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Fiat Currency and Central Banking

June 3 2006 at 7:12 PM
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Semjase  (Login semjase)

 
These are the true root issues of all our problems in America.

Somebody help me out here.

Liberals are supporting the Federal Reserve. Yet, private banks, and therefore rich bankers and "old wealth" families, profit from the deal which created a central banking system of private banks under government control. It's basically a corporation granted a monopoly by the government, but subject to more direct oversight by the government. Still, profit is made by rich bankers - there is a reason they lobbied the government for its creation. And the use of fiat currency has created excess inflation which has hurt the poor and working class the most.

Conservatives are supporting the Federal Reserve. Yet the creation of a central bank is one of the 10 planks of the Communist Manifesto. And grants more government control over an incredibly important sector of the economy. Not to mention that legal tender laws force everyone to use paper currency that would otherwise be worthless -- which goes against the original intent of the Constitution, history, and common sense by denying American citizens the use of money with intrinsic value.

So would any liberals or consevatives like to explain what's so great about your support of the Federal Reserve, central banking, and fiat currency?

 
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Semjase
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Re: Fiat Currency and Central Banking

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June 3 2006, 7:12 PM 

The reason we have the income tax is to stabilize our worthless fiat currency. Read on:

WE DON'T NEED INCOME TAX

Funny Money - The Federal Reserve Fraud
By: Alan Stang

Last week, we looked at the shattering ruling by a Memphis court of appeals that the Internal Revenue Code does not require an American in one of these United States to pay income tax. Now that ruling will percolate through the national consciousness; more and more people will ask IRS the same thing Vernice Kuglin did - Where is the proof that I'm required to pay? - and our friends at IRS still won't be able to prove it.

Like a dying monster that in the throes of death is more dangerous than it ever was alive, IRS will become even more vindictive, as our dear friends there contemplate well-deserved unemployment. World government traitor George W. Bush will as always come to their rescue. Either everyone will be locked up, or the income tax will be replaced by some other extortion, such as a national sales tax.

Loyal Americans hate the income tax, but they continue to love America - despite what Bush and Clinton and other traitors have done to it - and they worry: Without the income tax, would the government they love collapse? I believe that if enough Americans knew it would not collapse, they would force an end to the putrid, totalitarian monster the income tax has predictably become.

Last week, I offered some proof that the income tax never has been needed to run the government. Today, let's nail that fact down with a question: If the true purpose of the income tax really is to pay for government services, why doesn't the government just print what it needs? My readers include some of the most knowledgeable people in this country; many of you already know the answer. For those of you who don't, this simple, devastating question no doubt causes considerable wonderment. Yes, why doesn't it?

When your paper currency is backed by gold, you must have more gold to print more paper. If the law requires an ounce of gold behind each paper "dollar," then you must deposit that much gold before you print that "dollar." And you can't speak that gold into existence. God did that on one of those memorable six days. Now you need to find it.

On the contrary, when there is nothing behind your currency but the promises of the politicians, you can print as much as you like. And today there is nothing behind our currency. If you take it to the government and ask them to redeem it, they will give you another, newer piece of paper, not gold. So, again, the question asks itself: To raise the money to pay for government, why not just print it? Why subject the people to the horror of the income tax, which has turned them into spies on each other.

Because printing it would cause inflation and the inflation would destroy it. There were terrible financial problems in Germany after World War I. The head of the central bank "solved" them by printing paper "money." He had three shifts working around the clock. Every day, he would report to the legislature how much he had printed in the preceding twenty-four hours. The members would applaud. You are a financial genius! You are the savior of Germany! It lasted two years. In 1923, it collapsed and paved the way for Adolf Hitler.

Which brings us back to the income tax. What is it for? Beardsley Ruml spent his entire life as a Rockefeller factotum. He was in and out of their foundations. For ten years, he was a director and then chairman of the New York Fed, far and away the most powerful bank in the system. He was the author of """"""temporary"""""" World War II withholding, known originally as the "Ruml pay-as-you-go plan." If there has ever been a horse's mouth, Beardsley Ruml certainly was one.

