The Fears of our Fathers

The Fears of our Fathers

Our founding fathers, Madison, Jefferson, Franklin, et al, did not fear foreign conquest.  They feared unchecked, unlimited power from within, in the form of people or corporations that could gain monolithic or monopolistic control over out government.  In the past such seizures of government power generally came from generals or military commanders whose wealth and prestige enabled them to gain enough aristocratic support to be declared dictator, emperor, king. Czar, or whatever title they chose to claim.  Only a few of the most visionary framers foresaw that unchecked or unrestrained economic power could be the road to serfdom and economic slavery.  Jefferson, Franklin, Madison, and Paine were among them.

Jefferson said, “If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing [money creation] power should be taken from the banks and restored to the people, to whom it properly belongs.” – Thomas Jefferson, The Debate Over The Recharter Of The Bank Bill, (1809).

Jefferson also said that banks were more dangerous to the American people than “standing armies”.  Today, who would think there was anything wrong with either banks or standing armies?  What has changed us so?  Could it be the persuasive power of money and banking itself?  Could there be a public relations campaign, or even a campaign of propaganda to convince the public that both are now OK?

Who creates and controls our money today?  Was there a reason Amschell Mayer Rothschild (the “Father” of modern banking) held that “as long as he controlled a nation’s money he cared not who created its laws”.  In other words, his “golden rule” was “he who has the gold makes the rules”.

So, who has the gold?  Who makes the rules?  Are gold and money the same thing?  Should they be the same?  Should they be under public or private control?  Does our Constitution say anything about these issue?  How about the views of our founding fathers, or the wisdom they drew from in the founding of our nation?  Where does money come from?  How is it created?  By whom is it created and controlled?  Most people don’t really consider these questions, and go from birth to death without giving money much thought, except perhaps to think they don’t have enough of it, or to figure out how to get more money or additional wealth.  Most people never differentiate between money and wealth.  They seem like the same thing.  Aren’t they?

Not exactly.  And we will try to address these and many other similar questions in this and additional future blogs.

Today, private banking institutions create all money as some form of loan, or debt. Most of it is interest-bearing debt of the kind that was once commonly known as “usury”. “Money” is generally thought to be circulating money, but that is more properly known as “currency”. Modern “currency” is paper and coin. Most money, by far, is electronic money in the form of debits and credits, or some form of bookkeeping entry to a bank account somewhere.

Contrary to popular belief, banks or mortgage companies do not loan out existing money that belongs to other depositors. They simply “create” that money out of nothing but a computer keystroke or the entry in a T account. The loan is simply credited to the bank as an asset and debited to the borrower’s account as a debt to be paid.

The problem comes in because the bank only creates the “principal” amount that goes into the general money pool for society. They do not create the money from which the interest will be repaid. On a 30-year home loan, for example, $100,000 may be loaned to a buyer to buy a house costing $120,000. The $100,000 is new money that did not previously exist in the total money supply. It came into existence when you created the mortgage note and gave it to the bank, who considers it as an asset. Yet over the life of the loan, some approximately $250,000 or more must be repaid, $150,000 or more in interest on the original loan. Since that interest money was not created when the original loan was made, it must come from either the existing stock of money that was loaned into existence by others, or it must come from future growth of the money supply, and that must come from growth of the new loan business. Reason and logic tells us that an infinitely expanding system is not possible in a limited and finite world, so collapse is inevitable.

Indeed, collapse is inevitable in any Ponzi scheme, and all Ponzi schemes are some form of fraud in which new recruits into the pyramid pay for the apparent “profits” or gains realized by those who get into the scheme early, most notably the originator. While Ponzi schemes are most noted as investment scams, they can be any fraud where money, time, effort, labor, or resources are paid into the pyramid in expectation of gains, profits or an increase at some later date. Sales organizations built on the multi-level marketing models can be forms of Ponzi type pyramid schemes.

Bernie Madoff and Allen Stanford have made recent news and popularized the Ponzi scheme once again, but the model has been around as long as dirt itself. Ponzi certainly didn’t invent it, any more than did Madoff or Stanford.

Here is the chilling part of the story: on close examination, the entire world money supply looks like a gigantic Ponzi scheme stretched out over a very long period of time. Some form of interest-bearing debt, loan, credit card, credit line, and so on creates all modern money. Even the money the US Treasury and Mint create is borrowed from the Federal Reserve System as Treasury Notes, which the Fed then discounts or sells to private investors, domestic and foreign.

Since the interest that must be repaid is not created along with the original money, a exponentially growing pool of money is always needed in order for there to be enough “money” to repay the principal plus the interest on all the money created. It is an unsustainable system, and all unsustainable systems must eventually collapse. This “collapse” we have been told, is just a normal part of the business cycle of boom and bust that must happen every 80 to 100 years. Of course this is nonsense, but we have been “buying” this nonsense for hundreds of years, ever since the creation of modern banking in 1694 with the Bank of England. Today it is the Bank of International Settlements (BIS) in Basel, Switzerland that is the Mother of the international banking establishment. The International Monetary Fund (IMF) and World Bank (WB) are siblings, and the various central banking establishments in the USA, Israel, Europe, Japan, Asia, South America and elsewhere are all a part of the international banking syndicate that create and control the world’s money. Wall Street and the City of London are its centers in each hemisphere.

It is the largeness and the long time frame that hides the scheme from the view of most participants, or, if you prefer, victims.

Are you sufficiently shocked enough to do something? Or are you simply confused or in denial? There is an overwhelming body of evidence to substantiate that what I am revealing here is the truth. It is what it is. All anyone need do is look at the real evidence with eyes that will see and the truth will be readily apparent after the facts are digested. True, indigestion might be a side-effect, but it is better than the potentially fatal food poisoning that could result from continued ignorance and inaction.

World power, dominion, and control over others via unlimited wealth is their goal. Eradication or economic slavery and servitude is the desired destiny for most of the world’s current populations. According to them, their supposedly noble ends justify their terrible means. But this is always the seductive lie. Do not listen to it.

Please read Ellen Brown’s Web of Debt at your first opportunity. It is the one book on money and economics that most people of average education and intelligence can understand. There is another quicker road to less thorough enlightenment, and that is the video, Money as Debt by Paul Grignon that takes 47 minutes to watch. Google it and you will be rewarded with as sound a monetary education in 47 minutes as it is possible to obtain. It can be found online at Youtube, Brasscheck and Google videos.

I have spent the better part of the last 10 years researching money, economics and socio-political issues. I can safely say that there are no real and lasting solutions to any of humanity’s most pressing problems, including war, poverty, disease, climate change, pollution, and all the rest, unless the money problems are solved. They cannot be solved until they are fully understood down to the level of their most basic and root causes.

There is good news. This issue can be fought and won. Lord Acton once famously said that “power corrupts, and absolute power corrupts absolutely”. Less well known is his prediction that:

“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”

The banks may be powerful, but the people are many.

This struggle may not be one of physical force and confrontation. I pray to God that it will not come to that. Let is be one done through the democratic-republican process of peaceful change and progress – legislation.

“Never forget that a small group of dedicated citizens can change the world. Indeed it’s the only thing that ever has.” – Margaret Mead.

More to come.  Stay tuned.

Jere L Hough

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