Wednesday, November 1, 2017

5 Epic Failures of North Korean Science and Industry

North Korea's belligerent threats, claims of military supremacy, and promotion of an official ideology based on independence and personal achievement are difficult to square with the endless series of horrifying blunders by the regime in Pyongyang.
Murdering a mountain with nuclear bomb tests: To give the devil his due, dictator Kim Jong-un made progress toward nuclear missile technology much faster than most analysts expected. That rapid progress has come at a terrible cost. Reports recently surfaced that a tunnel collapse in North Korea's underground nuclear testing complex at Punggye-ri killed up to 200 workers.

North Korean
North Korea's neighbors are understandably worried about further seismic events beneath Mt. Mantap and the possibility of radioactive waste leaking beyond North Korea's borders. The underground complex is so reportedly rickety after six increasingly powerful nuclear detonations that earthquakes are now occurring without nuclear bombs going off. There are concerns that further test detonations could be "suicidal," as a South Korean professor put it, because Mt. Mantap could collapse, or the volcano at nearby Mt. Paektu could erupt.

There has been speculation that China's tough attitude toward North Korean transgressions might be partly inspired by fears of what Pyongyang's twisted science experiments could do to Chinese territory and civilians. Residents of at least one sizable Chinese town have grown accustomed to earthquakes as a consequence of the nuclear mischief at Punggye-ri.

Unfortunately, the Kim regime might not have any good locations for establishing a replacement underground nuclear test site. Even more unfortunately, their next test detonation might not occur underground.

Failed missile tests: An estimated 88 percent of North Korean missile launches fail on the launch pad, or explode shortly after launch, possibly with a little help from cyber-espionage teams.

It will be a long time, if ever, before civilian observers can know for certain if these failures were the result of sabotage, and how much they might have set North Korea's missile program back. Also, it is quite possible that North Korean scientists accumulate valuable data from their failures, and the difficulty of securing reliable intelligence from the outlaw nation means some tests initially seen as failures are later deemed more successful. There is no doubt that Pyongyang's successes are more troubling than its failures are comforting, and there will be no Nelson Muntz laughs from South Korea or Japan if a malfunctioning North Korean missile crashes in a populated area.

Still, for all of North Korea's boasts, an awful lot of the missile launches intended to demonstrate their deadly proficiency turn into embarrassing fizzles. Each of them burns up some equipment they were not supposed to have and might have some trouble replacing these days.

Internet blackouts: Shortly after its suspected cyber-attack on Sony Pictures in retaliation for a comedy unflattering to dictator Kim Jong-un, North Korea experienced a massive failure of its diminutive Internet. At one point, the entire nation was said to be effectively cut off from the Internet, which must have been very annoying for the tiny percentage of elite North Koreans permitted to use it.

Speculation abounds over whether this was an equipment failure or deliberate attack by military cyber-warfare teams, freelance hacktivists, or the supremely irritated Chinese stewards of North Korea's uplink. For the record, North Korea accused U.S. hackers of crashing its Internet access on orders from President Barack Obama, whose recklessness was compared to that of a "monkey in a tropical forest" by a peeved North Korean official.

The primitive state of North Korea's Internet access is embarrassing from a public welfare standpoint, and nauseating from a human rights perspective, but it can also be an asset to the totalitarian government. Cyber-espionage experts believe that at least one orchestrated cyber-espionage campaign conducted by the U.S. against North Korea's nuclear program failed because their computer networks are too primitive and disconnected from one another to effectively sabotage.

The Hotel of Doom: Looming above the Pyongyang skyline is a seemingly eternal construction project mockingly referred to by outsiders as the "Hotel of Doom." Note: referring to the Ryugyong Hotel by this name is probably unwise for any North Korean citizens who somehow gained access to the Internet and are reading this.

The hotel is 105 stories of embarrassing failure, ostentatiously designed to look like a rocket on the launch pad. It has been under construction since 1987, with an original target opening date of 1989, at which time it would have been the world's tallest hotel. Instead, it is currently considered to be the world's tallest unoccupied building.

A regime that cannot afford to feed its people somehow finds endless loads of cash to dump into this boondoggle - well over half a billion dollars, according to some estimates. A recent flurry of ostentatious construction work on the Ryugyong Hotel, coinciding with the anniversary of the Korean War armistice, resulted in two new walkways leading up to the front door, and a big red propaganda sign declaring North Korea to be a "Rocket Power Nation."

A new flock of construction trucks and cranes came to roost outside the tower a few weeks ago, prompting government tour guides to chirp that at least part of the building might soon be open as office space, or housing, or an entertainment complex, or something. Given the lingering questions about the structural integrity of the long-under-construction tower, a stay in the upper floors could be quite exciting.

"The guides didn't say much. They seemed both proud of the hotel and somehow embarrassed," said one recent visitor to Pyongyang.

Humanitarian aid for North Korea's citizens: By the standards of North Korea's totalitarian ideology, it should be a tremendous embarrassment that huge amounts of humanitarian aid are needed to feed and care for its peasant population.

Japan and South Korea recently squabbled over the latter's determination to proceed with another $8 million in humanitarian assistance to provide vaccines, medicine, and malnutrition treatment to North Korea's children and pregnant women. Tokyo felt the aid package would blunt the impact of sanctions against North Korea, while Seoul cited World Food Program and UNICEF reports on the dire situation faced by women and children in the North Korean worker's paradise of supreme self-reliance.

The United Nations expressed fears that "chronic food insecurity, early childhood malnutrition, and nutrition insecurity" meant tougher sanctions against North Korea could be dangerous for the civilian population.

According to the U.N., 41 percent of the North Korean population is undernourished, and it would take $114 million in humanitarian aid to address the problem. The reluctance of donors to fund North Korean relief projects while the psychotic government in Pyongyang threatens the world with nuclear war was cited as cause for deep concern.

North Korea also requires extensive outside assistance with natural disasters such as flood and famine. The last round of major floods left 70 percent of the population short of food, prompting a request for $21 million in emergency aid from the World Food Program. These are not entirely natural disasters, despite the Kim regime's pathetic insistence that the dictator cannot be held responsible for the rain. Excessive deforestation and the miserable condition of peasant housing - while the regime splurges on luxuries for the ruling class, flashy urban construction projects, military hardware, and nuclear weapons - make every flood worse than it should have been.

The Kim regime, by the way, is quite happy to hold its own people hostage, refusing humanitarian aid to punish the donors for participating in U.N. sanctions against North Korea's nuclear program. It holds other nations responsible for the suffering of North Korean serfs, because they refuse to give in to the regime's demands and provide the dictatorship with resources for its favorite projects. It's one of the most sickening cases of North Korea weaponizing its own failures to use as leverage against the civilized world.

By John Hayward

Source: Breitbart

Monday, October 2, 2017

DHS Chief: U.S. Efforts to Combat Chemical, Biological, Nuclear Threats 'Inadequate'

WASHINGTON, D.C. -- U.S. Department of Homeland Security (DHS) efforts to combat chemical, biological, radiological, and nuclear (CBRN) threats facing Americans are "inadequate," the department’s acting secretary told lawmakers Wednesday.

iran missile launch
In written testimony prepared for a Senate panel hearing on threats to the American homeland, Acting DHS Secretary Elaine Duke revealed, "The Department’s current approach to addressing CBRN matters is inadequate. For nearly a decade, DHS has looked at reorganizing internally to better counter these dangers."

DHS is reportedly taking action to address its shortcomings in dealing with CBRN issues.

"I want to emphasize that we are overhauling homeland security to cope with changes in the threat landscape," testified Secretary Duke.

"As we continue this overhaul, it is clear that the authorities, structures, and accountability measures developed for DHS over 15 years ago are no longer sufficient," she added.

Choosing not to elaborate further in a public setting, Secretary Duke only said that terrorist groups are showing a "renewed" interest in weapons of mass destruction (WMDs), telling Senators:
Our intelligence professionals have seen renewed terrorist interest in WMD and are aware of concerning developments on these issues, which can be discussed further in an appropriate setting. That is one reason why the Department is eager to establish a focal point for our work to protect Americans against chemical, biological, radiological, and nuclear (CBRN) threats.
On top of trafficking drugs, violence, and dangerous goods across the U.S. borders, transnational criminal organizations (TCOs) in Latin America could potentially lend assistance to terrorists in their quest to acquire WMDs, indicated the DHS secretary.

Echoing the U.S. military, she added that TCOs could also facilitate the entry of terrorism-linked illegal aliens into the United States.

Secretary Duke also told lawmakers:
TCOs pose a persistent national security threat to the United States. They provide a potential means for transferring weapons of mass destruction (WMD) to terrorists or for facilitating terrorists’ entry into the United States. We have already seen migrants with terror connections travel from conflict zones into our Hemisphere, and we are concerned that criminal organizations might assist them in crossing our borders. The shifting travel patterns of these foreign nationals has been cause for concern.
The Islamic State (ISIS/ISIL), deemed the "primary" threat against the United States by the witnesses during the hearing, has reportedly shown an interest in WMDs.

In a 2015 op-ed article published in its propaganda magazine Dabiq, ISIS indicated that it could smuggle a nuclear weapon into the U.S. through Mexico using existing trafficking networks in Latin America.

During the hearing held by the Senate Homeland Security and Government Affairs Committee, Duke testified alongside FBI Director Christopher Wray and the leader of the U.S. National Counterterrorism Center (NCTC), a component of the Office of the Director of National Intelligence (ODNI), Nicholas Rasmussen.

While the DHS has deemed its efforts to combat the chemical, biological, radiological, and nuclear problems afflicting the United States as "inadequate," Wray acknowledged in his prepared remarks:
The FBI, along with its U.S. Government partners, is committed to countering the Weapons of Mass Destruction ("WMD") threat (e.g., chemical, biological, radiological, nuclear) and preventing terrorist groups and lone offenders from acquiring these materials either domestically or internationally. 
Domestically, the FBI’s counter-WMD threat program, in collaboration with our U.S. Government partners, prepares for and responds to WMD threats (e.g., investigate, detect, search, locate, diagnostics, stabilization, and render safe WMD threats). Internationally, the FBI, in cooperation with our U.S. partners, provides investigative and technical assistance as well as capacity-building programs to enhance our foreign partners’ ability to detect, investigate, and prosecute WMD threats.
Secretary Duke told lawmakers that DHS hopes to work with lawmakers to improve America’s defenses against chemical, biological, radiological, and nuclear threats.

DHS intends to create "a focal point for such activities like most other national security departments and agencies, improving strategic direction, instituting business management best practices across the CBRN space, boosting morale, helping with leadership recruitment and retention, and over time reducing waste, overlap, and duplication," she said.

"Our leadership team is breaking down legacy bureaucratic barriers to make DHS operate more efficiently and effectively to counter threats to our nation. We are ramping up unity of effort within the department and tight collaboration with law enforcement, the intelligence community, and our allies," she continued later. "And we are looking at ways to further integrate intelligence and operations so that our actions are driven by timely information and that we respond quickly to new dangers."

The DHS secretary and ODNI director warned that the magnitude of the terrorist threats facing the United States may "exceed" the 9/11 period.

By Edwin Mora

Source: Breitbart

Tuesday, September 5, 2017

Is this Bush's secret bunker?

Mount Weather is a top-security underground installation an hour's drive from Washington DC. It has its own leaders, police, fire department - and laws. A cold war relic, it has been given a new lease of life since 9/11. And no one who's been inside has ever talked. Tom Vanderbilt reports.

'Actually, you may want to just put those down a minute," Tim Brown is telling me, as I peer through binoculars at a cluster of buildings and antennae on a distant ridge. "The locals might get a bit nervous." A Ford F-150 cruises by, and the two men inside regard us casually as they pass.
We are sitting, hazards blinking, in Brown's BMW on a rural road in Virginia's Facquier County, a horsey enclave an hour west of Washington DC. The object of our attention is Mount Weather, officially the Emergency Operations Centre of the Federal Emergency Management Authority (Fema); and, less officially, a massive underground complex originally built to house governmental officials in the event of a full-scale nuclear exchange. Today, as the Bush administration wages its war on terror, Mount Weather is believed to house a "shadow government" made up of senior Washington officials on temporary assignment.

