"Slavery is likely to be
abolished by the war power and chattel slavery destroyed.
This I and my European
friends are glad of,
for slavery is but the owning of
labor and carries with it the care of the laborer, while
the European plan led by England is for
capital to control labor by controlling wages.
This can be done by controlling the money.
Debt is a means to control the volume of
To accomplish this BONDS must be
We are now waiting for the Secretary of the Treasury to make his
recommendation to Congress.
It will not do to allow the
Greenback, as it is called, to circulate as money
any length of time, as we cannot control that." - Hazzard Circular, 1862, Bank
1864 International bankers take
Banking Act specifies the entire US
money supply will be printed out of debt by the national banks through the
purchase of US treasury bonds by issuing them as assets backing treasury
US treasury bonds, or T-bills, are guaranteed by the US
As long as the US government is
solvent US treasury bonds retain
A US treasury bond, or treasury note, is
a promissary note.
A promissary note is
a promise to pay a specified amount on a specified date.
include an interest payment for the use of capital while held.
A bond is
a debt security, paper collateral for the loan.
A bearer bond is a bond
or debt security issued by an incorporated entity.
Bonds issued by
corporations are corporate bonds or
"In years following the war,
the federal government ran
a heavy surplus.
It could not however pay off its debt, retire its
securities, because to do so meant there would be no bonds to back the
national bank notes.
To pay off national debt was to
destroy the money supply." -
1861 Moses Taylor, Chairman of the Loan Committee
to finance the Union in the Civil War, offers the government $5,000,000 of US
treasury bonds at 12% at a 33% shaving to continue financing the Civil War.
It is suggested Abraham Lincoln go to Congress to requestingthe passage
a bill authorizing the printing of full
legal tender treasury notes.
"To pay the soldiers the
Government issued Treasury notes, authorized by act of Congress, July 17, 1861,
for $50,000,000, bearing no interest.
These notes circulated at par
Rothschild agents inspired the American banks to offer to
Lincoln a loan of up to $150 million.
But before they had taken much of
the loan, the banks broke down and suspended specie payments in December 1861.
They wished to blackmail Lincoln and demanded the 'shaving' of
government paper to the extent of 33%, an
extortion which was
A bill drafted for government issue of $150 million, which
should be full legal tender for every debt in the US, passed the House of
Representatives Feb. 25, 1862, and was hailed with delight by the entire
The Wall Street bankers were
furious." - Arthur Cherep-Spiridovich
1893 "The interests of national banks require immediate
financial legislation by Congress (the US Government).
certificates, and Treasury bonds (all government money) must be retired, and
National Bank Notes made the only money.
This will require the
authorization of $500 million to $1 billion of new bonds as the basis of
At once retire one-third of your currency and call in
one-half of your loans.
Be careful to make a monetary stringency among
your patrons, especially among influential businessmen.
extra session of Congress to repeal the purchasing clause of the Sherman
Law, and act with other banks of your city in securing a large petition to
Congress for its unconditional repeal per accompanying form.
personal influence with your Congressmen, and particularly let your wishes be
known to your Senators.
The future life of national banks depends upon
immediate action, as there is an increasing sentiment in favor of government
legal-tender notes and silver coinage."- "The Panic Circular", American
Bankers' Association 1893
"Traditional money systems depend on faith
general ignorance to stay afloat." - Jason Rohrer
"The truth is that no bank lends as much as
a penny of the money deposited with it.
Every bank loan or overdraft is a creation of entirely new money
(credit) and is a clear addition to the amount of money in the community.
It is no more than a record in a bank ledger
or computer and is actually the creation of new money out of nothing." -
"The bank-debt currency system we have today is
founded upon interest.
motivation for banks to create
money in the first place.
Creating money is only a side effect,
irrelevant to the commercial bank, of their main purpose of earning a profit.
Another effect is the necessity of perpetual economic growth and
conversion of all common
wealth into private monetary wealth." - Charles Eisenstein
"It started with
bankers initially provided safekeeping services by making a profit from vault
storage fees for gold and coins deposited.
People would redeem their
"deposit receipts" whenever they needed gold or coins to purchase something,
and physically take the gold or coins to the seller who, in turn, would
deposit them for
safekeeping, often with the same banker.
