What Do North Dakota and Libya Have in Common?

We have a confused understanding of the federal money system because we base it on what we know about our own personal bank account, and we were never taught that the federal system does not operate in the same way. If you look at a chart of historical national debt and compare it to a chart of national money supply, they're the same. They both go up at the same rate. Why? Because the federal debt IS our money supply. Our money is credit and debt.

The federal government can initiate the supply of money by writing checks (debits in fed acct) that directly jumpstarts our economy. When the government writes checks to its employees, for real goods and services, that shows up as credits in real people's accounts that they, in turn, spend into the economy. The federal government can also write checks for infrastructure, which shows up as credits in commercial accounts, and creates jobs, thus creating credits in real people's accounts that they can spend into the economy.

States can create their own credit, as well. North Dakota is the only state that escaped the credit crisis. They own their own bank, which partners with the local banks and keeps credit moving within the state. So, why aren't all 50 states taking control of their money supply in the same way? Well, this would greatly threaten the international banking cartel (ibc). And, when you threaten the ibc, you end up like Libya, who had the nerve to create their own central bank that issues the money and issues credit for the nation's infrastructure, interest free; therefore, they had the lowest debt to GDP ration in the world.

However, unlike the political leaders in North Dakota, Khadaffi was trying to mobilize all of the African countries to follow his lead, while setting up an African monetary fund that would compete with the International Monetary Fund.

So, yes, we have the money to do anything we want to do. That's what money is: the credit of the nation, and the nation can advance the credit for what it needs to do.

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What Should Be the Servant has Become the Master.

It's no secret that the ruling class does not want an alert and informed citizenry that can read budgets and ask critical questions. In fact, millions, if not billions of dollars are spent to keep the masses completely in the dark regarding our monetary system. Why? Those who "get it" are far more likely to fight for control.

In an overly acquisitive society such as ours, where the drive to amass obscene amounts of wealth trumps any and all regard for human life, it's time to reform our monetary system. Hence, the reason why it's so important to develop an understanding of what money really is. That is, if we, the masses, wish to not only take back our nation, but, moreover, to maintain our humanity.

Here's the thing, there is so much disinformation circulating, it's not easy to discern the truth. Nevertheless, this is some of what I've learned so far.

Economics is not a science, yet economists - in an effort to make economics, more scientific, I guess - removed "normative values" from its study. What are "normative values"? In one word, morality. Well, removing standards of ethics, honesty and morality from its study might be okay if economics followed the scientific method, and wasn't so intertwined with our survival, but it doesn't, and it is.

Unfortunately, too many economists ignore the historical origins of money, as most are trained to support the status quo...something that is clearly not working. As Alexander del Mar once said, "As a rule, economists do not take the time to study the history of money. It's much easier to imagine it and deduce the principles of this imaginary knowledge."

So, what is money? 

John Locke and Ben Franklin defined money as a pledge for wealth instead of wealth itself. However, it is Aristotle's definition: "money exists not by nature, but by law," that made "money" by it's very nature, a fiat of the law.  Now, despite the ranting and raving of the many against our fiat money system, fiat money, in and of itself, is not the problem; rather, it's fractional reserve banking...the private creation of "money" that is the problem here. Why? In a nutshell, it benefits only those who control its usurious issue.  If the money power is privately controlled, it benefits the few...if publicly controlled, it benefits the many.


It was Jeremy Bentham, best known for his advocacy of utilitarianism, and his influence upon modern welfare economics, who we can thank for redefining usury.  In a series of letters written to Adam Smith, he tried to convince Smith to give up his support for interest rate limits. Originally, the concept of usury was much more comprehensive than the mere charge of interest. According to Stephen Zarlenga, usury was the "antisocial misuse of the money mechanism for private gain".  Our entire monetary system is a usurious kleptocracy. 

Part of the "monetary" agenda consists of substituting the idea of credit for the concept of money, so that we, the people will come to think of money and credit as interchangeable, when that not true at all. Credit is only a promise to pay in the future; whereas money pays at the time of exchange. Not to mention, credit evaporates in a crisis; money does not.