Bush's secret bunker
Following the collapse of the USSR, Mount Weather seemed like an expensive cold-war relic. Then came September 11. News reports noted that "top leaders of Congress were taken to the safety of a secure government facility 75 miles west of Washington"; another reported "a traffic jam of limos carrying Washington and government license plates." As the phrase "undisclosed location" entered the vernacular, Mount Weather, and a handful of similar installations, flickered back to life. Just two months ago, a disaster-simulation exercise called Forward Challenge '06 sent thousands of federal workers to Mount Weather and other sites.

Mount Weather is not hard to find. From the White House, we take Route 66 west until it meets Highway 50. Fifty miles later, we turn off on Route 601, a small two-lane rural feeder that snakes up a ridge. That road seems to be going nowhere until suddenly, at the crest, we come into a clearing, bounded by two lines of tall, shiny, razor-wired fencing, marked with faded signs that say: "US Property. No Trespassing." Behind sits a grouping of white aluminium sheds and a few cars.

We have arrived at the edge of the known republic. What lies beyond is obscured by Appalachian scrub and the inky black of government classification. No one has ever been allowed to tour the underground complex at Mount Weather and tell of what they saw. Occupying 500 acres of Blue Ridge real estate, it functions like a rump principality, with its own leaders, its own police and fire departments, and its own set of laws.

Mount Weather is more easily viewed from outer space than down the block. Earlier in the afternoon, I had been looking at grainy 1m-resolution aerial images of Mount Weather assembled by Brown, a national security researcher and aerial imagery expert. He pointed to small notches on the side of a hill (tunnel entrances), helipads, and a series of "military-style above-ground soft support housing". The mountain straddles the two entrances, he noted. "It's something like 200ft of shelter on top of you at the highest point."

Just driving round the perimeter of Mount Weather, you can see the traces of recent work. "See how they've obscured this," he says, pointing to the black sheeting threaded through a length of fence. "You used to be able to see the helipad through that fence." He gestures towards the new entrance. "Look at the truck barriers. When you turned, there'd be no time to build up speed. They got smart."

The changes to its exterior landscape - not to mention the gossip among local residents - are just one sign that that something very important has been going on at Mount Weather, a level of activity not seen here since the days when Eisenhower and his advisers trooped out here during drills. For some, this is a sign of prudent planning in a world where the security calculus has been for ever altered; for others, it is the symbol of an administration with a predilection towards exercising power in secret. As we pull away from Mount Weather, Brown says, "I wouldn't want to be driving a rental truck and have it break down in front of the gate."

Mount Weather first caught the American imagination on December 1 1974, when a Dulles-bound TransWorld Airlines 727, struggling through heavy rains and 50mph winds, crashed into the top of the mountain, less than a mile and a half from the site. The crash briefly severed the underground line linking to the Emergency Broadcast System, and teletype machines in news offices across the country began spitting out garbled transmissions.

The story might have died there. With Vietnam and Watergate in the air, however, the words "secret government facility" did not exactly induce a frisson of patriotic glee. The Progressive, in 1976, published an article, entitled The Mysterious Mountain, which said Mount Weather, a place little known even to Congress, was home not only to a replica mini-government, but to files on at least 100,000 Americans. In 1991, Time published the fullest exposй, describing (based on conversations with retired engineers) a sprawling underground complex bristling with mainframe computers, air circulation pumps, and a television/radio studio for post-nuclear presidential broadcasts.

What information has emerged about Mount Weather has always been rather sketchy. At some point in the 1950s, however, it seems that a drilling experiment into the mountain's rugged foundations of Precambrian basalt was turned into an exercise in underground city building, with the army corps hollowing out of the "hard and tight" rock a complex of tunnels and rooms with roofs reinforced by iron bolts.

The base formed part of a "federal relocation arc", an archipelago of hardened underground facilities, each linked by a dedicated communications system and equipped with amenities ranging from showers to wash off nuclear fallout to filtration systems capable of sucking air clean down to the micron level. The sites, staffed by "molies", were spartan steel-and-concrete expanses, subterranean seats of power: the president could repair to Mount Weather; Congress had its secret bunker under the Greenbrier Hotel in West Virginia; the Federal Reserve had a bunker in Culpeper, Virginia; the Pentagon was given a rocky redoubt called Site R in the mountains of southwestern Pennsylvania; while the nation's air defences were run out of Norad's (North American Aerospace Defence Command) Cheyenne Mountain facility. "The nuclear age has dictated that these men carry out their responsibilities inside a solid granite mountain," wrote the defence command.

Mount Weather's secrecy was never absolute. In the 1957 novel Seven Days in May, the authors referred to a shadowy facility called Mount Thunder, all but revealing its location. Driving around those Blue Ridge byways today, a curious mixture of secrecy and openness still prevails. On Route 601, an Adopt-a-Highway sign is sponsored by employees of the Mount Weather Emergency Operations Centre. But pull off toward the entrance of that facility, and things get a bit strange. Looking for the home of a local resident, I hail an exiting Mount Weather employee. As we begin to chat, cars side by side, I suddenly hear a strange, siren-like sound and notice that a black SUV has loomed into my rear-view. The occupant, wearing sunglasses, hastily points me in the right direction.

This contradictory world of sunshine and shadow is at one with the parallel nature of the facility itself. On the one hand, it is, as Fema describes it, "a hub of emergency response activity providing Fema and other government agencies space for offices, training, conferencing, operations and storage". Less discussed is Mount Weather's obliquely assumed status as one of the key "undisclosed locations" of the Bush administration. "Look, there are two Mount Weathers - there's the Fema one and the Mount Weather one," says John Weisman, a writer of military and spy thrillers and a neighbour of the facility. "I wouldn't be at all surprised if [the vice-president, Dick] Cheney had been here before, and if [the secretary of defence, Donald] Rumsfeld had been here before, because they were part of some hugely sensitive stuff that was going on in the 1980s."

Weisman is referring to a series of classified programmes, described by the journalist James Mann in The Rise of the Vulcans, in which Cheney and Rumsfeld were said to be "leading figures". According to Mann, the resurgence of tensions with the Soviet Union during the Reagan administration lent new urgency to "continuity of government" programmes. With a secret executive order, and an "action officer" in the form of Oliver North, top officials pondered such constitutional quandaries as whether it would be necessary to reconstitute Congress following a nuclear attack (the answer was no).

On September 11 2001, Mann writes, the long-dormant plan was activated, and any number of top officials - possibly including Cheney himself - were shuttled to Mount Weather.

Residents on the mountain did not need to read the newspapers to discern that something was going on there. Joe Davitt, a retired civil servant who lives in a small A-frame house a mile or so away, told me that on September 11 2001 his wife was returning home from Florida. At the bottom of the hill, he says, she was stopped by state troopers, who asked for identification. At the facility itself, he says, "The Mount Weather guards were not only armed, they had their guns in firing position." John Staelin, a member of the Clarke County Board of Supervisors, says that on September 11, the county's 911 line received a call from an agitated local woman. "She said, 'I wouldn't have believed it if I hadn't seen it with my own eyes, but the whole mountain opened up and Air Force One flew in and it closed right up. I wouldn't have believed it if I hadn't seen it with my own eyes.' So they said, 'Yes, ma'am.' "

Whatever else, Mount Weather makes for an interesting neighbour. "My God," says Davitt, as we sit on his back porch, "they put a plough up there at the first forecast of snow. They've always been good at keeping the road ploughed."

"We call our house ground zero," says Weisman. "This mountain has its interesting moments, between the helicopter flights and the people coming and going." Where for years "Mount Weather was nothing but a sleepy little byway", Weisman complains that the post-9/11 security adjustments have only served to draw attention to the facility. "It now says, 'Boy, am I important!' "

The local people are, by and large, perfectly happy to talk about Mount Weather. Sometimes, however, a veil of secrecy descends. When I asked about Mount Weather at the Daily Grind coffee shop in nearby Berryville, a woman smiled nervously and told me one woman she knew saw "missiles" being taken there. I was forwarded an email from a mountain resident (with the .mil domain that suggests a military background) that contained complaints about late-night helicopter flights, as well as recent episodes of nocturnal machine-gun fire and even a "massive explosion" that had shaken the house. My email seeking further comment received an immediate, terse response demanding that the sender not be associated with the story.

Inquiries to Fema yield little more light. "There's been a general upgrade of security at all federal installations around the country, and Mount Weather is one of them," says spokesman Don Jacks. "I answered your question in a very general way. We're not going to talk about Mount Weather, period. It's not that I can't, we just don't."

A request to talk to Reynolds Hoover, the director of Fema's Office of National Security Coordination, dies on the vine. And forget about James Looney, Fema chief at Mount Weather. "To talk to Mr Looney you would have to talk about Mount Weather," Jacks reminds me. "And we don't talk about Mount Weather."

One afternoon, I went to have lunch with Jim Wink at the Horseshoe Curve, a saloon tucked away near the hamlet of Pine Grove. It has been the unofficial canteen of Mount Weather for as long as anyone can remember. "I've seen Seabees [members of the US Navy Construction Battalions] come out of the tunnels at the end of the day and come down to the bar for a few beers," says Weisman. A Comanche pickup in the parking lot has a bumper sticker that says Terrorist Hunting Permit.

"I checked you out last night," Wink says by way of introduction. "So did Ray." He's talking about Ray Derby, a former Mount Weather employee whom I had visited the night before, who has suddenly appeared today. Wink, an Irish-blooded South Philadelphian with a tight smile and a steely, penetrating stare, does not seem like a man of whom you would like to run afoul. A retired counterterrorism expert with stints in the CIA, the Secret Service and any number of other agencies, he seems to have been in every place in the world at the most politically sensitive time. He was one of the last several hundred US personnel in Vietnam in April 1975, until he heard the song White Christmas - a coded message to get out of the country.

His office is filled with memorabilia culled from the more occluded arenas of US foreign policy; there is a plaque signed by the team tracking the Shining Path leader, Abimael Guzman, in Peru; a collection of Wink's identity cards from various intelligences agencies around the world (he's wearing sunglasses in most of them); and, among other souvenirs, a photograph of the slain drug lord Pablo Escobar. "There's your richest man in the world," he says, handing me a snapshot of a bloated, blank-eyed corpse. "He did not die a good death."

There's a Vets for North sticker on one wall, and, on another, one that says: "Even My Dog is Conservative."

Wink came to Mount Weather in the 1980s. "I needed a training facility and they offered a great deal up here."

When he came with the Secret Service one day to the Curve for a beer, he met his future wife, Tracee, whose grandfather had owned the bar. "Cheney and Rumsfeld, they've been here," he says, gesturing to the bar. "And Ollie. We all worked here together years ago. She can even tell you what they drank." His eyes shift toward his wife, behind the bar. "When I used to run exercises we'd bring 1,000 people," he says. "Most of the things we did, they didn't let 'em off the post." He talks vaguely of one training exercise. "We had to do the psychology of being locked up," he says. "We started with submarines."

There have been curious visitors to Mount Weather from the start, he says, including the Russians. "The State Department, in their infinite lack of wisdom, allowed the Russians to have a R&R center on the river here, right below Mount Weather." The Curve, which sits off an entrance to the Appalachian Trail, attracts wayward visitors. "One hiker came in and said he was hiking all the facilities. Said you could get closer that way. He was trying to find out a little too much."

Local people, Wink says, like to help Mount Weather maintain its low profile. "They won't talk about it," he says. "As a matter of fact," he says, fixing his eyes on me, "you might meet a local cop if you ask too many questions about it. Many of the men around here served in the second world war," he continues. "Consequently they don't discuss those things."

