THE TRUTH ABOUT MONEY

Greetings TT members

 

Here's a 3 1/2 hour movie that will explain the history of money....and why we're in the shape we are in....

I know it is a long watch....but you owe it to yourself to know the truth....

 

http://www.heyokamagazine.com/HEYOKA.12.%20MoneyMasters.htm

 

 

Good luck to us all.....

 

 

Blessings

 

 

lefty-dave

 

ChrisBowers's picture
From the Producer of THE MONEY MASTERS
October 1, 2008
Urgent Letter re the $700 Billion Bank Bailout

Dear Fellow American Citizen:

The
ongoing, severe economic turmoil in our nation - destined to get worse
if the right remedy is not enacted - was predicted in our video The Money Masters as the inevitable result of our fractional reserve banking system.

Our banking system, established by the Federal Reserve Act of 1913, works essentially like a spring. When the Central Bank, the
Federal Reserve, wishes to create new money, it simply does so. There
are no reserves to our money. The Fed then spends this money, usually
to buy Treasury Bonds from private owners of the bonds (more recently
to bailout or help huge banks buyout failing banks), which the sellers
had purchased from the Treasury Department. These bonds (and Treasury
bills, TIPS and notes) were initially sold to the public to fund
government deficits. In our metaphor the money created by the Fed is
the spring. The spring gets stretched in the following manner.

Banks,
privately-owned, are permitted to loan out 90% of this new Fed-created
money once it is deposited by the sellers of the bonds. That would not
be a problem, except for the fact that the borrowers almost always
redeposit the money (or the people they pay with their loan proceeds
do). Once re-deposited, the banks can lend it out again. This
re-loan, redeposit, re-loan, redeposit, etc. scheme, authorized by the Federal Reserve Act of 1913, allows banks each time to retain just 10% of the re-deposited
loan proceeds as a reserve, ultimately allowing banks to lend out 9
times the original amount deposited, and to charge interest on it as
many times as it was loaned. So instead of an interest rate of, for
example, 6%, the banks may be collectively receiving a total of 54%
interest per year (6% x 9; usually it is somewhat less due to the lack
of qualified borrowers). Now you know, if have not already seen The Money Masters, why banks grow and prosper much more than other businesses, that is, until they have stretched the spring to the maximum.

Once
the economy is flooded with the bank-created money 9 times in excess of
the money originally created by the Fed, an expansion that increases
the money supply, which reduces the purchasing power of
already-existing money (including wages and savings), interest rates
begin to drop (as there is more money to lend) and prices rise
(inflation). The dollar begins to fall relative to the money of other
countries not in this same stage of money expansion. Money begins to
flow out of US Treasury bonds (due to lower interest rates and the
lessening purchasing power of the dollar due to inflation). Thus ends
the expansionary or "boom" part of this artificial "business cycle."
To combat rising inflation and the falling dollar, the Fed begins
raising interest rates.

Then the spring of the economy - the
money supply - having been stretched to the maximum, begins its
contraction, usually initiated by rising interest rates reaching a
point that begins to inhibit borrowing and also inflation. The
economic "bust" part of the cycle begins. Loans dwindle as interest
rates rise and credit terms tighten. Various segments of the economy,
accustomed to easy credit, begin to contract due to higher interest
rates; loans become harder to get. Home prices fall, businesses begin
to fail, bankruptcy's increase. This "bust" part of the cycle
continues, and worsens, until inflation is "tamed," prices stabilize,
and the dollar rises relative to other currencies. Eventually, the
higher interest rates begin to attract foreign money, and the Treasury
then is able to borrow what it needs at lower and lower interest
rates. Interest rates fall. The artificial cycle then begins anew.

This
boom-bust economic cycle is totally unnecessary and is the fundamental
cause of the inherent instability in our economy. It is due to
too-rapid increases in the money supply due to deficit spending and
then the multiplier effect of fractional reserve banking (described
above) and to lenders greedy to take advantage of such a system that
rewards lending with more and more interest revenue; followed by a
too-rapid contraction of the money supply (such as we are experiencing
now), necessary to combat the inflationary effects of the former phase,
both the direct result of the Federal Reserve Act of 1913.
We urgently need to reform this system that rewards greed and results
in ever-increasing swings from boom-to-bust - destroying ordinary
businesses and farms in the process. We need to repeal or
fundamentally reform the Federal Reserve Act of 1913, and to replace it with a system that eliminates the ability of private banks to "create" and multiply money as loans.