What about Ron Paul and his mission to return to the gold standard?

Essentially, he is mis-defining money as a thing...in other words, as wealth. This will not give our society the ability to advance properly, because there will never be enough gold to keep pace with population and commerce growth. As history has shown,  banks will cheat and issue private bank paper that only pretends to be convertable to gold. One can only imagine the problems that would cause in a crisis. 

So back to Aristotle's defintion.  The only problem with  is that his definition is all too brief. Alexander del Mar later expanded on Aristotle with the following defintion of money:

"What is commonly understood as money has always consisted tangibly of the number of pieces of some material marked by public authority named and understood by the laws and customs that its palpable characteristic: mark of authority; essential characteristic: possession of value defined by law, and it's function: the legal power to pay debts and taxes and the mechanical power to fascilitate the exchange of other objects possessing value." -- Alexander Delmar

In other words, setting aside whatever is used to signify it - paper, metal, feathers, etc. - "money  is an abstract social power embodied in law, as an unconditional means of payment." *

Which brings us to Stephen Zarlenga's three elements (The American Monetary and Financial Securities Act) that he maintains must be included in order to create a monetary system that works for the benefit of all:

1. Put the Federal Reserve system into the US treasury so it is within our sytem of checks and balances.
2. Get rid of the fractional reserve Stop the banks from creating our money supply...any of it. If they create even 10%, they're smart enough to get all of it. Billions are being stolen under cover of law, for not only doing nothing, but for damaging and destroying society.
3. Government prints and spends new money into circulation to pay for infrastructure repair, either printed on paper or inserted on an account The key is that it's not debt; it's money.  Moreover, human infrastructure must be included:  health care and  education, as you cannot build the hardware without healthy, intelligent people. .

Source:

* Stephen Zarlenga, author of the ‘National Emergency Employment Defense Act of 2010’ (renamed The American Monetary and Financial Securities Act by Rep Dennis Kucinich, which gets rid of a private credit system, and puts into place, a government money system),  founder and director of the American Monetary Institute, and author of The Lost Science of Money

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Power of the Purse: How the Wealth of the World Remains in the Hands of the Few.

"When the government fears the people, there is freedom. When the people fear the government, there is tyranny." - Thomas Jefferson

The Power of the Purse Volume 1 Part 1




The Power of the Purse Volume 1 Part 2

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Putting Your Dollars to Use Before They Become Worthless.

Monetarism, an ideology that espouses, "money is all that matters", ironically, is what's primarily responsible for devaluing the very thing - money - that matters most. It's not even real!

I guess, when we allow profits to trump principles, anything goes...well, as long as whatever is going, benefits the bottom line. We worship the almighty dollar, not for what it can do, but for it's very "essence", which we're finding out is illusory, at best.

If hyperinflation, the ultimate destroyer of value, should rear its ugly head, it will all but render the object of our reverent adoration worthless. We'll know when we go to buy a loaf of bread at the local grocery store and the cashier says, "That will be $200 million, please" as does the cashier in Zimbabwe (current rate of inflation 231 million % ).

Money already seems worthless to me. I spend more, not less. If I need something...I buy it. What's the point of saving when there is a good chance the value will vaporize when I need it most? I mean the dollar has already lost 95% of its value since the creation of the Federal Reserve in 1913. It's just a matter of time when you consider the hyperinflation rates in Weimar Germany (9244%), Hungary (4300%), Argentina (20,266%), Israel (486%), etc...

If money is the measure of a man's worth, we should be genuflect in the presence of drug dealers, pimps, organized crime and especially the almighty imperialist financiers! Giants among men, who are robbing us blind, while forcing the consolidation of our banking system so that it remains, "too big to fail" forever and ever.

Meanwhile, all of us "gainfully" employed within the legal constructs society created so that we may put food on the table, a roof over our head and clothes on our back will battle each other for the ever shrinking heap of scraps the oligarchs decide to discard.

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Who is the "you" Bush is referring?