I had encountered a similar line of thinking the night before from Derby, a long-time federal emergency coordinator and civil defence officer who is now retired and living in nearby Winchester. "All the employees of Mount Weather have always been told, rightly so, that no matter what someone asks you, just don't say if it's true or not true. Just ignore the question. You'll get that if you ask," says Derby, a chain-smoker with neatly Brylcreemed hair who drinks what he calls "martoonis" out of a tumbler. His office, in the upstairs of his split-level suburban home, is filled with various presidential commendations, as well as a photograph of what looks like a emergency conference room.

"I designed that," he says, peering through a dense curl of cigarette smoke, "but I can't tell you where it is".

By Tom Vanderbilt

Source: Guardian

Thursday, August 10, 2017

U.S. Is Still a Global Leader. Trump Can't Change That

Trump's America is dying. The rest of the nation is a growing, shining city on a hill.

If you think of the U.S. as a global leader, these are troubling times. This past week's G-20 meeting showed how weak the U.S. has become. At a big international summit, the president seems uninterested and withdrawn.
Donald Trump
Trump has surrendered, but the nation hasn't
But America is not now and has never been a homogeneous country with universal shared values. And while perhaps the shrinking part of America that Trump represents may seek to go its own way, the growing parts of America that represent the future are likely to redefine a 21st-century version of global leadership.

In the years following World War II, Europe's and Japan's economies were in ruins. Mostly unscathed by war and economically empowered by wartime production, the U.S. inherited its position as the world's dominant superpower. Industrial-era cities were at their high. Factories were booming. The parents of baby boomers were expanding into the suburbs, financed by government-backed mortgages and new highways. We had visions of man setting foot on the moon.

For parts of America, much has gone wrong since then. Europe and Japan rebuilt their economies, and the rise of China and other emerging markets led to competition for American manufacturing jobs. Outsourcing and productivity improvements slowly hollowed out America's factories. Continued domestic migration south and west, along with lower fertility rates, put demographic strains on the Northeast and the Midwest. Highways may have been a boon for the American economy, but communities far from them slowly became economically irrelevant. In stagnant communities, strains from pension costs and aging infrastructure have led to a host of financial, social and political challenges. The shock of the 2008 financial crisis was a body blow from which many communities are still reeling. The election of Trump was a response to all of this.

Globalization and demography certainly created American losers -- to borrow Trump's terminology. But those forces also created winners, who represent America's future. The areas with growing populations have the best prospects.

States in the South and the West now account for the bulk of American population growth. Whereas postwar population growth was somewhat homogeneous -- white families settling into newly created suburbs -- today's population growth has a decidedly more diverse, global look. It's first- and second-generation Hispanic families settling all over the South and the West. Asian immigrants moving to the West Coast and large metro areas in the South. African-Americans moving from struggling Midwestern cities like Chicago to more vibrant Southern ones like Atlanta. And continued white migration from the Northeast and the Midwest to the South and the West. As Adam Carstens of PQ Partners showed, roughly 80 percent of the U.S. population growth for ages 25 to 44 this decade is taking place in the South and the West, and the vast majority of that is non-white.

Ongoing trends in the global economy favors these parts of America as well. Think ahead 20 years to when millennials are running the world. Solar energy should represent a much larger share of global energy consumption, with oil far less important. This is great news for energy consumers like the Sun Belt, and bad news for hydrocarbon producers like Russia and the Middle East. The role of technology should continue to increase, with West Coast American companies like Google, Apple, Facebook and Amazon better-positioned to capitalize on these trends than anyone else in the world. The development of autonomous vehicles could help unchoke traffic gridlock in sprawling car-dependent metro areas in the South and the West.

As the global economy continues to shift from manufacturing to services, U.S. media, content and culture have more and more influence around the world. Whether it's the aforementioned technology companies, Hollywood, Disney, global brands like Nike and Starbucks, or athletes and musicians like LeBron James and Ariana Grande, here too America has unparalleled dominance. The U.S. continues to have the largest, deepest and most transparent capital markets in the world, with Wall Street banks in their best health in decades. As the emerging world like China becomes wealthier, it also seeks to become more educated. Here, too, America is poised to thrive. One of the noteworthy aspects as China is supposedly set to wrest the global leadership mantle from the U.S. is that those in China with the means to get out want to buy real estate in the U.S. and send their children to U.S. schools.

And then there is the matter of demography. Europe, Russia and Japan have shrinking populations. China's working-age population has already peaked, and is set to decline by 90 million by the year 2040. The only large and powerful nation in the 21st century that has a reasonable birthrate and is also an attractive destination for immigrants is the U.S.

Trump's America, with its backbone as factory towns in the Midwest, may be in decline. But America's future, one based on thriving, diverse Sun Belt metropolises like Los Angeles, is poised to lead the world of the future.

By Conor Sen

Source: Bloomberg

Thursday, July 13, 2017

The Truth About The Stock Market

"But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. But thou, O man of God, flee these things..." —1st Timothy 6:9-11
Billions of Taxpayer Dollars Stolen, Paid to Wall Street Thieves

Greed - A Road to Destruction

Many people have destroyed their lives by living to make money.  Notice carefully that the Scriptures are speaking here to "they that will be rich" (That is--they are NOT rich yet).  Millions of people have "pierced themselves through with many sorrows" by trying to retire early or "get ahead" in life.  In case you haven't figured it out yet, kindly said, the rich men who control our government and economy DON'T want us to prosper.  I mean, when you have to pay for 3 houses just to buy 1, something is dreadfully wrong!

When we have to keep paying into the social security system while being told repeatedly that it may NOT be there for us when we retire, something is very wrong!  When we heard of Enron retirees being cheated out of their life-savings, we definitely knew something was wrong (some people personally lost over a million dollars).  The most sickening part is that the politicians in Washington condoned Enron executive's crimes by doing nothing to prosecute them.  This is because Enron made large campaign contributions to those politicians.  God will judge those evil people!

In light of all the corruption, government scams (like $59,000,000,000 being stolen from the HUD program), corporate crimes, deficit spending, increased taxes and so forth...I have no desire to even try to play their game anymore.  I have no desire to "get ahead" in life.  I could care less about working overtime, but that's me.  I don't live to work.  I won't do it.  I want to spend the time with my wife and children.  I'm not a slave to their system.  I've never bought a lottery ticket in my life and don't plan to start now (it's just an added tax on the stupid).  I don't gamble at casinos and wouldn't be caught dead betting on horses (why give those greedy men and women your money?).

The Stock Market is a Scam, Controlled from Within

Stock Market
I also avoid the stock market, it is a man-made invention designed to take away the public's wealth, it is a scam.  This has been documented (if you read beyond the newspaper).  Read the following article from Richard Ney's book titles, "The Wall Street Gang" (temporarily out of print).

"The hard-hitting market critic, Richard Ney, has written three books that I know of. His first, and probably most famous, is The Wall Street Jungle, written in 1970. He next wrote The Wall Street Gang, published in 1974 by Praeger Publishers. Chapter 2 of the latter book opens as follows:
"It is no accident that most investors lose money in the stock market. Their losses are an inevitable by-product of their ignorance of how little they know about the invisible world of the Stock Exchange. Like machines dominated by external influences, they are capable only of mechanical action.
Regrettably, the arrangements that exist to preserve the traditions and legalize the frauds of the security industry are inseparable from the general organization of a society controlled by the financial establishment, a society whose laws and principal customs have been contrived to serve the special interests of the financial community. Thus, although the Stock Exchange's most profitable practices clearly compromise the freedoms granted others by the constitution, Exchange Insiders are granted immunity from the legal obligations and penalties that should be imposed on them."
 In 1975, Ney published his third book, Making it in the Market: Richard Ney's Low risk System for Stock Market Investors."

Would You Pay $100 for a Gallon of Milk?

I have read so many website articles which speak of the stock market as a scam, but then they proceed to tell you how you can make money by following their advice (don't do it!).  I studied the stock market long enough to know that it's all a big scam.

In the first place, the whole concept of a P/E ratio (price-to-earnings ratio) is a joke.  People are suckered into paying 20, 30, sometimes even 100 times what a stock is actually worth.  There is NO true value.  People are taught by Wall Street con men to pay outrageous prices for a stock (because someone say it's a good deal).  In reality, it's a foolish game of money swindling that has robbed the public of trillions of dollars.  If you think about it, there is basically NO value to the stock market (If you were to take all of the thousands of stocks on the various stock market exchanges and average their actual earnings together, you'd find their total value to be less than 1% of what the public is actually paying for those same stocks).

In other words, your buying NOTHING!  The public is taught by the greedy people who operate Wall Street that it is a "GOOD DEAL" to buy stocks with absolutely NO EARNINGS. This is absurd! People foolishly buy into these lies. These greedy and ungodly Wall Street crooks (especially the bankers) have created a SYSTEM of smoke and mirrors over the years that utilize a series of economic and governments REPORTS to manipulate alleged "sentiment value" of the stock market.  They also use any public news release available to justify a market move.  I've heard every excuse you can imagine for the stock market going up or down (and it's very humorous to listen to day-by-day).

Wall Street Criminals Use News Releases to Manipulate Their Victims

Wall Street said on one particular day that the stock market went down for fear that the Iraqi Freedom war would take longer than expected.  The next day they claimed the stock market went up because Saddam Hussein was missing (thinking he was dead).  It's utterly ridiculous to think that the public is stupid and gullible enough to believe these lies...but they soak it up!!!  Where do you think the news media gets their information on the stock market?  They get their news from Wall Street's crooks!  The rule of Wall Street is simple: The people who control Wall Street will do whatever it takes (even a radical move if need be) to ensure that 95% of the public losses their money.  I've seen bad stocks with NO earnings soar sky-high on no news at all.

I've also seen very good company stocks go south on great news.  I recall recently that Harley Davidson posted their best earnings ever and the stock tanked over $5 in one day.  Can you say scam?  I remember reading the internet news on IBM a couple years ago, the stock had jumped up like $15 in one day because of a dozen fantastic reports released on the internet.  No kidding, the next day the stock tanked over $10 and the news was nothing but the sky-is-falling for IBM.  What had changed overnight?  Nothing, not one stinking thing.

Can you say scam?  Several Wall Street Investment Firms were just fined 1,400,000,000 for cheating people (but they made hundreds of Billions in profit, a convenient way for them to keep getting richer.  They do this stuff on purpose, expecting to get caught.  They could care less because they know they are making hundreds of BILLIONS).  This type of criminal behavior (where the punishment never fits the crime) is plaguing many of our American industries.  It's sickening to any honest, hard-working American.  People are being CHEATED on purpose, but the victims rarely ever see a dime of the lawsuit money.

The "Herd Mentality," Running into the Slaughter House

I read another book by Richard Ney titled The Wall Street Jungle.  Mr. Ney documents how the stock market is a fraud, controlled by scheming con artists.  He shows how the stock market went up for several weeks straight, in spite of an over abundance of bad financial news.  He then documents the same process, but with the stock market going down in spite of consistent good news.  The point here is that the news media is deliberately given bogus news by Wall Street cons to mislead investors.

People hear bad news and avoid the stock market, meanwhile the market is going up and the public is missing out.  The opposite is also true, the public runs in (with a herd mentality) to buy stocks on good news, while in reality the market keeps progressing lower and lower.  People are like ignorant sheep, it's their own fault for not THINKING outside the herd.  Kindly said, you MUST READ BOOKS and learn to THINK FOR YOURSELF.

The Stock Market Bubble Will One Day Burst . . . a Total Crash!

