A MISBEGOTTEN ECONOMY

A part of the wisdom of the Bible is the expression: You reap what you saw.


For 21st Century Post-Modern Americans, the Bible, everything in it, and everyone who puts stock in it is irrelevant to America Today. Today's Americans are led by a small elite and their intellectual entourage who see that laws are passed of, by, for themselves. Their works are praised by their victims - the general citizenry. This is an outward sign of a poor educational system.


Once again, I was driving along listening to the radio, when suddenly a top editor at a very prominent financial magazine stated that the "consumers are the foundation of our economy." Obviously, if the consumers have a disposable income inadequacy, there are radical, or root, problems in our economy that need to be fixed.


In this same interview the conversation had originally begun with a discussion of the "surprising" positive income reports by such big banks as Bank of America. They apparently made more in the first quarter of 2009, than they made in the entirety of 2008. Other big banks seem to be doing better, as well. Yet, retailers have not seen the same sort of upturn because they depend upon the spending of consumers, and consumers are not spending very much. Unemployment is still high, and people are still pressed to pay their mortgages and other essentials.


If consumers are the "foundation" of our economy, why do our politicians not "first feed the children," as opposed to the banks?


The answer rests in the enactment of the Federal Reserve Act. This placed the money creation power in the hands of private bankers. The entire Federal Reserve System is private. It has never had to submit to public audits. Unlike a real federal government organization, it pays property taxes and always has.


When Congress needs money, it goes to the Federal Reserve Board to provide it, leaving Treasury Bonds as collateral for the borrowed money, which are denominated as "US Dollars" on a Federal Reserve Note ("FRN"), which is a debt instrument. At one time they were convertible into gold or silver, and this data was printed on the FRN. Hence, originally these pieces of paper were similar to "bearer bonds," exchangeable for real property at some places and for cash/gold at all banks.


Therefore, when Congress irresponsibly turned over the national money creation privilege to private banks, "saving the banks" became the recurrent theme of the political leadership of the Democrat and Republican Parties. Banks are the only ones, excluding Bureau of the Mint tokens and counterfeiters, who make our national money. Individuals and companies that try to employ gold or silver - or even barter - to obtain an agreed-upon unit of exchange are typically attacked by the I.R.S. or some other Treasury Department unit.


This is the true nature of the I.R.S. If the Federal Reserve Act created a national "loan-sharking" operation, which was placed in private hands, then the I.R.S. was necessarily reconstituted as an "enforcer" or "break-leg." Their targets were and are the general citizenry. The working-poor are far more likely to be audited than an elite figure. When Nelson Rockefeller was "appointee designate" for the Vice Presidency in the Ford Administration, he appeared before at least one Congressional Committee to testify. Upon inquiry by a Congressman, Nelson Rockefeller stated that neither he nor any major Rockefeller family member paid any taxes for the previous eleven years. It's hardly surprising that the entourage of the elite, such as Tim Geithner, now Secretary of the Treasury (and head of the I.R.S.) and Tom Daschle, political leader, skipped paying part or all tax for a tax year or two. The I.R.S. hasn't missed a trick in demanding taxes from me since 1980. I expect Mr. Geithner will keep his "enforcers" aimed at the general population.


The pretext for "attacks" on the citizenry to obtain taxes is that people won't pay otherwise. Not mentioned is the alienation of the elite from the general population. They fear the people, who are different. The people must be controlled by harshness.


In this whole matter are the unmet issues: Why have private banks been allowed to create national legal tender and why has a "break-leg" organization been constituted to collect it "to finance government?" As things stand now, the income tax revenues pay for little more than the interest on the national debt. The Social Security tax revenues are put in the General Revenue Fund account and spent along with any other money Congress can "beg, steal or borrow."


There is no need for an I.R.S. at all. It is a cruel overseer, whipping at the "wage-slaves" on Uncle Sam's Plantation. Revenue gathering was never the issue; control is the purpose. The U.S. Constitution provides Congress the power to directly create and issue the national legal tender through the Department of the Treasury. If its laws are "needful," then it surely has the power to create the money to pay for it.


I believe that the elites have created both the leftist arguments in politics and the rightist, or conservative arguments. Neither side makes sense, but they both function beautifully to guide the general citizenry away from any valid, sensible approach to government. People, if it does not serve the interests of the general population, it is not good law. The people are unequally harnessed to the elite. The General Welfare cannot be advanced so long as this state of affairs exists. Conservatives don't trust the people. Why should the people trust them? Leftist are crypto-statists who will expand government and the brutal controls its unrestrained expansion requires.


