I ask that the reader to dredge up all the open mindedness they can muster as you read this. It is my fervent hope the reader understands what is said here. I know it will prove helpful
I have studied social and economic problems for many years in an effort to learn the cause of the distress that is everywhere we look. This letter is to share some thoughts about what I have learned. First I’ll bring in some heavy hitters to corroborate these thoughts.
“All the perplexities, confusion and distress in America arise, not from defects in the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.”
John Adams, President.
President Adams accurately identified the problem. He said “All the perplexities, confusion and distress arise…from downright ignorance.” When you think about it that is usually what ignorance does. Notice also he said “All the…distress” not some or most. Why is the President blaming “coin, credit and circulation?” The balance of this letter is to teach the reader why our former President made these comments. What follows replaces ignorance with knowledge. Our hope is that wisdom will arrive.
These thoughts may prove helpful.
“The dogmas of the quiet past are inadequate for the stormy present. We must think anew and act anew.” Abraham Lincoln President
This great President’s thoughts were echoed by another beloved man.
“The significant problems we face cannot be solved at the same level of thinking we were at when we created them” Albert Einstein, Physicist, Pacificist.
Its uncanny, to me, how great minds think so alike. If we are to believe these men we must adopt a new way of thinking. This too may prove helpful.
“The great enemy of the truth is very often not the lie - deliberate, contrived, and dishonest - but the myth - persistent, persuasive and realistic.”
John F. Kennedy, President
Our minds enslave us because of our belief in myth. Finding truths from which to base our decisions is proven the only way to make effective actions for change. Change we must if we expect to survive.
“To sin by silence when we should protest makes cowards of us all.” Abraham Lincoln
Clear away the myths. Examine the conventional financial mechanism the one in place today in every modern country. Call off your old tired beliefs about money and credit. Replace them with fact. When the clouds of myth surrounding the financial mechanism are cleared away it reveals all we need to know about the cause of our problems and their solution. All that remains is to determine a way to implement the solution for change is sure to cause resistance. As the saying goes, “Change brings travail.”
I expect a good deal of skepticism. What I say regarding the conventional mechanism are facts. There are no theories here. No belief is required. You must transcend skepticism. Have the ability to accept the facts. This is where the new way of thinking becomes helpful. The conditions society must meet to perpetuate the conventional monetary mechanism, in place today in every modern country, are impossible to achieve. I offer a few conditions as examples.
First: More money is required for repayment of the loan than is originally created at the time of the loan. Yes, that’s right; all our money is created, out of thin air at the time of the loan. This excludes coins which are negligible for the purpose of this discussion. Money for interest payment is not created it must be found elsewhere. This means repayment is impossible. Since this system is now worldwide there is no elsewhere. This means those that are successful in making a profit have done so at the expense of those that do not. This is the reason for poverty, homelessness, welfare and the person on the freeway exit or the street corner of any city with a cardboard sign pleading for help. Just the fact that money is created by the banks out of thin air and those ramifications is all you need to know when you adopt the new way of thinking.
Second: Keep in mind that the consumers and those who do the work of making the products or performing the services are the same people. How can the consumer, that’s us, purchase the goods and services when we are never paid the price of their cost? We cannot. It is because profit, required to pay the interest, so necessary for survival, must be charged by the business. This is another facet of the mechanism. It forces many businesses into bankruptcy. Remember that best selling book about all those successful business’ and how shrewd the leaders were? Ten years later half of them were gone.
Third: This one is my favorite because it is so obvious and yet very few seem to realize it. The money is imaginary. It is kept track of by accounting and bookkeeping, usually with aid of computers. Whoa, you say; what about that $500 to $600 billion floating around as currency in the form of Federal Reserve notes? About half of which is floating around Europe and Asia. The answer is right in the question. “Notes” i.e. evidence of debt. It is delusional that the middle class and common people and government at every level are always short of something imagined to exist. It cannot be otherwise. These facts would be humorous or ironic if the results did not bring unremitting tragedy everywhere.
The reason for the necessity of profit is Interest. I doubt that any of the information in these three paragraphs is new to the reader.
Some one once said. “What fools we mortals be.” We pay interest on something imaginary. It is pretended to exist and acted on as though it does. We base our action on myth. Our money is created for the purpose of collecting interest. Where in the realm of business is an imaginary product used to make a perpetual profit? Who is collecting this interest? The Federal Reserve collects interest on the national debt. Who are the top ten owners of the FED? Seven of the top ten owners are foreign. Not from the United States. How much interest on the debt is paid annually? See the chart at the end of this paper. This money was paid to the banks for nothing, something imaginary, by the hard work of the American public. Does it leave the reader to wonder about the unemployment, poverty and welfare problems, to name a few, if that money was in circulation?
