Learn How To Be A Crook

Chambliss & Isakson - Clueless About The Fed

August 20, 2011 Gilmer County Georgia

Saxby Chamblis is clueless about the Federal Reserve System.

Our US Senators don't understand The Federal Reserve System, which happens to be the tool used to crush production and wealth among the working people of this country. Notice Isakson offered no corrections to the logically incoherent statements made by Chambliss.

I paraphrase here, but the video below presents their very own words... 

First Senator Chambliss says: 

"There is no question that the Federal Reserve has an inordinate amount of power"

and

"We have got to stop printing money in Washington"

and

"Under the current law there is nothing we can do about it" 

Then Chambliss states he read the Creature From Jekyll Island, which is a book that explains the secrecy surrounding the design of the Fed by the bankers. This excellent book also PLAINLY STATES that the name of the Federal Reserve Central Banking game is BAILOUT. Chambliss said:

"It scared the hell out of me when I read it too by the way!"

Then he agrees that the FED was created by the bankers in Georgia in 1910 stating:

"But [Jekyll Island in 1910 is] obviously where the Federal Reserve was created."

So far, the FED has too much power, congress can't do anything about it and the bankers designed/created the FED on Jekyll Island in 1910. It gets better.

Now Chambliss tells us that:

"Constitutionally there's alot of power given to the Federal Reserve" 

"And you obviously have to change the Constitution to do anything about that."

So now the FED has too much power, congress can't do anything about it, the bankers designed/created the FED on Jekyll Island in 1910 and the US Constitution gives a lot of power to the FED and we have to change the Constitution to do anything about it. In other words, the bankers created the FED in 1910 AND the founders created the FED in 1787... But he's not done yet.  There is more.

Next he tells us that

"there is also authority given to the Federal Reserve by Congress."

OK, so let me get this straight.  The FED has too much power, congress can't do anything about it, the bankers designed/created the FED on Jekyll Island in 1910, the US Constitution gives a lot of power to the FED and we have to change the Constitution to do anything about it. In other words, the bankers created the FED in 1910 AND the founders created the FED in 1787 AND Congress gives authority to the Fed, BUT Congress can't take that same authority away from the FED.

The truth is this: The Federal Reserve Act was passed by Congress in 1913 and can be repealed or cancelled by congress anytime. They could do it today. The Federal Reserve is unconstitutional because Congress cannot delegate its authority to Coin money. It is unconstitutional because printing paper money is unconstitutional no matter who does it. In addition, paper money or debased currency causes theft and, last I checked, stealing is illegal. Unless you are the government.

Are we wrong to expect our US Senators to understand the insidious, destructive, unconstitutional, unlawful, pillaging central banking system which wipes out the savings and retirement of the middle class, enables unlimited government growth and comes straight out of the Communist Manifesto?

VIDEO: Coley Testimony - HB3 Constitutional Tender Act

Coverdell Legislative Office Building (CLOB)
18 Capitol Square SW Atlanta, GA 30334

Atlanta, GA

Monday, March 7 · 9:00am - 12:00pm

After presenting testimony, I engaged in a dialog with Representative Bruce Williamson on fractional reserve banking. Bruce Williamson was a gentleman. He opened with a prayer that I would be blessed to hear and concur with any time. The problem we have is that neither Bruce, myself or government are the standard. A good man's character does not make an objectively immoral practice moral or right.

Representative Williamson claimed that Georgia banks don't create money, yet he later said:

I'm not disagreeing with the fact that it expands the money supply, but I don't see that that's inherently unhealthy.

Evidently Representative Williamson doesn't understand that "Expanding the money supply" creates new dollars and is inflation.

When I said that banks create dollars from nothing, Representative Williamson disagreed yet again, stating:

Its not nothing. Its promises to pay that provides the liquidity to shop keepers, to home owners...

And:

All you're doing there is allowing these promises to pay, that when you come to borrow the money to buy the automobile or piece of land or buy new shelving for your hardware store, all the bank's doing is turning around and lending you those dollars... It's not the collateral, its your promise to pay back.

