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.

The American Dream By The Provocateur Network

Watch it.

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

Chicago Tea Party

Join the Facebook group.

Here is one of several sites...

Goodbye Freedom, Hello Dictator

Are you ready for a New Constitution? Well its coming, if not now then soon, unless citizens of the several states find a way to stop it.

This Phyllis Schlafly article should be widely read. There are people and organizations who maintain and pursue a goal to overturn the USA as a free and sovereign nation. Considering where we stand today as a nation, a constitutional convention would provide the perfect working platform to swiftly destroy our current form of government.

By the way, "USA" refers to the United STATES of America, not a single central government with the label "USA". The reference is to a group of sovereign states who agreed to maintain a central, federal government which was to be subservient to the states and the people. We lost that long ago.

The primary tool used to destroy us, which we stupidly handed over, was our productivity, transferred through the process of inflation. Our labor has funded our enemies; the enemies of freedom; the enemies of the United States.

What have we done?

Oh, he's one of those

So I was talking to a friend this morning. I'll refer to him as John.

We talked about the money issue in the context of What else have we lost?. It turns out John and his girlfriend were talking about the same idea Thursday night. In our generation, John comes closer than anyone I know in working toward and desiring to preserve family as a community, much like the family units that built our nation.

As we talked, John mentioned a previous introduction he had to monetary issues and stories about the Federal Reserve and Jekyll Island. When John first heard about the subject from an acquaintance, John's initial response was "Oh, he's one of those".

Even so, John was intrigued enough to go and begin to do some research on his own. John discovered that what was being said about the Fed and money seemed to be true. However, he wasn't going to spend his time learning all about the Fed; after all, he has too much to do and we can't do anything about it anyway.

What does this brief conversation illustrate?

Let's think about the comments noted herein.

Oh, he's one of those...

Something, call it what you will, within our society teaches us to respond in a certain way to stories about money, the Federal Reserve and political power. We are taught to consider people who hold negative views about these subjects as crack-pots, whackos and fringe thinkers. Oh, he's one of those...

Remember, only a lie needs protection; the truth can stand on its own.

Some so-called "crack-pots" hold the view that the Federal Reserve System is a fraud. Why would a person holding such views come under ad hominem attacks, rather than having their positions responded to objectively? If their words and ideas are false, illustrate the error.

Don't call them names. Refute their arguments.

An honest scholarly analysis will reveal that arguments used in defense of a Keynesian economic model are absurd. Not only do economists, politicians and media types take these absurd arguments seriously, this is the system we labor under today.

When one points out objective flaws in the Keynesian model, the speaker's reward is marginalization and character assassination.

Think about what is happening.

Remember the $700 billion dollar bailout? Will that cause a wealth transfer? We all know it will. And the same thing happens incrementally everyday that we use costless fiat and fractional money. We have done this for nearly 100 years with our present central bank.

When inflating with costless money, the purpose of inflation is to use NEW MONEY to purchase REAL ASSETS at OLD PRICES, thereby causing a wealth transfer from the people who get the new money last, toward the people who get the new money first. - Shane Coley

How is it that we can see this pillaging so clearly, and yet when someone points it out and claims that the theft is intentional, we fall in line with the conditioners (which CS Lewis talked about in the 1940's) and say "Oh, he's one of those..."?

Our monetary system is Keynesian and Keynes wrote about the destructive effect of inflation at least as early as 1919.

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

I don't have time...

I agree that the typical citizen should not have to set aside large chunks of work time and family time and rest time to do exhaustive research about our monetary system, or any other issue for that matter. However, the reality today is that we will soon lose our remaining freedoms unless specific hidden knowledge is converted to common knowledge.

The protestant Bible points out in Hosea 4:6a My people are destroyed for lack of knowledge.

What citizens need to know about our monetary system is not complex; it is hidden. The truth about our monetary system has been intentionally hidden because the whole fraudulent game will end the day people understand they have been robbed, pillaged and used.

If the knowledge is not intentionally hidden and obscured, why didn't the Fed protest make the major news? Who is the media answering to?

We can't do anything about it anyway...

When John pointed out that we can't do anything about it anyway, my response to John was this: "Sure we can do something about it. We already have three times in the past."

John said: "But not here...?"

And I said: "Yes here. We have stopped the reauthorization of three central banks, which each began with twenty year charters. One existed before the constitution and two after."

John's response? He was optimistic! I could hear in his voice the belief that maybe there is something we can do about this problem after all.

What do we do?

As soon as possible, we need to abolish the Fed, return to private sound money and eliminate fractional reserve banking.

But today, every citizen needs to learn the truth and spread the knowledge. We are being robbed. Let's work together to tell all the people the truth and then see what happens next.

Don't be conditioned and brainwashed into the belief that the Fed is our savior, banks are innocent and greedy business people caused all our problems. Such propaganda is just simply not true.

Fiat Money and Growth

One of the arguments for the central banking model is that we "need more money" for a growing economy. This is a popular fallacy which we will consider in greater detail later. In simple terms, if all cars cost $300 or $3,000 or $30,000 or $300,000 why do we care one way or the other, as long as wages have a similar relative value to the car as now?

The "price" of the good and "quantity" of money is meaningless.

What is important is the relative value of goods and labor. Money is simply the common commodity that enables economic calculation. With money one can compare the value of an acre of land and a tractor, for instance. Suppose an acre of land is equivalent in value to one tenth of a tractor. If the land costs $10 and the tractor costs $100 this works just as well as the land costing $10,000 and the tractor costing $100,000. The relative value is unchanged.

In addition, since we know a car in the past cost $3,000 and a car today costs $30,000, we can clearly see that the same good can sell for a higher price in the future. If it can sell for a higher number of monetary units (price) in the future, why not a lower number. It's just math...

In a sound money economy, a car would actually cost less today than in the past. Your money would have greater purchasing power today than 100 years ago or even 20 years ago.

If the idea of printing new money is to make sure everyone has enough, then all prices should have remained stable. But instead prices are much higher. Why?

Since the quantity of money is not important and since we have seen with the Five Guys Analogy that inflation serves no purpose if everyone gets the new money on the same day and since we know that the purpose of inflation is to cause a hidden wealth transfer, we can draw a few simple conclusions.

First recall that in our inflationary monetary system, one is either pillaging or being pillaged. There is no middle ground.

To make the argument that we "need more money" in order to have a healthy, growing economy is to make the following ridiculous argument:

A productive and independent business person just can't make it unless a significant portion of what he produces is stolen from him.

He can never be expected to succeed unless his profit is forcefully taken away from him through the process of inflation; the confiscated money must be used to bury him in regulation, while burdening the workforce and consumer with destructive lies and propaganda, paid for out of their own productivity.

One must never expect an increase in wealth if people are allowed to keep what they earn.

Sounds like a bad idea when one discovers that the architects of this monetary system actually expect us to believe that we will grow wealthy by allowing ourselves to be robbed...

Watch Peter Schiff speak truth

Watch Peter Schiff speak truth based on principle.

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