IMF, the World Bank and the future of Third World nations
Posted on April 26th, 2012

Shenali Waduge

60 years after the IMF and the World Bank took on the onerous task to promote growth and to rebuild nations why is it that half of the world of 7billion people still lives on less than a dollar a day, 3billion have no access to sanitation, 2billion have no access to electricity, 1.3b have no access to clean water, nearly 1billion cannot read or sign their names, over 270m are unemployed while 1% controls the entire wealth of the world? If the IMF and the World Bank is owned and controlled by the Rothschild family together with 13 other banking families is it not they who control the world and not Governments and certainly not the People? Today, the developing world spends $13 on debt repayments for every $1 given as grants.

How many noticed that all the countries that have seen regime change in the recent past were countries whose central banks did not belong to the international banking network? The strategy formulated as far back as 2001 was to “intervene” in these nations and take over their banks “”…” that’s how Libya, Sudan, Iraq, Afghanistan fell and why Cuba, North Korea, Syria and Iran remain the next targets.

The world’s financial situation is not healthy. It is clear that the distance between the rich and poor is expanding at alarming rates. How did 48 countries or a quarter of the world’s GDP combined wealth become less than the wealth of the world’s 3 richest countries? Why is it that 20% of developed nations consume 86% of the world’s goods? How is it that 85% of the world’s water is used by just 12% in the first world? Why is more than half the world’s 100 wealthiest bodies corporations and not nations? How did a few wealthy millionaires make the combined wealth of 2.5billion people? How did 700m become obese while 1.6b were overweight? By 2004, 0.13% of the world controlled 25% of the world’s assets. The money US and EU companies spend on entertainment can easily eliminate hunger, health issues, provide education and clean water to the entire world.

Who is responsible for this imbalance and has the imbalance being created to sustain the wealth of a few through the formula of debt repayment?

One of the main causes for the imbalance in distribution of resources in the world economy was colonialism. 84% of land was under European and North American control by 1900. There were only 35 independent countries. Today there are 193 independent states but over half of them are impoverished. Whereas countries like Singapore, Malaysia, South Korea have achieved levels of success despite their colonial legacy the other nations are lagging far behind worsened by neocolonialism where developed nations are using trade to tap into natural resources of the developing nations.

The IMF and World Bank work hand in hand to give loans on conditions that have left nations taking loans and falling further into debt. Countries are unable to rise from poverty due to these “structural adjustments” imposed on nations taking loans to ensure debt repayment. How can IMF and World Bank raise the standard of living when it lowers the standard of living by forcing governments to reduce spending on health, education, development and infrastructure?

In 1980 total debt of developing countries was US$567billion. By 1992 these countries had to pay back US$1662billion while debt increased to US$1419billion due to high interest rates. These countries had no other option but to take fresh loans! Debt repayment denies US$160billion each year from developing countries.

IMF and World Bank insist on “liberalized” economies encouraging more export-oriented open markets with countries at a loss on how to cater to internal requirements. Insistence on privatization has led to the death of domestic industries, currencies becoming devalued, interest rates being increased, food subsidies eliminated and country regulations removed to attract foreign investors.

The G20 nations comprising US, UK, Germany, France, Italy, Canada, Mexico, Japan, Russia, China, Brazil, Argentina, Australia, India, Indonesia, South Korea, Saudi Arabia, South Africa and Turkey account for 90% of the worlds’ Gross Product and over 80% of world trade in addition they control voting power in the IMF and World Bank. Their vision for “sustained growth” means their companies should be allowed to buy assets in any country and have a free hand to move money in and out of these countries they will invest in.

The poorest 48 countries account for 0.4% global exports because their local industries have been destroyed by imports under “free” trade making 400 people, the global elites with more money than what 3billion people own together.

Most politicians are quick to agree to privatize for it means selling of state bodies and gaining commissions. Thus these structural adjustments are encouraging corruption and undermining democracy as Governments end up being accountable to these Western dominated banks instead of their own people. Are these not facets of neoliberal ideology?

IMF and World Bank formula rarely varies which equates to mean that countries taking these loans are destined to remain poor. Visits by their representatives are nothing more than handing down a list of demands that forces “voluntary” signature. Governments and their officials have no say.

Generally, there are around 67 conditions for a World Bank loan.

Most IMF/World Bank agreements cover around 111 items that include bribing politicians for selling off key assets like water, electricity, gas etc “”…” all leaders who do not agree are overthrown. Argentina fell because its politicians sold the nation, its water system and pipeline running through Argentina and Chile was sold to Enron. Enron fell but not before assets were transferred.

As a result of these forced “liberalization” programs Africa lost 500,000 children since African Governments were forced to abolish price support on essential foods, reduce state spending on health, education and social services and increases taxes which the people found impossible to pay.

Can Africa ever recover? In Zambia privatization has left over 60,000 jobless, increase in bus fares, closure of rural bus routes making life difficult for Zambians. In Nigeria, kerosene has increased by 6000%, telecommunication by 5000% and electricity by 883%. Ghana has had to increase health & education services making both unaffordable for the poor. Uganda ended up privatizing government institutions, reducing size of the civil service and the army, cuts in government spending on social services which led to loss of 170,000 state jobs, collapse of small enterprises, increase in school fees.  Malawi removed fertilizer subsidies forcing farmers to purchase fertilizers and those that couldn’t ended up selling their food stocks leaving Malawi’s food security in a crisis.

According to Mozambique’s trade union federation OTM, of the 502 companies which were privatised since 1989 only 25% are still operational and 37 000 workers have been retrenched”¦isn’t this the story in most countries!

The World Bank is funded by the US Treasury and the Federal Reserve that creates the monetary policy is a private concern owned by the Rothschild to which Americans annually pay $300billion in interest. The Rothshilds own all but 4 of the world’s Central Banks (Cuba, North Korea, Syria and Iran).

Things are not rosy for US either. Its economy is predicted to be taken over by China. US was a country that supplied 50% of the worlds gross products in 1950. Today it supplies less than 20%. In 1950, 60% of all manufactured goods were produced in the US, today the US manufactures less than 20%. All of US retail stores sell items manufactured in China. Even “American” items are those manufactured overseas! US mortgage debt stood at $14.2trillion. US debt is $6trillion!

America is a nation in debt “”…” to whom, the Federal Reserve which is owned by the Rothschilds who incidentally owns international and local media agencies.

Needless to say too many countries are victims of forced debt while money flows from these developing countries to developed countries which is given back as loans with further interest and strings attached. These poor countries are borrowing their own money while frustrated farmers are either committing suicide and an enormous amount of vegetables are being thrown away!

Money did not come from another planet. Ideally, all Third World debt should be erased on the grounds that these debt have been created fraudulently.

As a first measure, Third World nations need to get back to fundamentals. Nationalizing of industries must take precedence devoid of vice and corruption and the successful management of these industries could over a period of time pay off debts as well as increase the quality of living for its masses.

The Governments in particular must realize what areas within the local industries bore dividends and these should be nurtured with care and strategic planning.

As for Sri Lanka in particular, we seem to have forgotten we were a nation that was called the Granary of the East. Why are we not respecting the nation for its agricultural status? Look how Australia takes care of its country to ensure that no harm comes to of its agricultural products. Does Sri Lanka regulate its imports, do we have controls over import items that may pose a health risk to consumers?

We may not be able to come out of the debt trap immediately but all Governments are duty-bound to protecting national assets and ensuring that people find avenues that could sustain their livelihoods from resources that belong to the nation not doling these out to foreign interests.

When all global decisions, policies and practices are influenced, driven and formulated by powerful people who run the world’s institutes and corporations do governments of poor nations have a say at all?

We must face the reality that the banks are running the world and not Governments even the mighty USA is just a pawn!

Shenali Waduge

3 Responses to “IMF, the World Bank and the future of Third World nations”

  1. Nalliah Thayabharan Says:

    In 1811 the charter for the Illuminati Ashkenazi Khazar Rothschilds’ Bank of the United States expired and US Congress voted against its renewal. At the time Andrew Jackson (who would become the 7th President of the United States from 1829 to 1837) said, “If Congress has a right under the Constitution to issue paper money, it was given them to use by themselves, not to be delegated to individuals or corporations.”

