Money Illusion
Jan 4, 2015 21:05:59 #
A money illusion sounds like something a prestidigitator performs by pulling $100 bills from a hat shown to be empty moments before. In fact, money illusion is a longstanding concept in economics that has enormous significance for you if youre a saver, investor or entrepreneur.
Money illusion is a trick, but it is not one performed on stage. It is a ruse performed by central banks that can distort the economy and destroy your wealth.
that people prefer a raise over a pay cut while ignoring inflation is the essence of money illusion.
The money illusion is a tendency of individuals to confuse real and nominal prices. It boils down to the fact that people ignore inflation when deciding if they are better off. Examples are everywhere.
Assume you are a building engineer working for a property management company making $100,000 per year. You get a 2% raise, so now you are making $102,000 per year. Most people would say they are better off after the raise. But if inflation is 3%, the $102,000 salary is worth only $98,940 in purchasing power relative to where you started.
You got a $2,000 raise in nominal terms but you suffered a $1,060 pay cut in real terms. Most people would say youre better off because of the raise, but youre actually worse off because youve lost purchasing power. The difference between your perception and reality is money illusion.
The impact of money illusion is not limited to wages and prices. It can apply to any cash flow including dividends and interest. It can apply to the asset prices of stocks and bonds. Any nominal increase has to be adjusted for inflation in order to see past the money illusion.
The concept of money illusion as a subject of economic study and policy is not new. Irving Fisher, one of the most famous economists of the 20th century, wrote a book called The Money Illusion in 1928. The idea of money illusion can be traced back to Richard Cantillons Essay on Economic Theory of 1730, although Cantillon did not use that exact phrase.
Economists argue that money illusion does not exist. Instead, they say, you make decisions based upon rational expectations. That means once you perceive inflation or expect it in future, you will discount the value of your money and invest or spend it according to its expected intrinsic value.
In effect, inflation is a hidden tax used to t***sfer wealth from savers to debtors
Like much of modern economics, this view works better in the classroom than in the real world. Experiments by behaviorists show that people think a 2% cut in wages with no change in the price level is unfair. Meanwhile, they think a 2% raise with 4% inflation is fair.
In fact, the two outcomes are economically identical in terms of purchasing power. The fact, however, that people prefer a raise over a pay cut while ignoring inflation is the essence of money illusion.
The importance of money illusion goes far beyond academics and social science experiments. Central bankers use money illusion to t***sfer wealth from you a saver and investor to debtors. They do this when the economy isnt growing because theres too much debt. Central bankers try to use inflation to reduce the real value of the debt to give debtors some relief in the hope that they might spend more and help the economy get moving again.
Of course, this form of relief comes at the expense of savers and investors like you who see the value of your assets decline. Again a simple example makes the point.
Assume a debtor bought a $250,000 home in 2007 with a $50,000 down payment and a $200,000 mortgage with a low teaser rate. Today, the home is worth $190,000, a 24% decline in value, but the mortgage is still $200,000 because the teaser rate did not provide for amortization.
This homeowner is underwater the value of his home is worth less than the mortgage hes paying and hes slashed his spending in response. In this scenario, assume there is another individual, a saver, with no mortgage and $100,000 in the bank who receives no interest under the Feds zero interest rate policy.
Suppose a politician came along who proposed that the government confiscate $15,000 from the saver to be handed to the debtor to pay down his mortgage. Now the saver has only $85,000 in the bank, but the debtor has a $190,000 house with a $185,000 mortgage, bringing the debtors home above water and a giving him a brighter outlook.
The saver is worse off and the debtor is better off, each because of the $15,000 t***sfer payment. Americans would consider this kind of confiscation to be grossly unfair, and the politician would be run out of town on a rail.
Now assume the same scenario, except this time, the Federal Reserve engineers 3% inflation for five years, for a total of 15% inflation. The saver still has $100,000 in the bank, but it is worth only $85,000 in purchasing power due to inflation.
http://dailyreckoning.com/beware-money-illusion-coming-destroy-wealth/
Money illusion is a trick, but it is not one performed on stage. It is a ruse performed by central banks that can distort the economy and destroy your wealth.
that people prefer a raise over a pay cut while ignoring inflation is the essence of money illusion.
The money illusion is a tendency of individuals to confuse real and nominal prices. It boils down to the fact that people ignore inflation when deciding if they are better off. Examples are everywhere.
Assume you are a building engineer working for a property management company making $100,000 per year. You get a 2% raise, so now you are making $102,000 per year. Most people would say they are better off after the raise. But if inflation is 3%, the $102,000 salary is worth only $98,940 in purchasing power relative to where you started.
You got a $2,000 raise in nominal terms but you suffered a $1,060 pay cut in real terms. Most people would say youre better off because of the raise, but youre actually worse off because youve lost purchasing power. The difference between your perception and reality is money illusion.
The impact of money illusion is not limited to wages and prices. It can apply to any cash flow including dividends and interest. It can apply to the asset prices of stocks and bonds. Any nominal increase has to be adjusted for inflation in order to see past the money illusion.