Everyone soon found that it
was a lot easier simply to use the deposit receipts directly as a means of
These receipts, promissary notes, were acceptable as
money since whoever held them could go to the banker and exchange them for gold
Then, bankers discovered that they could make loans merely by
giving their promise to pay, or bank notes, to borrowers.
In this way,
banks began to create money.
More notes could be issued than the gold
and coin on hand because only a portion of the notes outstanding would be
presented for payment at any one time.
A fractional reserve of gold and
coin had to be kept on hand to redeem whatever volume of notes was presented
Transaction deposits are the modern counterpart of bank
It was a small step from printing notes to making book entries
crediting deposits of borrowers, which the borrowers in turn could "spend" by
writing checks." - Chicago Federal Reserve, Modern Money
Banking families intermarry and keep
to themselves building international
dynasties of banking families.
Frederick Soddy defines banks: "Institutions which pretend to lend money,
do not lend it, but create it, and when it is repaid, de-create it and have
achieved the physically impossible
miracle thereby, not only of getting something for nothing but also of
getting perennial interest from it."
The money changers soon discovered
that their control of this fraudulent
paper promissary note money supply, as
there was more paper in circulation than in
deposits, gave them
control over the economy and the assets of many of those who had borrowed
The money changers exacted their control of the economy and
their wealth accumulation by manipulating the
money supply - easy money and
tight money - economic
contraction and expansion.
refer to "the business
cycle," "boom and bust,"
"tech bubble" and "housing bubble" in order to
distract - as "asset bubbles" are real.
fractional reserve banking system, such as the fiat paper money/fungible asset system used
internationally, the debt has to
continue to climb until, at some point, it must be forgiven.
debtors can never aquire enough capital to fully pay off their
In a closed fractional reserve
system money is only printed through loans like the ones granted by the BIS
When $10 is deposited $100 is loaned out.
annual interest rate of 10%.
The borrower is required to pay $110 back
to the bank, but $10 is still held as reserves by the bank and only $100 has
been put out into circulation.
Where does the extra $10 to be paid as
interest come from?
"Imagine the first bank which prints and lends out
For its efforts it asks for the borrower to return $110 in one
year; that is it asks for 10% interest.
The bank has created
a mathematically impossible
The only way in which the borrower can return 110 of the
bank's notes is if the bank prints and lends more.
The result of
creating 100 and demanding 110 in return, is that the collective borrowers of a
nation are forever chasing a phantom which can never be caught; the
mythical $10 that was never
The debt is in fact, unrepayable.
Each time $100 is
printed, the nation's overall indebtedness to the system is increased by $110.
The only solution at present is increased borrowing to cover the
principal plus the interest of what has been borrowed." - Roger Langrick
"What we have found over the years in the
marketplace is that derivatives have
been an extraordinarily useful vehicle to transfer risk from those who
shouldn't be taking it to those who are willing to and are capable of doing
so." - Alan Greenspan 2003
market is $531 trillion, up from $106 trillion in 2002 and a relative
pittance just two decades ago. Alan Greenspan banked on
the good will of Wall Street to
self-regulate." - Peter S.
Investment banks are able to
"balance" and prove adequate reserves by "securitizing" loans which allows
investment banks to move those loans
off the balance sheets.
There are two ways to
securitize a loan:
sell the securitized loan as a 'corporate'
bond (originally made popular by Michael Robert
Milken* as junk bonds);
"synthetic" securitization: use of derivatives to get rid of the risk of
default (with credit default
swaps) and lock in the interest rate due on the loan (with
Once an investment bank securitizes a loan that it is
off the balance
Once a loan has been moved off the balance sheet the
capitalization ratio improves and the
investment banks can make even
Investment banks print
trillions of dollars of credit without maintaining adequate capital reserves
(leveraged up to 33 to 1 - 3.3 times
higher than the traditional fractional reserve of 10 to 1) by providing
sub-prime mortgages, student loans and credit card
loans to millions of loan applicants who have no documentation, no income,
no collateral and a bad credit history for enormous short term
banks did this without tying up any of their capital reserves while
purchasers of the
commercial paper that there was no risk of default!
"Bankers are in the debt business, and if
governments are allowed to create enough money to keep themselves and their
constituents out of debt, lenders will be out of business.
central banks charged with
maintaining the banking business therefore insist on a stable currency at all
costs, even if it means slashing services, laying off workers, and soaring debt
and interest burdens.