    Nathan Mayer Rothschild was not amused and he stated, “Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.”

    Andrew Jackson’s response to this was “You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.” Illuminati Ashkenazi Khazar Nathan Mayer Rothschild replied “Teach those impudent Americans a lesson. Bring them back to colonial status.”

    In 1812 backed by Illuminati Ashkenazi Khazar Rothschild’s money, the British declared war on the United States. The Illuminati Ashkenazi Khazar Rothschild’s plan was to cause the United States to build up such a debt in fighting this war that they would have to surrender to the Illuminati Ashkenazi Khazar Zionist Rothschild and allow the charter for the Illuminati Ashkenazi Khazar Rothschild owned Bank of the United States to be renewed.

    In 1816 the charter for the Bank of the United States was renewed for another 20 years with the Illuminati Ashkenazi Khazar Rothschild in Control of the US money supply again. The British war against the USA therefore ended with the deaths of thousands of British and US soldiers, but the Illuminati Ashkenazi Khazar Rothschilds got their bank.

    In 1861 President Abraham Lincoln (16th President of the US from 1860 till his assassination in 1865) approached the Illuminati Ashkenazi Khazar Rothschilds to try to obtain loans to support the ongoing American civil war. The Illuminati Ashkenazi Khazar Rothschilds agreed provided President Abraham Lincoln allows them a Charter for another US central bank and are prepared to pay 24% to 36% interest on all monies loaned. President Abraham Lincoln was very angry about this high level of interest and so his government printed its own debt free money and informed the public that this was now legal tender for both public and private debts. By April 1862 $449,338,902 worth of President Abraham Lincoln’s debt free money had been printed by the US government and distributed. He went on to state, “We gave the people of this republic the greatest blessing they ever had, their own paper money to pay their own debts.”

    That same year The Times of London publishes a story containing the following statement, “If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”

    In 1863 The Illuminati Ashkenazi Khazar Rothschilds used one of their agents in America, John D. Rockefeller to form an oil business called Standard Oil which eventually took over all of its competition.

    In 1864 President Abraham Lincoln discovered the Tsar of Russia, Alexander II (1855 – 1881), was having problems with the Illuminati Ashkenazi Khazar Rothschilds as well as he was refusing their continual attempts to set up a central bank in Russia. President Lincoln asked the Tsar for help in the Civil War and the Tsar sent part of his fleet to anchor off New York and the other part off California. The Tsar made it clear to the British, French and Spanish that if they attacked either side, Russia would take the side of President Lincoln. Lincoln subsequently won the Civil War.

    In 1865 in an a statement to Congress, President Abraham Lincoln stated, “I have two great enemies, the Southern Army in front of me, and the financial institution in the rear. Of the two, the one in my rear is my greatest foe.” Later that year President Lincoln is assassinated.

    The US Federal Reserve – neither federal nor a reserve – is a Illuminati Ashkenazi Khazar Zionists owned private institution was created on December 23, 1913. It was planned at a secret meeting in 1910 on Jekyll Island, Georgia, by a group of Zionist bankers and politicians. This transferred the power to create money from the US Government to a private group of Illuminati Ashkenazi Khazar Zionist bankers. 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 exterminate the Illuminati Ashkenazi Khazar Zionists 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 Illuminati Ashkenazi Khazar Zionists owned Federal Reserve System.

    Shortly thereafter, President John F. Kennedy was assassinated. The professional, triangulated fire that executed the President of the United States is not the most shocking issue. The high- level coordination that organized the widespread coverup is manifest evidence of the incredible power of a “hidden government” behind the scenes.

    Another myth that all Americans live with is the charade known as the “Federal Reserve.” It comes as a shock to many to discover that it is not an agency of the United States Government.

    The name “Federal Reserve Bank” was designed to deceive, and it still does. It is not federal, nor is it owned by the government. It is privately owned by the Illuminati Ashkenazi Khazar Zionists. Its employees are not in civil service. Its physical property is held under private deeds, and is subject to local taxation.

    It is an engine that has created private wealth that is unimaginable, even to the most financially sophisticated. It has enabled an imperial elite to manipulate US economy for its own agenda and enlisted the US government itself as its enforcer. It controls the times, dictates business, affects Americans’ homes and practically everything in which Americans are interested.

    It takes powerful force to maintain an empire, and this one is no different. The concerns of the leadership of the “Federal Reserve” and its secretive international benefactors appear to go well beyond currency and interest rates.
    Alan Greenspan, at the annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research on December 5, 1996 stated, “Augmenting concerns about the Federal Reserve is the perception that we are a secretive organization, operating behind closed doors, not always in the interests of the nation as a whole. This is regrettable, and we continuously strive to alter this misperception.”

    But Federal Reserve has confused the public, lied to them and stole their gold and silver. All the perplexities, confusion, and distress in America arise, not from defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation. Of all the contrivances devised for cheating the laboring classes of mankind, none has been more effective than that which deludes him with paper money. After many years of blundering toward it, and only a few months before the beginning of the World War 1, Rothchild found the formula for the most efficient credit machine that was ever invented. This was the Federal Reserve System. Most people are unsure of the meanings of words such as money, dollar, wealth, inflation and credit. The average person would be very surprised if they knew how the money system used to work compared to how it operates now. The essence of psychological warfare is to confuse the meaning of words, and infiltrate the mind with conflicting concepts. The use of the word Federal in the name federal Reserve leads the public to believe that the Federal Reserve is a government institution, when it is really a private corporation owned by foreign and domestic banks and operated for profit. The Federal Reserve controls America’s money supply and interest rates, and there by manipulates the entire economy, in violation of Article 1, Section 8 of the United States Constitution that expressly charges Congress with power to coin money and regulate the value thereof. Article 1, Section 10 of the constitution says: No State shall make any thing but gold and silver Coin a Tender in payment of Debts.

    “Federal Express” and “Federal Ammunition Company” both have the word federal in them but the public knows about them, they know they are not government agencies because they are not misled about the companies.

    Over time, gold and silver coins were removed from American money supply and removed as backing for American paper currency and replaced with debt (or credit). 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. 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. 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.” Title 31 United States Code, Section 5101 says: “The money of account of the United States shall be expressed in dollars.”

    Hundreds 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. 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 more it takes 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 scare, creating a depression where he could foreclose on the property and magnify his riches. He could then quicken economic activity and bring abundance by raising the number of receipts until his next rip off.

    America’s economic problems started with issuing fraudulent receipts for gold that does not exist. This became standard procedure for the banking business.

    The recent equivalent to the goldsmith’s receipt for gold is the Federal Reserve Note. The word “Federal” implies Federal government, but the Federal Reserve is a privately owned corporation. The word “Reserve” implies that something gives the paper receipt value, but no gold or silver backs this paper. 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. Federal Reserve Notes are only accepted because people believe they have value. If the truth were ever found out, it would cause fininancial chaos because people would know they have no value.

    There are only two economic systems. They are barter and credit. Barter is the trading of one thing of value for something else of value. A money system using gold and silver coin is a barter system. 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.

    Gold and silver have been used as money worldwide for thousands of years. 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. Credit, however, is intangible. 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. Hundreds of years ago, when the goldsmith issued his first receipt for gold that did not exist, he created credit and inflation, because credit and inflation are the same thing. They are both receipts for capital that does not exist. They are both an imaginary unit of exchange. When half of the receipts circulating as a money substitute are redeemable in gold, the other half of the receipts are both credit and inflation. When none of the receipts are redeemable, all of it is credit and inflation. Credit is inflation, therefore, the only cure for inflation is real, honest money.

    A twenty dollar gold coin is twice as large, and twice as heavy as a ten dollar gold coin. A dollar is a unit of measurement for gold and silver coin to insure uniform weight, purity, and value. A dollar unit of paper money that is not redeemable in gold or silver coin is a dollar unit of inflation, which is a dollar unit of credit, which is a dollar unit of nothing.