A day will come when money will be blowing worthless in the streets of the United States of America!  Already, the U.S. dollar has lost 30% of it's worth since the year 2000.  I've already mentioned that the entire stock market is a big mirage (something you see that is NOT really there).  It a mirage of false wealth.  The big bubble could pop in one day!  Gold has real value!  This is why China is wisely buying up the world's gold supply.  Gold retains it's value, stocks do not.  A commodity has real value!  I can eat corn or bacon, I can't eat a stock.

Listen friend, the entire stock market is a big fictitious man-made invention of arbitrary numbers which mean nothing if you give it even a little thought.  It's a big scam!  I have also mentioned that people are paying 20, 30 or even 100 times what a stock is worth (P/E ratio).  This goes against good business sense.  Sure, I know there are people like Warren Buffet who made billions on Coca-Cola, but his father was a stock broker and Warren began investing at age 9.  He was very fortunate and he'll admit it.

However, for every Warren Buffet there are ten thousand wanna-be rich men who have ended up losing their jobs, marriages and even their lives.  The stock market makes some people lose their minds by inspiring their fears and greed.  These are NOT wise emotions for a Christian to subject him or herself to.

People ignorantly put their money into the stock market, having no comprehension that the stock market is controlled from within...not without.  I've heard time and time again on the early morning news such statements as, "INVESTORS decided to take early profits this morning" or "INVESTORS decided to sell at the opening of the market this morning."

Do you really think there are that many people up at that time of morning placing stock trades?  No!  The "investors" they are speaking of are the "insiders" on Wall Street who make millions upon millions of dollars a year.  They each pay $2,000,000 just to have a seat on the New York Stock exchange.

The Best Things in Life are Not Things!

The purpose of my article is simple friend...AVOID the stock market!  There are NO secrets to outsmart  the greedy rich men at their rigged game (and your in for a financial loss if you think you can).  Oh sure, you might make some money at first, but more than likely you'll be sorry down the road.  I realize that there are investments which are considered "safer" such as the S&P 500 and utility company stocks (some of which pay nice dividends).  However, there is NO guaranteed "SAFE" investment in the stock market.  These would be the only two investments I'd might consider if I were going to invest in stocks, but personally I don't want anything to do with the stock market because of all the insider corruption.

Trying to "get ahead" has ruined many families, I'm happy with what God has given me.  As my old pastor Dr. Jack Hyles used to say, "There's two ways to be rich: Have all you want OR want all you have."  That's a good statement.   I want all I have; therefore, I am a very rich man indeed!  If you're frustrated (as a lot of people are), you need to learn to relax and stop letting life frustrate you.  If your burned out, sell your stocks and forget the stock market before it destroys you.  Trust me, in time you'll thank yourself.  Do you want true peace in life?  The first step is to decide to be content with what you have.
"But godliness with contentment is great gain.  For we brought nothing into this world, and it is certain we can carry nothing out.  And having food and raiment let us be therewith content." —1st Timothy 6:6-8
We were born empty-handed and we'll die empty-handed.  You can't control everything, but you can avoid the things which may ruin your life.  It's ok to work for a living.  Some people drive themselves insane trying to find a way out of work.  Your going to end up ruining your life because of your greed to make money (Read 1st Timothy 6:9-11 again).  An extremely small amount of investors have been lucky in the stock market, but nearly all the people who have played the stock market have lost money (many their shirt and pants as well).

The Bible has much to say about money, mainly that we're better off without it.  Notice 1st Timothy 6:11 says "But thou, O man of God, flee these things..."  Go fishing, take your family to the park, sit out in the yard...but don't waste your life pursuing filthy lucre (and anyone who tells you that you can "be a better you" if you had more money is a LIAR!).  You CAN be a great person without money!

Money has ruined many people!!!  The fact is that most of the people who posses a lot of money are not very great people.  You don't need money to be happy in life, but you do need God.



Saturday, July 1, 2017

Beware of 'presumptions' – they’re everywhere!


As a result of the Bankruptcy of America in 1933, everything changed. The changes that started in the 30s were formalized in the 50s-60s, when the Uniform Commercial Code was installed (by stealth) into each state.

Uniform Commercial CodeFrom attorney Melvin Stamper’s book Fruit from a Poisonous Tree (pg 62):
In the 1950s, the Uniform Commercial Code was adopted in most of the States as a means of unifying the generally accepted procedures for handling the new legal system of dealing with commercial fictions as though they were real. Security instruments replaced substance as collateral for debts. Security instruments could be supported by presumptive adhesion contracts. Debt instruments with collateral and accommodating parties could be used instead of money. Money and the need for money was disappearing, and a uniform system of law had to be put in place to allow the courts to uphold the security instruments that depended on commercial fictions as a basis for compelling payment or performance. All this was accomplished by the mid-1960s.
The commercial code is merely a codification of accepted and required procedures which all people engaged in commercial activity must follow. The basic principles of commerce had been settled thousands of years ago, but were refined as commerce become more sophisticated over the years. In the 1900s, the age-old principles of commerce shifted from substance to form. Presumption became a major element of the law. Without giving a degree of force to legal presumption, the new direction in enforcing commercial claims could not be supported in Equity/Admiralty courts and had no chance in common law. If the claimants were required to produce their claims every time they tried to collect from the people, they would seldom be successful. The principles articulated in the commercial code combine the methods of dealing with substantive commercial activity with presumptive commercial activity. These principles work as well for us as they do for the entrenched powers. The rules are neutral and respect neither side of a dispute, as they are ancient in origin.
The entrenched powers that engineered the scheme for the people to register their property and person with the United States and its instrumentalities gained control of the peoples' property and right to property through registration and licensing. The United States became the trustee of the titles to everything. The definition of "property" is the interest one has in a thing. The thing is the principal. The property is the interest in the thing. Profits (interest) made from the property of another belong to the owner of the thing. The International Bankers made profits by pledging as surety the registered property of the people in commercial markets, but the profits do not belong to the Bankers. The profits belong to the owners of the thing. That is always the people. The corporation government shows only ownership of paper – titles to things. The substance cannot appear in the fiction. Sometimes the fiction is manufactured to appear as substance, but fiction can never become substance; it is an illusion. This is why the proper spelling of your name in upper and lower case is never used in court documents. The ALL CAPS spelling represents the legal fiction, which the government holds title to and jurisdiction over, as it is the creation of the government. The substance cannot appear in the fiction. What will happen when you appear and claim the name ascribed on the complaint? You and the fiction become one and the same; you have changed masks from a natural person to an artificial one.


There is no way out of the deceptive traps of "presumptive adhesion contracts" other than to formally rebut the presumptions that seemingly tie us to them. We must define our legal characters as living flesh and blood men and women and rebut the presumption that we are nothing more than legal fictions. And the best way to do that is to publish your Notice of Condition Precedent.

By AntiCorruption Society

Source: AntiCorruption Society

Thursday, June 8, 2017

The United States is in Deep Doodoo!

"Mr. Speaker, we are here now in chapter 11. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner's report that will lead to our demise." - United States Congressional Record - March 17, 1993 - Vol. #33, page H-1303 - Speaker: The Honorable Representative James Traficant, Jr. (Ohio) addressing the House . . .
Imagine for a moment that someone inherits a farm. Let's say that the farm has good topsoil, a good well, good breeding stock, good seed, and excellent farm equipment in good repair. Prior to passing into the control of the present owner the farm did a good business selling vegetables, meat, and dairy products to the local market, and it made a small profit.

U.S. Federal Government Debt
But let us suppose for a moment that the present owner of the farm doesn't understand farming, or isn't even really interested in learning. The present owner has no objection to standing around looking good, so he stays at the farm, standing in front of it, looking good to passers by.

Of course, the bills still come in, so our farmer puts them on his credit card. When that bill comes due he uses another credit card, Then another. Pretty soon the interest payments alone are higher than his bills and the banks get nervous and call him. No problem. Our farmer sells the tractor, takes the money around to the various credit cards, the food store, the utilities, and pays off all his bills. Then he stands around in front of the farm looking good to passers-by, the lord of his domain.

Will, the bills still come in. Again the credit cards get loaded up. So, this time our farmer sells the harvester. Then later on, the cattle, then the chickens, then the seeds, then he leases the well to his neighbor and finally sells the top soil from his farm to another farm down the road whose soil is getting tired. The cash is taken around to the various creditors, the food store, the utilities, etc.

Now at this point, our farmer thinks everything is okay. The bills are paid, he has a little cash in his pocket, and everything is fine.

Of course, you know better. The farm simply does not exist any more; it's just an empty lot with a few buildings, and soon they will be gone as well. The path from the farmer's present condition to seizure of the property for unpaid taxes is a foregone conclusion, even if the farmer doesn't look far enough ahead to see it.

Poor, dumb, stupid farmer.

That farmer is our government, and our business leaders.

Just as our hypothetical farm has lost its soil, livestock, seed, and farm equipment, America has lost its manufacturing ability. Short sighted business leaders, with as little interest in manufacturing as our farmer had in farming, decided their own personal bonuses would be higher if they simply sold their factories rather that ran them. After WW2, the 27 American TV companies including Zenith, Emerson, RCA, GE, etc. led the world in TV technology. Then, the owners of the patents on TV technology decided they didn't need to dirty their hands by actually making the TV sets themselves any more, and they started selling licenses to manufacture, which the Japanese bought.

By 1987, the only remaining American TV company is Zenith. The patent holders get their money, but the American products which can be sold overseas are gone, along with the jobs to make them.

The same happened in high-tech electronics. The integrated circuit was invented in the United States. But rather than focus on selling integrated circuits, the companies that owned that technology sold the machines to MAKE integrated circuits around the world, and now America sells very few chips anywhere. The patent holders have their money, but the cash flow from sales of manufactured goods, and the jobs that go with them, are gone. When Seymour Cray needed custom chips for his supercomputers, he had to order them from Japan.

The same thing has been happening in aviation. The airplane was invented in the United States, and through the 60s, we sold a lot of them around the world. But lately, all aircraft sales to foreign countries involve "offsets", a portion of the core technology that gets licensed to the purchasing nation and gets manufactured there. Bit by bit, the core technology gets bled off, taking with it jobs, and cash flow from the sale of those manufactured products. Along the way, the rights to manufacture American inventions outside America leak away on a steadily increasing basis. Even the mighty F-16 is now being manufactured overseas, under license.

To cover the loss of manufacturing jobs, our government has invented the catch phrase "service economy". This is the idiotic notion that we don't need to actually sell manufactured products; that we can grow and prosper our nation by doing each other's laundry. To conceal the loss of manufacturing jobs, the government has legislated into existence thousands upon thousands of useless paper-shuffling jobs, and declared their necessity by fiat. The most obvious is the income tax which has been so obfuscated by the government that half of you had to rely on an outside expert to figure out just what all those incomprehensible words really meant. By this device, the government has replaced those jobs that made products to sell with an equal number of jobs that produce nothing whatsoever of any worth, except to keep the unemployment figures down. This over-burdening of the American people with gratuitous regulations and paperwork has accomplished nothing except to obfuscate the loss of manufacturing jobs, and to transform the American character from innovators and inventors creating new products to that of minor clerks, peeking under each other's seat cushions for lost change.

So, with most of our manufacturing now gone, just what DOES America make? Trouble, mostly. With 4% of the world's population and 18% of the economy, we have 50% of all the lawyers, all looking to make a killing by looting those few industries that still call America home (like Microsoft). Kids don't want to be scientists and engineers; they've seen how little such people are valued in our country. Based on recent history, kids see the "big bucks" are in corporate law, specifically investment banking, leveraged buyouts, greenmail, junk bonds, in short what other countries describe as "trying to make money grow by shaking it side to side".

With America's ability to actually produce products that can compete on the open world market in decline, it's no wonder that the balance of trade is the problem it is. Nobody buys our export products because we just don't make that many any more, and like or not, we have to buy our appliances from the people who make them, which are NOT Americans. (When Ampex invented the VCR, they didn't even bother trying to find an American company to make it, they immediately sold the rights to Japan).

