Corrupt Banking

Well the market is crashing to new lows for the year today. I have been in the market since 1994 and today was the biggest percentage down gap I have ever seen. Pretty amazing. The worst is yet to come imho. The dollar keeps making new highs and gold and silver new lows. I put about 3/4 of my money into gold and silver about a week and a half ago and have taken a pretty big hit as they have steadily dropped against the dollar. Bad timing on my part but I am more than sure it will work to my advantage when the dollar rolls over and resumes its terminal decline.
So let's discuss fractional reserve banking. This is the second piece of the monetary puzzle which is and has been working against us for way to long.
You and I earn money by trading our labor for it. We work for somebody else or work to create something we can sell for a profit. Blood, sweat and tears are the capital we employ to earn a living. So how do bankers earn their money? Through the magic of fractional reserve banking, thats how. They take in our hard earned "money" and wave their government backed magic wand over it. Suddenly it multiplies in value by a factor of 10. 1,000,000 worth of deposits earned through our labors and borrowed from us for a pittance are transformed into 10,000,000 which get loaned out at much higher rates of interest. Lets run some numbers.
Average american deposits money. Gets paid 1/2% interest (far less than inflation, meaning in real terms you lose money)
Average banker Receives money and pay 1/2% to sucker(I mean average american) Multiplies it by 10 and loans out 9 times the original deposit
at 6% interest on a mortgage, 10% on a car or 15% on a credit card.
Lets run some numbers. cost to banker to borrow your $1000 is $50.
He loans $9000(fractional reserve magic money) out at an average of 9%.
He gets $810 before late fees, bounced check fees, overlimit fees, etc.
You get $50 he gets $810+. Don't you feel sorry for the poor bankers who you just bailed out?
Consider this; You want to buy a house. You find a nice house you want to buy for 200k. You have 20k to put down and the bank agrees to loan you $180k to complete the purchase. Where did the bank get that $180K? Do you think it was laying around in the vault behind that huge, thick steel door? Nope. Your 20k down payment gave the bank a reserve under fractional reserve banking laws to magically create the other 180k out of thin air and loan it to you at 6%, assuming you have great credit. And don't forget the 8 grand in fees they charge you upfront to get the mortgage your very own capital created.
What is their risk in this situation? Less than zero. If they kept this loan on their books they make 8k upfront and you pay them about $1080 every month to borrow money which never even existed until you borrowed it. Feel like a sucker?
Lets say after 3 years you fall on hard times and lose your job. You quit making payments and bank forecloses. So you paid 28k upfront and another
$38,880 in payments. You paid down the original 180k you borrowed by $7118 meaning you still owe the bank $172,882. But the economy tanked and the house now only has a market value of $130k. The bank forecloses and you are wiped out. You paid $66,880 over that 3 year period to realize the american dream before taxes and maintenance. About $1900 a month to
live in a house you probably could have rented for about $1000 or less. You got screwed.
So how did the bank make out? 8k upfront + 38,880 in payments or $46,880 and now since the house is worth less than you owe they can foreclose and sell the house again or rent it out. Their choice. You are out in the cold. Let's say they firesale and net 90k after expenses. So 90k + 47k =137k profit. Not bad considering they never loaned you a dime of their own money and thus never took a risk. What was their return? Infinite.
So how do you explain the current banking crisis we are in giving what I just stated? Simple, they got greedy and sold the loan as soon as they made it and foolishly enough guaranteed the full value of the loan to the new buyer who also sold it and so on. The banks figured if you can make 8k packaging and selling loans that was better than sitting on them and collecting monthly payments. So they became volume loan originators and sellers. Worked great for awhile. . . until the value of the underlying houses collapsed and they had to make good on the full amount. To bad. They got to greedy and the law of unintended consequences came back and bit them.
Of course they own the politicians and rather than suck it up and take their losses they just called in the favors and stuck us, the People with the losses.
So far it looks like we are going to take it.