    The purpose of paper money that is not redeemable for gold or silver coin is to get things without paying for them. Those who issue and control paper money as credit get everything for nothing. The cost to the Federal Reserve for printing a “note” is about two cents, no matter what denomination is printed on it. Paper money as credit is used to take wealth using numbers where numbers of nothing are exchanged for things of substance and value. This grand theft occurs in full view unnoticed because the public has been made an accessory to the crime by accepting pieces of paper with numbers on them in place of lawful money, not knowing the difference between worthless “notes” and lawful money.

    Oliver Ellsworth, the third Chief Justice of the US Supreme Court said of paper money: “This is a favorable moment to shut and bar the door against paper money. The mischief of the various experiments which have been made are now fresh in the public mind and have excited the disgust of the respectable parts of America.”

    Roger Sherman, a delegate from Connecticut and author of the gold and silver coin provision of the US constitution, wrote a condemnation of paper money entitled A caveat Against Injustice in which he said…”If what is used as as a Medium of Exchange is fluctuating in its value it is no better than unjust weights and measures, both which are condemned by the laws of God and Man, and therefore the longest and most universal Custom could never make the Use of such a Medium either lawful or reasonable.”

    And so the framers of the US Constitution specified a money system of gold and silver, to be coined and regulated in value by US Congress and prohibited by the US government from issuing paper money as stated in Article 1 sections 8 and 10 of the Constitution: “Congress shall have Power to coin money and regulate the value thereof. No State shall make any thing but gold and silver Coin a Tender in Payment of Debts.”

    When US Congress passed the Federal Reserve Act on December 23, 1913. US Congressman Charles A. Lindbergh, Sr., father of the famous airman, told the US Congress after the vote, “When the President signs this act, the invisible government by the money power will be legalized.” US President Woodrow Wilson signed the act into law, turning over the money system of the country to a group of private bankers and allowed them to create money by making bookkeeping entries, loan it at interest, and take title to real property as collateral. Because of this, the citizens of the United States have lost control over their money system and their government. The banking system operates the same as the goldsmith that deceitfully issued receipts for more gold than was on deposit.

    Federal Reserve Notes are evidence of debt the U.S. Government owes to the owners of the Federal Reserve the payment of which is guaranteed by the collateral of all property and income of all US citizens. When the US Government needs to borrow money, the Treasury creates a bond, and promises to pay a specified amount of money at a specified interest on a specified date. This bond is evidence of debt. This interest-bearing debt is the foundation for America’s money supply and its payment is guaranteed by the collateral of all property and income of all US citizens. The Federal Reserve “buys” this debt simply by making a bookkeeping entry for the amount and writing a check against no funds, and then converts it into paper currency and checkbook money.

    The US Bureau of Engraving prints the paper currency in whatever denominations ordered by the Federal Reserve and charges about two cents for each note, regardless of the denominations, which the Federal Reserve “pays for” by making another bookkeeping entry and writing another bad check. In effect the Federal Reserve lends the US Government its own credit, and then charges interest on it. If the public does this, it is called kiting, which according to Webster’s dictionary is defined as, “to use (a bad check) to get credit or money”. If a citizen does this they can be jailed or fined for it.

    Every dollar created by the Federal Reserve System is debt for the citizens of the United States, which the central bank collects interest on, in addition to the interest from the bond created by the Treasury that put this magic money making machine in motion. The Federal Reserve inflates the amount of the bond in order to make even more loans of imaginary dollars and collect more interest on an investment that cost nothing. Under fractional reserve banking, the amount of money a bank can create is limited by the reserve ratio or fraction it is required to maintain. For example, when the reserve ratio is ten to one, a bank can create and loan ten dollars for each dollar held in reserve and charge interest on it. While the reserves of the goldsmith were gold, the reserves of the Federal Reserve is paper, nothing more than bookkeeping entries that are a record of debt.

    The absurdity of the situation is that if there were no debts, there would be no money, since every dollar of paper currency and checkbook money is loaned into circulation. And, in order to pay the interest, there has to be another loan because the banking system only creates the principal and not the interest. In fact, the interest can never be paid because it is not possible to return to the bank more dollars than were created, making it inevitable that the Federal Reserve Banking System acquire title to all wealth in the nation. This is exactly what the Framers of the US Constitution intended to prevent when they specified a money system of gold and silver coin and prohibited the US government from issuing paper money, because a nation that uses money based on debt can never be free of debt.

    Increasing the amount of currency and checkbook money increases inflation. Creating new dollars reduces the value of all dollars, resulting in higher prices. By manipulating the quantity of created dollars, the purchasing power of every dollar is altered. 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.

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

    By calling gold and silver “money”, and then calling Federal Reserve Notes “money”, the two blended together in the public’s minds so that over time the difference between them was erased from the people’s memories. A promise to pay money substituted for lawful money until the promise was removed. Exchanging paper currency is not a complete transaction until payment is made in gold or silver coin. Until then, it is both credit and debt a record of a specific amount of money to be paid or received.

    Credit, a deferred payment and debt, a sum of money due, are the same thing. It is hidden by deceptive double-entry bookkeeping where a debt becomes an asset by calling it a credit. Paper money that redeems nothing only appears to have value because it can be exchanged for things of value. When a piece of paper representing debt is exchanged for wealth, someone has been robbed. Paper money transfers wealth from one person, then from another, then from another, and on and on until the last person will be stuck with it.

    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.. The fraudulent nature of fractional reserve banking was at risk of being exposed because there was not enough gold on deposit in the banks to redeem all Federal Reserve Notes issued promising payment in 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 people exchanged their gold and gold certificates for Federal Reserve Notes of created dollars based on debt, which stated a promise of redemption in lawful money.

    Gold was now removed from the system leaving silver dollars as the only lawful money available. Silver was eventually eliminated from the money system, leaving the public with a totally scam money system of irredeemable paper currency and copper-nickel clad tokens that represent a debt owed to the owners of the Federal Reserve Banking System, the payment of which is guaranteed by the collateral of all property and income of all U.S. citizens.

    When banks cannot honor their contract to redeem their notes for gold or silver coins, they are bankrupt. The contract between the people and the Federal Reserve printed on each bank note promising to pay in lawful money was invalidated because the system went bankrupt and because the amended version of the “Trading with the Enemy Act of 1917” placed all US citizens in the category of enemy, and no contract is considered valid between enemies. American citizens were declared to be the enemy by their own government, for indeed they would be if the people ever discovered what had happened to their money.

    Being unable to trade in wealth such as gold and silver coin enslaves the people to those who create and control what is being called money. All it took to rob the public was to convince people that paper and credit are money. The Federal Government and the Federal Reserve have the power to create unlimited amounts of credit because credit does not exist. It is not a tangible substance, but an idea represented by bookkeeping entries and computer symbols.

    To pay means to deliver a tangible substance as money like gold and silver coin. Where there is no substance, there is no payment. There is only pretend payment. Banks do not really lend money, they only pretend to lend money. They put no money in a borrower’s account. They only make bookkeeping entries that are reduced as the borrower writes checks against imagined deposits.

    When the banks charge interest on a loan they do not make, banks impart psychological value to numbers of nothing. Charging interest sustains the illusion that banks loan something of value, when all they do is rent the appearance of money.

    Three years after signing the Federal Reserve Act into law, US President Woodrow Wilson made the following statement: “Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world–no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of small groups of dominant men.”

    The Secretary of the Treasury is not the US Secretary of the Treasury because the US Treasury was bankrupted in 1933. 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. Economics is the science of choice: the science, or study, of how man values alternative choices, and how he acts in implementing those choices in order to maximize his sense of well-being. This definition is somewhat broader than the dictionary definition of economics, that economics is “a social science concerned chiefly with description and analysis of production, distribution and consumption of goods and services.”