While Americans continue to claw their way out of all kinds of debt, from medical bills to college loans, to foreclosures, not only is our government primarily focusing on bailing out the "crooks" that contributed to our current fiscal crisis, the Federal Reserve is hiring them to guard the "hen house". More specifically, the Fed appointed Michael Alix, the chief risk officer at Bear Stearns from 2006 until its downfall in March, as senior vice president in the Bank Supervision Group of the New York Federal Reserve on October 31. That's right, the guy whose specialty was evading risk controls at Bear Stearns will now be in charge of leading the bank supervision group at the New York Fed.

Do we need any more proof that "government of the people, by the people, for the people", should read: government of the bankers, by the bankers, for the bankers?

Here's the thing, it's not just the working poor who are struggling, it's doctors, dentists, and other professionals we always assumed are above the "struggle". Obviously, these professionals are living in splendor compared to people making minimum wage, however the high cost of insurance and student loans out the wazoo, keep those of us at the higher end of the income spectrum from crawling out of the money pit. (Notice, I didn't include lawyers, although I hear they are not faring to well either)

Meanwhile, "President" Bush tells us we shouldn't let "a few months of crisis" get in the way of the "free market". Free market? Bush has single-handedly redefined the words, "free", and "compassionate" - considering he ran as a "compassionate" conservative - to take on the meaning of each word's antonym.

Addressing a conservative audience at historic Federal Hall, President Bush said the following:

"If you seek economic growth, if you seek opportunity, if you seek social justice and human dignity, the free market system is the way to go," Bush said to another burst of applause. "And it would be a terrible mistake to allow a few months of crisis to undermine 60 years of success."

Who is the "you" Bush is referring? It's not us, that's for sure. Rather it's the people who benefit and continue to benefit from the biased, coerced and partisan market he speaks.

Ask yourself, what portion of the $1 trillion being spent to prop up our financial structure, the money our economic and political system is taking from us, has gone toward helping we the people? It's very simple math because the answer is zero. The market is blantly rigged to serve the interests of those who have created and continue to advocate for it. Henry Paulson and George W. Bush, and the like, devote their time to saving their own people, while the increasing numbers of us slip further and further into debt, destitution and darkness.

To resounding applause from the crowd of about 175, Bush went on to say:

"History has shown that the greater threat to economic prosperity is not too little government involvement in the market, it is too much government involvement in the market. Our aim should not be more government," he added later, "it should be smarter government."

Once again, economic prosperity for who? Not us, that's for sure.

As far as less, but smarter government involvement goes, the question has to be asked, for who? Well, as you can see the "resounding applause" came from 175 people. Add a few hundred more, and that composes approximately the number of people the "you" and the "who" Bush refers too.

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Legal Tender: Is it Legal, Lawful, Constitutional? Part 3: Interest

In 1971, when the U.S. decided that the value of the dollar did not need the backing of gold, the dollar continues to dematerialize more and more every day. This process enables us to see that money is not so much an object as it is a force, that it takes on a life of its own and its vitality depends on certain conditions to thrive.

Bank-debt based currency, the medium of exchange our monetary system is based, depends on scarcity to flourish. This insufficiency of amount must be artificially introduced and maintained in a systematic and consistent manner. This is the number one reason the free market advocates of the last 30-years are either deceitful or stupid because the Central Bank must intervene constantly to preserve the conditions necessary for money to flow.

“Debt-money derives its value from its scarcity relative to its usefulness.” - Jackson and McConnell, Economics. (Sydney: McGraw-Hill, 1988.

It's hard to believe that charging for the use of money was prohibited throughout most of history. Up until the 19th century, the Catholic Church fought against usury, declaring it a sin.

The application of interest also reinforces competition rather than cooperation. Charging for the use of money also continually stokes the need for endless cycles of economic growth and concentrates wealth in the hands of smaller and smaller numbers, as new money is always needed to cover the intrinsic deficit in our monetary system. Default and bankruptcy are built right into the structure. This guarantees that a certain portion of our population will be poor, as it is designed to transfer wealth from the individual to the banks.