For the financial business to continue to boom,
governments must not be allowed to create money themselves, either by
printing it outright or by borrowing
it into existence from their own government-owned banks." - Ellen
Federal Reserve issues stock which is held by
over 2,900 banks.
The Federal Reserve pays a 6 percent dividend which
amounted to $1.637 billion in 2012, the last year of available data.
Fed Open Market Committee creates money out of
Most "currency" is now in the form of electronic
spreadsheets, rather than paper records such as ledgers.
Open market operations are conducted
simply by electronically increasing or decreasing ('crediting' or 'debiting')
the amount of currency that a bank has in its reserve account at the central
bank in exchange for a fungible instrument -
an entry in an electronic
magically appears when the balance in a reserve account is increased.
The newly printed currency is then
used by the central bank to purchase on the open
market fungible instruments which may or may not be backed with tangible
financial assets, such as US bonds, foreign currency, or
central bank sells fungible instruments on
the open market, the amount of currency
the purchasing bank holds decreases, effectively destroying
The US Treasury sells marketable securities - T-Bills,
promissary notes, bonds, and Treasury Inflation-Protected Securities
(TIPS) to the public through regular public auctions to raise the cash needed
to operate the US government and to refund maturing
Marketable securities are fungible financial
securities are simply government IOU's.
Marketable securities can be bought, sold or
transferred after they issue.
securities are purchased in order to get a secure rate of interest.
At the end of the term of the
the US Treasury repays the principle, plus interest and the
marketable security is
destroyed - ie. the fungible instrument is deleted from the electronic
For example one of the twelve Fed banks - Boston, New York,
Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis,
Kansas City, Dallas, San Francisco - that make up the Federal Reserve system
exchanges a fungible instrument for $1,000,000 of marketable securities with
the US Treasury.
When the fractional reserve is 10% - $10,000,000 can
then be loaned on a $1,000,000 purchase of marketable Treasury securities.
Regional Federal Reserve
Banks then issues loans to regional member banks.
To reduce the
amount of money in circulation this process is simply reversed.
Federal Reserve sells marketable securities to the public the money flows out
of regional banks.
When the fractional reserve is 10% - regional loans
must be then reduced by ten times the amount of the US Treasury marketable
A purchase of $1,000,000 in marketable securities results
in a $10,000,000 reduction of currency in the regional economy when fractional
reserve rules are observed.
"The financial system has been turned
over to the Federal Reserve Board. That board administers the finance system by
authority of a purely profiteering
group." - Charles A Lindbergh Sr.Federal Reserve
controls the amount of currency in circulation in two ways.
way the Federal Reserve controls the amount of currency in circulation is
through the purchase and sale of marketable
The second way the Federal Reserve controls the amount
of currency in circulation is through the interest rate it charges its member
But the Federal Reserve also controls the interest rate on the
marketable securities through the purchase and sale of
US Treasury offers more marketable securities than
the rate of demand of those marketable securities then the
Federal Reserve can step in and purchase the excess capacity to
keep interest rates low or the Federal Reserve
can refuse to purchase those marketable
securities and the interest rate on those
marketable securities will
increase to draw in needed capital.
When interest rates go up less
currency is loaned out and less currency in
the system creates contraction - recession or depression.
policy, set by the privately owned and operated Federal Reserve, is highly
independent of effective political control.
Federal Reserve is
subservient only to Bank of
Christopher "Kit" Taylor, the former chief
regulator and executive director of the Municipal Securities Rulemaking Board
from 1978 to 2007, said the members of the board wouldn't allow the group to
set rules on credit default
swaps and derivatives for the $2.69 trillion municipal
firms didn't want us touching derivatives.
They said, 'Don't talk about
I saw bankers looking out for their self interest in my years
at the MSRB.
The attitude changed from,
'What can we do for the good of
the market,' to, 'What can
we I do to ensure the future of my business.'
The profit wasn't in
the underwriting, it was
in the swap.
until the day we went to real-time disclosure, I was getting calls from bankers
wanting to delay it.
The only ones who
benefited from delaying transparency were those who profited from the
trades."- Christopher "Kit" Taylor
1975 Congress set up the Municipal
Securities Rulemaking Board to make rules for firms that
underwrite, trade and
sell municipal debt.