The concept of money illusion as a subject of economic study and policy is not new. Irving Fisher, one of the most famous economists of the 20th century, wrote a book called The Money Illusion in 1928. The idea of money illusion can be traced back to Richard Cantillons Essay on Economic Theory of 1730, although Cantillon did not use that exact phrase.
Economists argue that money illusion does not exist. Instead, they say, you make decisions based upon rational expectations. That means once you perceive inflation or expect it in future, you will discount the value of your money and invest or spend it according to its expected intrinsic value.
In effect, inflation is a hidden tax used to t***sfer wealth from savers to debtors
Like much of modern economics, this view works better in the classroom than in the real world. Experiments by behaviorists show that people think a 2% cut in wages with no change in the price level is unfair. Meanwhile, they think a 2% raise with 4% inflation is fair.
In fact, the two outcomes are economically identical in terms of purchasing power. The fact, however, that people prefer a raise over a pay cut while ignoring inflation is the essence of money illusion.
The importance of money illusion goes far beyond academics and social science experiments. Central bankers use money illusion to t***sfer wealth from you a saver and investor to debtors. They do this when the economy isnt growing because theres too much debt. Central bankers try to use inflation to reduce the real value of the debt to give debtors some relief in the hope that they might spend more and help the economy get moving again.
Of course, this form of relief comes at the expense of savers and investors like you who see the value of your assets decline. Again a simple example makes the point.
Assume a debtor bought a $250,000 home in 2007 with a $50,000 down payment and a $200,000 mortgage with a low teaser rate. Today, the home is worth $190,000, a 24% decline in value, but the mortgage is still $200,000 because the teaser rate did not provide for amortization.
This homeowner is underwater the value of his home is worth less than the mortgage hes paying and hes slashed his spending in response. In this scenario, assume there is another individual, a saver, with no mortgage and $100,000 in the bank who receives no interest under the Feds zero interest rate policy.
Suppose a politician came along who proposed that the government confiscate $15,000 from the saver to be handed to the debtor to pay down his mortgage. Now the saver has only $85,000 in the bank, but the debtor has a $190,000 house with a $185,000 mortgage, bringing the debtors home above water and a giving him a brighter outlook.
The saver is worse off and the debtor is better off, each because of the $15,000 t***sfer payment. Americans would consider this kind of confiscation to be grossly unfair, and the politician would be run out of town on a rail.
Now assume the same scenario, except this time, the Federal Reserve engineers 3% inflation for five years, for a total of 15% inflation. The saver still has $100,000 in the bank, but it is worth only $85,000 in purchasing power due to inflation.
http://dailyreckoning.com/beware-money-illusion-coming-destroy-wealth/
Jan 5, 2015 06:43:36 #
J Anthony
Loc: Connecticut
Our entire monetary-system is based on illusion. The ones in control of currency-creation and economic policy (the Fed and it's private owners ) has made the illusion real. There is really nothing sound or stable about it, except for the owners themselves.
Jan 5, 2015 08:06:05 #
lpnmajor
Loc: Arkansas
eagleye13 wrote:
A money illusion sounds like something a prestidig... (show quote)
Suppose you have a piece of paper that says you own 2 ounces of gold that you paid $3600 for. Try asking for the gold to be delivered to you - and you'll discover that you own a $3600 piece of paper, but no gold. If you can't find someone dumb enough to buy your $3600 piece of paper, just frame it and consider it a lesson learned.
Jan 5, 2015 08:22:44 #
lpnmajor wrote:
Suppose you have a piece of paper that says you own 2 ounces of gold that you paid $3600 for. Try asking for the gold to be delivered to you - and you'll discover that you own a $3600 piece of paper, but no gold. If you can't find someone dumb enough to buy your $3600 piece of paper, just frame it and consider it a lesson learned.
I don't know who you buy your gold from, but I have had no problem getting my gold delivered. Believe it or not, the U.S. Post Office tried to steal one delivery of silver once, but it was recovered. BTW, since when did gold go to $1800 an ounce? Or, is this just a hypothetical question?
Jan 5, 2015 10:25:03 #
This warning by the Senator covers the whole s**m going on to today.
Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
________________________________________
Reprinted by permission 1978 Arizona Caucus Club
________________________________________
Congressman McFadden's Speech
On the Federal Reserve Corporation
Quotations from several speeches made on the Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. As Representative of a State which was among the first to declare its freedom from foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.
The Federal Reserve-A Corrupt Institution
"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has c***ted the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
"Some people who think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. .. (For the whole expose Google: Congressman McFadden Fed expose)
"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.
Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
________________________________________
Reprinted by permission 1978 Arizona Caucus Club
________________________________________
Congressman McFadden's Speech
On the Federal Reserve Corporation
Quotations from several speeches made on the Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. As Representative of a State which was among the first to declare its freedom from foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.
