem illustrated in this model (base money paid by the central bank to cover the interest payments to the commercial banks) seems to call for the central bank to spend the so-called "cost of the loans" (interest) directly into the money supply, through public projects (goods) and/or social programs (services), rather than paying these costs directly to the commercial banks (which use them to manipulate the money supply); however, if such were the case, the commercial banks would be relegated to nothing more than pass-through institutions, merely administering loans without any profit, i.e., they would go broke. This begs our next model, where commercial banks are replaced by state-, county-, and municipal-owned banks.
If the public-private ownership model illustrated in this example were reversed, with a privately owned central bank and the rest of the system consisting of public banks--owned by states, counties, cities, and other political subdivisions (tax districts)--the inflationary outcome is accelerated, with the public banks forced to charge interest to pay off their loans from the central bank, thus generating an ever-accelerated destabilizing force that eats away at the money supply, transferring large portions back to the private parties that own the central bank. Additional inflationary forces would result from the government having to issue bonds and pay interest (since the government would not have its own sovereign currency) in order to generate privately issued central bank notes (Federal Reserve Notes, etc.) to make the loans.
In either case, public-private or private-public, yet another potential source of inflation is the loans by commercial banks that go unpaid during economic contractions, thus increasing the money supply without being extinguished upon repayment. Admittedly, it could be argued that this surplus currency is far offset by the shrinkage of the money supply as credit evaporates, and as assets, funded by the loans, are seized by the banks; however, the inflationary effects of interest on the cost of goods and services created by any individual or corporation with a debt service (i.e., interest expense) would remain.
As always, with private central banks, war profiteering, in its many forms, including economic predation in all major industries, would continue, and government debt would soar correspondingly, borrowing to pay for services mandated by corporate control over banking and governments. (Please note that corporate control over the state is one of the definitions of fascism. [George H. Sabine, "A History of Political Theory," Holt, Rinehart and Winston, New York, Third Edition, 1961, p. 919.])
Commentary: T = Time, so the events above the dotted line represent the initial interval or event, and the events below the dotted line represent subsequent intervals or events.
In this model, private for-profit banks have been phased out of existence. The nation’s banks now consist of a publicly owned central bank (which is simply the nation d/b/a a bank) and publicly owned state, county, and municipal banks, and subsidiaries, as well as public banks formed by other political subdivisions that meet minimum capitalization requirements. With the private banks no longer in the business of governance and no longer using compound interest as a means of inflating and deflating the value of the currency versus goods and services, the options for monetary policy improve significantly.
First, interest can be eliminated (as was recently proposed in Russia). It is, in the end, nothing more than a mathematical trick, which does not represent the cost of creating money. Second, eliminating interest would return sovereignty to the people, instead of a few bank holding companies. As it currently stands, there are nations that have publicly owned central banks and yet are not sovereign nations, in that they still issue bonds and pay interest to private parties that hold the bonds. But as we've noted in this post and previous posts, privately owned for-profits banks are not businesses. They are unconstitutional as well as fraudulent criminal enterprises that, by design, aim to destroy sovereignty and steal assets. It's also worth noting that the elimination of interest would not change the motivation of borrowers, since a good credit score would remain one of the basic qualifiers for borrowing.
Second, each political subdivision, working in concert with its own bank (or a bank owned by another political subdivision), may create credit through zero-interest loans; however, these political subdivisions (states, counties, municipalities, and other taxing districts) would be subject to balanced budgets and non-inflationary credit policies, evaluated by an analysis of the local price index (PI), based on a basket of goods deemed to be necessary for "life, liberty, and pursuit of happiness" of the inhabitants (as detailed in our upcoming book, "Turning the Tables on the Money Changers--7 Steps to Global Economic and Spiritual Transformation"). Basically, an economic bill of rights would determine the basket of goods and services to which the sovereign currency would be indexed (for example, food, clothing, shelter, healthcare, education, etc.), thus guiding the central bank as to the inflationary or deflationary pressures on the currency in local markets. Adjustments to the money supply could be made by increasing or decreasing the availability of local credit, or by increasing or decreasing taxes at any level (city, county, state, or nation).
In the first interval (T), a publicly owned central bank participating with a state, county, or municipal bank, or a subsidiary of such, creates a loan of $100, which increases the money supply by $100. No interest or fees are charged, so there is no inflationary pressure on the goods and/or services created from the loan. The base money that the central bank spends into circulation to pay for the banking overhead would be figured as part of the overall growth or shrinkage of the economy, depending on the size of the workforce and the value of the goods and services in circulation.
When the loan is repaid, the money supply is reduced by $100 for a net gain/loss of zero. The money supply may be further altered by increasing or decreasing the rate at which loans are being created, based on the aforementioned price index.
As long as the money supply expands proportionately to the availability of goods and services in circulation, prices will neither inflate nor deflate. The tax rate could be set to zero, if there is no inflation, or if there were deflation. In the latter case, additional government spending (base money) would be called for, or more local credit could be made available.
Also, states, counties, municipalities, and other political subdivisions, would have the option of issuing zero-interest bonds, which could then be purchased by the central bank or the state bank, depending on whether the issuer of the bonds was the state, or a county or city. The proceeds from the bonds would be spent, by the party issuing the bonds, into the money supply. The repayment of the bonds would later be extracted from the money supply in the form of tax revenues or fees and then paid back to the bondholder. The net effect of the bonds on the money supply is zero. Thus, bonds--at the state, county, municipal or other political subdivision level--are another means of temporarily adjusting the money supply and regulating the value of currency, as per inflationary or deflationary trends indicated by the price index. The project that could be funded are endless at this point, given the environmental destruction that has transpired under vulture capitalism.
If the Central Bank and the entire network of state and local banks were publicly owned and did not charge interest, the banks and their corresponding governments, working in concert, could thus maintain a sustainable currency and economy. Such a system is now being proposed in Greece, the birthplace of democracy, as the only viable solution to debt as an instrument of war and terrorism.
Conclusion: Given the outcome of these models, we must ask why we would allow private ownership over currency and usury to doom the planet to economic instability, the destruction of the value of labor, and the legalization of the theft of assets? The answer to this should be that we have no intention of allowing this to continue and that, as Jefferson said, "... I have sworn upon the altar of god eternal hostility against every form of tyranny over the mind of man." (--from a letter to Dr. Benjamin Rush, September 23, 1800, later carved in stone as the inscription under the dome of the Jefferson Memorial, Washington, DC) Copyright 2013, Robert Bows
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