Thomas Paine gave this subject some thought. He arrived at an unshakable conclusion. Let’s find out:
“It is not our doing a thing with a certain end in mind that will cause it to produce that end,” he says. “The means taken must have a natural ability and tendency within themselves to produce no other, for it is this, not our wishes or policy, that governs the event.”
This postulate is true of all mechanisms. The conventional financial mechanism is designed to churn out the social distress everywhere we look. This it does at an ever accelerating rate as long as it is in operation. It is my fervent hope that this letter gives some illumination to the subject under discussion.
No plan for Social Amelioration has the lease chance for success until the conventional financial mechanism is dismantled and discarded. No shred of it can remain. To replace it a new sound scientific money system can be formulated. It must contain these features:
■ Interest free loans to municipalities and states - to provide all the services required
■ Pension increases - to do away with want of the retired.
■ Family allowance increases - for a higher living standard.
■ State and municipal grant increases - for full educational opportunities.
■ Elimination of unnecessary tax burdens - gives more income for personal use.
■ Homeowners revolving fund - means homes for all without debt
■ Price discounts - a reverse sales tax.
■ National Dividend - Equal distribution of all National surpluses.
I leave the reader to contemplate the condition of the world when the question about a project required or a problem to be solved is not, “where can we get the money.” The better question is, “are resources, energy and manpower available for the task. With the factor of cost and interest no longer requiring consideration we can turn our thoughts to alternative energy sources. Water and wind power can be made abundant. Solar power is already abundant. The sun gives us about 7,000,000 Horsepower per square mile, enough for any energy needs in the foreseeable future. Contemplate, this means our energy source creates no pollution. About this time I expect the reader may feel nearly overcome with skepticism. Be assured everything you have read here is proven with mathematical certainty.
I have prepared a paper that discusses these and many other difficulties brought about because of the Conventional Financial Mechanism. A few of them are unemployment, poverty, hunger and starvation, homelessness, excessive government, preservation of renewable resources, every increasing cleavage between the rich and the rest of us, deterioration of educational system and the decline of art. It would be happy to send it along to you. The paper includes some suggestions about how to spend our money and the kind of world we can expect from these changes. Other aspects of the institution of a sound scientific money system are: It can start without a period of waiting, without complicated legislation to implement and none need suffer or give up anything.
Warmest Personal regards
one small voice, hafaloaf
PS. In conclusion, an out of the box thought of a respected person.
“Thinking clearly and effectively does not come by nature. Hunting the truth is an art. We blunder naturally into a thousand misleading generalizations and false processes. Yet there is hardly any intelligent mental training done in the schools of the world to-day. We have to learn this art, if we are to practice it at all. Our schoolteachers have had no proper training themselves, they mis-educate by example and precept, and so it is that our press and current discussions are more like an impromptu riot of crippled and deaf and blind minds than an intelligent interchange of ideas. What bosh one reads! What rash and impudent assumptions! What imbecile inferences!” H. G. Wells The Open Conspiracy
| Available Historical Data Fiscal Year End |
| Total Interest Paid on National Debt 1988 to 2010 2010 | $7,766,660,920,892.64 $413,954,825,362.17 |
| 2009 | $383,071,060,815.42 |
| 2008 | $451,154,049,950.63 |
| 2007 | $429,977,998,108.20 |
| 2006 | $405,872,109,315.83 |
| 2005 | $352,350,252,507.90 |
| 2004 | $321,566,323,971.29 |
| 2003 | $318,148,529,151.51 |
| 2002 | $332,536,958,599.42 |
| 2001 | $359,507,635,242.41 |
| 2000 | $361,997,734,302.36 |
| 1999 | $353,511,471,722.87 |
| 1998 | $363,823,722,920.26 |
| 1997 | $355,795,834,214.66 |
| 1996 | $343,955,076,695.15 |
| 1995 | $332,413,555,030.62 |
| 1994 | $296,277,764,246.26 |
| 1993 | $292,502,219,484.25 |
| 1992 | $292,361,073,070.74 |
| 1991 | $286,021,921,181.04 |
| 1990 | $264,852,544,615.90 |
| 1989 | $240,863,231,535.71 |
| 1988 | $214,145,028,847.73 |
Top 10 owners of the Federal Reserve
1) The Rothschild Family - London
2) The Rothschild Family - Berlin
3) The Lazard Brothers - Paris
4) Israel Seiff - Italy
5) Kuhn-Loeb Company - Germany
6) The Warburgs - Amsterdam
7) The Warburgs - Hamburg
8) Lehman Brothers - New York
9) Goldman & Sachs - New York
10) The Rockefeller Family - New York