In other words, his view is that the money is not created from nothing, rather it is created because the borrower promises to use his land, labor and capital to produce enough to pay the loan back, plus interest to the banker.  The banker has essentially no skin in the game.

If "its not the collateral", why does the banker take the borrower's collateral if the borrower doesn't pay?

In an honest system, the banker would have to loan out property that actually exists in order to earn interest. In the fractional reserve system, he creates money from thin air and then essentially loans your property to you - and gets paid interest for doing it. The bank brings nothing to the table except the legal privilege to create money.

When you borrow money for a piece of land, the money that you use to pay the seller comes from a ledger entry at the bank which is made because you agree to pay the money back. The only real asset in the transaction is the land. The banker has no equity or asset in the transaction at all. If you default, he gets the land.

Of course that ledger sheet trick works until the bubble pops, particularly when the bubble is combined with Sarbanes-Oxley and federal regulators.

Representative Williamson also stated plainly that leaving the gold standard was a mistake.

It all goes back to fiat inflation. I do not disagree one bit with the fact we should never have gotten off the gold standard. I think Steve Forbes has got it right, but all we are is dealing with the Federal Reserve Notes that our Federal Treasury is [unintelligible] the currency of the nation.

However, the Gold standard simply limited the amount of new money created from nothing by the Federal government. Creating money from nothing is always a problem because the mechanism makes an economy unsustainable. The economy is unsustainable because costless money causes a breakdown in the price mechanism and distorts the allocation of resources.  It also pillages and weakens the producers.  The banks create new money from nothing, much the same as the Federal Reserve. In fact, the banks are able to create nine new dollars for each one new dollar created by the Federal Reserve. Which is bigger? Nine or One?

If costless money is a problem and the banks create more than the Federal Reserve, then the banks are not innocent. They participate in inflating the money supply, or to use Representative Williamson's phrase in "expanding the money supply", which IS inflation. It disproportionately harms the weak and frugal. It enriches those who are granted a special privilege by government (banks) to create new money from nothing - at least from nothing that the banker owns. In the banks view, your property gives them the right to create money that didn't exist in order to charge you interest for using the money.  What a racket.  

There is so much more that can be said and the problems are far reaching and complex, but the bottom line is that fractional and fiat money cause theft and lead to poverty and oppression.

Bill Greene - HB3 Constitutional Tender Act

Coverdell Legislative Office Building (CLOB)
18 Capitol Square SW Atlanta, GA 30334

Atlanta, GA

Monday, March 7 · 9:00am - 12:00pm

Excellent job making the case by Dr. Bill Greene and Representative Bobby Franklin.

My Testimony - HB3 Constitutional Tender Act

Click here for the video and response from the committee.


Coverdell Legislative Office Building (CLOB)
18 Capitol Square SW Atlanta, GA 30334

Atlanta, GA

Monday, March 7 · 9:00am - 12:00pm

Good morning. My name is Shane Coley.

I have studied history and economics extensively.  I was raised in the cattle business, I can operate or rebuild heavy equipment and I am a professional software architect. I am self-employed. I was recently a candidate for state Senate in the 47th District where I carried my home county.  My positions here today match my positions during the campaign.

The laws of Georgia are created and modified by our state legislature.  The legislature is made up of individuals, like you, who analyze legislation in the context of your personal belief system, which makes your belief system very important to Georgians.

The majority of the banking and finance committee members publicly claim to be Christian. Therefore, I will talk about some of the general constraints or limits of the Christian belief system, and then about secular belief regarding theft or stealing.

In at least nine places the Bible tells us about differing weights and differing measures.  In at least four places the Bible says that differing weights and differing measures are an abomination to God.  A Christian must not ignore this.

Here is an example of differing measure:  Suppose I were in the market buying wheat and I had a basket marked one bushel, but the basket was secretly larger than one bushel.  My oversized basket would enable me to steal part of your wheat. 

Differing weights and differing measures deceptively cause theft, which is a violation of the Eighth Commandment, "You shall not steal".

Since 1971, the only way to create a new US dollar is to record an entry in a ledger of the Federal Reserve System, or in a ledger of your local bank.  Producers have to work years for new Dollars that the bank creates instantly with the stroke of a key.

