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Hidden Image Two

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And here's a second hidden image, our monetary system. (Image one in last article.)
 
Our monetary system is not the only system that exist and we are not taught much about it in grade school or collage.  Lately there seems to be evidence of some flaw, but it seems complicated mainly because we were never taught anything about it.  There is indeed a huge flaw but this flaw is never discussed.  It is hidden from view but in plain sight.  All we need to do is look.
 
The monetary system as practiced in the majority of the world is complicated but it's also simple.  There are some basic things that everyone ought to know.
  • There is no commodity backing the money in our system.  There is not enough gold for every dollar in circulation.  It's a system of faith that the paper and numbers on paper can be exchanged for real things.  It's called a fiat money system.
  • The local banks operating under the rules set by the Federal Reserve and they loan out many times as much money as they take in as savings.  It's called the Fractional Reserve system.
  • The Federal Reserve is not under the control of the Federal Government.
  • The Federal Reserve loans the U. S. government money at interest paid to anyone who has the money to loan, and can be and often is non Americans.
  • There are monetary systems that operate successfully without paying any interest.
    • The Islamic monetary system does not charge interest because it is against their religion. And charging interest was against the Christian religion up until John Calvin.
    • The United States can own the bank and loan itself money and has done so in the past as has other countries.
  • Our present monetary system is not sustainable, is vulnerable to foreign influence, and costs more than necessary. Last year it cost $451 Billion of your money on interest payments to the holders of the National Debt.  Debt we would not owe if the government owned the bank.
Here's parts of two articles explaining our current system and the alternatives.  Note these things are not talked about in the news.  They are hidden images that you should take a hard look at.  An understanding of this is key to yet a bigger puzzle and yet more hidden images inside hidden images that will become clear if you stick with me in this tour of what reminds one of the rabbit holes in, "Alice in Wonderland." Jay
 

Opinion: A Way Out of Government Debt

By Stephen Rodenbeck, CEO of 4th Street LLC
As every pundit and politician debates the merits and shortcomings of the bank bailout and the government spending bill, they seem to all miss the root cause of what got us here.

All of our current problems regarding the economy have their roots in the Federal Reserve Act of 1913. From that point forward, it became law that all money would be created out of debt. To look at it another way, if all debt (be it government, corporate, or individual) in our current economic system were paid off, there would be no money. But paying off all debt is impossible because of the effect of interest.

For example, let's assume that the entire economy is 10 people. In order for the 10 people to get money to start a business, they have to borrow $1 million each from the Federal Reserve at 10% interest per annum. So a total of $10 million is injected into our new economy. In 10 years, on interest alone, the Federal Reserve is going to have all $10 million back. But since the entire economy at the start of this example was $10 million, those 10 people (or businesses) will have to borrow more money in order to have any money. In other words, debt begets more debt.

The only way for these 10 people not to go immediately back to the Fed to borrow more money is to find other markets to sell their goods and services into. This enormous flaw -- money being created from debt with interest -- has been masked by the fact that our population has more than tripled since 1913 and our economy has become massively intertwined with the other economies of the world.

(Continued with important details at the link above.  Examples of an alternated monetary system are given below by Ellen Brown.  Jay)

***********

Out of the Ashes of GM: The Phoenix of Renewable Energy

by Ellen Brown

"....................

What would we want with a car company? Moore suggests that the bankrupt mega-builder of obsolete gas guzzlers can be transformed into a mega-builder of things we need more—mass transit vehicles, including bullet trains, light rail mass transit lines, energy efficient clean buses, hybrid or all-electric cars, and alternative energy devices such as batteries, windmills, and solar panels. The factories that built the cars that helped destroy the environment can become the tools for cleaning it up.

"................"

TO PUT OUR NEW CAR COMPANY TO GOOD USE, WE JUST NEED TO OWN A BANK

"............."

Funding public projects with government-issued credit is not a new idea. It has a long and successful history, including these notable examples:

  • In the early eighteenth century, the colony of Pennsylvania issued money that was both lent and spent by the local government into the economy, producing an unprecedented period of prosperity. This was done without producing price inflation and without taxing the people.
  • When Abraham Lincoln needed money to fund the American Civil War, rather than paying 25 to 36 percent interest charges, he avoided going into debt by printing Greenback dollars that were “legal tender” in themselves. The ploy not only allowed the North to win the Civil War but helped fund a period of unusual national expansion and development.

  • The island state of Guernsey, located in the Channel Islands, used government-issued money to fund roads, bridges, and other needed infrastructure throughout most of the 19th and 20th centuries, without price inflation and without incurring government debt.

  • The Bank of North Dakota, founded in 1919, is a wholly state-owned bank that creates credit on its books just as private banks do. This credit is used to serve local needs, and the interest on loans is returned to the government. Not coincidentally, North Dakota has a $1.2 billion budget surplus at a time when 47 of 50 states are insolvent, an impressive achievement for a state of isolated farmers battling challenging weather.