During the last year of World War II, Ruml read a paper before the American Bar Association. A magazine called American Affairs published it in January, 1946, under the title, "Taxes for Revenue Are Obsolete." In the introduction to the paper, the editor said this: ". . . His thesis is that given (1) control of a central banking system and (2) an inconvertible currency, a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore, should be regarded from the point of view of social and economic consequences. . . ." (emphasis added)

Before you write a check, you need to deposit "money" to back it. If you don't deposit "money" your check will bounce. What would happen if the bank said you could keep writing checks, but no longer need to make deposits? Yee Haa!!! That is what the government arranged for itself when it stopped depositing gold (and silver) to back the "dollar." The "dollars" it printed thenceforth were tantamount to your rubber checks.

Beardsley Ruml himself put it this way: "The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. . . ." Ruml says two historic changes have made that possible. "The first of these changes is the gaining of vast new experience in the management of central banks. The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold."

Ruml was talking about the creation of the Federal Reserve, the nation's central bank, and about the theft of the people's gold by mass murderer Franklin Roosevelt (Pearl Harbor). So, if we don't need taxes to run the government, why do we have them? What are they for? Under the heading, "What Taxes Are Really For," the Ruml article lists four purposes:

1.As an instrument of fiscal policy to help stabilize the purchasing power of the dollar; 2. To express public policy in the distribution of wealth and of income, as in the case of the progressive income and estate taxes; 3. To express public policy in subsidizing or in penalizing various industries and economic groups; 4. To isolate and assess directly the costs of certain national benefits, such as highways and social security.

According to Ruml, the first of these purposes is by far the most important, his explanation of which deserves quotation at length: "By all odds, the most important single purpose to be served by the imposition of federal taxes is the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as 'the avoidance of inflation' . . . .

". . . If federal taxes are insufficient or of the wrong kind, the purchasing power in the hands of the public is likely to be greater than the output of goods and services with which this purchasing demand can be satisfied. If the demand becomes too great, the result will be a rise in prices and there will be no proportionate increase in the quantity of things for sale. This will mean that the dollar is worth less than it was before - that is inflation. . . .

"The dollars the government spends become purchasing power in the hands of the people who have received them. The dollars the government takes by taxes cannot be spent by the people, and, therefore, these dollars can no longer be used to acquire the things which are available for sale. . . ."

Please go to the library and read this for yourself. Or, you will find it all in my book, TaxScam, How IRS Swindles You and What You Can Do About It, which you can read about on my website, http://www.stangbooks.com. Notice that the true purpose of the income tax, according to Ruml, is to protect the totally unbacked Federal Reserve funny "money" from collapsing like the 1923 German mark. Its true purpose is to pay the people with one hand, and to confiscate with the other; thereby inhibiting the inflationary effect of ravenous government spending.

And the scheme has worked. The income tax has delayed the inevitable collapse of the dollar by offering a safety valve through which the inflationary pressure generated by that spending can more safely be released. The income tax does that by transferring purchasing power from the people to the government. Again, the income tax has nothing to do with supporting the government.

Beardsley Ruml said all this fifty-eight years ago. Is it still true today? On November 21, 2002, Ben S. Bernanke addressed the National Economists Club in the District of Conspiracy. Bernanke is one of seven governors of the Federal Reserve, and belongs to its crucial, top-secret Open Market Committee, so he is another horse's mouth.
Indeed at a celebration of economist Milton Friedman's 90th birthday, Bernanke wound up his accolade as follows: "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton . . . regarding the Great Depression: You're right, we did it."

Last November 21st, in the District of Conspiracy, Bernanke told the economists: "Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."

In other words, nothing has changed. The Federal Reserve - the billionaire totalitarian socialist conspirators who illegally force us to pay interest to use our own money - needs an income tax. Americans don't.

http://www.nmcservices.net/funnymoney.html

 
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Semjase
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Re: Fiat Currency and Central Banking

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June 3 2006, 7:13 PM 

And of course central banking and fiat currency are soley responsible for inflation. Inflation is the result of the excess currency printed by the Federal Reserve, not any action of the private market place. Milton Friedman proved this before winning the Nobel Prize in Economics.