    Biblical economics as what the Bible says about man. We must always remember that God is the Author and Controller of all economic law, and that man’s role is to discover and to apply God’s law in the created universe. According to Leviticus 19:35-36 monetary inflation is immoral, whether it is effected by the government treasury’s printing fiat money, or whether it is brought about by the central bank (Federal Reserve Bank) “validating” government deficits through sophisticated, hard to understand forms of credit creation. Monetary inflation, properly defined as the creation of new purchasing media (money), is immoral because it changes the measure of the monetary unit by debauching the currency that people use in their everyday transactions. Monetary inflation is what counterfeiters engage in when they create false money, and it is just as morally wrong for civil rulers to “legally” create false money as it is for counterfeiters to do it illegally. In short, it is a clear breaking of God’s admonishment to maintain a system of just weights and measures.

    The Federal Reserve Bank has provided the needed sleight-of-hand credit financing to involve America in every foreign war during the twentieth century. The net result of America getting involved in one foreign war after another has been a consequent steady decline in personal freedom; the growth of a highly centralized, bureaucratic and fascistic government; a horrendous rise in taxation; the planned destruction of the gold standard, which used to give some degree of protection to American citizens against an out-of-control, profligate, high-spending government in Washington, D.C.; and decades of planned monetary inflation which has brought the 1940 purchasing value of the dollar to less than 6 cents. 94% of the value of the 1940 dollar has evaporated 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.

    By using misleading words the Federal Reserve has misled the public. They have over time replaced our system of real money of gold and silver coin with worthless paper, which is against the law according to the US Constitution.

    The only solution to this problem is to do away with the Federal Reserve and go back to the way it used to be and have American money system based on gold and silver coin. The only solution to the problem is honest money.

    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.”

    Jefferson saw it coming more than 150 years ago. Can Americans now see what is in store for them if they allow the Federal Reserve to continue controlling the USA?”

    In 1913 when the Federal Reserve Act was fraudulently pushed through Congress, Congressman Charles Lindbergh stated: “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….The new law will create inflation whenever the trust wants inflation….From now on, depression will be scientifically created.”

    Most people assume that the Federal Reserve Bank is federal–that is, part of the United States’ government. However, the Ninth Circuit Court put that issue to rest in 1982 when they adjudicated:

    “Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations.” [Lewis vs. U.S., 680 F. 2d 1239, 1241]

    “We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers. The Federal Reserve Banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.”
    – Congressman Louis T. McFadden, Chairman of the House Banking & Currency Committee, speech on the floor of the House of Representatives, June 10, 1932

    “In the united States we have, in effect, two governments….We have the duly constituted Government….Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution.”
    – Congressman Wright Patman, Chairman of the House Banking & Currency Committee, speech on the House floor, 1967

    “Most Americans have no real understanding of the operation of the international money lenders….The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and….manipulates the credit of the united States.”
    Senator Barry Goldwater

    “Federal Reserve Notes are illegal”
    US Representative Dr. Ron Paul

    “These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and the columns of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government.”
    – Teddy Roosevelt

    Americans also have to ask themselves why they were not taught the truth about the Federal Reserve in school. Click on the following video link to hear the testimony of Norman Dodd, head of the congressional committee that investigated the Rockefeller, Carnegie and Ford foundations and their intent to control education:

    http://video.google.com/videoplay?docid=-7529890059122668728&q=hidden+agenda+norman+dodd

    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. However, in 1965 the united States’ mint stopped minting silver dollars. When this occurred inflation began to skyrocket. Now it takes a whole fist full of paper dollars (i.e., “Federal Reserve Notes”) to buy one real silver dollar. It now takes two working parents to support a family and the national debt is shooting over 12 trillion dollars! And this is not even counting the private debt by individuals and corporations, which is somewhere over 50 trillion dollars.

    The paper and digital currency that bankers create out of thin air is backed by nothing. The more paper “dollars” they roll off the printing presses or digital “dollars” created by computers, the less each one is worth. Therefore, it takes more of ’em to buy the things people need, so the price of everything has to go up and up and up in endless inflation. Unfortunately, wages for most people will not increase fast enough to stay ahead of the game. But not to worry, the international banksters have created plastic credit cards – VISA, Mastercard, American Express etc., to help the people out. Of course, they don’t bother to tell us that they do not create enough paper/digital currency to pay off the debt plus interest so mathematically the economy will eventually collapse as has always occurred in history with paper currencies.

    The Federal Reserve system was created by international banking families such as the Rothschilds, Warburgs and Rockefellers. This international banking cartel creates “money” out of thin air. It only costs them a few cents to print each Federal Reserve Note “dollar bill”, and then they “bill” the American people for the full face value of the note. Then to add insult to injury, they charge Americans interest to borrow their so-called “money”. If you or I did this, we would be arrested for counterfeiting and fraud. This system was instituted gradually, starting with the Civil War and culminating with the fraudulent passage of the Federal Reserve Act in 1913.

    The passage of the Federal Reserve Act was unconstitutional because 1) the US Constitution prohibited “bills of credit” (i.e., paper notes) and 2) the US Constitution would have to be amended to go off the silver and gold coin standard for money. The US Constitution, the supreme Law of the Land, can only be amended pursuant to Article V. The US Constitution cannot be amended by statute. These unlawful actions by a criminal Congress remind me of a quote by the honorable Alfred E. Neuman of Mad Magazine fame: “America is that land which fought for freedom and then passed laws to get rid of it.”

    The Federal Reserve is also a monopoly- in a country where monopolies are supposed to be illegal. The US income tax department – IRS – deposits people’s income tax payments directly in the Federal Reserve banks- not in the United States Treasury. Therefore, the IRS, an unconstitutional entity, is merely the collection agency for the international banksters. Over the years the IRS has become a tool of the elite banking families to financially attack and/or imprison people who expose the Federal Reserve.

    If you take out a paper dollar and look at it, you will notice that it states at the top of the “bill”: “FEDERAL RESERVE NOTE”. A “note” is, by definition, an “instrument of debt” and “evidence of debt”. According to BLACK’S LAW DICTIONARY (Sixth Ed.) “MONEY” is defined: “In usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate.” Now this may come as a shock to some people, but those paper “Federal Reserve Notes” are not money and they are not dollars. Federal Reserve Notes are merely an informal document acknowledging debt. There is nothing backing these “bills” except debt. However, people voluntarily use them as instead of money and as dollars. The key word is “as” – The smallest words can have the biggest meanings.

    Banks can create this phony “currency” out of thin air. Banks can loan out “currency” that they don’t even have. When you apply for a loan from a bank, the bank does not have anything to back up that loan because they are allowed to loan out about 7 to 10 times more “currency” than they have on deposit. This is not mere speculation; this is a matter of court record, testimony under Oath, by a former lawyer for the Federal Reserve. In other words bankers create “currency” with just the stroke of a pen or the keystroke of a computer. These bankers then charge you “interest” to borrow this “currency”, which is nothing more than some numbers typed on a piece of paper! If American People ever did this they would be spending many years in a US federal prison. Unfortunately, they do not print enough currency to pay the interest so more pseudo-dollars must be borrowed to pay off the interest, resulting in a unpayable, ever-increasing debt.

    There is a nationwide criminal conspiracy of bankers and lawyers to overthrow the United States of America. Every war that the USA has fought since the Spanish-American war of 1898 was started by the Rothchilds & Rockefellers to destroy the American Constitutional liberties.

    Wall Street is a confidence trick, a dazzling edifice built on paper promises, gambling, bets and rampant speculations. Wall Street doesn’t manufacture or produce anything. Wall Street, however attractive it may appear, is built on paper.

    Wall Street speculation caused a 70% increase in the price of wheat from June to December 2010 and severed food crisis in more than 35 countries. However, there was no significant change in the global food supply or in food demand. The total value of Wall Street speculative financial derivatives reached more than $600 trillion – about 10 times global GDP. Wall Street’s speculative derivatives are virtually untaxed and banks often avoid paying tax on profits from selling derivatives. Every consumer is paying more for commodities including food and fuel due to the excessive speculation by Wall Street.

