How about a new Green Tea Party?

This is a nice interview that discusses the need to use modern technology to reduce the need for international trade and promote local economies.  This model drastically decreases energy consumption while at the same time promotes jobs as local economies begin producing the things their community needs.

Restore proper hierarchy – God then man then gov then corp

Restore proper hierarchy – God then man then gov then corp

This is what happens when this gets reversed to:

corp control gov

gov control man

man dismiss god

Black’s Law Dictionary, Sixth Edition page 697 –

Government de facto. A government of fact. A government actually exercising power and control, as opposed to the true and lawful government; a government not established according to the constitution of the nation, or not lawfully entitled to recognition or supremacy, but which has nevertheless supplanted or displaced the government de jure. A government deemed unlawful, or deemed wrongful or unjust, which, nevertheless, receives presently habitual obedience from the bulk of the community.

There are several degrees of what is called “de facto government.” Such a government, in its highest degree, assumes a character very closely resembling that of a lawful government. This is when the usurping government expels the regular authorities from their customary seats and functions, and establishes itself in their place, and so becomes the actual government of a country. The distinguishing characteristic of such a government is that adherents to it in war against the government de jure do not incur the penalties of treason; and, under certain limitations, obligations assumed by it in behalf of the country or otherwise will, in general, be respected by the government de jure when restored. Such a government might be more aptly denominated a “government of paramount force,” being maintained by active military power against the rightful authority of an established and lawful government; and obeyed in civil matters by private citizens. They are usually administered directly by military authority, but they may be administered, also, by civil authority, supported more or less by military force. Thorington v. Smith, 75 U.S. (8 Wall.) 1, 19 L.Ed. 361.

Owner Finance

So, I have been studying living without a social security number lately.  When I mention this in conversation, one of the most common questions that come up is this:

Q:  How can you get a loan to buy a car or a house without using a SSN?

At first I was stumped by this question.  You see, a part of my pursuit of happiness is to own property.

How can I buy more property in the future without using the financial system that “requires” the use of a SSN?

I have found two answers to this question so far, please add others that you have learned.

Answer 1:  Save your money until you can buy it.  Simple enough.  However, saving enough money to buy a house at the current highly inflated prices would not really be practical.  This answer does not fully satisfy my needs.

Answer 2:  Owner finance.  This struck me after a couple of months of contemplation.  The wording of the question, ” How can you get a loan to buy a car or a house without using a SSN?” leads you to think about “getting a loan”.  But, “getting a loan” is not the real goal is it?  The real goal is gaining possession of a house or car.  So let’s change the question to, “How can you buy a car or house without using a SSN?”  Let’s walk through this shall we:

Step 1:  Choose a car that you really want.

Step 2:  Negotiate a price with the current owner of the car.

Step 3:  Prepare a simple 2 party contract defining terms for the transaction between buyer and seller.  This could include optional interest charges, remedies or other free and transparent agreements.

The biggest hurdle here is, to get someone to accept your promise to pay, you are going to have to work to sell yourself, right?

Let’s compare this to how things worked last year.    In the bankers credit system:

1.  the seller doesn’t even have to meet the buyer, he just looks at a credit report, the buyer fills out some paper work,

2.  the buyer signs a debt instrument.

3.  a bank, by charter, creates money out of thin air, forwards it to the seller in your name.

The outcome of this 3 party transaction includes:

1.  The buyer gets to stand in line at the DMV, increase his property tax on property he does not own yet, and drives a nice car, with a monthly payment for the next few years.

2.  The seller gets freshly minted money that he trusts other merchants will accept towards his debts.  He also, never has to worry about the car coming back to him at a later date.  He washes his hands of the property immediately.

3.  The bank, who entered the transaction with nothing accept a charter to counterfeit money,  gets a new stable income stream of REAL money from you, plus usury fees.  Money that you most likely gained in fair trade for your time and talents.  So let me review.  Due to the fractional reserve banking system used in the US today, the bank risks nothing.  It simply uses its government charter to create debt based money out of thin air and trades this illusion for a signature of debt from the buyer.  As the debt is paid off, the money paid into principle dissolves back into thin air.  In the mean time the bank gets to gain the profits of the interest payments on money it never really had!

Five years down the road:

1.  You finally make the last payment just when your car is worn out and needs to be replaced soon.

2.  You start the system all over again.

Now back to the 2 party scenario:

1.  By removing the bank from the equation,

The seller gets the profit from interest in exchange for his risk in trusting the buyer.

The seller maintains title of the property until the contract is completed, and can legally repossess the property should the buyer default or otherwise is unable to fulfill the contract.  This of course is more work for the merchant, but he is well rewarded for this by keeping all interest moneys.

2.  The buyer gets to lower his total costs by eliminating the fees and other bank charges.

3.  Both the buyer and seller or obligated to get to know each other better.

I will say this 100 times.  The internet has changed everything.  Anyone who beleives we can ever “get the credit flowing again” is living in a world that no longer exists.  Our times are similar to the 14th century when Western European society had to come to grips with the fact that the world was round.  Transparency is exposing all the secrets of the old world.  We must have courage to embrace the responsibility of living in a free society.  The second American revolution has begun.