"... a world monetary system has emerged that has no historical precedent: a system in which every major currency in the world is, directly or indirectly, on an irredeemable paper money standard . . . It is worth stressing how little precedent there is for the present situation. Throughout recorded history . . . commodity money has been the rule. So long as money was predominantly coin or bullion, very rapid inflation was not physically feasible . . . The existence of a commodity standard widely supported by the public served as a check on inflation .. . The key challenge that now faces us in reforming our monetary and fiscal institutions is to find a substitute for convertibility into specie that will serve the same function: maintaining pressure on the government to refrain from its resort to inflation as a source of revenue. To put it another way, we must find a nominal anchor for the price level to replace the physical limit on a monetary commodity." - Milton Friedman, "Monetary Policy in a Fiat World"

The reason we've been able to avoid hyperinflation so far is because the income tax is used as a buffer against the fiat currency. If you repealed the income tax tomorrow and allowed the government to print money at the same leves they do today, you would see runaway hyperinflation similar to what happened in Germany in the 1920's.

The Federal Reserve even admits Friedman's conclusions are correct:

"The "Great Inflation" of the 1970's challenged and permanently altered economic theory. It vindicated the once-controversial analysis of Milton Friedman, then at the University of Chicago.

"Friedman's monetary framework has been so influential that in its broad outlines at least, it has nearly become identical with modern monetary theory," said the Federal Reserve governor Ben S. Bernanke, at a recent conference at the Federal Reserve Bank of Dallas. (The full text of his speech is available at http://www.dallasfed.org/news/research/2003/03ftc_bernanke.pdf.)

Mr. Bernanke is not a former Friedman student. He did his graduate work at M.I.T. Someone reading Milton Friedman's monetary economics today is likely to miss its significance, Mr. Bernanke noted, much as an apocryphal student called Shakespeare's plays "just a string of quotations."

"His thinking has so permeated modern macroeconomics that the worst pitfall in reading him today is to fail to appreciate the originality and even revolutionary character of his ideas, in relation to the dominant views at the time that he formulated them," he said.

Against the conventional wisdom, Mr. Friedman argued that "inflation is always and everywhere a monetary phenomenon." Inflation had nothing to do with aggressive unions, greedy businesses or even oil cartels -- the bad guys who took the blame in the confusing 1970's. Prices shot up everywhere because the federal government made the supply of money grow faster than the real economy created value. Based on the historical record, he argued, the effects of monetary policy were fairly predictable.

In a 1970 lecture, "The Counterrevolution in Monetary Theory," Mr. Friedman outlined 11 propositions about how monetary policy affects the economy. All were wildly controversial, almost disreputable, at the time. Most are accepted today."

 
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Re: Fiat Currency and Central Banking

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October 1 2006, 7:48 PM 

"That paper money has some advantages, is admittted. But that its abuses also are inevitable, and, by breaking up the measure of value, makes money a lottery of all private property, cannot be denied. Shall we ever be able to put a constitutional veto on it?" — Thomas Jefferson

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs."--Thomas Jefferson

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance". -- James Madison

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers." -- Congressman Louis T. McFadden (Rep. Pa)

"Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" -- Congressional
Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932

"These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913

"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913

"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States 9th Circuit 1992

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin... Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of the pen, they will create enough money to buy it back again... Take this great power away from them and all the great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in... But, if you want to be the slaves of the bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit." - Sir Josiah Stamp, Governor of the Bank of England in the 1920s and the second richest man in Britain in the 1920's, speaking at the University of Texas in 1927.

"When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank

"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863

"Give me control of a nation's money and I care not who makes it's laws" -- Mayer Amschel Bauer Rothschild

"The best way to destroy the capitalist system is to debase the currency."
— Nikolai Lenin

"There is no subtler, or surer means of overturning the existing basis of society than to debase the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which only one man in a million is able to diagnose."
— John Maynard Keynes

http://www.freedomdomain.com/bankquot.html

http://www.chaostan.com/quotes.html

 
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Re: Fiat Currency and Central Banking

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October 2 2006, 5:36 PM 

STOP ATTACKING FREE SPEECH YOU LEFTIST CLINTON LOVER!!!!!!!!!!!

 
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Political discussions

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October 14 2006, 10:39 PM 

Hey Semjase, You will really appreciate this new web-site. A few lawyers there too. Bright people and not the name calling rebuttals.

http://pdf.s10.forumsplace.com/index.php

 
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