When new US dollars are created in this way, there is no new wealth created, but the purchasing power of all previously existing dollars is decreased.  This is an example of using differing measures to steal labor and property from producers.

This is clearly, undeniably, objectively a form of theft. To support fiat or fractional money is to support theft. 

Some claim that our money system makes us wealthy. This is false. Wealth is the result of production.

Many of us notice that People depend on Production. People eat food and use things. Food and things must be produced. Government Produces nothing and wastes much. Since people depend on production and government interferes with production, there is no way that government has any solutions for us. We must remember that every promise made by a government official has to be kept by a producer. There is no other way.

It is impossible to confiscate a loss. Only profits or capital from past production can be confiscated. It is logically impossible for the creation of new US Dollars to make us wealthy. If I had time, I would prove that creating costless money will first make us poorer and eventually crush our free society.

The reality is that the creation of costless money can only lead to the destruction of a free society.

For those who are not constrained by the Christian belief system, if you oppose theft then you must oppose creating new US dollars from nothing.

Please listen carefully to the following quote from an old banker.

“The few who understand the system, will either be so interested in its profits, or so dependent on its favors that there will be no opposition from that class. The great body of people, mentally incapable of comprehending the tremendous advantages will bear its burden without complaint.”

To the Christians and those who oppose stealing: I respectfully ask that you vote for the Constitutional Tender Act as a small step toward eliminating differing weights and differing measures and theft from our monetary system.

And finally, let’s recall a bit of what John Maynard Keynes wrote in 1919: “while [creating costless money] impoverishes many, it actually enriches some” and also “[Inflation] engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

To those members who hold stock in banks or have otherwise profited from the banking business: Since our loss is your gain, I respectfully ask that you recuse yourself from this vote and from the vote on the final bill.

Liberty & Production Radio - Tom Woods Interview

Tom Woods

Rollback

Banana Republic

Note the sarcasm...

The following is an excerpt from Taipan Daily.

Turbo Timmy’s Christmas Eve Coup

Justice Litle, Editorial Director, Taipan Publishing Group
Monday, January 11, 2010

"The AIG fiasco was just a warm-up. Turbo Timmy’s latest coup could wind up costing taxpayers trillions – and the country hardly noticed."

Banana Republic, Here We Come

"No, the reason to be excited now – if one is able to ride the paper gravy train, that is – is because the backroom deal makers have won. They have shown, with little room for doubt, that the government can and will do what it takes to rescue Wall Streeters at all costs... even if it means sacrificing the health of the real economy in true banana republic fashion.

And so why worry? Why worry if a tidal wave of “Alt-A” mortgage resets is coming? Why worry that current policies continue to starve the real economy of credit and jobs, while at the same time encouraging banks to hold back on loans and ramp up their trading desk activity?

There is no reason to worry, you see, because Washington has finally proven adept at taking care of its own. It no longer matters if the real economy goes to hell, because the Fed and Treasury’s access to funds is unlimited now! No matter what, planet paper will be first and foremost... no matter what, planet paper will be saved.

We have learned all the wrong lessons in spades. “Too big to fail” has worked... the culprits of the last crisis are now as big and bold as ever (on the risk-taking side if not the lending side)... bad policies (in regard to propping up the U.S. housing market) now have blank-check support... and we as taxpayers have handed over our fiscal birthright to Turbo Timmy for a mess of pottage without even knowing it.

One can almost forgive the crooked denizens of Washington and Wall Street for rubbing their hands together with glee. If American citizens are willing to tolerate this, perhaps they are willing tolerate anything. If the taxpayer, the hard worker, the honest saver, has not grown furious by now, perhaps he never will." -- Taipan Daily

The Government Can

Who can take your money, with a twinkle in their eye; Take it all away and give to some other guy... The government, The government can.



Shane Coley for State Senate

Gangster government

Gangster government.

Bernanke the destroyer

I would call Bernanke stupid, except I believe he and the rest of that bunch know exactly what they are doing. The intent is to destroy the capitalist economic system, leaving a feudal system in the aftermath, populated with serfs and elites. Bernanke believes he is an elite. He is confident you are not.