So, what do all these countries on the plus side of the trade imbalance do with their surplus billions? Well, they have been loaning it right back to us!

Our government engages in a practice politely called "deficit spending". Other terms which would aptly describe the practice include "counterfeiting" and "check kiting", but it all comes down to the same thing; spending money one does not actually have.

What would be a Jailable offense for a normal citizen was rendered legal for the government by the Federal Reserve Act. This was not a popular piece of legislation. In fact the Democrats had campaigned in 1912 on a platform of rejection of the creation of a private bank in charge of a fiat money system. Nevertheless, on December 23, 1913, taking advantage of the absence of congressmen opposed to the creation of a fiat monetary system during the Christmas break, the Federal Reserve Act was passed.

Years later, during the great depression, Congressman Louis T. McFadden (who served twelve years as Chairman of the Committee on Banking and Currency) asked for congressional investigations of criminal conspiracy to establish the privately owned 'Federal Reserve System'. He requested impeachment of Federal officers who had violated oaths of office both in establishing and directing the Federal Reserve -- imploring Congress to investigate an incredible scope of overt criminal acts by the Federal Reserve Board and Federal Reserve Banks. McFadden even suggested that the Federal Reserve deliberately triggered the great stock market crash of 1929, in order to eventually force the passage of the Emergency Banking Act of March 9, 1933, which suspended the gold standard.
"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and he people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our     Government. It has done this through the misadministration of that law by which the Federal Reserve  Board, and through the corrupt practices of the moneyed vultures who control it." - In describing the FED, McFadden remarked in the Congressional Record, House pages 1295 and 1296 on June 10, 1932.
Why all the fuss over the gold standard?

gold standard
Well it goes back to the original Founding Fathers and the meaning of the word "dollar". "Dollar" is actually a weight measure of silver, 371.25 grains, to be exact. Our American silver dollars are actually heavier, since other metals were added for durability. But that 371.25 grains of silver WAS the dollar, matching in weight an unbroken chain of accepted monetary units that reached back through the Spanish Milled Dollar, the Dutch Dollar, back to the German Thaler; the product of a silver mine which sold it's product in coins of an exact weight. The Coinage Act of 1792 defined our dollar to exactly match in weight the silver dollars in use around the world, and then defined the gold dollar to be that amount of gold which would equal the worth of silver in a silver dollar, 24.75 grains, 1/15 the weight of the silver in a silver dollar.

So, what's wrong with this? Nothing really. When you, as a citizen, hold a silver dollar or a gold dollar in our hand, you hold that actual worth of metal. Nothing the government can do can change the worth of the money in your control.

Take the Roman Silver Denarius pictured above. The Roman Empire is long gone, but the money that Rome issued still has worth because the coins themselves had inherent worth. Long after the collapse of the empire, Roman silver coins were still used as money, because the silver in the coin itself did not depend on the issuing government for its worth.

Of course, carrying around too much coin can be bothersome, so many nation, including our own, issued paper notes as a convenience. But that paper currency of the nation was just a convenience. The gold and silver certificates were merely "claim checks" for the equivalent weight of gold or silver held in the treasury, and which would be produced on demand when the certificate was presented. But in the end, the lawful dollar of the United States was 371.25 in silver, or 24.75 grains of gold.

The problem with this system from the point of view of the government or the banks is that it limits the amount of money they can work with. When the bank runs out of silver or gold (or the equivalent certificates) it can no longer lend any more money with which to earn interest. When the government runs out of gold or silver (or the equivalent certificates) it can no longer spend money (just like the rest of us).

The immediate effect of ending the gold standard was that with the paper dollar no longer legally dependent on 371.25 in silver or 24.75 grains of gold, more paper dollars (now called "Federal Reserve Notes") could be printed, their worth no longer under the control of the citizens but under the control of the issuing central bank, based on the total number of dollars printed (or created as credit lines). The more dollars which are created out of thin air, the less each one is worth.

A Federal Reserve Note

federal Reserve Note
The swindle of the system is simple. The Federal Reserve Bank hires the US Treasury to print up some money. The Federal Reserve only actually pays the treasury for the cost of the printing, they do NOT pay $1 for each 1$ printed. But the Federal Reserve turns around and loans out that money (or credit line) to banks at full face value, those banks which have exhausted their deposits then loan that Federal Reserve fiat money to you, and you must repay it in the full dollar value (plus interest) in work product, even though the Federal Reserve printed that money for pennies, or created it out of thin air in a computer.

As the Federal Reserve overprints more money, the money supply inflates, and too much money starts chasing too few goods and services, which means prices go up. But contrary to the charade put on by the Federal Reserve, inflation doesn't just come and go due to some arcane sorcery. The Federal Reserve can halt inflation any time it wants to by simply shutting down those printing presses. It therefore follows that both inflation and recession are fully under the control of the Federal Reserve.

Over time, that excess of printing has destroyed the value of that dollar you think you have. If you want to know by just how much, go out and try to purchase 371.25 in silver right now. Usually, the deterioration is gradual. Sometimes, it has to be obvious, such as the 1985 devaluation (done to halt the trade imbalance) which triggered the Japanese real-estate grab in this country.

Many politicians have attempted to reverse this process. John F. Kennedy issued an Executive Order 11110, requiring the Treasury Department to start printing and issuing silver certificates for the silver then remaining in the US Treasury.

Kennedy decided that by returning to the constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. This was the reason he signed Executive Order 11110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System.

John F. Kennedy's United States Note

That same day, Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the weakened U.S. currency.

John F. Kennedy's United States Note
Kennedy's comptroller of the currency, James J. Saxon, had been at odds with the powerful Federal Reserve Board for some time, encouraging broader investment and lending powers for banks that were not part of the Federal Reserve system. Saxon also had decided that non-Reserve banks could underwrite state and local general obligation bonds, again weakening the dominant Federal Reserve banks".

Kennedy's executive order was never implemented following his assassination, and shortly afterwards, United States silver coins were taken out of circulation and replaced with the copper clad slugs in use today. These two events, the failure to print new silver certificates, and the substitution of worthless slugs for our silver coins, may explain why the Warren Commission included on its panel John J. McCloy, a man with no experience in crime, law enforcement, or national security, but who had been the President of the Chase Manhattan Bank.

It should be noted that the banks themselves are still using the gold standard. Accounts are still settled between major national banks by the transfer of gold bullion.

So here we are with a bank that legally counterfeits the money you borrow but expects a full value (plus interest) repayment. But what's good for the Federal Reserve is good for the government itself, and this is where we get back into that funny word "deficit spending". The government spends more money than it takes in. It has for many years now. The Federal Reserve, being the only lawful source of this fiat money, prints up the excess cash the government needs (or manufactures a credit line in a computer). This extra cash is treated as a loan, in order to keep the government overspending from further eroding the worth of the dollar in the world market. The government (meaning the taxpayers) is on the hook for the full face value, plus interest.

But there's another problem. The government is borrowing so much money that it drives the interest rates up! You pay MORE interest on your mortgage, car loan, and credit cards, because the government cannot balance its books. That extra interest you pay is therefore another hidden tax. The government, in its "generosity", gives you a tax credit on mortgage interest that is higher because of their own borrowing!

During the 80s, as exports dropped, and jobs moved from manufacturing to lower paying "service sector" jobs, the US tax base declined. In order to keep the jobless rate from rising, a massive defense program called the Strategic Defense Initiative was cranked up, but since this program produced no exportable product, it produced no taxable sales revenues, and hence the money poured into the project accelerated the government decline into debt. Because manufacturing was on the decline, fewer start-up companies were approaching the lending institutions, so the government loosened up the rules (while increasing the insurable deposit limit) to allow "investments" in more high risk ventures, most of which turned out to be frauds, or worse, money laundering operations for drug criminals. This includes Whitewater, Flowerwood, and Castle Grande. Despite shifting the S&L loss primarily onto the taxpayers (to reassure foreign investors that the taxpayers still made America a safe place to park their surplus cash) the government plunged further into debt.

In the 12 years of the Reagan/Bush administrations, the United States went from being the world's largest creditor nation to the world's largest debtor. Many of those nations which had enjoyed huge trade surpluses started loaning that profit back to the United States with the stipulation that we work on our manufacturing, clean up our infrastructure, raise taxes, in short, clean up our act, so that investment in America makes sense!

However, we didn't quite do that.

There has been some shuffling around to try to conceal the real scope of the problem. Over the last several years, the Federal Government has been sending less tax money back to the states than it takes in in taxes. This means that the states have to borrow MORE money to cover their obligations. The net result is that the debt is being transferred to the states, to conceal its true size. The government will easily admit to a $3 trillion "publicly held" debt, grudgingly concede that it's "unfunded liability" brings that number to almost $7 trillion, but the real hard truth is that total government debt, state and federal, is now over $14 trillion dollars, or about 50,000 for every man, woman, and child inside the United States. Since 1960, the taxpayers have shelled out $15 trillion in interest payments alone, while the principal continues to rise.

total federal debt
Yet another stunt the government has pulled is to "borrow" from the various trust funds under its control. Some $2 billion has vanished from the trust accounts of Native Americans (presently suing the Departments of the Interior and Treasury), and nearly ? of a TRILLION dollars has been removed from your Social Security retirement trust fund and spent in the last 8 years.

If the government has to borrow your retirement money when things are supposed to be so good, under what conditions can it repay the money? Or is that government IOU in your retirement account merely a promise to either tax you a second time or stiff you on the benefits you thought you were paying for?

In the last 8 years, during what are supposed to be record setting good times, the Federal government has nearly DOUBLED its debt load. The estimated interest on the debt equals all the personal income tax paid by all Americans. Our government is so deep in debt that it cannot get out.

This brings us to the issue of collateral. We've borrowed so much money the lenders are getting nervous. Back during the Johnson administration Charles DeGaulle demanded the United States collateralize the loans owed to France in gold and started carting out the bullion from the treasury. This caused several other nations to demand the same and President Nixon had to slam the gold window closed or the treasury would have been emptied, since the United States was even then in debt for more money than the treasury could cover in gold.
total credit market debt U.S.
But Nixon had to collateralize that debt somehow, and he hit upon the plan of quietly setting aside huge tracts of American land with their mineral rights in reserve to cover the outstanding debts. But since the American people were already angered over the war in Vietnam, Nixon couldn't very well admit that he was apportioning off chunks of the United States to the holders of foreign debt. So, Nixon invented the Environmental Protection Agency and passed draconian environmental laws which served to grab land with vast natural resources away from the owners and lock it away, and even more, prove to the holders of the foreign debt that US citizens were not drilling. mining, or otherwise developing those resources. From that day to this, as the government sinks deeper into debt, the government grabs more and more land, declares it a wilderness or "roadless area" or "heritage river" or "wetlands" or any one of over a dozen other such obfuscated labels, but in the end the result is the same. We The People may not use the land, in many cases are not even allowed to enter the land.

This is not about conservation, it is about collateral. YOUR land is being stolen by the government and used to secure loans the government really had no business taking out in the first place. Given that the government cannot get out of debt, and is collateralizing more and more land to avoid foreclosure, the day is not long off when the people of the United States will one day wake up and discover they are no longer citizens, but tenants.

The following map shows the current extent of all lands grabbed by the government under the guise of environmentalism.
In short, the United States is in deep trouble. We have lost a huge amount of our manufacturing capacity, and those products we still make do not compete well on the world market, despite the steady devaluation of the dollar. In short we have vast debts to pay and little to pay them with. Like the foolish Farmer we have sold the machinery that allowed us to prosper, and we stand around shaking our investment portfolios back and forth in the hopes that the money inside will somehow grow all by itself. It won't. It never has. The very best that can be said is that money gets moved from one person to the other.