    Modern day bank robbers are at Wall Street but they wear grey suits and not masks. Rampant speculators, propagandists and financiers of Wall Street are all given some unfair advantage over the average consumers and taxpayers and the cumulative effect of the people watching selfishness prevail over the public interest has been an undermining of the public’s trust in the present US government. There’s no question that Wall Street is rigged against the average consumers and taxpayers. Wall Street has a lot more information. Wall Street jerry-rigged the system so that Wall Street always win. If Wall Street loses trillions, the US Treasury will bail the Wall Street out so it can go back and do it again.

    50 trillion dollars in global wealth was erased between September 2007 and March 2009, including 7 trillion dollars in the US stock market, 6 trillion dollars in the US housing market, 8 trillion dollars in the US retirement and household wealth, 2 trillion dollars in the US individual retirement accounts, 2 trillion dollars in the US traditional defined benefit plans and 3 trillion dollars in the US nonpension assets. Greed, arrogance and incompetence created a massive meltdown, cost trillions, and still Wall Street comes out richer and more powerful.

    There are trillions dollars of new money taken again from Americans to make deals and hand out outrageous bonuses. And when these trillions run out, Wall Street will come back for more until the dollar becomes junk. The value of the US dollar declined very significantly during the last 70 years. The value of the US dollar in 1940 was worth 2,000% more than the value of the US dollar now.

    The USA emerged from the World War II as the richest and most industrialized country in the world, with 50% of world’s manufacturing facilities. But today the USA is basically approaching bankruptcy. Many big US manufacturers are outsourcing to Mexico and China to increase their profits, adding more unemployment in the USA. Manufacturing jobs in the USA declined 37% between 1998 and 2010. Since manufacturing industries has declined in the USA, the US competitiveness in the global marketplace has also declined.

    Robust financial markets don’t imperil capitalism. In the early 1980′s Wall Street began to escape reasonable important regulations of the marketplace. The US government gradually adopted a “too big to fail” policy for the Wall Street, saving lenders with failing businesses from losses. The demise of Glass Steagall act helped spawn the credit crisis by allowing the Wall Street to create financial instruments that allowed them to escape reasonable limits, including constraints on speculative borrowing and requirements for the disclosure of important facts. The extremely lucrative hedge funds and other risk management derivatives including credit default swaps don’t fund or invest in successful growing businesses. The credit default swap market was the single biggest cause of the crash 4 years ago.

    Wall Street’s suicidal capitalism built on rampant speculation eventually posed an untenable risk to the US economy—a risk that culminated in the trillions of dollars’ worth of the US government bailouts and guarantees that the US government scrambled starting in late 2008. But in 2008 the US government was compelled to replace private risk takers at the Wall Street with government capital so that money and credit flows wouldn’t stop, precipitating a depression. As a result, these Wall Street became impervious to the vital market discipline that the threat of loss provides. Wall Street lenders of the financial markets continue to understand that the US government would protect them in the future if necessary. This implicit guarantee by the US government harms capitalism and economic growth.

    The top 6 US banks had assets of less than one fifth of US GDP in 1995. Now they have two third of US GDP. The financial crisis was created by the biggest US banks to consolidate power. The big banks became stronger as a result of the bailout by the US Treasury. The big banks are turning that increased economic clout into more political power. Wall Street has undue influence on the US government policies and this situation reflects a failure of democratic representation for the other 99 percent Americans.

    Oligarchy is the political power based on economic power. And it’s the rise of Wall Street in economic terms, that it’d turn into political power. Wall Street will then continue to feed that back into more deregulation, more opportunities to go out and take reckless risks and capture trillions of dollars.

    Wall Street only has the lobbyists. Today more than 42,000 Wall Street lobbyists manipulate USA’s 537 elected officials with huge campaign contributions that fund candidates who support their agenda. It no longer matters who’s the President of USA.

    The political and economical leadership of the US has chosen to cartel profits and transformed the US economy to serve the colluding and unlawful oligarchy. The political and economical leadership of the US is bailing out failed paradigms with trillions of dollars while committing social injustice to its people. The political and economical leadership of the US including the US Congress have now become Wall Street’s “Trojan Horses”. The US banks are borrowing money at near zero interest from the US government, then lending it back to the US government at even mere fractions higher interest than they are paying. The net interest margin made by the US banks by lending the money back to the US federal government in the first 6 months of 2011 is 210 billion dollars.

    Gerge W Bush and Barrack Obama have doubled the US debt, and the American people have no benefits from it. The US military did not conquer Iraq and has been forced out politically by the government that US established. There is no victory in Afghanistan, and after a decade the US military does not control Afghanistan. Huge sums of US taxpayers’ money have flowed into the US armaments industries and huge amounts of power into Homeland Security. The American empire works by stripping its citizens of wealth and liberty.

    The organizers and profiteers of war and death – the past four generations of Bush family – Samuel P Bush, Prescott S Bush, George H W Bush and George W Bush along with a group of international investment bankers and corporate executives, have been instrumental in creating and profiting from extremely costly and destructive wars. Four generations of Bush family have reaped tremendous profits from the wars they orchestrated. The war profiteers of Wall Street are now pushing the US towards a nuclear war with Iran.

    On New Year’s Eve, with almost no mainstream media attention given to it, President Barack Obama signed the National Defense Authorization Act of 2012, or NDAA, into law codifying indefinite military detention without charge or trial into law for the first time in American history. The NDAA’s dangerous detention provisions would authorize the president — and all future presidents — to order the military to pick up and indefinitely imprison people captured anywhere in the world, far from any battlefield.

    Obama’s administration, and all future administrations can now use the military to detain individuals, including political dissidents – even American citizens on US soil – without trial or formal charges. Without court involvement or a jury deciding you are actually guilty. And “detain” is really a euphemism for IMPRISON, of course, in a semi-secret military black site, without access to an attorney, potentially for life.

    Obama also signed into law something which attacks American’s First Amendment rights to peaceful assembly and freedom of speech. The Federal Restricted Buildings and Grounds Improvement Act of 2011, or Trespass Bill, signed into law by Barack Obama on March 9, 2012, “potentially makes peaceable protest anywhere in the US a federal felony punishable by up to 10 years in prison.” More specifically, peaceful protest within proximity to those protected by the Secret Service, including presidential candidates and the President, may be a federal felony now.

    Even worse a former high-ranking NSA official, who spent more than three decades within the spy agency, just recently came out in a nationally televised interview and asserted that more than 20 trillion of American citizens’ communications have been intercepted – mostly without a warrant or judicial review of any kind.

    Furthemore, the NSA is now building a $2 billion data centre in Utah to crunch all of this data. In other words, $2 billion of American taxpayer dollars are going toward spying on American citizens within the US without warrant or court approval. This is not only an outlandish waste of money, it’s illegal.

    Also reporters at ridiculously mainstream publication USA Today are now claiming that Pentagon-sponsored “propaganda contractors” have initiated a widespread character assassination and reputation destroying campaign against them.

    Due to the oligarchs’ rapacious looting and their purchase of a politically protected luxurious lifestyle, the people of the US are on the road to permanent serfdom under a police state. Tens of millions in the US live desperate slave like existences and they hold little hope for a better life. The democracy was not given to the people of the US on a platter. It is not theirs for all time, irrespective of their efforts. Either people of the US organize and they find political leadership to take this on or they are going to be in deep trouble.
    The failures of governance to address the current critical issues have already produced catastrophic consequences. Now we are experiencing a major global paradigm shift and it is still unfolding. Thirty-two US states including California, Illinois, Nevada, Arizona, Florida, New Jersey and Michigan are on the brink of insolvency as their tattered and fading economy is now direr than ever. Inevitably in very near future the US government will order police or military to martial law which may lead to a second American revolution.

    In 1792 the US Congress adopted legislation titled “An act establishing a mint, and regulating the Coins of the United States”. Section 9 of that act authorized the production of the dollar coin and each to contain 416 grains of standard silver. In July 1944 an agreement was reached at the United Nations Monetary and Financial Conference which pegged the value of gold at US$35 per troy ounce and the whole world looked on US$ as the gold standard in purchases. But in 1971, the US President Nixon took the US$ off the gold standard after his administration realized that the US no longer had enough gold to buy back every dollar that foreign governments were handing in.