No Oversight of the Federal Reserve

No Oversight of the Federal Reserve.

American Capitalism Gone With a Whimper

This is a very interesting article from the perspective of a gentleman in Russia.

Reprinted from:

Mat Rodina and Pravda

It must be said, that like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people.

True, the situation has been well prepared on and off for the past century, especially the past twenty years. The initial testing grounds was conducted upon our Holy Russia and a bloody test it was. But we Russians would not just roll over and give up our freedoms and our souls, no matter how much money Wall Street poured into the fists of the Marxists.

Those lessons were taken and used to properly prepare the American populace for the surrender of their freedoms and souls, to the whims of their elites and betters.

First, the population was dumbed down through a politicized and substandard education system based on pop culture, rather [than] the classics. Americans know more about their favorite tv dramas [than] the drama in DC that directly affects their lives. They care more for their "right" to choke down a McDonalds burger or a BurgerKing burger than for their constitutional rights. Then they turn around and lecture us about our rights and about our "democracy". Pride blindth the foolish.

Then their faith in God was destroyed, until their churches, all tens of thousands of different "branches and denominations" were for the most part little more [than] Sunday circuses and their televangelists and top protestant mega preachers were more [than] happy to sell out their souls and flocks to be on the "winning" side of one pseudo Marxist politician or another. Their flocks may complain, but when explained that they would be on the "winning" side, their flocks were ever so quick to reject Christ in hopes for earthly power. Even our Holy Orthodox churches are scandalously liberalized in America.

The final collapse has come with the election of Barrack Obama/ His speed in the past three months has been truly impressive. His spending and money printing has been a record setting, not just in America's short history but in the world. If this keeps up for more [than] another year, and there is no sign that it will not, America at best will resemble the Wiemar Republic and at worst Zimbabwe.

These past two weeks have been the most breath taking of all. First came the announcement of a planned redesign of the American Byzantine tax system, by the very thieves who used it to bankroll their thefts, [losses] and swindles of hundreds of billions of dollars. These make our Russian oligarchs look little more [than] ordinary street thugs, in comparison. Yes, the Americans have beat our own thieves in the shear volumes. Should we congratulate them?

These men, of course, are not an elected panel but made up of appointees picked from the very financial oligarchs and their henchmen who are now gorging themselves on trillions of American dollars, in one bailout after another. They are also usurping the rights, duties and powers of the American congress (parliament). Again, congress has put up little more [than] a whimper to their masters.

Then came Barrack Obama's command that GM's (General Motor) president step down from leadership of his company. That is correct, dear reader, in the land of "pure" free markets, the American president now has the power, the self given power, to fire CEOs and we can assume other employees of private companies, at will. Come hither, go [thither], the centurion commands his minions.

So it should be no surprise, that the American president has followed this up with a "bold" move of declaring that he and another group of unelected, chosen stooges will now redesign the entire automotive industry and will even be the guarantee of automobile policies. I am sure that if given the chance, they would happily try and redesign it for the whole of the world, too. Prime Minister Putin, less [than] two months ago, warned Obama and UK's Blair, not to follow the path to Marxism, it only leads to disaster. Apparently, even though we suffered 70 years of this Western sponsored horror show, we know nothing, as foolish, drunken Russians, so let our "wise" Anglo-Saxon fools find out the folly of their own pride.

Again, the American public has taken this with barely a whimper...but a "freeman" whimper.

So, should it be any surprise to discover that the Democratically controlled Congress of America is working on passing a new regulation that would give the American Treasury department the power to set "fair" maximum salaries, evaluate performance and control how private companies give out pay raises and bonuses? Senator Barney Franks, a social pervert basking in his homosexuality (of course, amongst the modern, enlightened American societal norm, as well as that of the general West, homosexuality is not only not a looked down upon life choice, but is often praised as a virtue) and his Marxist enlightenment, has led this effort. He stresses that this only affects companies that receive government monies, but it is retroactive and taken to a logical extreme, this would include any company or industry that has ever received a tax break or incentive.