Those nations and banks to whom we owe money have been very patient indeed with us. They know that our economies are so tightly entwined that what hurts America will hurt them. But sooner or later, possibly after a market crash, someone, in order to pay their own debts, will demand their loans to the United States be paid. Rather than get caught with "bad paper", there will be a run on the United States government.

In addition to the government debt of $14 trillion, our businesses are home to trillions more in foreign investment, kept here by the promise that the American taxpayer will be made to cover all losses. But with our manufacturing in decline and our schools producing far more lawyers than anything else, it should be obvious to the prudent observer that the American taxpayer, even if so inclined, may not be able to cover the losses of their own government, let alone a foreign investor. That has to be making them nervous as well.

This brings us to the "equities markets", most notably the stock market. Over the last several years a constant media harangue has assured us that the soaring numbers of the stock market are the sole measure of how good our economy is. But close examination of those high-priced stocks reveals that most are heavily over-valued; their price the result of market forces rather than underlying worth (earnings ability)., as one example, has had a terrific run-up of its stock price, even though the company itself has yet to show a profit.

The government has admitted to using covert means to prevent a market downturn; to keep the stock prices at an artificially high and overvalued level, in order to wave those impressive numbers about as "proof" that everything is okay so that the taxpayers go back to work and pay more taxes. But in order to keep those stock prices up above their actual worth, demand must be maintained to keep the prices high. In other words, NEW investors must constantly be brought into the bottom of the pyramid to keep the prices of the stocks at the top from dropping. Hence the onslaught of commercials luring neophyte investors into the stock market via "online trading". Like any Ponzi scheme, the stock market will collapse when no more new buyers can be dragged in at the bottom. As the market starts to stutter, governments (most recently Britain) have moved to dump huge reserves of gold onto the world market to depress gold prices and deter investors from deserting the stock market for gold.

Some years back I worked on the film version of "The Day The Bubble Burst", and in between playing a stock broker, I got to spend some time with the show's consultant, Mr. William Hupt, who had been on the trading floor in 1929 as it all fell apart. He still had, framed, that last strip of ticker tape that ushered in the Great Depression, and he shared some stories which have a bearing on what is going on today.

The first story Bill shared is that there had been early indications of a dangerously over-valued market, running to deep on margin, and like the Plunge Protection Team, the largest investment houses, in particular the House of Morgan, attempted to reverse the early corrections by purchasing large blocks of stock in order to create market demand and drive the prices back up. It worked all but the last time.

The second story Bill shared was that a friend of his, riding up to his office in September of 1929, overheard the elevator operator chatting about his own stock portfolio, and his investments. Something about that image of an elevator operator playing the market set of warning signals, and Bill's friend immediately liquidated his entire portfolio, just in time to miss the great crash. Many people, including the actor Charlie Chaplin, had recognized the "recruitment" of that segment of society that did NOT have risk capital as new investors as a desperate attempt to prop up an overvalued market, and got out in time to save their own personal fortunes.

In the end, there is no such thing as a free lunch. You cannot make money grow in value by shaking it back and forth from one bank to another. You cannot prosper a nation by doing each other's laundry, or filling out their government mandated and greatly obfuscated paperwork, or flinging stock certificates around which may have as little real worth as Federal Reserve Notes. To make money, to show a profit, you must make products that somebody else wants to buy, and sadly, that is a capability the United States has allowed to slip away in great measure. The "service economy" was political propaganda to make the public believe that the decline of our manufacturing ability was a good thing.

Our nation is broke, bankrupt, and having sold much of its machinery and technology (or given it away to political donors), is unable to easily return to those endeavors which once made our nation great. Our infrastructure is in decay (the percentage of roads in the US with major damage doubled last year alone), our public schools unable to produce a workforce able to function in a high-tech manufacturing environment, and those managers end engineers with manufacturing experience have in great part been lured away to other nations. The severity of our total government debt has reached a point where the promise that the taxpayers can be made to cover any foreign investment loss rings hollow, because we can no longer pay the debts our government has now.

Our nation is in trouble. We don't make many of the products we used to make. Consequently we don't have the products to sell that we used to. We don't even make most of the products we need ourselves (like that computer you're staring at this very moment). Result: we have a massive trade imbalance. Cash is flowing out of the nation, and it's not coming back in anywhere near as fast. There's no way to spin it; that is a major problem. Our nation is becoming poorer, it is hopelessly in debt, and all the artificial escalation of stock prices cannot conceal that.

And as the artificially pumped up stock market continues to decline, the true scale of the economic horror which is the product of decades of government corruption, will become apparent to all.



Thursday, June 1, 2017

Billions for the Bankers, Debt for the People

The Real Story of the Money-Control Over America

Americans, living in what is called the richest nation on earth, seem always to be short of money. Wives are working in unprecedented numbers, husbands hope for overtime hours to earn more, or take part-time jobs evenings and weekends, children look for odd jobs for spending money, the family debt climbs higher, and psychologists say one of the biggest causes of family quarrels and breakups is "arguments over money." Much of this trouble can be traced to our present "debt-money" system. Too few Americans realize why our founding fathers wrote into Article I of the U.S. Constitution: Congress shall have the Power to Coin Money and Regulate the Value Thereof.

They did this, as we will show, in prayerful hope it would prevent "love of money" from destroying the Republic they had founded. We shall see how subversion of Article I has brought upon us the horrors of which Jefferson had warned.


Economists use the term "create" when speaking of the process by which money comes into existence. Now, creation means making something that did not exist before. Lumbermen make boards from trees, workers build houses from lumber, and factories manufacture automobiles from metal, glass and other materials. But in all these they did not "create," they only changed existing materials into a more usable and, therefore, more valuable form. This is not so with money. Here, and here alone, man actually "creates" something out of nothing. A piece of paper of little value is printed so that it is worth a piece of lumber. With different figures it can buy the automobile or even the house. Its value has been "created" in the true meaning of the word


As is seen by the above, money is very cheap to make, and whoever does the "creating" of money in a nation can make a tremendous profit! Builders work hard to make a profit of 5% above their cost to build a house.

Auto makers sell their cars for 1% to 2% above the cost of manufacture and it is considered good business. But money "manufacturers" have no limit on their profits, since a few cents will print a $1 bill or a $10,000 bill.

That profit is part of our story, but first let us consider another unique characteristic of the thing - money, the love of which is the "root of all evil."


An adequate supply of money is indispensable to civilized society. We could forego many other things, but without money industry would grind to a halt, farms would become only self-sustaining units, surplus food would disappear, jobs requiring the work of more than one man or one family would remain undone, shipping, and large movements of goods would cease, hungry people would plunder and kill to remain alive, and all government except family or tribe would cease to function.

An overstatement, you say? Not at all. Money is the blood of civilized society, the means of all commercial trade except simple barter. It is the measure and the instrument by which one product is sold and another purchased. Remove money or even reduce the supply below that which is necessary to carry on current levels of trade, and the results are catastrophic. For an example, we need only look at America's Depression of the early 1930's.


greedy Bankers
In 1930 America did not lack industrial capacity, fertile-farm land, skilled and willing workers or industrious farm families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilizing telephone, teletype, radio, and a well-operated government mail system. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land. The United States of America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce. In the early 1930's, Bankers, the only source of new money and credit, deliberately refused loans to industries, stores and farms.

Payments on existing loans were required however, and money rapidly disappeared from circulation. Goods were available to be purchased, jobs waiting to be done, but the lack of money brought the nation to a standstill. By this simple ploy America was put in a "depression" and the greedy Bankers took possession of hundreds of thousands of farms, homes, and business properties. The people were told, "times are hard," and "money is short." Not understanding the system, they were cruelly robbed of their earnings, their savings, and their property.


World War II ended the "depression." The same Bankers who in the early 30's had no loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend for Army barracks, K-rations and uniforms! A nation that in 1934 couldn't produce food for sale, suddenly could produce bombs to send free to Germany and Japan! (More on this riddle later.)

With the sudden increase in money, people were hired, farms sold their produce, factories went to two shifts, mines re-opened, and "The Great Depression" was over! Some politicians were blamed for it and others took credit for ending it. The truth is the lack of money (caused by the Bankers) brought on the depression, and adequate money ended it. The people were never told that simple truth and in this article we will endeavor to show how these same Bankers who control our money and credit have used their control to plunder America and place us in bondage.


When we can see the disastrous results of an artificially created shortage of money, we can better understand why our Founding Fathers insisted on placing the power to "create" money and the power to control it ONLY in the hands of the Federal Congress. They believed that ALL citizens should share in the profits of its "creation" and therefore the national government must be the ONLY creator of money. They further believed that ALL citizens, of whatever State or Territory, or station in life would benefit by an adequate and stable currency and therefore, the national government must also be, by law, the ONLY controller of the value of money.

Since the Federal Congress was the only legislative body subject to all the citizens at the ballot box, it was, to their minds, the only safe depository of so much profit and so much power. They wrote it out in the simple, but all-inclusive: "Congress shall have the Power to Coin Money and Regulate the Value Thereof."


Instead of the Constitutional method of creating our money and putting it into circulation, we now have an entirely unconstitutional system. This has resulted in almost disastrous conditions, as we shall see.

Since our money was handled both legally and illegally before 1913, we shall consider only the years following 1913, since from that year on, ALL of our money has been created and issued by an illegal method that will eventually destroy the United States if it is not changed. Prior to 1913, America was a prosperous, powerful, and growing nation, at peace with its neighbors and the envy of the world. But - in December of 1913, Congress, with many members away for the Christmas holidays, passed what has since been known as the FEDERAL RESERVE ACT. (For the full story of how this infamous legislation was forced through our Congress, read The Creature from Jekyll Island, by G. Edward Griffin or Conquest or Consent, by W. B. Vennard). Omitting the burdensome details, it simply authorized the establishment of a Federal Reserve Corporation, with a Board of Directors (The Federal Reserve Board) to run it, and the United States was divided into 12 Federal Reserve "Districts."

This simple, but terrible, law completely removed from Congress the right to "create" money or to have any control over its "creation," and gave that function to the Federal Reserve Corporation. This was done with appropriate fanfare and propaganda that this would "remove money from politics" (they didn't say "and therefore from the people's control") and prevent "Boom and Bust" from hurting our citizens. The people were not told then, and most still do not know today, that the Federal Reserve Corporation is a private corporation controlled by bankers and therefore is operated for the financial gain of the bankers over the people rather than for the good of the people. The word "Federal" was used only to deceive the people.


Since that "day of infamy," more disastrous to us than Pearl Harbor, the small group of "privileged" people who lend us "our" money have accrued to themselves all of the profits of printing our money' - and more! Since 1913 they have "created" tens of billions of dollars in money and credit, which, as their own personal property, they then lend to our government and our people at interest. "The rich get richer and the poor get poorer" had become the secret policy of our National Government. An example of the process of "creation" and its conversion to people's "debt" will aid our understanding.


We shall start with the need for money. The Federal Government, having spent more than it has taken from its citizens in taxes, needs, for the sake of illustration, $1,000,000,000. Since it does not have the money, and Congress has given away its authority to "create" it, the Government must go the "creators" for the $1 billion. But, the Federal Reserve, a private corporation, doesn't just give its money away! The Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal Government in exchange for the Government's agreement to pay it back - with interest! So Congress authorizes the Treasury Department to print $1,000,000,000 in U.S. Bonds, which are then delivered to the Federal Reserve Bankers.

The Federal Reserve then pays the cost of printing the $1,000,000,000 (about $1,000) and makes the exchange. The Government then uses the money to pay its obligations. What are the results of this fantastic transaction? Well, $1 billion in Government bills are paid all right, but the Government has now indebted the people to the Bankers for $1 billion on which the people must pay interest! Tens of thousands of such transactions have taken place since 1913 so that by the 1980's, the U.S. Government is indebted. to the Bankers for over $1,000,000,000,000 (trillion) on which the people pay over $100 billion a year in interest alone with no hope of ever paying off the principal. Supposedly our children and following generations will pay forever and forever!