    In 1973, the US President Nixon asked King Faisal of Saudi Arabia to accept only the US$ in payment for oil, and to buy US Treasury bonds, notes and bills with their excess profits, so that USA can continue spending money and not pay it back. In return, the USA pledged to protect Saudi Arabian oil fields from seizure by USSR and other nations including Iraq and Iran.

    The 1973 Arab-Israeli War upset this agreement and caused the Great Oil Embargo of 1974. By 1975 the Great Oil Embargo was over and all members of Organisation of Petroleum Exporting Countries (OPEC) accepted to sell their oil only in US$. Every nation was saving their surpluses in US$ since every country needed US$ to buy oil. The OPEC oil sales supported the US$. The petrodollar system was a brilliant political and economic move created a growing international demand for both the US$ and US debt – all at the expense of OPEC.

    Since only the US Federal Reserve can print the US$, the US control the flow of oil. The US essentially owns the world’s oil for free because oil is denominated in US$ and the US$ is the only fiat currency for trading in oil.

    So long as almost three quarter of world trade is done in US$, the US$ is the currency which central banks accumulate as reserves. But central banks, whether China or Japan or Brazil or Russia, do not simply stack US$ in their vaults. Currencies have one advantage over gold. A central bank can use it to buy the state bonds of the issuer, the USA. Most countries around the world are forced to control trade deficits or face currency collapse, but not the USA. This is because of the US$’s reserve currency role and the underpinning of the reserve role is the petrodollar. Every nation needs to get US$ to import oil, some more than others. This means their trade targets US$ countries.

    The vast majority of the oil is traded on the New York Mercantile Exchange and the London International Petroleum Exchange and both oil exchanges are owned by the US corporations and transact oil trades in only in US$.

    Because oil is an essential commodity for every nation, the petrodollar system, which exists to the present, demands the buildup of huge trade surpluses in order to accumulate US$ surpluses. This is the case for every country but one — the USA which controls the US$ and prints it at will or fiat. Because today the majority of all international trade is done in US$, countries must go abroad to get the means of payment they cannot themselves issue. The entire global trade structure today works around this dynamic, from Russia to China, from Brazil to South Korea and Japan. Every country aims to maximize US$ surpluses from their export trade. Currently over 13,000 billion of newly printed US$ is flooding into international commodity markets each year.

    The petrodollar system nearly broke down during the US President Carter’s tenure, mainly due to double digit inflation. But the US President Reagan removed all controls on oil and fuel prices and all restrictions on oil drilling to restore the stability of the US$. Oil flooded the market, prices fell, and petrodollars became more valuable. These were some of the most prosperous years that the US had. But the danger remained, because the US continued to spend more US$ than it earned.

    The US President Reagan saw the future of the US depending on the massive international consumption of oil, and encouraged the Saudi Arabia to flood the market. This brought the price of oil down and increased the consumption – a complete reversal of the 1973 oil embargo.

    Increasing oil use boosted international demand for the US$ and the US economy soared, while the low price of oil brought the USSR economy to its knees, as they could not sell oil at a profit due to their high extraction cost. The USSR finally collapsed in 1991.

    Petrodollar system created consistent international demand for US$ and upwards pressure on the US$’s value, regardless of economic conditions in the US. The high US$ allowed the US to buy imported goods at a massive discount, a kind of subsidy for the US consumers at the expense of the rest of the world. The high consumption of imports, however, hit the US manufacturing very hard. The overvalued US$ was a major component of the bubble economy of the late 1990’s.

    The reality is that the value of the US$ is determined by the fact that oil is sold in US$. If the denomination changes to another currency, such as the euro, many countries would sell US$ and cause the banks to shift their reserves, as they would no longer need US$ to buy oil. This would thus weaken the US$ relative to the euro. The USA propagates war to protect its oil supplies, but even more importantly, to safeguard the strength of the US$. The fundamental underlying motive of the US in the Iraq war, even more than the control of the oil itself, is an attempt to preserve the US$ as the leading oil trading currency. The fear of the consequences of a weaker US$, particularly higher oil prices is seen as underlying and explaining many aspects of the US foreign policy, including the Iraq and Libyan War. The evidence so far definitively proves upon examination from the disclosed evidence of US government that all claims for current US wars were known to be lies as they were told to the public and not mistaken intelligence.

    Until November 2000, no OPEC country dared violate the US$ price rule. So long as the US$ was the strongest currency, there was little reason to as well. But November 2000 was when France and other EU members finally convinced Iraq’s Saddam Hussein to defy the USA by selling Iraq’s oil-for-food not in US$, but only in euros. Few months before the US moved into Iraq to take down Saddam Hussein, Iraq had made the move to accept Euros instead of US$ for oil, and this became a threat to the global dominance of the US$ as the reserve currency, and its dominion as the petrodollar. The euros were on deposit in a special UN account of a French bank, BNP Paribas.

    If this Iraq move to defy the US$ in favor of the euro were to spread, especially at a point the US$ was already weakening, it could create a panic selloff of US$ by foreign central banks and OPEC oil producers. In the months before the latest Iraq war, hints in this direction were heard from Russia, Iran, Indonesia and even Venezuela. In April 2002 at the invitation of the EU, in Oviedo Spain, Iranian OPEC representative Javad Yarjani delivered a detailed analysis of how OPEC at some future point might sell its oil to the EU for euros not US$.

    All indications are that the Iraq war was seized on as the easiest way to deliver a deadly pre-emptive warning to OPEC and others, not to flirt with abandoning the petrodollar system in favor of one based on the euro. The Iraq move was a declaration of war against the US$. As soon as it was clear that the UK and the US had taken down Saddam Hussein’s regime, a great sigh of relief was heard in the UK Banking cartels.

    After considerable delay, Iran opened an oil bourse which does not accept US$. Many fear that the move will give added reason for the USA to overthrow the Iranian regime as a means to close the bourse and revert Iran’s oil transaction currency to US$. In 2006 Venezuela indicated support of Iran’s decision to offer global oil trade in euro.

    Former Libyan leader Muammar Qaddafi made a similar bold move by initiating a movement to refuse the US$ and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar. Muammar Qaddafi suggested establishing a united African Union, with its 200 million people using this single currency. The initiative was viewed negatively by the USA and the EU. Even French president Nicolas Sarkozy called Libya a threat to the financial security of mankind. But Muammar Qaddafi continued his push for the creation of a united Africa.

    Muammar Qaddafi’s proposal to introduce a gold dinar for Africa revived the notion of an Islamic gold dinar floated in 2003 by Malaysian Prime Minister Mahathir Mohamad, as well as by some Islamist movements. The notion, which contravenes IMF rules and is designed to bypass them, had had trouble getting started. But today Iran, China, Russia, and India are stocking more and more gold rather than US$.

    If Muammar Qaddafi were to succeed in creating an African Union backed by Libya’s currency and gold reserves, France, still the predominant economic power in most of its former Central African colonies, would be the chief loser. The plans to spark the Libya’s Benghazi rebellion were initiated by French intelligence services in November 2010.

    The cost of wars are not nearly as big as they are made out to be. The cost of not going to war would be horrendous for the US unless there were another way of protecting the US$’s world trade dominance. The USA paid for the wars by printing more US$. In the USA, the defence industry, the oil industry, the major media networks, and indeed, US foreign policy, are all controlled by the same business combines.

    In February 2011, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), has called for a new world currency that would challenge the dominance of the US$ and protect against future financial instability. In May 2011 a 32 year old maid, Nafissatou Diallo, working at the Sofitel New York Hotel, alleged that Strauss-Kahn had sexually assaulted her after she entered his suite. Strauss-Kahn quit IMF on May 18, 2011.

    Iran and Venzuela have constantly been threatened by the US, for accepting Chinese renminbi (RMB), also known popularly as the yuan for oil. If euros, yens, renminby or rubles were generally accepted for oil, the US$ would quickly become irrelevant and worthless paper. This petrodollar arrangement is enforced by the US military.