The
major banks of this country - the ones the government is lending your
money to, and from which the Bailout Bill proposes to buy their bad
assets (wouldn't you too like the opportunity to sell off your bad
investments to the government!), are busily swallowing up the banks in
trouble in this latest bust - one deeper because of more rapid prior
monetary expansion and inflation. As after all prior bust cycles, they
will emerge larger and more powerful, and fewer. Wealth will be even
more concentrated under their control, which they will use in the next
bust to further this process, until eventually no one will own anything
but the ability to borrow - to go deeper into debt to banks than their
neighbors. Not savings, but credit scores will determine the average
American's ability to engage in economic activity (such as buying a
home or car). No one will dare breathe a word against such power,
concentrated in very few hands, and our republic will end with a
whimper.

Our Congress struggles with ignorance of the
complex, bank-created system enacted in 1913. It struggles with the
money the bank PACs flood into the political system to defeat their
critics and elect their shills. It struggles with mass media owned or
controlled by the banks, which seek to stir up panic in the populace,
to stampede Congress into bank-developed "solutions" that only make the
fundamental problems worse and increase their wealth. Based on
history, the banks will not fail to see-saw the economy and the markets
to match their strategies for fooling the public, and putting pressure
on the Congress to do their will. But we must resist. We must hold
out for genuine reform - for repeal or fundamental reform of the Federal Reserve Act of 1913.

Here is a hyperlink to one such reform proposal, the Monetary Reform Act. It
is not the only possible reform, but it is one developed, in its
essentials, over many years by numerous monetary reformers including
the late Nobel Laureate, Dr. Milton Friedman. Any genuine reform of
our monetary system must include two basic elements: fractional reserve
lending (such as described above) must be prohibited, and private banks
must be forbidden from creating money, whether as loans or otherwise. The Monetary Reform Act does both. It also incorporates means of doing this that include
paying off the huge national debt, and stabilizing the economy.

We have not previously written the viewers of The Money Masters. We judged the time was not ripe. But increasingly we are being asked - urgently - what can we do, and when, to be effective. Now it is clearly urgent that we flood Congress with our calls, emails and
letters, to oppose the proposed taxpayer-funded Bailout of the banks.
Rather, we support genuine reform, that will not result in an even
greater concentration of economic power in fewer and fewer hands. We
support the Monetary Reform Act, or any such Act that repeals or reforms the Federal Reserve Act so as to prohibit fractional reserve banking and money creation (as
loans or otherwise) by private banks. We oppose the Bailout of the
banks. We want genuine, fundamental reform, now!

Very truly yours,

Patrick S.J. Carmack

Patrick S.J. Carmack, J.D.
Producer of The Money Masters

themoneymasters.com
The Two Step Plan to National Economic Reform and Recovery
1. Directs the Treasury Department to issue U.S. Notes (exactly like Lincoln's Greenbacks) to pay off the National debt.

2.
Increases the reserve ratio private banks are required to maintain from
10% to 100%, thereby terminating their ability to create money, while
simultaneously absorbing the funds created to retire the national debt.

These
two relatively simple steps, which Congress has the power to enact,
would extinguish the national debt, without inflation or deflation, and
end the unjust practice of private banks creating money as loans (i.e.,
fractional reserve banking). Paying off the national debt would wipe
out the $400+ billion annual interest payments and thereby balance the
budget. This Act would stabilize the economy and end the boom-bust
economic cycles caused by fractional reserve banking. For the full
text of the Act click here to read the MONETARY REFORM ACT.

Support the Monetary Reform Act - contact your Congressman today!
ChrisBowers's picture

http://video.google.com/videoplay?docid=-4430543376785758889

If Alex Jones' Endgame and The Money Masters videos had a baby, it would be this one!!!!

Thomas-Rene's picture

A great name for a magazine dealing with tricks. Heyoka ~ the coyote ~ the Trickster. Tricks us into seeing the ilussion we think is reality. Thanks for putting that out there, Lefty-Dave

Walk in Beauty

Tom

Magical Godmother's picture

Here is a shorter film that covers the same basic material as The Money Masters in an amusing cartoon style

 

Money as Debt

http://video.google.com/videoplay?docid=-9050474362583451279 

The Gathering Spot is a PEERS empowerment website
"Dedicated to the greatest good of all who share our beautiful world"