The board, funded by member firms, generates
$22.2 million in fiscal 2008..
self-regulatory organization, members of the industry are granted the authority
to supervise their own practices.
A 15-member board oversees the
organization and 10 of the directors are from
Wall Street firms.
Enforcement is handled by the Securities and Exchange Commission.
August 1983 Washington Public Power Supply
System bonds to build five nuclear reactors default.
January 2010 Las Vegas Monorail bonds default.
November 9, 2011 Jefferson County Commission voted 4 to 1 to
declare bankruptcy on roughly $4 billion in
2011 28 defaults totaling $522
June 28, 2012 Stockton files for Chapter
2012 21 defaults on muni debt
totaling $978 million, according to Richard Lehmann, publisher of Distressed
Debt Securities Newsletter.
July 18, 2013 Detroit
files for bankruptcy on a municipal debt
of $20 billion.
Aug 04, 2015 Puerto Rico defaults
on a $58 million bond.
July 1, 2016 Puerto Rico
defaults on $ 2 billion bond.
This web site is not a commercial web site and
is presented for educational purposes only.
This website defines a
new perspective with which to engage reality to which its author adheres. The
author feels that the falsification of reality outside personal experience has
forged a populace unable to discern propaganda from
reality and that this has been done purposefully by an
international corporate cartel through their
agents who wish to foist a corrupt version of reality on the human race.
Religious intolerance occurs when any group refuses to tolerate religious
practices, religious beliefs or persons due to their philosophical ideology.
This web site marks the founding of a system of philosophy named The Truth of
the Way of the Lumière Infinie - a rational gnostic mystery religion
based on reason which requires no leap of faith, accepts no tithes, has no
supreme leader, no church buildings and in which each and every individual is
encouraged to develop a personal relation with the Creator and Sustainer
through the pursuit of the knowledge of reality in the hope of curing the
spiritual corruption that has enveloped the human spirit. The tenets of The
Truth of the Way of the Lumière Infinie are spelled out in detail on
this web site by the author. Violent acts against individuals due to their
religious beliefs in America is considered a "hate crime."
This web site
in no way condones violence. To the contrary the intent here is to reduce the
violence that is already occurring due to the international corporate cartels
desire to control the human race. The international corporate cartel already
controls the world economic system, corporate media worldwide, the global
industrial military entertainment complex and is responsible for the collapse
of morals, the elevation of self-centered behavior and the destruction of
global ecosystems. Civilization is based on coöperation. Coöperation
does not occur at the point of
American social mores and values have declined precipitously
over the last century as the corrupt international cartel has garnered more and
more power. This power rests in the ability to deceive the populace in general
through corporate media by pressing emotional buttons which have been
preprogrammed into the population through prior corporate media psychological
operations. The results have been the destruction of the family and the
destruction of social structures that do not adhere to the corrupt
international elites vision of a perfect world. Through distraction and
coercion the direction of thought of the bulk of the population has been
directed toward solutions proposed by the corrupt international elite that
further consolidates their power and which further their purposes.
views and opinions presented on this web site are the views and opinions of
individual human men and women that, through their writings, showed the
capacity for intelligent, reasonable, rational, insightful and unpopular
thought. All factual information presented on this web site is believed to be
true and accurate and is presented as originally presented in print media which
may or may not have originally presented the facts truthfully.
Opinion and thoughts
have been adapted, edited, corrected, redacted, combined, added to, re-edited
and re-corrected as nearly all opinion and thought has been throughout time but
has been done so in the spirit of the original writer with the intent of making
his or her thoughts and opinions clearer and relevant to the reader in the
Fair Use Notice
This site may contain
copyrighted material the use of which has not always been specifically
authorized by the copyright owner. We are making such material available in our
efforts to advance understanding of criminal justice, human rights, political,
economic, democratic, scientific, and social justice issues, etc. We believe
this constitutes a 'fair use' of any such copyrighted material as provided for
in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.
Section 107, the material on this site is distributed without profit to those
who have expressed a prior interest in receiving the included information for
research and educational purposes. For more information see:
www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted
material from this site for purposes of your own that go beyond 'fair use', you
must obtain permission from the copyright owner.
© Lawrence Turner
All Rights Reserved