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JohnQPublic
3rd January 2014, 08:34 PM
100 Years Is Enough: Time to Make the Federal Reserve a Public Utility (http://nsnbc.me/2013/12/23/100-years-is-enough-time-to-make-the-federal-reserve-a-public-utility/)

Ellen H. Brown

"...To stop the collapse of the money supply, in 1933 Roosevelt took the dollar off the gold standard within the United States. The gold standard had prevailed since the founding of the country, and the move was highly controversial. Critics viewed it as a crime. But proponents saw it as finally allowing the country to be economically sovereign.

This more benign view was taken by Beardsley Ruml (http://www.constitution.org/tax/us-ic/cmt/ruml_obsolete.pdf), Chairman of the Federal Reserve Bank of New York, in a presentation before the American Bar Association in 1945. He said the government was now at liberty to spend as needed to meet its budget, drawing on credit issued by its own central bank. It could do this until price inflation indicated a weakened purchasing power of the currency. Then, and only then, would the government need to levy taxes—not to fund the budget but to counteract inflation by contracting the money supply. The principal purpose of taxes, said Ruml, was “the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as ‘the avoidance of inflation.’”


It was a remarkable realization. The government could be funded without taxes, by drawing on credit from its own central bank. Since there was no longer a need for gold to cover the loan, the central bank would not have to borrow. It could just create the money on its books. Only when prices rose across the board, signaling an excess of money in the money supply, would the government need to tax—not to fund the government but simply to keep supply (goods and services) in balance with demand (money).


Ruml’s vision is echoed today in the school of economic thought called Modern Monetary Theory (MMT). But after Roosevelt’s demise, it was not pursued. The U.S. government continued to fund itself with taxes; and when it failed to recover enough to pay its bills, it continued to borrow, putting itself in debt..."

Hypertiger
3rd January 2014, 09:13 PM
The dollar started out as a measure of silver...not gold.

The first commercial banks that operate like you see today...appeared around 1400 in Spain...

The top lives off the yield from the bottom...The top or employer taxes all the employees to supply all the power to the employer wholesale...the employer then turns all the real power into fake power and supplies all the employees back fake power in exchange for real power.

The US congress instructed the US treasury to issue bonds to fund WW2...at the end of WW2 in 1945...The total credit market debt of the USA...all the credit in circulation was 355 Billion Dollars.

The public debt...or amount of bonds the US congress through the US Treasury issued and exchanged to borrow from the total credit market debt of the USA was 258 Billion Dollars.

Meaning that the US Government had borrowed 72% of the total credit supply.

Currently the public debt is 17.3 Trillion dollars...and the total credit market debt is 58 Trillion Dollars.

Meaning that the US Government has borrowed 29% of the total credit supply.

There are according to the FED 1.232 Trillion dollars worth of Federal reserve banknotes in circulation...Which are assets of the Federal reserve but Liabilities of the US Government since that 1.232 Trillion in banknotes is a demand upon the US treasury for so called lawful money...or Congress defined US Dollars which are these (http://en.wikipedia.org/wiki/Dollar_coin_(United_States)) now.

Since the USA was looted dry of 1.2929 per troy ounce silver by the city of London in 1964 under the 1944 Bretton woods agreement.

How about this...I know more than you all currently dare in your wildest dreams to know about the nature of coin, credit and circulation.

“The process by which banks create money is so simple that the mind is repelled.”--John Kenneth Galbraith.

“The study of money (Power), above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.”--John Kenneth Galbraith Money: Whence it came, where it went - 1975, p15

All the perplexities, confusions and distresses in America arise not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation." (Absolute capitalist economics)--PRESIDENT JOHN ADAMS

"Simplicity (order) adds up to the multiplication of complexity into perplexity (chaos) which is divided unequally and subtracted to obtain the required yield of power the absolute capitalists want to manipulate the Universe how they desire."--Hypertiger

Here's more (http://truth-zone.co.uk/forum/finance-and-economics/62833-central-banks-lose-400bn-in-gold-rout.html)...