The Russian owners of American companies and industries should look thoughtfully at this and the option of closing their facilities down and fleeing the land of the Red as fast as possible. In other words, divest while there is still value left.

The proud American will go down into his slavery with out a fight, beating his chest and proclaiming to the world, how free he really is. The world will only snicker.

Stanislav Mishin

Regression to Productivity

Based on math, reason and logic the argument I am presenting here can be sustained.

The intent in this article is not to prove the claims, but simply to state them in simple terms.

If you disagree, please begin by explaining your case for how our current system is working well and is not to blame for the current bust.


Very simply put, money must always originate through voluntary exchange of a commodity which initially has other uses.

A simple paradigm breaking example is butter. It begins as something that people produce to serve a particular purpose and then, because of certain attributes like fungibility, divisibility and reasonable durability, it rose in some markets as a commodity used in indirect exchange, i.e. money.

Which came first, a) the usefulness for other purposes, b) usefulness as a commodity for indirect exchange or c) were these uses concurrent? In the case of butter, the rise to money would be sequential, while in the case of gold or silver, I consider the rise concurrent.

In either case, the commodity is the original money because government cannot introduce an unlinked currency to market. The link always regresses to a commodity which was respected and accepted in exchange because of various attributes, number one among them being the productivity filter. There was no need for a government agency to ensure the "value" of a commodity that everyone clearly understood required productive labor to acquire.

Compare these two questions:

Hey buddy, did you just get that gold out thin air, or did you work for it?

Hey buddy, did you just print that dollar, or did you work for it?

The gold had to be mined. The paper costs nearly nothing to produce. In a matter of milliseconds enough "dollars" can be produced to buy entire countries. Try that with gold or any other natural money. Society can't get around the productivity filter with natural money.

Today we suffer under the abuses of an unlinked fiat currency. This means the government does no work in order to produce their claims to our labor. Fiat money is also called costless money.

Prior to that we had a linked currency, i.e. notes that were linked to a reserve of gold and silver. With our linked currency there was at least the claim that some quantity of gold or silver was stored somewhere that someone worked to produce.

Prior to that we had the age of coins. These were diluted with base metals as a crude and unsophisticated form of inflation. The king would collect 100 gold coins in taxes, melt them down, mix in some cheap base metal and then produce 150 new coins to spend. Basically if the coins were purified and separated, the king would have the 100 original coins which would spend fine, but then also 50 coins made of tin. The effect is the same as if he came to purchase goods from you using his 50 tin coins (covered with gold paint of course) and expected you to treat the tin as though it were gold. Spending the tin as though it were gold is no different when a little is mixed in with every coin than it is if it all resides in a few. It is theft either way.

Prior to that were commodities. Natural money, honest money, sound money. People used gold and silver, sometimes copper or other commodities, as a medium for efficient indirect exchange.

And prior to that came productivity. One person raised sheep, another wheat and yet another mined gold and silver. There would be no gold to trade unless someone dug it up and refined it. That is hard work.

I am aware of no case in which a government has ever successfully introduced a money token that was not dependent on a commodity, which was originally introduced in voluntary exchange and secured by the productivity filter.

Therefore, when the government decrees quantities of costless money, they are actually decreeing their claim to your productive labor and through this decree of quantity, the government demands and ensures confiscation of your property by force.

We must understand that no productive labor is exempt and no one can opt out of working specifically for the destruction of what they hold dear, unless they are among the few whose goals are in alignment with the actual and intentional product of our present monetary system. To support this costless money system, which bypasses the productivity filter, is to promote systemic theft and scheduled destruction of nations.

End The Fed - November 22 2008

You all saw the news last Saturday and in the days leading up to the major nationwide protest to End the Fed, right?

This protest in 39 cities across the nation was planned for months. This is the kind of civil unrest the major media search for to make exciting news and inform the public of critical issues, right?

You mean you didn't hear about this giant rally and protest?

Regardless of how you feel about the Federal Reserve System, why would this nationwide event not make the major news coverage?

Maybe the economy is not a front-burner issue these days... People have other things on their mind... The media wants to focus on things that we are interested in now. It's not like we have seen trillions of dollars evaporate from the retirement and investments of most US citizens and many people around the world.