In other words, the money owed to the banks in the form of interest will always exceed the amount of money that is available in circulation. Why? Because when the government borrows money from the Federal Reserve (FR), or when a person borrows money from a bank, that money must be paid back with interest. However, the money creation process only creates the "principal" - the amount of the initial loan credited to the account. The interest is/was never created. So, where does the interest come from? Someone else's principal. That's right...in order to pay the interest, people must compete with each other for money that was never created in the first place! And the premeditated lucky losers get to claim bankruptcy.

What happens when you can't pay your mortgage? Your car loan? Your utilities? "It" gets foreclosed, taken away, shut down, etc. Some might say..."Oh well, that's the breaks. If you can't pay, you can't play?" However, when you realize, a certain percentage of default and bankruptcy is inevitable, and that the money the bank loaned to you did not legally exist in the first place, and that an infinitesimally small segment of our population not only is immune from this process, but benefits from our "bad luck", it's just a little infuriating.

Why can't we create a debt-free and heaven forbid, an interest-free currency, and tell those elitist international power hungry bankers to find another universe to pick on? Well, a few Presidents tried that, including Abraham Lincoln (Greenback) and John F. Kennedy, (Executive Order 11110), and it didn't work out so well.

"...(we) gave the people of this Republic the greatest blessing they have ever had - their own paper money to pay their own debts..." -- Abraham Lincoln on the Greenback

To which the London Times responded:

"If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe." -- London Times 1865

The United States Notes that President Kennedy issued were immediately taken out of circulation the day after his assassination on November 22, 1963, and Federal Reserve Notes continued to serve as the "legal currency" of the nation. None of this information was shared with the American people.

So, it's not so easy to rid the nation of the fractional reserve policy perpetrated by the Federal Reserve. This practice has spread to the most of the banks in the world. Besides the obvious profit motive, what else is it about this system of banking that make those in control of it so willing to do anything to keep it in tact? Considering their great wealth, one would think they could discover other ways to profit, however finding another way to claim the global population as your "slaves" might be a little more difficult.

Granted, we are not shackled or whipped...in fact, some of us feel as if we are free as birds, able to soar to great heights, but those of us that feel that way are growing smaller and smaller in number.

Many claim that our current monetary system is a form of modern slavery. That most of us are nothing but wage slaves. I certainly don't feel like a slave, and if indeed I am a slave, I can't complain. But it kind of, sort of, makes sense when you think that money is created out of debt...and that we are all competing for something that does not exist, which makes us battle for what each of us already owns...and that this struggle is an intrinsic part of our economic system...and that only the very few at the tip of the iceberg will truly benefit...OK, now, I feel like a slave.

From Aristotle to our Founding Fathers, to Adam Smith, intellectuals, philosophers and economists believed society and government exists to evolve better conditions for people to thrive in order that they may live virtuous and moral lives. Our current monetary system encourages the exact opposite, which we have come to believe is not only normal but desirable.
However, it appears the people in control of our money supply know better as was stated in the aforementioned quote from the London Times in 1865.

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Legal Tender: Is it Legal, Lawful, Constitutional? Part 2.

The same way most of us worship God, all of us - atheists and agnostics included - worship money, as money is the "god" at the center of the religion we all subscribe, monetary theism. We have little choice but to go along, because as blood is to the human body, money is to the institution - from familial to political to religious to legal to educational and of course, monetary - it functions as the lifeblood of society, without which, life would be unbearable.

Like religion, money unifies, divides, starts wars, provides peace, involves ritual and most important of all, requires us to have faith. In fact, there is no more unquestioned form of faith in America, than the trust we place in the value of our established monetary system. The last couple of months have shown us just how dependent our economy is on our continued reverence. While it's true our current economy, headquartered at the Federal Reserve, does indeed require our loyalty, it does not necessarily mean that loyalty is deserved.

So, what's wrong with the way our government has chosen to create and distribute money? Nothing. What's wrong, is allowing private unaccountable banks create and distribute money for private profit at the expense of we, the people.

Sure, everything is made to make it look as if the central bank operates in the public interest but the Federal Reserve is a private corporation, chartered in total secrecy by an act of Congress, the Federal Reserve Act of 1913 on December 23, 1913.