Money

What are those federal reserve notes we carry around and use as money? Where did they come from? How did they become our "money"? First of all "federal" doesn't mean federal government. They aren't issued or backed by our federal government. They are issued by a cartel of bankers. This cartel was formed in 1910 at a secret meeting on Jekyll Island in Georgia. I won't go into the history of who was there and what their goal was but we are living right now with the consequences of that meeting.
In the U.S. this is how money is created. . . The government decided it needs some money(always doing this) so they create some bonds. Let's say they need(o.k. just want) another 100 billion dollars. That is 10,000 million dollars. So they create 100 billion in bonds and agree to pay 3% interest on those bonds. So what they have done is to create a liability to us, the People of 103 billion dollars. Now they take these brand new shiny bonds over to the federal reserve system and the federal reserve cartel(I mean system) agrees to loan them 100 billion dollars in exchange for those bonds. Now one would wonder where did the federal reserve cartel get the 100 billion they exchanged for those bonds? Any guesses?? From their vaults, right?
Wrong! They were borrowed into existence. The new 100 billion represents
newly created out of thin air DEBT.
They just tell the treasury to print up 100 billion and give it to the government so they can fund all their little pet projects and enact thousands of silly little laws to further oppress and control us, we the People. The federal reserve cartel has a pretty good gig don't you think? They get something for nothing but a guaranty and we pay the bill. Isn't that fair? 3% interest on 100 billion you never even had is a pretty good return on investment isn't it?
This is a pretty simple explanation of how our "money" is created. As you can see the fed get's a real good deal and so does the government. Both get something for nothing but promises and guarantees. You and I get the shaft. We get stuck with the bill which we have to pay for with our sweat and blood.
What is the purpose of money? It is to effect trade and store wealth, right?
We productive people all make something other people want in the form of goods and products or labor. We exchange those things for something we think is of value. This is how money came into being. Now money should have certain characteristics which qualifies it to be used as a store of value and as an exchange of value. Good money should be rare. It should be difficult to counterfeit. It should be easily transportable. It should be divisible and it should be durable. Historically gold and silver have been found to fufill all these requirements quite well. Almost all sound money systems have been based on them throughout history. And for good reason. Times change but human nature never does.
Let's see how our money stacks up against these 5 requirements. Our federal reserve notes are certainly not rare. They are just paper and paper is plentiful.
They are easy to counterfeit and the government and the fed do so daily.
They aren't very durable, being just paper which is easily destroyed by fire, water or just by ripping it up to shreds.
Our money is very divisible and transportable though so at least it has that going for it. So it fails on 3 out of the 5 categories which characterize sound money.
We have been conned and are being controlled and robbed by the very basic foundation of our economy. Our money is nothing but debt, brought into existence by the act of borrowing and it is the chains which bind us to a live of serfdom. Nothing will ever change in this country for the better, for any length of time until we abolish the federal reserve cartel and the governments ability to create money out of thin air backed by nothing but the future labors of our children. Time to end the immoral monopoly over
money which is the lifeblood of our economy.

Do we need a Test?

"I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States."

We will have a new liar soon falsely swearing this oath before he takes office and does everything but.

"I do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God."

And almost all the people who take office after the upcoming elections as either a senator or representative will also falsely swear this oath.

You know how I know? Because I have studied the constitution and I have somewhat of an understanding of what it is and why it is so important to freedom and liberty that it be followed. I know that Congress and POTUS are not following it. So either they don't understand it or they choose to ignore it willfully. The former implies they are merely ignorant and we who let them take office share most of the responsibility. The latter means they have committed treason and should be tried and if convicted, executed.
Why do I have to take a test to get a drivers license? To sell insurance? Real estate? To generate mortgages? To become an attorney? Tests and licenses are required by the government to allow all kinds of activities. What is the logic behind this testing? (I concede it doesn't ensure guarantee competence or ethical behavior) It does at least provide a measure of knowledge, though.
What test is required of those who make and enforce laws which almost invariably oppress us, the People.
Why do we let our "leaders" take power over us just because they are good at raising money and telling lies and then allow them to do so merely by swearing a false oath? Shouldn't they have to demonstrate a knowledge of the constitution? Shouldn't they have to have an understanding of freedom, liberty, sound economics and honest money?
Doesn't it make sense to at least test them to ensure they have an understanding of what they are swearing to uphold and defend?
Shouldn't they have to prove they really understand what is it and how it came about and why We the People want it upheld?
Or do we? How many of us have taken the time to read and truly understand it.
Why does it exist and what does it purport to do? Do you really know? Do you even care?

Beginning

This is something I have been mulling over for a long time. I trade for a living and am on the internet about 7 hours a day, 5 days a week. I have the time and the opportunity to read a lot of material from a lot of different sources. I consider myself fairly intelligent and open to new thoughts and ideas. Over the past year I have become a student of history and economics. I realized I have been fooled about what is really going on in the world and was existing in a state of ignorance. I was not amused at this revelation. I don't like playing the fool and being controlled and manipulated. I have decided the best way to help other people come to this realization is by communicating what I have learned and now understand, in a blog. This is my attempt to raise the level of awareness in this country and the world to what is really going on. I am going to attempt to communicate my thoughts and beliefs clearly and simply. I want to do so in a manner which is easy to understand and rely on my understanding of logic to accomplish this. I am a college drop-out and believe that most of what I learned through formal education was not only worthless, it was dangerous. Instead of learning knowledge which would have empowered me and freed me from the shackles of ignorance I was indoctrinated and controlled by doctrines of the state. In short, until I started to question the system which "educated" me I didn't even know what I didn't know. I was living in the matrix. I have taken the red pill and my eyes are open. I am now in a state of learning, thinking and studying. I know what is going on but I don't yet know how to effect real change.
http://moneynews.newsmax.com/headlines/bernanke/2008/10/20/142123.html

Bernanke: I Support a Second Stimulus

I read this article today about the idiot Bernanke who is running the Federal reserve System which is one of the root causes of the decline of America. I support removing Bernanke! The solution put forth by him, the head of the most powerful criminal cartel the world has ever seen is to create more debt which will guarantee further problems. We are in the state we are in because of debt. We have to much not to little. We have to much government not to little. The remedy can't be more of the same. we as Americans need to go on a fast. We need to get out of debt and start saving. Quit borrowing from our children and rein in our own greed. Live on less than we make and save for the future. All treasury notes we carry around and call money are quite simply DEBT! Our money is the opium used to keep us in a state of addiction to credit. It is the whip which keeps us in line and allows us to be controlled without our knowledge or understanding.
Disagree? Go look up fractional reserve banking. It is the ultimate scam perpetrated by the elite few at the expense and detriment of the many, people like you and I.