This is a plan worth support

SOMETHING WICKED THIS WAY COMES

By Darrell L. Castle

Constitution Party 2008 Vice-Presidential Candidate

 

Crystal water turns to dark

Where ere it’s presence leaves it’s mark

And boiling currents pound like drums

When something wicked this way comes.

(Original poem by Ray Bradbury)

 

Laws, originally evolving out of the New Deal legislation written in response to the great depression, once protected the American financial system. Starting in the 1990’s, in response to intense lobbying efforts by the financial industry, those laws were stripped away. The most important one was Glass Steagall which separated commercial banking from the type of investment work of a stockbroker. Glass Steagall was signed out of existence in 1999 by President Clinton and less than 10 years later the entire financial system is bankrupt. Another law, known as The Uptick rule, prevented companies from crashing due to large scale shorting of company stock. A company’s stock could not be sold short as long as it was in continuous decline. Short sellers had to wait for an uptick in the stock before shorting. The Uptick Rule ended in 2007 just about one year ago.

 

The end of the laws protecting the American public from unscrupulous speculators disguised as bankers caused changes in the way our banks do business. The banks decided that simple banking, that is loaning money at interest, was not profitable enough so they began investing in risk paper. This changed them from banks into something akin to casinos. Now that the gamble has finally failed these new casinos are asking the American taxpayer to pick up the tab for their greed and excess.

 

Now all this risk paper, known in the financial world as “the derivatives market” is collapsing. Derivatives are not stocks or bonds or anything else substantial. They are simply paper derived from other paper such as futures and options. Futures and options are exchange traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such things as collateralized debt obligations, mortgage backed securities, and credit default swaps. It is estimated that total derivative exposure of the financial system is between one quadrillion and one and a half quadrillion. A quadrillion is 1000 trillion. To put that in perspective, the entire GDP of all the world’s countries in 2007 was approximately 60 trillion. GDP is basically everything that is produced for sale. The American people are now being asked to shoulder the risk of the entire derivatives market and if they do, 700 billion will prove to be a drop in the bucket.

 

The rapid increase in the price of fuel during the last year is a good example of the destructive nature of the derivative market. Much of the price increase was due to speculation in futures especially by Goldman Sachs (Henry Paulson’s company) and Morgan Stanley. These companies, it is believed, are responsible for about 50% of the speculative price of oil. What that means is that every time we buy gas we subsidize the parasites who feed off us so they can continue their existence. We are now being asked to accept increased taxes to cover their losses.

 

Now that this mess has been created, what should be done to resolve it with the least amount of pain for the American People?

 

 1. All failed and at risk financial companies, not just those we constantly read about, should be seized by the F.D.I.C. (Federal Deposit Insurance Corporation) and put into involuntary Chapter 11 Bankruptcy. The money people have on deposit would carry the same FDIC guarantee as before so there would be no need for panic. The Chapter 11 trustee would examine the assets of these institutions and all derivative paper should be discharged in bankruptcy. The American people should not accept one penny of risk for derivative paper. The real assets such as mortgages on residential real estate should be separated and foreclosure should be indefinitely frozen. The at risk mortgages, whether subprime or not, could be written down to the current value of the property and re-amortized for a payment the homeowner could afford. The mortgage could then be returned to the bank for service or referred to Fannie and Freddie if the bank did not survive Chapter 11.

 

2. The Federal Reserve Banks should be seized by Congress under Article 1 Section 8 of the Constitution. The FED banks could survive as Clearinghouse banks but the Federal Reserve that has robbed the American people for 100 years would cease to exist. The debt owed by the American people to the FED banks would be discharged in bankruptcy. Congress would take monetary policy from the FED and would simply stand in place of the FED through a monetary board. The FED credit computers would be transferred to Congress who would issue new credit (money) because under our present system 97% of all money originates as credit. This new credit would keep the system going and prevent collapse. It could all be done without interest and without debt. The backs of the international banking cartel would be broken forever and the American people through their elected representatives would control monetary policy i.e. money in circulation, interest rates, and credit availability.

 

3. Glass Steagall and the Uptick Rule should be returned. Speculation in the futures markets of essentials such as fuel, food, and medicine should be banned or at least have a punitive tax say 50% attached.

 

4. The Chapter 11 Bankruptcy Trustee would immediately move to seize any assets taken by the CEO’s and Boards of Directors from the bankrupt companies during the prescribed time period. No bankruptcy system would allow the CEO of the bankrupt company to keep hundreds of millions as in some of these cases. At the same time, the U.S. Attorney should be directed to examine the process for criminal sanctions where laws have been violated.

 

In conclusion, this plan would return our monetary system to the American People and ignite a new wave of prosperity and liberty. Every crisis presents opportunities if we only look for them. This is an opportunity for the American people to throw off the yoke of debt bondage that has enslaved them for 100 years and gain direct control of monetary policy through representatives answerable directly to them. No particular philosophy has been respected or spared in this plan. I am more interested in saving the system for the American people than I am in respecting anyone’s philosophy of money or government. This is intended to be a simple, easy to understand, explanation of our banking crisis with a Consitutional solution.