Talking about the End The Fed rally

News about the End the Fed rally

Anthony Gregory's rally day speech This is an excellent read.

End The Fed

Philadelphia Fed Policy Forum

Let us be clear that we are in no way advocating the material presented at this policy forum. However, there are interesting bits of information that can be gleaned. We will begin with the forum description:

The Philadelphia Fed Policy Forum

Fiscal Imbalance: Problems, Solutions, and Implications

December 2, 2005

The fifth annual Philadelphia Fed Policy Forum, "Fiscal Imbalance: Problems, Solutions, and Implications," was held on Friday, December 2, 2005, at the Federal Reserve Bank of Philadelphia.

The Policy Forum, organized by the Federal Reserve Bank of Philadelphia's Research Department, brought together a group of highly respected academics, policymakers, and market economists, for a discussion of important macroeconomic and monetary policy issues that the Federal Reserve will need to grapple with in the coming year. The Policy Forum was not intended to be a traditional academic conference on monetary policy, nor a discussion of issues relevant to the next FOMC meeting. Rather, the annual Policy Forum has taken a longer term perspective and has attempted to engage the right people in a discussion of current macroeconomic research and its implications for monetary policy.

Richard Fisher is President of the Federal Reserve Bank of Dallas. He gave a talk which was summarized by Loretta J. Mester, a representative of the Federal Reserve Bank of Philadelphia. Mester reports that:

Fisher pointed out that monetary policymakers cannot be indifferent to the thrust of fiscal policy because poor fiscal policies create pressure for poor monetary policies, e.g., monetizing the debt and fueling inflation. But he emphasized that the solution to the fiscal imbalance rests with fiscal policymakers and not the central bank.

First we see in these comments that when the government spends money it doesn't have, new money is printed, which is inflation. The process of inflation, as illustrated in the Five Guys Analogy, is designed to cause a hidden wealth transfer and, as Lenin noted, is effective in destroying the social fabric of a nation.

Most importantly, as I observed in Fundamentals and Accountability, the bankers, media and government assure us it is never the central banker's fault.

Fiscal Imbalance

Kent Smetters gave a talk at the forum. I found one slide regarding our $63 trillion dollar fiscal imbalance particularly interesting.

“Fiscal and Generational Imbalances: An Update”
Kent A. Smetters, The Wharton School, University of Pennsylvania

PowerPoint Presentation

Fiscal and Generational Imbalances: An Update


The PPT notes add the following clarification: [Confiscate all capital assets including] All stocks, bonds, companies, building, homes, cars, and even consumer durables such as your dishwasher

Summary

Therefore, we are expected to believe that the Federal Reserve Bank, who actually issues the currency, is in no way at fault for creating the disaster we are watching unfold in our economy.

We are also supposed to have confidence in a system that, according to the experts, the government could not pay for even if it confiscated everything we own.

Think about what is being said. The government would not be able to pay the citizens of the United States what it has promised to pay, even if it took everything we owned to make the payment. The government is making promises that government leaders know cannot be kept, to pay bills with your property and your labor.

And most absurd of all, what exactly is the government offering US citizens if it has to confiscate all that we have in order to meet its obligations to those same citizens?

Always remember, the government has no money or property except what it takes from the producers. Government produces nothing. Government wastes more than any private enterprise ever could. We have a monopoly government which promises to use force in order to pay us with our own money and labor.

Inflation as a Tool of War

The prevailing economic thinking that drives policy among the nations of the world, particularly the industrialized nations, is Keynesianism. Perhaps a few of Keynes own words would be instructive.

Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some… Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.

The Economic Consequences of the Peace, John Maynard Keynes, 1919

Lew Rockwell explains how the Fed enables war and destruction of liberty. War and Inflation is an excellent article.

War and Inflation by Llewellyn H. Rockwell, Jr.

End the Central Bank

This talk was delivered at the Mises Institute's Supporters Summit, November 1, 2008, Auburn, Alabama.

End the Central Bank

Daily Article by Llewellyn H. Rockwell, Jr. Posted on 11/10/2008