The Federal Reserve is not federal. There is no reserve. And it’s not even a bank.
Those in the know, central bankers and the like, who benefit from our monetary system, purposefully obfuscate the mechanics of money supply (fractional reserve banking) so that we the people will not figure out that the creation of money is designed to perpetually rip us off by consistently transferring the wealth back to the banks.

The more complicated the economy and money creation process appears, the more we will avoid trying to figure it out, hence, just as we do with religion, we end up putting our absolute faith in this unseen entity, that works by a method that we don't fully understand. Faith is not the problem here, the issue is our knowledge of what we put our faith in.

God is mysterious and beyond human comprehension, however enough evidence exists that has convinced 75% of our nation to place our faith in His existence, and still we are constantly searching for clues to how He works. The irony is, that unlike God who we believe created us, we, human beings, create money. It's not all that mysterious and well within our grasp, nevertheless, humans who prosper so from having complete control of our money supply have a vested interest in convincing us that this institution is "sacred" and far beyond our understanding.

To truly understand the way our world works, the first thing we have to do is understand money.

Years ago, the Federal Reserve, produced a document entitled Modern Money Mechanics. This publication detailed and described the basic process of money creation in a fractional reserve banking system.

Our government decides it needs $10 billion, so the treasury prints up $10 billion of treasury bonds and places a call to the federal reserve (FR). The FR then prints up $10 billion in notes and buys the government bonds and the exchange is made. Only, in reality nothing is printed up, it is all done electronically.

Once this exchange is complete, the government than takes the $10 billion in FR notes, and deposits it into a bank account, and this deposit officially makes the FR notes, legal tender or money and adds $10 billion to the US money supply.

But wait, there's more...that was just the beginning. Government bonds are by design, instruments of debt because the government is actually promising to pay back that money to the FR. In other words, the money was created out of debt.

Based on fractional reserve banking, that $10 billion deposit instantly becomes part of the banks reserves, just as all deposits do, however only the prescribed reserve requirement needs to be present and accounted, normally 10% of the deposit. In this case, $1 billion is held as the required reserve, while the other $9 billion is considered an excessive reserve, and can be used as the basis for new loans.

One might assume that the $9 billion in excessive reserve is literally coming out of the existing $10 billion deposit. Not true. The $9 billion is created out of thin air, once again, ON TOP of the existing $10 billion deposit. Magically, our money supply expands.

From Modern Money Mechanics:

"Of course the banks do not really pay out loans for the money, they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes (loan contracts) in exchange for credits (money) to the borrowers transaction accounts."

This process then repeats over and over again. Let's say someone walks into this bank and borrows $9 billion and then takes that money and deposits it into their own bank account. The bank would hold 10% of the $9 billion deposit, the other 90% or $8.1 billion is now available as newly created money for more loans. And then that $8.1 billion can be loaned out and redeposited creating an additional $7.2 billion to $6.5 billion… etc…

For every deposit that ever occurs in the banking system, about nine times that amount can be created out of thin air.

So, what is giving this newly created money value? The already existing money supply. That's right, every time new money is created, it steals value from the existing money supply. Why? Because the money supply is being increased irrespective to demand for goods and services. This throws supply and demand way off so prices rise which in turn diminishes the purchasing power of each individual dollar. This is called inflation and this is why inflation is called a hidden tax on the population and why the fractional reserve system of monetary expansion is inherently inflationary as it debases the currency. This can be seen when we see that one dollar in 1913 requires $21.60 today to match value. That is a 96% devaluation since the Federal Reserve came into existence.

In this system, the only way money can come in to existence is from loans. Therefore, if everyone in the country were able to pay off all debts including the government, there would not be one dollar in circulation, hence we have the double-enrichment, debt-based currency system, which predominates throughout most of the western world.

Next up: The real scam: Interest.

"The modern banking system manufacturers money out of nothing. The process is perhaps the most astounding piece of sleight of hand ever created. Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits". -- Sir Josiah Stamp, Director of the Bank of England,1928-41

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."---Thomas Jefferson

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