  • During the First World War, when private banks were demanding 6 percent interest, Australia’s publicly-owned Commonwealth Bank financed the Australian government’s war effort at an interest rate of a fraction of 1 percent, saving Australians some $12 million in bank charges. After the First World War, the bank’s governor used the bank’s credit power to relieve the depression conditions in other countries by financing production and home-building, and lending funds to local governments for the construction of roads, tramways, harbors, gasworks, and electric power plants. The bank’s profits were paid back to the national government.
  • A successful infrastructure program funded with interest-free “national credit” was also instituted in New Zealand after it elected its first Labor government in the 1930s. Credit issued by its nationalized central bank allowed New Zealand to thrive at a time when the rest of the world was struggling with poverty and lack of productivity. According to a book titled State Housing in New Zealand, published by the Ministry of Works in 1949: “To finance its comprehensive proposals, the Government adopted the somewhat unusual course of using Reserve Bank credit, thus recognizing that the most important factor in housing costs is the price of money—interest is the heaviest portion in the composition of rent. … This action showed … it was possible for the State to use the country’s credit in creating new assets for the country.”
More reading here: http://whatreallyhappened.com/WRHARTICLES/LKO.php

Subscribe to comments feed Comments (11 posted)

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Jay Mock 06/22/2009 08:51:12
And Steve B. Ditto what I wrote of Tom's comments. Everyone's getting this. Thanks.
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Jay Mock 06/22/2009 08:39:52
Tom you bring up another good clue to the hidden image behind this one.

Isn't it curious that aside from the obvious difference between the two present day enemies, Christian vs. Islam, there's the fact that usury is STILL illegal under Islam. Hmmmmmm.

Could the true purpose of the war on terrorism also be a hidden image? Is the battle really usury vs no usury? Is compound interest, as you say the real enemy? Could usury be an instrument of slavery and the nations of Islam the only ones not slaves? Is this another Alice in Wonderland moment?
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Jay Mock 06/22/2009 07:10:18
Carol, you're on the right track to understanding this. This line of reasoning and your questions will lead to your understanding. I always like to say, "Contradiction is Truth, standing on it's head to get your attention."

Realizing that the problem is obvious and should be addressed by those who profess to be working on the problem, but in fact are not addressing the true nature of the problem, is a clue to another level of understanding what's happening.

I like to call it a conspiracy but others say that's improper use of the word and it's just some quirk of natural human nature. I say calling it a conspiracy urges the reader to action demanding prosecution by those who should do their duty. Unfortunately calling it natural human nature allows this "natural" insanity to continue unchecked!

Thanks verbalizing this line of reasoning Carol.
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KingofthePaupers 06/21/2009 06:41:01
Jct: Communities all around the world are starting up time-based currencies to effect local trading and when they all unite because they're all based on the same standard, time, these small economic life-boats will grow to dwarf the present orthodox bank currencies we are not forced to use.
Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars/hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture.
See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
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Tom 06/19/2009 23:14:24
Thanks! The solution is obvious: do what resource-based governments have done for thousands of years: banned compound interest and fiat currency.

See The Annals of Tacitus, Book six, about three quarters of the way in.

This is my study up to your post:
http://file2.ws/money8
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Kim 06/19/2009 21:36:46
The ultimate insult to the American people is that the IRS, an armed, militant institution, was set up to forcibly collect unconstitutional taxes on the wages of the people in order to pay the interest to the private owners of the Federal Reserve, a private corporation, for printing paper notes.
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Carol J. Eaves 06/19/2009 14:10:27
If the government "owes" such a great amount of money to the Federal Reserve, why doesn't it just cancel the debt. They do anything they want anyway. Who are they afraid of? We've got the most powerful military in the world, they could handle the problem. However, it seems to me that many people in the government also are in someway connected to the Fed Reserve and/or Central Banks. It's a pretty big mess and nobody on the inside is going to do anything constructive about the problem. It seems to me there must be some action by a portion of the military; i.e., like high-level flagship officers to start making arrests of all the legislators and those in the executive branch that are going along with this treason against the American people!!!
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Steven G. Berry 06/19/2009 13:58:55
"This enormous flaw -- money being created from debt with interest"

Debt and interest are two different things that you've mixed up as one thing.

Debt repaid without interest does not bury the borrowers with more debt.

Interest is the flaw you seek.

The funny thing is, our ancestors had this figured out two thousand years ago when they forbade usury.
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hANOVER fIST 06/19/2009 12:22:14
1913 was the beginning of the end of the United States of America as we all knew it to be.
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Jay Mock 06/18/2009 12:53:32
Dodd: Giving the Fed More Power is like Awarding a Son a “Bigger, Faster Car Right after He Crashed the Family Station Wagon"
http://www.washingtonsblog.com/2009/06/dodd-giving-fed-more-power-is-like.html
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Jay Mock 06/18/2009 12:26:11
"Take Back the Power to Create Money from the Private Banking Industry" is still #11 but is closing in on #10, out of a list that has grown to 3950 entries on the President's brainstorming website.

Obviously a popular idea but never mentioned as an alternative banking system. This would destroy the Federal Reserve and "central bank" thus their power over the US government. It's only hidden to those in the dominate media. Others like the idea, ranking 11 out of 4000 is worth looking into.

http://opengov.ideascale.com/akira/dtd/3648-4049
total: 11 | displaying: 1 - 11

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