Tuesday, March 3, 2009

Comment by Eric Peterson

Author: Eric Peterseon

In light of the war powers clauses of the Constitution we have an individual Right to a government that does not apply the armed forces of the United States in hostilities overseas without a declaration of war; the invasion of Iraq was unconstitutional.

In light of the money clauses of the constitution the Federal Reserve System is unconstitutional.

We, the people have not authorized the government to give or lend public money or credit to private corporations for definitively private purposes. The Treasury and Fed bailouts are unconstitutional.

We, the people have not authorized the government to create a North American union that would, for all intents and purposes, erase our northern and southern borders. The development of a North American Union is unconstitutional.

In light of the privacy clauses of the constitution, the USA PATRIOT ACT is unconstitutional, and the developing police state is unconstitutional.

In light of the tax clauses of the constitution, the direct, un-apportioned tax on labor is unconstitutional.

In light of the Second Amendment, federal gun control laws are unconstitutional.
In light of the Second Amendment, the absence of well-regulated state militias is unconstitutional.

In light of the “faithfully execute” clause of the Constitution, the President’s failure to faithfully execute the immigration and naturalization laws is unconstitutional.

In light of the “natural born citizen” clause of the Constitution, it is unconstitutional for Mr. Obama to assume the office of President of the United States, no matter the number of people who voted for him.
In light of the spirit and intent of the Constitution, it is unconstitutional for the Government to conduct elections that do not rely on paper ballots that are hand-marked and hand-counted with results announced and posted at each polling place.

In light of the First Amendment, Government officials are obligated to respond to the People’s Petitions for Redress of Grievances/violations of the Constitution.

Modern monetary systems have a fiat base -- literally money by decree -- with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as reserves. The decree appears on the currency notes: "This note is legal tender for all debts, public and private."

While no individual could refuse to accept such money for debt repayment, exchange contracts could easily be composed to thwart its use in everyday commerce. However, a forceful explanation as to why money is accepted is that the federal government requires it as payment for tax liabilities. Anticipation of the need to clear this debt creates a demand for the pure fiat dollars.

The bottom line is that Congress and the banking cartel have entered into a partnership in which the cartel has the privilege of collecting interest on money which it creates out of nothing, a perpetual override on every American dollar that exists in the world.

Congress, on the other hand, has access to unlimited funding without having to tell the voters their taxes are being raised through the process of inflation. If you understand this paragraph, you understand the Federal Reserve System.

There is no money in any account to cover this check. Anyone else doing that would be sent to prison. It is legal for the Fed, however, because Congress granted it in 1913 and wants the money, and this is the easiest way to get it. (To raise taxes would be political suicide; to depend on the public to buy all the US Treasury bonds would not be realistic, especially if interest rates are set artificially low; and to print very large quantities of currency would be obvious and controversial.) This way, the process is mysteriously wrapped up in the banking system. The end result, however, is the same as turning on government printing presses and simply manufacturing fiat money (money created by the order of government with nothing of tangible value backing it) to pay government expenses. Yet, in accounting terms, the books are said to be "balanced" because the liability of the money is offset by the "asset" of the IOU. The Federal Reserve check received by the government then is endorsed and sent back to one of the Federal Reserve banks where it now becomes available again . . .

Now for a more detailed view. There are three general ways in which the Federal Reserve creates fiat money out of debt.

First is by making loans to the member banks through what is called the Discount Window.

The second is by purchasing Treasury bonds and other certificates of debt through what is called the Open Market Committee.

The third is by changing the so-called reserve ratio that member banks are required to hold. Each method is merely a different path to the same objective: taking IOUs and converting them into spend able money.

The only beneficiaries are the political scientists in Congress who enjoy the effect of unlimited revenue to perpetuate their power, and the monetary scientists within the banking cartel called the Federal Reserve System who have been able to harness the American people, without their knowing it, to the yoke of modern feudalism.

The previous lending figures are based on a "reserve" ratio of 10% (a money-expansion ratio of 10-to-1). It must be remembered, however, that this is purely arbitrary. Since the money is fiat with no previous-metal backing, there is no real limitation except what is set by the politicians and money managers decide is expedient for the moment. The pretense of a reserve needs to be controlled also or can be dropped altogether.

The primary reason the United States avoided massive inflation during the 1980s when the federal government was going into debt at a greater rate than ever before in its history. By keeping interest rates high, these US Treasury bonds became attractive to private investors, including those in other countries. Very little new money was created, because most of the US Treasury bonds were purchased with American dollars already in existence. This, of course, was a temporary fix at best.

On the other side of the coin, the Federal Reserve has the option of manufacturing money even if the federal government does not go deeper into debt. For example, the huge expansion of the money supply (having more money to lend) leading up to the stock market crash in 1929 occurred at a time when the national debt was being paid off. In every year from 1920 through 1930, federal revenue exceeded expenses, and there were relatively few government bonds being offered (which is key to regaining control). The massive inflation of the money supply was made possible by converting commercial bank loans into "reserves" at the Fed's discount window and by the Fed's purchase of banker's acceptances, which are commercial contracts for the purchase of goods.

The Monetary Control Act of 1980 has made it possible for the Creature (Federal Reserve, a private corporation) to monetize virtually any debt instrument, including IOUs from foreign governments. The apparent purpose of this legislation is to make it possible to bail out those governments which are having trouble paying the interest on their loans from American (Federal Reserve indorsed Institutional) banks. When the Fed creates fiat American dollars to give foreign governments in exchange for their worthless bonds, the money path is slightly longer and more twisted, but the effect is similar to the purchase of U.S. Treasury Bonds.
As long as someone is willing to borrow American dollars, the Federal Reserve cartel will have the option of creating those dollars specifically to purchase their bonds and, by so doing, continue to expand the money supply.

This very expansion and contraction of the monetary pool -- a phenomenon that could not occur if based upon the laws of supply and demand -- that is at the very core of practically every boom and bust that has plagued mankind throughout history.

It is still within the power of Congress to abolish the Federal Reserve System.
Under the present System, therefore, our leaders cannot allow a serious reduction in either the national or consumer debt. Charging interest on pretended loans is usury, and that has become institutionalized under the Federal Reserve System must be abolished. So in closing, I suggest that all interest based on the 90 percent reserve ratio principle be dropped or cemented or make ill legal, and all monies establish in banks as “CD”, Savings, or any other classifications as assets, be converted over by the US Treasury as BONDS, for each bank to use as reserves to leaned, and no US Government buying of foreign governments notes. Fix interest rate on US Treasury Bonds along with all other interest rates on monies that were lent an will be lent… for all local native born, and natural born citizens… The US Treasury gets control of all manufacturing of money even if the federal government does not go deeper into debt. Reversing The Monetary Control Act of 1980, and closing the monetary pool from expanding and contracting… Get the trade in-balance, back in balance… tax those companies for moving to foreign markets heavily and encourage those companies who build and grow here in the US...

Re-open silver mines here in the United States backed by the US Government who will make 40% of the profit in bullion to go directly to the US Treasury…

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