You say, "This is terrible!" Yes, it is, but we have shown only part of the sordid story. Under this unholy system, those United States Bonds have now become "assets" of the Banks in the Reserve System which they then use as "reserves" to "create" more "credit" to lend. Current "fractional reserve" requirements allow them to use that $1 billion in bonds to "create" as much as $15 billion in new "credit" to lend to States, Municipalities, to individuals and businesses. Added to the original $1 billion, they could have $16 billion of "created credit" out in loans paying them interest with their only cost being $1,000 for printing the original $1 billion! Since the U.S. Congress has not issued Constitutional money since 1863 (over 100 years), in order for the people to have money to carry on trade and commerce they are forced to borrow the "created credit" of the Monopoly Bankers and pay them usury-interest!


In addition to the vast wealth drawn to them through this almost unlimited usury, the Bankers who control the money at the top are able to approve or disapprove large loans to large and successful corporations to the extent that refusal of a loan will bring about a reduction in the price that that Corporation's stock sells for on the market. After depressing the price, the Bankers' agents buy large blocks of the stock, after which the sometimes multi-million dollar loan is approved, the stock rises, and is then sold for a profit. In this manner billions of dollars are made with which to buy more stock. This practice is so refined today that the Federal Reserve Board need only announce to the newspapers an increase or decrease in their "rediscount rate" to send stocks up and down as they wish. Using this method since 1913, the Bankers and their agents have purchased secret or open control of almost every large corporation in America. Using that control, they then force the corporations to borrow huge sums from their banks so that corporation earnings are siphoned off in the form of interest to the banks. This leaves little as actual "profits" which can be paid as dividends and explains why stock prices are often depressed, while the banks reap billions in interest from corporate loans. In effect, the bankers get almost all of the profits, while individual stockholders are left holding the bag.

The millions of working families of America are now indebted to the few thousand Banking Families for twice the assessed value of the entire United States. And these Banking Families obtained that debt against us for the cost of paper, ink, and bookkeeping!


The only way new money (which is not true money, but is "credit" representing a debt), goes into circulation in America is when it is borrowed from Bankers. When the State and people borrow large sums, we seem to prosper. However, the Bankers "create" only the amount of the principal of each loan, never the extra amount needed to pay the interest. Therefore. the new money never equals the new debt added. The amounts needed to pay the interest on loans is not "created," and therefore does not exist!

Under this kind of a system, where new debt always exceeds the new money no matter how much or how little is borrowed, the total debt increasingly outstrips the amount of money available to pay the debt. The people can never, ever get out of debt!

An example will show the viciousness of this usury-debt system with its "built-in" shortage of money.

IF $60,000 IS BORROWED, $255,931.20 MUST BE PAID BACK When a citizen goes to a Banker to borrow $60,000 to purchase a home or a farm, the Bank clerk has the borrower agree to pay back the loan plus interest. At 14% interest for 30 years, the Borrower must agree to pay $710.92 per month for a total of $255,931.20. The clerk then requires the citizen to assign to the Banker the right of ownership of the property if the Borrower does not make the required payments. The Bank clerk then gives the Borrower a $60,000 check or a $60,000 deposit slip crediting the Borrower's checking account with $60,000.

The Borrower then writes checks to the builder, subcontractors, etc., who in turn write checks. $60,000 of new "checkbook" money is thereby added to "money in circulation."

However, and this is the fatal flaw in a usury system, the only new money created and put into circulation is the amount of the loan, $60,000. The money to pay the interest is NOT created, and therefore was NOT added to "money in circulation."

Even so, this Borrower (and those who follow him in ownership of the property) must earn and TAKE OUT OF CIRCULATION $255,931, almost $200,000 MORE than he put IN CIRCULATION when he borrowed the original $60,000! (By the way, it is this interest which cheats all families out of nicer homes. It is not that they can't afford them; it is because the Banker's usury forces them to pay for 4 homes to get one!)

Every new loan puts the same process in operation. Each borrower adds a small sum to the total money supply when he borrows, but the payments on the loan (because of interest) then deduct a much LARGER sum from the total money supply.

There is therefore no way all debtors can pay off the money-lenders. As they pay the principal and interest, the money in circulation disappears. All they can do is struggle against each other, borrowing more and more from the money-lenders each generation. The money-lenders (Bankers), who produce nothing of value, slowly, then more rapidly, gain a death grip on the land, buildings, and present and future earnings of the whole working population.


why Bankers prosper
If you haven't quite grasped the impact of the above, let us consider a small auto loan for 3 years at 18% interest. Step 1: Citizen borrows $5,000 and pays it into circulation (it goes to the dealer, factory, miner, etc.) and signs a note agreeing to pay the Banker $6,500. Step 2: Citizen pays $180 per month of his earnings to the Banker. In 3 years he will take OUT of circulation $1,500 more than he put IN circulation.

Every loan of Banker "created" money (credit) causes the same thing to happen. Since this has happened millions of times since 1913 (and continues today), you can see why America has gone from a prosperous, debt-free nation to a debt-ridden nation where practically every home, farm and business is paying usury-tribute to some Banker. The usury-tribute to the Bankers on personal, local, State and Federal debt totals more than the combined earnings of 25% of the working people. Soon it will be 50% and continue up.


In the millions of transactions made each year like those above, little actual currency changes hands, nor is it necessary that it do so. 95% of all "cash" transactions in the U.S. are by check, so the Banker is perfectly safe in "creating" that so-called "loan" by writing the check or deposit slip, not against actual money, but AGAINST YOUR PROMISE TO PAY IT BACK! The cost to him is paper, ink and a few dollars in salaries and office costs for each transaction. It is "check-kiting" on an enormous scale. The profits increase rapidly, year after year, as shown below.

These are a few taken from Arizona newspapers in January, 1979.
Valley Bank posts 49% gain in profits
Gains of 49 percent in net income and 51 percent in operating income were posted last year by Valley National Bank.
Those gains brought net income to $33,969,-000' in the year ended Dec..31 and operating income to $34,459.000. The year before those totals were $22,836.000 and $22,807,000 respectively.
Bank's profits rise 21%
Arizona Bank announced on Monday it had achieved a 21.2 percent increase in net income in 1978 over 1977. On the basis of operating income, excluding the 1977 sale of the Arizona Bank Building for $l,336,369, the bank said the increase was 43.9 percent.
Tostenrud said loans and deposits increased in the last year: Deposits 18.8 percent to $1.353 billion and loans 21.9 percent to $951 million.


In 1910 the U.S. Federal debt was only $1 billion, or $12.40 per citizen. State and local debts were practically non-existent.

By 1920, after only 6 years of Federal Reserve shenanigans, the Federal debt had jumped to $24 billion, or $226 per person.

In 1960 the Federal debt reached $284 billion, or $1,575 per citizen and State and local debts were mushrooming.

By 1981 the Federal debt passed $1 trillion and was growing exponentially as the Banker's tripled the interest rates. State and local debts are now MORE than the Federal, and with business and personal debts totaled over $6 trillion, 3 times the value of all land and buildings in America.

If we signed over to the money-leaders all of America we would still owe them 2 more Americas (plus their usury, of course!)

However, they are too cunning to take title to everything. They will instead leave you with some "illusion of ownership" so you and your children will continue to work and pay the Bankers more of your earnings on ever-increasing debts. The "establishment" has captured our people with their ungodly system of usury and debt as certainly as if they had marched in with a uniformed army.


To grasp the truth that periodic withdrawal of money through interest payments will inexorably transfer all wealth in the nation to the receiver of interest, imagine yourself in a poker or dice game where everyone must buy the chips (the medium of exchange) from a "banker" who does not risk chips in the game, but watches the table and every hour reaches in and takes 10% to 15% of all the chips on the table. As the game goes on, the amount of chips in the possession of each player will go up and down with his "luck."

However, the TOTAL number of chips available to play the game (carry on trade and business) will decrease rapidly.

The game will get low on chips, and some will run out. If they want to continue to play, they must buy or borrow them from the "banker." The "banker" will sell (lend) them ONLY if the player signs a "mortgage" agreeing to give the "banker" some real property (car, home, farm, business, etc.) if he cannot make periodic payments to pay back all of the chips plus some EXTRA ones (interest). The payments must be made on time, whether he wins (makes a profit) or not.

It is easy to see that no matter how skillfully they play, eventually the "banker" will end up with all of his original chips back, and except for the very best players, the rest, if they stay in long enough, will lose to the "banker" their homes, their farms, their businesses, perhaps even their cars, watches, rings, and the shirts off their backs!

Our real-life situation is MUCH WORSE than any poker game. In a poker game none is forced to go into debt, and anyone can quit at any time and keep whatever he still has. But in real life, even if we borrow little ourselves from the Bankers, the local, State, and Federal governments borrow billions in our name, squander it, then confiscate our earnings from us and pay it back to the Bankers with interest. We are forced to play the game, and none can leave except by death. We pay as long as we live, and our children pay after we die. If we cannot pay, the same government sends the police to take our property and give it to the Bankers. The Bankers risk nothing in the game; they just collect their percentage and "win it all." In Las Vegas and at other gambling centers, all games are "rigged" to pay the owner a percentage, and they rake in millions. The Federal Reserve Bankers' "game" is also rigged, and it pays off in billions!

In recent years Bankers added real "cards" to their 'game. "Credit" cards are promoted as a convenience and a great boon to trade. Actually, they are ingenious devices by which Bankers collect 2% to 5% of every retail sale from the seller and 18% interest from buyers. A real "stacked" deck!


Democrat, Republican, and Independent voters who have wondered why politicians always spend more tax money than they take in should now see the reason. When they begin to study our "debt-money" system, they soon realize that these politicians are not the agents of the people but are the agents of the Bankers, for whom they plan ways to place the people further-in debt. It takes only a little imagination to see that if Congress had been "creating," and spending or issuing into circulation the necessary increase in the money supply, THERE WOULD BE NO NATIONAL DEBT, and the over $4 Trillion of other debts would be practically non-existent. Since there would be no ORIGINAL cost of money except printing, and no CONTINUING costs such as interest, Federal taxes would be almost nil. Money, once in circulation, would remain their and go on serving its purpose as a medium of exchange for generation after generation and century after century, just as coins do now, with NO payments to the Bankers whatever!


But instead of peace and debt-free prosperity, we have ever-mounting debt and periodic wars. We as a people are now ruled by a system of Banker-owned Mammon that has usurped the mantle of government, disguised itself as our legitimate government, and set about to pauperize and control our people. It is now a centralized, all-powerful political apparatus whose main purposes are promoting war, spending the peoples' money, and propagandizing to perpetuate itself in power. Our two large political parties have become its servants, the various departments of government its spending agencies, and the Internal Revenue its collection agency.

Unknown to the people, it operates in close cooperation with similar apparatuses in other nations. which are also disguised as "governments." Some, we are told, are friends. Some, we are told, are enemies. "Enemies" are built up through international manipulations and used to frighten the American people into going billions of dollars more into debt to the Bankers for "military preparedness," "foreign aid to stop communism," "minority rights," etc. Citizens, deliberately confused by brainwashing propaganda, watch helplessly while our politicians give our food, goods, and money to Banker-controlled alien governments under the guise of "better relations" and "easing tensions." Our Banker-controlled government takes our finest and bravest sons and sends them into foreign wars with obsolete equipment and inadequate training, where tens of thousands are murdered, and hundreds of thousands are crippled. Other thousands are morally corrupted, addicted to drugs, and infected with venereal and other diseases, which they bring back to the United States. When the "war" is over, we have gained nothing, but we are scores of billions of dollars more in debt to the Bankers, which was the reason for the "war" in the first place!


