In years past I subscribed to various newsletters. In
one of these I noticed an unusual reference to the Federal Reserve System. The writer had mentioned that the "Fed" received its basic currency from the U.S. Bureau of Printing & Engraving for simply the cost of printing, $20.60 per 1,000 bills regardless of denomination.
Well, I was amazed! I wondered about this and
inquired where he got this information. In reply he sent me a file of correspondence with Congressman Henry Reuss, Chairman of the House Banking Committee, and Mr Donald Winn, Federal Reserve Board.
The letter from Mr Winn did indeed verify that the
Fed purchased (?) U.S. Currency from the BP&E for simply $20.60 per 1,000 bills, the cost of printing!
This seemed strange to me since banks, as well as
their clients must always post collateral and sign promissory notes agreeing to return borrowed money by making monthly payments of principal. Banks don't get money from the Fed for simply the cost of printing and they certainly don't give money to their clients, for less than full value. They expect monthly payments!
Well then I realized that our U.S. Currency is only
involved in about 1% of transactions nationwide. The other 99% of the GNP is handled with checks so that on that astronomical amount Uncle Sam doesn't even get two cents
for printing!
That might be understandable if the Fed were truly
Federal. So, I studied the status of the so-called Fed and found that it was "semi-autonomous". Yes, the Board of Directors is appointed by the President of the United States but what about the 12 District Banks? Are they federal? No they aren't. The courts have confirmed that they are owned and operated by the local banks in each district.
Well we already suspected this because the local
banks have 3% of their capital invested with the District Banks; their employees don't get paid with treasury checks; and they are listed with other "agencies" in the World Almanac as "semi-autonomous"agencies.
On a more personal level if you were contemplating a
business venture with someone but you were going to put up 100% of the cash then you would of course expect at least 50% of the return or "take", would you not? Would you buy $100 preferred stock for 2 cents a share. I don't think so!
Well when I researched the circumstances under which
the so-called "Fed" was created by the efforts of Mr J.P. Morgan, Mr Aldrich, Chairman of the Senate Banking Committee, and two Germans by the name of Paul & Felix Warburg, who couldn't even speak English, I became even more suspicious. Were they were hired to set up a Central Banking System, which would be really private but would be called "Federal"?
They were hired by J.P.Morgan, and Mr Aldrich,
related to the Rockefeller family by marriage and Chairman of the Senate Banking Committee; and paid by Kuene Loeb of Europe to set up what we now know as the "Fed", a central banking system which is private, and not federal!
These two Germans were bankers from Warburg & Co, of
Europe, and they were paid $500,000 per year to work with Mr Aldrich in Washington in order to accomplish their mission. With the assistance of Mr Aldrich they succeeded, and so today we have the so-called "Fed", a fictitious and fraudulent semi- autonomous agency of the U.S. government.
Then I studied the procedure by which banks commingle
our deposits and put them at risk by lending our savings to others without our permission. Economists refer to this commingling practice as "fractional reserve" banking, a questionable practice in accounting circles.
I referred to the U.S. Constitution and could not
find any legal basis whereby Congress can authorize a private banking system, call it federal, and give them U.S. currency, for simply the cost of printing.
But then I wondered why, WHY? Why didn't Congress
instruct the Treasury to "lend" our currency to the Fed ? Why give it away ? Unable to find a logical conclusion to this question I then asked myself:...'WHAT IF'.
What if Congress had "loaned" currency and the use of
its credit to the Fed years ago and had required periodic payments ? In that event Uncle Sam would now have trillions of dollars in the bank, instead of being trillions in the red! Well, that seems logical, and had that been done Uncle Sam wouldn't need taxes, or have to borrow from anyone to pay his bills! Can this situation be corrected now? Yes, It can be corrected. It's not too late!
Without recrimination we must recognize that the Fed
is simply a "middleman" in this operation. Although the Fed is both fictitious and fraudulent, we must simply ask ourselves do we need a middleman? Assuming we can clean up the Fed and make it honest, the question still remains WHY? Why do we need a fictitious middleman. The answer is: WE DON'T!
So let's devise a plan where Uncle Sam becomes an
end-user, as well as the official source of currency and banking credit nationwide. This would involve "recycling" of our currency, not that which is worn, dirty, or torn, but that which is required to support a $6 trillion Gross National Product.
Since the U.S. Constitution authorizes Congress to
create our currency it could also direct the Treasury Dept to create Letters of Credit, sufficient to support a $6 trillion GNP. If it were allocated among the 50 states according to Congressional representation then the State Treasurers would be the logical ones to wholesale our currency among the banks in each state. An organization of State Treasurers would then replace the fictitious Fed.
Then as we make our payments on loans, bonds etc the
payments would revert to the State Treasurer, and by him to the U.S. Treasury Dept. The total nationwide from this "recycling" procedure would more than cover our national budgets and liquidate the federal debt.
In fact our tabulations indicate the annual return
from all banking operations would be of such volume that only 50% of the return would be required! The remaining 50% might then revert to the states as their return for services rendered.
As a basis for study we have suggested that Congress
might authorize an infusion of $6 trillion nationwide to support a $6 trillion GNP. This figures out as about $500 billion per month. Although this may seem excessive to some we must realize that the country has many nagging problems; that an underwriting of our entire economic system must not be underfunded, especially in the first year of its operation.
Subsequently this annual infusion of $6 trillion into
the national economy will be regulated by a Select Committee of Congress. The federal interest rate would be pegged at 4% and 6% for home mortgage loans. The amount of this annual infusion will be regulated to control "inflation", not the interest rate. It may be subject to quarterly change, up or down, as determined by this "select Committee".
The operation as proposed will involve the
refinancing of mortgage operations (Pegged @ 6%); the floating of Municipal & Gov't bonds; and factoring of production. It may replace private financing and create individual funds to support health, education, welfare and retirement accounts.
If all goes well the 50% received by each state for
services rendered will permit sharing with the counties, the cities, towns, and school districts in every state.
All this can come to pass, if we simply eliminate the
Fed, the IRS and Taxes! We believe it can be done and done quickly and have tabulations covering each state to prove it.
Young people who receive a regular paycheck with FICA
Deductions and Withholding Taxes are currently discouraged for they know that these deductions for FICA will not be available to them when they retire at 65 years of age.
The political situation in Washington has reached a
climax of desperation since the recent election. Every pronouncement by those now in position of authority confirms their desperation. Everyone agrees we need a change but no-one can agree on what this change should be.
Our proposal would protect the younger generation as
well as the senior citizens. It would also provide the required funds for education, health reform, crime control, and the replacement of our aging infra-structure while protecting us from a desperate Congress.
It would do all these things "In the Normal Course of
Business", with no taxes required of U.S. citizens. What more do you want? Can you imagine, NO TAXES!
If you would like our six page mailer for a diagram,
Bio, and tabulations showing how this might help the people in your state send us a SASE and a reasonable contribution to the above address.