Tax payers must borrow from the banks to bail the banks out

The bailout in a nut shell by Congressman Dennis Kucinich.

Here is a very quick explanation of the $700 billion bailout within the context of the mechanics of our monetary and banking system:

The taxpayers loan money to the banks. But the taxpayers do not have the money. So we have to borrow it from the banks to give it back to the banks. But the banks do not have the money to loan to the government. So they create it into existence (through a mechanism called fractional reserve) and then loan it to us, at interest, so we can then give it back to them.

All of that is the smoke and mirrors that in itself creates debt slaves.  But, the real issue is one of constitutional rule of law.  Congress cannot delegate authority over the treasury, period.  End of story.

Thank you Mr. Graves

I just got off the phone with Marko at Congressman Grave’s Washington office.

I had spoken to him before and he remembered me. 

 

I made three points:

 

1.       Handing over the purse to an appointed official is constitutionally illegal.  It is congress’ obligation to handle the treasury.

2.       Where will the $700B come from?  This is a credit crisis remember?  No one is loaning each other any money right now so you can’t borrow it.  When you print $700B new paper currency out of thin air and pour that into the economy, the money that is currently in the “tax payers” (I hate being called that) pocket becomes less valuable, and the Dollar value goes down compared to food, clothes, shelter, etc…  This bailout will cause damage to the dollar and devastate the “tax payer” by causing severe inflation.

 

His response:  Marko told me that congressman Ron Paul has been talking about these same topics and Mr. Graves has expressed exactly these concerns about this situation.  “I would say, you and the congressman are on the same page regarding this issue.”

 

3.       I informed him that I am a member of the Campaign for Liberty, which is a young group of conservatives, many of which were outcast by the Rockefeller wing of the Republican party. Our numbers are growing everyday.  We are actively seeking leaders that understand our desire to restore the rule of law to this great nation.  Thanked him for his time, and told him I would be talking to him again soon.

 

Facts:

 

He voted against the bill. 

These comments are very encouraging, but this is politics. 

I humbly suggest everyone call him at 202-225-7041 and thank him for his courage to stand up against his chain of command within the RNC.

Changes, they are a commin!!!

 

DrD

Facts about the FED and FDIC

If you are not familiar with the workings of the Federal Reserve and its REASON FOR EXISTENCE, then do some reading (“Creature from Jekyll Island” by G Edward Griffin, “The Case Against the Fed” by Murray Rothbard, some others…)

 

Ultimately, in fact almost entirely, the FDIC is backed up by the printing presses of the Fed(eral Reserve).  When a bank fails, the Fed “rescues” them, and everybody sighs in relief, wondering if Super Man (the Fed) would show.  How does the Fed “rescue”?  They print “Federal Reserve Notes”, then lend them to whomever, thru the Treasury, AT INTEREST, to be paid back to the FED, by the Treasury, IOW, by YOU the TAXPAYER.  If the recipient defaults, we go thru it again, where the Treasury “restructures” the loan, IOW, keeps the interest payments coming, ultimately at the expense of the TAXPAYER.

 

The Fed prints “money” (they print FRN, not gold), loans it at interest, gets paid back with interest.  Isn’t this counterfeiting?  Some say it is not because it is legal according to the Federal Reserve Act of 1913.  If you or I do this we are hauled off to jail.  If a privately owned organization (this is TRUE organized crime!!!) that is granted monopoly privileges, in fact created and maintained as a monopoly by the Gov’t, in violation of the Constitution, does it, it is now the superman who “rescues” us from “the free market”, virtual sainthood.

 

But if you look back you will see that nothing that we are being rescued from was ever, in spite of what we have all been told by all indoctrination sources, including media, public, and yes private universities, was ever due to a any actual “free market”.  Rather, these events were the result of criminal acts which were not recognized and prosecuted as such, here primarily FRACTIONAL RESERVE BANKING, and later the same acts MADE LEGAL by such laws as the Federal Reserve Act.

 

The Fed was CREATED for the purpose of its owner controlling, acquiring the World’s wealth, by means of counterfeiting and lending to the Gov’t AT INTEREST.  “Saving” FDIC, or Bear-Stearns, or AIG, or whatever is not an act of virtue on the part of the Fed.  It is an act of raw criminal greed.  It is also part of the ENGINE of INFLATION, because for every dollar (FRN) the Fed prints, the value of every dollar you worked so hard for, then scrimped and saved, just got reduced, because that new dollar dilutes the pool of dollars competing for any legitimate purchase.  Adding insult to injury, that new FRN is worth MORE than your FRN because it is spent at full value at the beginning of the inflationary process, before the value of your dollar is slashed, whenever you spend your dollar.

 

Guaranteeing your money by the FDIC?  This means that you will not lose possession of your FRN’s, but it ALSO GUARANTEES that the value of your FRN’s will be diluted and reduced by the Fed when your or anyone’s account is “insured”.  Along with all the other inflationary Fed counterfeiting. 

 

The increase in consumer prices is not Inflation, but is a result of inflation.  Inflation is the arbitrary increase in the money supply.  This cannot be done with Gold, Silver, Copper, Nickel, Platinum, etc.  The Fed inflates, via printing paper as DEBT, electronic creation, etc, and their motivation is no different from that of the criminal counterfeiter.  However the Fed does this criminal act on a MASSIVE, ONGOING, INSTITUTIONALIZED AND LEGALIZED BASIS.

 

 

John Bubb

All credit card transaction will be reported to the IRS

by Jake, the Champion of the Constitution
(Libertarian)
Thursday, July 24, 2008

July 23, 2008, Ron Paul reports that the House passed HR 3221 by a vote of 272-152. Did your Representative vote for this Pelosi bill? Check here.

The 600-page mega-bill includes:

1) Fannie Mae/Freddie Mac Bailout: Granted Treasury an unlimited line of credit to allowed to buy all housing securities from these two private companies. Ron explains that Treasury will exchange Treasury Bills for the mortgage-backed securities, so these securities will now back the dollar – which will debase the dollar which debt that no one wants to buy, so the dollar will drop.

2) National Debt Expansion: Congress approved to increase the national debt by $0.8 Trillion

3) Police State Expansion: All mortgage brokers must now get fingerprinted. (As if this caused the housing crisis!)

And the winner is…

4) Police State Expansion: All personal credit card transactions will now be reported to the IRS. Just swell.

Feel like casting off some chains? Try registering at www.campaignforliberty.com. Contact your Representative and especially your Senators (who will vote next) by going to this bill at www.downsizedc.org, the Read the Bills Act that requires Congress to read to the floor each bill before it is voted on. A 600-page document would probably stymie even the MicroMachines Man for a couple hours. If anyone thinks their Representative is actually reading all the bills they vote on, I have some subprime mortgages in Las Vegas I can sell you.

As the dollar drops, the risks of hyperinflation will increase as described below:

The 3 Trillion Dollar Government: Hyperinflation in America? (Part 1/2)
Published: July 13, 2008
A Prelude. Interesting statistics on the Federal Government Taxation and Deficit, the Trade Deficit, the National Debt, and more

Calling All Wheelbarrows: Hyperinflation in America? (Part 2/2)
Published: July 16, 2008
“Let it not be said that No One Cared, that No One Objected, once it is realized that our Liberties and our Wealth are in Jeopardy.” – Dr. Ron Paul