The profits from these massive debts have been used to erect a complete and almost hidden economic and political colossus over our nation. They keep telling us they are trying to do us "good," when in truth they work to bring harm and injury to our people. These would-be despots know it is easier to control and rob an ill, poorly-educated and confused people than it is a healthy and intelligent population, so they deliberately prevent real cures for diseases, they degrade our educational systems, and they stir up social and racial unrest. For the same reason they favor drug use, alcohol, sexual promiscuity, abortion, pornography, and crime. Everything which debilitates the minds and bodies of the people is secretly encouraged, as it makes the people less able to oppose them or even to understand what is being done to them.

Family, morals, love of Country, the Christian religion, all that is honorable is being swept away, while they try to build their new, subservient man. Our new "rulers" are trying to change our whole racial, social, religious, and political order, but they will not change the debt-money economic system by which they rob and rule. Our people have become tenants and "debt-slaves" to the Bankers and their agents in the land our fathers conquered. It is conquest through the most gigantic fraud and swindle in the history of mankind. And we remind you again: The key to their wealth and power over us is their ability to create "money" out of nothing and lend it to us at interest. If they had not been allowed to do that, they would never have gained secret control of our nation. "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7).

Let us now consider the correct method of providing the medium of exchange (money) needed by our people.


interest-free money
History tells us of debt-free and interest-free money issued by governments. The American colonies did it in the 1700's and their wealth soon rivaled England and brought restrictions from Parliament, which led to the Revolutionary War. Abraham Lincoln did it in 1863 to help finance the Civil War. He was later assassinated by an agent of the Rothschild Bank. No debt-free or interest-free money has been issued in America since then. Several Arab nations issue interest-free loans to their citizens today. The Saracen Empire for bad interest on money for 1,000 years, and its wealth outshone even Saxon Europe. Mandarin China issued its own money, interest-free and debt-free, and historians and collectors of art today consider those centuries to be China's time of greatest wealth, culture and peace.

Germany issued debt-free and interest-free money from 1935 and on, accounting for its startling rise from the depression to a world power in 5 years. Germany financed its entire government and war operation from 1935 to 1945 without debt, and it took the whole Capitalist and Communist world to destroy the German power over Europe and bring Europe back under the heel of the Bankers. Such history of money does not even appear in the textbooks of public (government) schools today.

Issuing money which doesn't have to be paid back in interest leaves the money available to use in the exchange of goods and services and its only continuing cost is replacement as the paper wears out. Money is the paper ticket by which such transfers are made and should always be in sufficient quantity to transfer all possible production of the nation to ultimate consumers.

It is as ridiculous for a nation to say to its citizens, "You must consume less because we are short of money," as it would be for an Airline to say "Our planes are flying, but we can't take you because we are short of tickets."


Under the present debt-usury system, the extra burden of usury forces workers and businesses to demand more money for the work and goods to pay their ever-increasing debts and taxes. This increase in prices and wages is called "inflation." Bankers, politicians and "economists" blame it on everything but the real cause, which is the usury levied on money and debt by the Bankers. This "inflation" benefits the money-lenders, since it wipes out savings of one generation so they cannot finance or help the next generation, who must then borrow from the money-lenders, and pay a large part of their life's labor to the usurer.

With an adequate supply of interest-free money, little borrowing would be required and prices would be established by people and goods, not by debts and usury.


If the Federal Congress failed to act, or acted wrongly, in the supply of money, the citizens would use the ballot or recall petition to replace those who prevented correct action with others whom the people believe would pursue a better money policy. Since the creation of money and its issuance in sufficient quantity would be one of the few functions of Congress, the voter could decide on a candidate by his stand on money, instead of the hundreds of lesser, and deliberately confusing, subjects which are presented to us today. And since money is, and would remain, a national function, local differences or local factions would not be able to sway the people from the nation's (citizens') interest. All other problems, except the nation's defense, would be taken care of in the State, County, or City governments where they are best handled and most easily corrected.

An adequate national defense would be provided by the same citizen-controlled Congress, and there would be no Bankers behind the scenes, bribing politicians to give $200 billion of American military equipment to other nations, disarming us, while alien nations prepare to attack and invade the United States of America.


With debt-free and interest-free money, there would be no high and confiscatory taxation, our homes would be mortgage free with no $10,000-a-year payments to the Bankers, nor would they get $1,000 to $2,500 per year from every automobile on our roads. We would need no "easy payment" plans, "revolving" charge accounts, loans to pay medical or hospital bills, loans to pay taxes, loans to pay for burials, loans to pay loans, nor any of the thousand and one usury-bearing loans which now suck the life-blood of American families. There would be no unemployment, divorces caused by debt, destitute old people, or mounting crime, and even the so-called "deprived" classes would be deprived of neither job nor money to buy the necessities of life.

Criminals could not become politicians, nor would politicians become criminals in the pay of the Money-lenders. Our officials, at all government levels, would be working for the people instead of devising means to spend more money to place us further in debt to the Bankers. We would get out of the entangling foreign alliances that have engulfed us in four major wars and scores of minor wars since the Federal Reserve Act was passed, alliances which are now used to prevent America from preparing her own defense in the face of mounting danger from alien powers.

A debt-free America would mean mothers would not have to work. With mother at home, juvenile delinquency would decrease rapidly. The elimination of the usury and debt would be the equivalent of a 50% raise in the purchasing power of every worker. With this cancellation of all debts, the return to the people of all the property and wealth the parasitic Bankers and their quasi-legal agents have stolen by usury and fraud, and the ending of their theft of $300 Billion (or more) every year from the people, America would be prosperous and powerful beyond the wildest dreams of its citizens today. And we would be at peace! (For a Bible example of cancellation of debts to money lenders and restoration of property and money to the people, read Nehemiah 5: 1-13.)


We realize this small, and necessarily incomplete, article on money may be charged with oversimplification. Some may say that if it is that simple the people would have known about it, and it could not have happened. But this MONEY-LENDERS' consPIRACY is as old as Babylon, and even in America it dates far back before the year 1913. Actually, 1913 may be considered the year in which their previous plans came to fruition, and the way opened for complete economic conquest of our people. The consPIRACY is old enough in America so that its agents have been, for many years, in positions such as newspaper publishers, editors, columnists, church ministers, university presidents, professors, textbook writers, labor union leaders, movie makers, radio and TV commentators, politicians from school board members to U.S. presidents, and many others.


These agents control the information available to our people. They manipulate public opinion, elect whom they will locally and nationally, and never expose the crooked money system. They promote school bonds, municipal bonds, expensive and detrimental farm programs, "urban renewal," foreign aid, and many other schemes which will put the people more into debt to the Bankers. Thoughtful citizens wonder why billions are spent on one program and billions on another which may duplicate it or even nullify it, such as paying some farmers not to raise crops, while at the same time building dams or canals to irrigate more farm land. Crazy or stupid? Neither. The goal is more debt. Thousand of government-sponsored ways to waste money go on continually. Most make no sense, but they are never exposed for what they really are, builders of "billions for the bankers and debts for the people."

So-called "economic experts" write syndicated columns in hundreds of newspapers, craftily designed to prevent the people from learning the simple truth about our money system. Commentators on radio and TV, preachers, educators, and politicians blame the people as wasteful, lazy, or, spend-thrift, and blame the workers, and consumers for the increase in debts and the inflation of prices, when they know the cause is the debt-money system itself. Our people are literally drowned in charges and counter-charges designed to confuse them and keep them from understanding the unconstitutional and evil money-system that is so efficiently and silently robbing the farmers, the workers, and the businessmen of the fruits of their labors and of their freedoms.

When some few Patriotic people or organizations who know the truth begin to expose them or try to stop any of their mad schemes, they are ridiculed and smeared as "right-wing extremists," "super-patriots," "ultra-rightists," "bigots," "racists," even "fascists" and "anti-Semites." Any name is used which will cause them to shut up or will at least stop other people from listening to the warning they are giving. Articles and books such as you are now reading are kept out of schools, libraries, and book stores.

Some, who are especially vocal in their exposure of the treason against our people, are harassed by government agencies such as the EPA, OSHA, the IRS, and others, causing them financial loss or bankruptcy. Using the above methods, they have been completely successful in preventing most Americans from learning the things you have read in this pamphlet. However, in spite of their control of information, they realize many citizens are learning the truth. Therefore, to prevent violence or armed resistance to their plunder of America, they plan to register all firearms and eventually to disarm all citizens. They have to eliminate most guns, except those in the hands of their government police and army.


The "almost hidden" conspirators in politics, religion, education, entertainment, and the news media are working for a Banker-owned United States in a Banker-owned world under a Banker-owned World Governments!

Love of Country and concern for your children should make you deeply interested in this, America's greatest problem, for our generation has not suffered under the "yoke" as the coming generations will. Usury and taxes will continue to take a larger and larger part of the annual earnings of the people and put them into the pockets of the Bankers and their political Agents. Increasing "government" regulations will prevent citizen protest and opposition to their control. Is it possible that your grandchildren will own neither home nor car, but will live in "government-owned" apartments and ride to work in "government-owned" buses (both paying usury to the Bankers), AND BE ALLOWED TO KEEP JUST ENOUGH OF THEIR EARNINGS TO BUY A MINIMUM OF FOOD AND CLOTHING while their Rulers wallow in luxury? In Asia and eastern Europe it is called "communism;" in America it is called "Democracy" and "Capitalism."

America will not shake off her Banker-controlled dictatorship as long as the people are ignorant of the hidden controllers. International financiers, who control most of the governments of the nations, and most sources of information, seem to have us completely within their grasp. They are afraid of only one thing: an awakened Patriotic Citizenry, armed with the truth, and with a trust, in Almighty God for deliverance. This article has given you the truth about their iniquitous system. What you do with it is in your hands.


The Federal Reserve has never been audited by the government since it took over our money and credit in 1913. In 1975 a bill, H.R. 4316, to require an audit was introduced in Congress.

During the April, 1975 hearings, this author submitted a statement favoring the audit, as did many others. Due to pressure from the money controllers, it was not passed. No audit of the Fed has ever been made.


Why haven't they told you about this scandal - the greatest fraud in history which has caused Americans and others to spill oceans of blood, pay trillions of dollars interest on fraudulent loans and burden themselves with unnecessary taxes?

Who are "they"? "They" are most of the politicians of the two old parties and elected officials. Most "educational" groups like the League of Women Voters, the Heritage Foundation and the American Civil Liberties Union (ACLU). All mainstream news services, such as the Associated Press and the United Press International. All mainstream daily newspapers, including the New York Times and Los Angeles Times. All mainstream weekly "news" magazines, such as "Time" and "Newsweek." All of the above and more have been hiding the truth from you.

ALAN GREENSPAN: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
PRESIDENT THOMAS JEFFERSON: "The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction... I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity... is but swindling futurity on a large scale."
PRESIDENT JAMES A. GARFIELD: "Whoever controls the volume of money in any country is absolute master of all industry and commerce".
CONGRESSMAN LOUIS McFADDEN: "The Federal Reserve(Banks) are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this Nation is run by the International Bankers".
HORACE GREELEY: "While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery.
THOMAS A. EDISON: "People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest ...But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People."
PRESIDENT WOODROW WILSON: "A great industrial Nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world - no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men". (Just before he died, Wilson is reported to have stated to friends that he had been "deceived" and that "I have betrayed my Country". He referred to the Federal Reserve Act passed during his Presidency.)
SIR JOSIAH STAMP,(President of the Bank of England in the 1920's, the second richest man in Britain): "Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits".
MAJOR L .L. B. ANGUS: "The modern Banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and unmint the modern ledger-entry currency".
RALPH M. HAWTREY (Former Secretary of the British Treasury): "Banks lend by creating credit. They create the means of payment out of nothing".
ROBERT HEMPHILL (Credit Manager of Federal Reserve Bank, Atlanta, Ga.): "This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon".       
This study on money is not copyrighted. It may be reproduced in whole or in part for the purpose of helping the American people.

By Pastor Sheldon Emry