    Venezuela reportedly has the largest oil reserves in the world. Venezuelan President Hugo Chavez has been a strong proponent for tighter Latin America integration which is a move away from the power of the US banking cartels.

    Venezuelan President Hugo Chavez formed oil export agreements with Cuba, directly bypassing the petrodollar system. Cuba was among those countries that were later added to the “Axis of Evil” by the USA. On August 18, 2011 Venezuelan President Hugo Chavez announced a plan to pull Gold reserves from the US and European Banks. On Aug 24, 2011 a 7 magnitude earthquake occurred in Northern Peru bordering Venezuela which doesn’t use the petrodollar system and Brazil which has been engaged in discussions to end the US$ denominated oil transactions.

    Venezuelan President Hugo Chavez has accused the USA of using HAARP (High Frequency Active Auroral Research Program) based weapons to create earthquakes. HAARP is an ionospheric research program that is jointly funded by the US Air Force, the US Navy, the University of Alaska and the Defense Advanced Research Projects Agency. The HAARP program operates a major Arctic facility, known as the HAARP Research Station, located on an US Air Force owned site near Gakona, Alaska.

    HAARP has the ability to manipulate weather and produce earthquakes, since it is capable of directing almost 4 Mega Watts powerful radio waves in the 3 to 10 MHz region of the HF band up into the ionosphere. This energy can be bounced off of the ionosphere and permeate the earth and subsequently cause strong intense oscillations along fault lines of targeted areas to produce earthquakes. Using HAARP, depending on the frequency, focusing, wave shape, adversaries can induce at a distant aiming point, a variety anomalous weather phenomena such as hurricanes, flooding, or drought.

    Any naturally-occurring earthquake has a ‘pulse-wave’ and several recent earthquakes did not have a pulse effect, indicating to seismologists that they could not have been caused naturally. According to several countries including Russia, China and Venezuela, HAARP type technology weapons are used against several countries causing severe destructions in Haiti, Japan, Russia, China, Iran, Chile, New Zealand, Afghanistan, Turkey, India, Sri Lanka etc.

    If any country attempt to eliminate the Petrodollar system and dump surplus US$ into the international and US financial markets to cause the quick collapse of the US$ may be attacked with HAARP to destabilize its economy and currency and to prevent a move away from the US$ and the petrodollar system. War is used as a continuous foreign policy with the USA in present egregious and unlawful abuse of their superpower status.

    The US manufacturers who can’t compete with low priced Chinese goods must either lower their costs or go bankrupt. To lower their costs, many US manufacturers are outsourcing to India and China, adding more unemployment in the USA. Manufacturing jobs in the USA declined 35% between 1998 and 2010. Since manufacturing industries declined in the USA, the US competitiveness in the global marketplace is also declined.

    The US economy is in a deep hole and US shouldn’t dig any more. Reckless money printing known as “Quantitative Easing” and economical stimulus packages introduced in the aftermath of the Credit Crunch, has made very little impact on the growth of the US economy. Current US economical growth is not adequate enough to create jobs and to get an economy back on track. The USA is living beyond its means and cannot cut expenditures or increase taxes to narrow the deficit. Now the banks are u

  2. Nalliah Thayabharan Says:

    The US economy is in a deep hole and US shouldn’t dig any more. Reckless money printing known as “Quantitative Easing” and economical stimulus packages introduced in the aftermath of the Credit Crunch, has made very little impact on the growth of the US economy. Current US economical growth is not adequate enough to create jobs and to get an economy back on track. The USA is living beyond its means and cannot cut expenditures or increase taxes to narrow the deficit. Now the banks are under enormous pressure to lend more money but reckless lending by banks got the US into this mess in the first place.

    The credit crunch initiated in 2007 in the subprime mortgage market in the US had devastating spill-over effects for China’s exports. The scarcity of US$, due to the repatriation and deleveraging flows into the US financial system caused a sudden plunge in the external demand for goods manufactured by China and triggered the consequent lay-off of several millions of workers in China. This experience encouraged China to use its own currency in trade.

    The US may have averted a debt default by compromising on how to cut the US budget deficit, but underlying problems remain and those economic woes are driving a global search for an alternative reserve currency. The USA now needs a net inflow of several billions US$ a day to cover its deficit.

    The US President Barack Obama launched his primary anti-foreclosure plan, the Home Affordable Modification Program (HAMP) in 2009 to encourage the US banks to rewrite mortgages of about 4 million homeowners at risk of losing their homes. But the fight against foreclosures continues to muddle and underwhelm. Only 300,000 homeowners received a mortgage modification in the first six months of 2011, while 600,000 houses fell into foreclosure.

    The political and economical leadership of the US has chosed to cartel profits and transformed the US economy to serve the colluding and unlawful oligarchy. The US banks are borrowing money at near zero interest from the US government, then lending it to the US government at even mere fractions higher interest than they are paying. The net interest margin made by the US banks by lending the money back to the US government in the first 6 months of 2011 is $211 billion.

    The financial crisis was created by the biggest US banks to consolidate power. The top 6 US banks had assets of less than one fifth of US GDP in 1995. Now they have two third of US GDP. The big banks became stronger as a result of the bailout. They’re turning that increased economic clout into more political power.

    Due to oligarchs’ rapacious looting and their purchase of a politically-protected luxurious lifestyle, the US citizens are on the road to permanent serfdom under a police state. The financial situation of states including California, Illinois, Nevada, Arizona, Florida, New Jersey and Michigan is now more dire than ever. Inevitably in very near future the US government will have to order police or military to martial law which may lead to a second American revolution.

    The economical problems in Greece, Spain, Portugal and Italy are very precarious. The bailout phenomenon is not working in Greece which is on the brink of defaulting on its debt. It is impossible for the EU to bailout Italy which is the third largest economy in Europe. Recently the head of the European rescue fund Klaus Regling said that the EU could issue bonds in Chinese renminbi(yuan) and not in euro.

    India, 4th largest GDP and populous democracy in the world has joined with China and Russia questioning US$ as reserve currency. India’s famed white marble monument to love “Taj Mahal” had charged US$15 or 750 Indian rupees as entry fee for each tourist, has been not accepting US$ anymore. Brazil, Russia, India and China (BRIC)are buying each other’s bonds and swapping currencies to lessen dependence on the US$. These four countries are among the biggest holders of US Treasuries and have combined reserves of almost 3,000 billion US$.

    The value of the US$ declined significantly during the last 70 years. The value of the US$ in 1940 was worth 2,000% more than the value of the US$ now. The day OPEC stops pricing oil in fiat dollars, is the day the USA will collapse completely. The reason the fiat dollar game has gone on as long as it has the US$ as the global reserve currency. In 2011 Russia began selling its oil to China in rubles. The US debt crisis adds new urgency to the China’s efforts to promote its currency renminbi as an alternative reserve currency. China has already signed bilateral currency swap agreements with several countries ranging from Indonesia to Belarus and Argentina to promote its currency renminbi as a means of settlement in international trade. China’s growing trade and financial links with the rest of the world will make the renminbi more acceptable. To compound matters further Japan and the China have decided to trade in their respective currencies giving a smack to the not so almighty US$.Now we are experiencing a major global paradigm shift and it is still unfolding. If countries continue to lose their willingness to hold the US$ the impact to the US$ and the collapse of the US$ could be very dramatic.

    “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.
    That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.
    But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security. — Such has been the patient sufferance of these colonies; and such is now the necessity which constrains them to alter their former systems of government.”
    
- US Declaration of Independence. July 4, 1776.

    “Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” 
-Napoleon Bonaparte, 1815

    “There is no calamity greater than lavish desires, no greater guilt than discontentment and no greater disaster than greed”
    – Laozi

    “Greedy desire is endless and therefore can never be satisfied”
    – Buddha

  3. Nalliah Thayabharan Says:

    Germany was hopelessly broke when Adolf Hitler came to power in 1933 . The Treaty of Versailles (le Traité de Versailles) had imposed crushing reparations on the German people, demanding that Germans repay every nation’s costs of the war. These costs totaled three times the value of all the property in Germany.