My approach is best. The federal government first and foremost should understand that the people must have the money to live a single day decently. This does not mean any Kennedy-type minimum wage, which pays a worker just enough to pay his transportation to the next job. The government should unburden business from income taxes, as also should be done to individuals. If the government has the power to create legal tender (and it does), it doesn't require the I.R.S. to squeeze money, which has been created by private banks, from the general population, which may not have it to pay, as the private banks may not have created enough.


The reason that the federal government, academics, media, international businesses and the like dismiss suggestions such as mine is that they are the beneficiaries of The System. As an example, an academic most typically dreams of a tenured position at a prestigeous university or college, which institutions also tend to pay the best salaries. If an academic is good enough at defending the system from any "unruly" voice challenging the contradictions and absurdities of the present system, he may well have his "dream come true." Certainly, academic opponents of the system will get no where, unless their line is "communistic" (which still upholds an elite ruling class, during the transition to the Workers' Paradise).


In my system the government is representative, employs experts, punishes mismanagement, and pays its own way. It creates money and pays it into the system through a national banking system. A totally computerized banking system would exist. Each person and company would have a checking account. Each would have access to it through plastic debit cards. The government would adopt a system that recognizes American labor as an asset. People who spent their lives using their labor to advance America would not be abandoned by America in their old age. There would be no concept of "useless eaters." The federal government would directly pay into the checking accounts of such people the money requirements to live.


Further, it should be noted that these recipients will utilize this money to buy things and pay for services. The money issued will soon return and help power the economy.


Fear-mongering conservatives - ever distrustful of the people - will grumble about "inflation" and "irresponsibility" on the part of the politicians. However, the track-record advises that people need to fear the elite and their fronts (in some cases hoodlum mobs), rather than their own good and decent instincts. Therefore, elite-controlled politicians may well try to sabotage a "People Friendly" system. Hyper-inflation would, indeed, be one of their tools.


I am convinced that a people that desired to "create" a Promised Land, can achieve a close facsimile by adhering to common sense. There are parameters to consider, such as what the general population is, what is the minimum amount necessary for each person to exist decently one day in the country, what infrastructural work is required, what utilities must be built, what ports and marine structures, including ships, what educational and medical structures and systems are needed? There needs to be a better definition of an asset. If the federal government spends money to acquire an asset, how is this "waste?"


Once the proper level of money for the immediate moment is ascertained, then the levels can be watched and administered "scientifically" to keep the supply at the predetermined ideal ratio(s).


This does not mean that an emergency consideration might not arrive, but that it be a stated time that cannot be immediately extended. [Otherwise, there is a chance elitist agents might execute a coup by making endless the emergency status of government and changing the nature and form of government.]


The federal government would generally be paying private contractors to do the work deemed needful. In some cases it would execute a monopoly, such as electrical and water services. It would also stock all available natural resources, selling them to private interests at a low but constant level of profit. Such revenue can then be sent as a dividend to the people every December, or redeployed for other needful purposes.


If too much money is determined to be in the economy, an excise tax of 1% could be placed on electricity for one year to remove the excess. Helpfully, usury would be forbidden. If a little inflationary "tax" occurred occasionally, it would be tolerable, largely unnoticed and painless. It would be far better than the present income tax system.


The banking system would be closed to outsiders, so monetary manipulations of the George Soros (a British knight!) type cannot occur, nor could European royalty, or others, buy up the land of America. A separate "promise to pay" currency, based on a commodity such as wheat or a basket of commodities (or "Modern Art" now located in the National Gallery), would be used in foreign trade, which only the national government could enter. America would cease to have international companies. America would make most of what it needed. The feudel dream of the elite would end. After a renewed America was achieved, a model would be developed to be employed in other countries desiring "good government." With favor from the Heavens one day the whole world would be comprised of governments of, by, and for the people, prospering and sharing.


The orientation of the military would be completely changed from aggressive wars everywhere on the globe characterized by insufficient troops and money, as well as hazy pretexts and uncertain results, to a strictly defensive, protect America approach. [This would make the British and other internationalists unhappy but - so what?] There would be a return to the citizen soldier led by a small number of professional soldiers. Military men who wanted to prove "that Napoleon and the Nazi Wehrmacht were error-prone and that a winter attack on Moscow is sensible" need not apply.


Military technology would therefore be aimed at destroying "incomings" and being "firstest with the mostest" in counterattacks in defense of the Fatherland.


This is not meant to be rough draft for a new constitution, but suggestions in furtherance of the project to re-achieve an America of, by and for the people. The large number of people in this country who can't "make it" - even when borrowing thousands on credit cards at high rates of usury - make a rather unmistakable "J'Accuse!" People, the pain isn't necessary.






April, 2009