    Private currency speculators caused the German currency to plummet, precipitating one of the worst runaway inflations in modern times. A wheelbarrow full of 100 billion-mark banknotes could not buy a loaf of bread. The national treasury was empty. Countless homes and farms were lost to speculators and to private Zionist controlled banks. Germans lived in hovels. They were starving.

    Nothing like this had ever happened before – the total destruction of the national currency – German mark, plus the wiping out of German’s savings and businesses. On top of this came a global depression. Germany had no choice but to succumb to debt slavery under international Zionist bankers until 1933, when the National Socialists came to power. At that point the German government thwarted the Zionist international banking cartels by issuing its own money. Zionist bankers responded by declaring a global boycott against Germany.

    Adolf Hitler began a national credit program by devising a plan of public works that included flood control, repair of public buildings and private residences, and construction of new roads, bridges, canals, and port facilities. All these were paid for with money that no longer came from the private international Zionist bankers.

    The projected cost of these various programs was fixed at one billion units of the national currency. To pay for this, the German government (not the international Zionist bankers) issued bills of exchange, called Labor Treasury Certificates. In this way the National Socialists put millions of people to work, and paid them with Treasury Certificates.

    Under the National Socialists, Germany’s money wasn’t backed by gold which was owned by the international Zionist bankers. It was essentially a receipt for labor and materials delivered to the government. Adolf Hitler said, “For every mark issued, we required the equivalent of a mark’s worth of work done, or goods produced.” The government paid workers in Certificates. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the German people climbed out of the crushing debt imposed on them by the international Zionist bankers.

    Within two years, the unemployment problem in Germany had been solved, and Germany was back on its feet. It had a solid, stable currency, with no debt, and no inflation, at a time when millions of people in the United States and other Western countries controlled by international Zionist bankers were still out of work. Within five years, Germany went from the poorest nation in Europe to the richest.

    Germany even managed to restore foreign trade, despite the international Zionist bankers’ denial of foreign credit to Germany, and despite the global boycott by Zionist-owned industries. Germany succeeded in this by exchanging equipment and commodities directly with other countries, using a barter system that cut the private Zionist bankers out of the picture. Germany flourished, since barter eliminates national debt and trade deficits. Today Venezuela does the same thing today when it trades oil for commodities, plus medical help, and so on. Hence the Zionist bankers are trying to squeeze Venezuela.

    Hjalmar Schacht, a Rothschild agent who was temporarily head of the German central bank, summed it up thus… An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht replied, “You should come to Berlin. We don’t have money. That’s real banking.”

    Schacht, the Rothschild agent, actually supported the private international Zionist bankers against Germany, and was rewarded by having all charges against him dropped at the Nuremberg trials.

    This economic freedom made Adolf Hitler extremely popular with the German people. Germany was rescued from English economic theory, which says that all currency must be borrowed against the gold owned by a private and secretive Zionist banking cartel — such as the Federal Reserve, or the Central Bank of Europe — rather than issued by the government for the benefit of the people.

    Canadian researcher Dr. Henry Makow who is Jewish himself says the main reason why the Zionist bankers arranged for a world war against Germany was that Hitler sidestepped the Zionist bankers by creating his own money, thereby freeing the German people. Worse, this freedom and prosperity threatened to spread to other nations. Adolf Hitler had to be stopped!

    Makow quotes from the 1938 interrogation of Christian Rakovsky, one of the founders of Soviet Bolsevism and a Lev Davidovich Bronshtein (Trotsky) intimate. Christian Rakovsky was tried in show trials in the USSR under Joseph Vissarionovich Stalin. According to Christian Rakovsky, Adolf Hitler was at first funded by the international Zionist bankers, through the bankers’ agent Hjalmar Schacht. The bankers financed Adolf Hitler in order to control Joseph Stalin, who had usurped power from their agent Lev Davidovich Bronshtein (Trotsky). Then Adolf Hitler became an even bigger threat than Joseph Stalin when Hitler started printing his own money.

    Joseph Stalin came to power in 1922, which was eleven years before Adolf Hitler came to power.

    Christian Rakovsky said:
    “Adolf Hitler took over the privilege of manufacturing money, and not only physical moneys, but also financial ones. He took over the machinery of falsification and put it to work for the benefit of the people. Can you possibly imagine what would have come if this had infected a number of other states?” (Henry Makow, “Hitler Did Not Want War”).

    Economist Henry C K Liu writes of Germany’s remarkable transformation:
    “The Nazis came to power in 1933 when the German economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies, into the strongest economy in Europe within four years, even before armament spending began.”
    (Henry C. K. Liu, “Nazism and the German Economic Miracle”).

    In Billions for the Bankers, Debts for the People (1984), Sheldon Emry commented:
    “Germany issued debt-free and interest-free money from 1935 on, which accounts for Germany’s startling rise from the depression to a world power in five years. The German government financed its entire operations from 1935 to 1945 without gold, and without debt. It took the entire Capitalist and Communist world to destroy the German revolution, and bring Europe back under the heel of the Bankers.”

    These facts do not appear in any textbooks today, since Zionist own most publishing companies. What does appear is the disastrous runaway inflation suffered in 1923 by the Weimar Republic, which governed Germany from 1919 to 1933. Today’s textbooks use this inflation to twist truth into its opposite. They cite the radical devaluation of the German mark as an example of what goes wrong when governments print their own money, rather than borrow it from private Zionist cartels.

    In reality, the Weimar financial crisis began with the impossible reparations payments imposed at the Treaty of Versailles. Hjalmar Schacht – the Rothschild agent who was currency commissioner for the Republic — opposed letting the German government print its own money… “The Treaty of Versailles is a model of ingenious measures for the economic destruction of Germany. Germany could not find any way of holding its head above the water, other than by the inflationary expedient of printing bank notes.”

    Schacht echoes the textbook lie that Weimar inflation was caused when the German government printed its own money. However, in his 1967 book The Magic of Money, Schacht let the cat out of the bag by revealing that it was the PRIVATELY-OWNED Reichsbank, not the German government, that was pumping new currency into the economy. Thus, the PRIVATE BANK caused the Weimar hyper-inflation.

    Like the U.S. Federal Reserve, the Reichsbank was overseen by appointed government officials, but was operated for private gain. What drove the wartime inflation into hyperinflation was speculation by foreign investors, who sold the mark short, betting on its decreasing value. In the manipulative device known as the short sale, speculators borrow something they don’t own, sell it, and then “cover” by buying it back at the lower price.

    Speculation in the German mark was made possible because the PRIVATELY OWNED Reichsbank (not yet under Nazi control) made massive amounts of currency available for borrowing. This currency, like U.S. currency today, was created with accounting entries on the bank’s books. Then the funny-money was lent at compound interest. When the Reichsbank could not keep up with the voracious demand for marks, other private banks were allowed to create marks out of nothing, and to lend them at interest. The result was runaway debt and inflation.

    Thus, according to Schacht himself, the German government did not cause the Weimar hyperinflation. On the contrary, the government (under the National Socialists) got hyperinflation under control. The National Socialists put the Reichsbank under strict government regulation, and took prompt corrective measures to eliminate foreign speculation. One of those measures was to eliminate easy access to funny-money loans from private banks. Then Adolf Hitler got Germany back on its feet by having the public government issue Treasury Certificates.

    Schacht , the Rothschild agent, disapproved of this government fiat money, and wound up getting fired as head of the Reichsbank when he refused to issue it. Nonetheless, he acknowledged in his later memoirs that allowing the government to issue the money it needed did not produce the price inflation predicted by classical economic theory, which says that currency must be borrowed from private cartels.

    What causes hyper-inflation is uncontrolled speculation. When speculation is coupled with debt (owed to private Zionist banking cartels) the result is disaster. On the other hand, when a government issues currency in carefully measured ways, it causes supply and demand to increase together, leaving prices unaffected. Hence there is no inflation, no debt, no unemployment, and no need for income taxes.

    Naturally this terrifies the Zionist bankers, since it eliminates their powers. It also terrifies Zionists, since their control of banking allows them to buy the media, the government, and everything else.

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