The Federal Reserve-A Corrupt Institution
"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has c***ted the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
"Some people who think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. .. (For the whole expose Google: Congressman McFadden Fed expose)
"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.
J Anthony wrote:
Our entire monetary-system is based on illusion. The ones in control of currency-creation and economic policy (the Fed and it's private owners ) has made the illusion real. There is really nothing sound or stable about it, except for the owners themselves.
Jan 5, 2015 16:03:49 #
lpnmajor
Loc: Arkansas
JMHO wrote:
I don't know who you buy your gold from, but I have had no problem getting my gold delivered. Believe it or not, the U.S. Post Office tried to steal one delivery of silver once, but it was recovered. BTW, since when did gold go to $1800 an ounce? Or, is this just a hypothetical question?
It was hypothetical and I was referring to gold certificates, that show gold ownership but where the gold is held somewhere else. I have never bought a certificate but I know many who have and who discovered that there was actually NO gold on deposit. These certificates are not backed by any kind of guarantee, except that fraudulently stated by the seller. It isn't illegal - yet- it's a gold Ponzi scheme.
Jan 5, 2015 16:13:43 #
Thanks for splaining this to JMH0. He is either thick, or just likes to waste others time.
lpnmajor wrote:
It was hypothetical and I was referring to gold certificates, that show gold ownership but where the gold is held somewhere else. I have never bought a certificate but I know many who have and who discovered that there was actually NO gold on deposit. These certificates are not backed by any kind of guarantee, except that fraudulently stated by the seller. It isn't illegal - yet- it's a gold Ponzi scheme.
Jan 6, 2015 13:08:46 #
J Anthony
Loc: Connecticut
eagleye13 wrote:
Thanks for splaining this to JMH0. He is either thick, or just likes to waste others time.
Jan 6, 2015 13:12:49 #
J Anthony
Loc: Connecticut
eagleye13 wrote:
Thanks for splaining this to JMH0. He is either thick, or just likes to waste others time.
Yeah, he's thick as a brick alright. If you don't agree with him then you're a "c****e" or a "libtard", so don't waste your time.
I am aware of McFadden and his valiant attempts to expose the criminal empire that owns and controls our monetary-system. The man was a hero as far as I'm concerned.
Jan 6, 2015 13:24:20 #
Have you Googled: McFadden Fed Res Expose, 1934? Worth opening and added to favorites, and sharing. He pointed out what was going on then, and now today.
J Anthony wrote:
Yeah, he's thick as a brick alright. If you don't agree with him then you're a "c****e" or a "libtard", so don't waste your time.
I am aware of McFadden and his valiant attempts to expose the criminal empire that owns and controls our monetary-system. The man was a hero as far as I'm concerned.
I am aware of McFadden and his valiant attempts to expose the criminal empire that owns and controls our monetary-system. The man was a hero as far as I'm concerned.
Jan 6, 2015 13:35:18 #
Quotes On Banking and the Federal Reserve System FRAUD
"The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform Commercial Code)." -- The Federal Tax Lien Act of 1966
"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863
"Give me control of a nation's money and I care not who makes it's laws."-- Mayer Amschel Bauer Rothschild
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States." -- Sen. Barry Goldwater (Rep. AZ)
"Whoever controls the volume of money in any country is absolute master of all industry and commerce." -- James A. Garfield, President of the United States
"Banks lend by creating credit. (ledger-entry credit, monetized debt) They create the means of payment out of nothing." -- Ralph M. Hawtrey, Secretary of the British Treasury
"To expose a 15 Trillion dollar ripoff of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business." -- Buckminster Fuller
"Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job." -- Robert A. Heinlein, Expanded Universe
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford
"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982
"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it." -- Congressman Louis T. McFadden in 1932 (Rep. Pa)
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers." -- Congressman Louis T. McFadden (Rep. Pa)
"Some [Most] people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers." -- Congressional Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." -- Money Facts, House Banking and Currency Committee
"...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks." -- Eustace Mullins
"As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again." -- Eustace Mullins
"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." -- British Lord John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).
"These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world-- no longer a government of free opinion, no longer a government by conviction and v**e of the majority, but a government by the opinion and duress of small groups of dominant men." -- President Woodrow Wilson
"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." -- Robert H. Hamphill, Atlanta Federal Reserve Bank
"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States 9th Circuit 1992
"The Federal Reserve banks, while not part of the government,..." -- United States budget for 1991 and 1992 part 7, page 10
"The Federal Reserve bank buys government bonds without one penny..." -- Congressman Wright Patman, Congressional Record, Sept 30, 1941
"The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes -- a little over 2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidentally, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." -- Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system
"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." -- Charles A. Lindbergh, Sr. , 1913
"From now on, depressions will be scientifically created." -- Congressman Charles A. Lindbergh Sr. , 1913
"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. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923
"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913
[Note From 1913 until now inflation of the dollar has been 2950%. A 1913 dollar would now be worth $.034. When I became a wage earner in 1950 I could buy a full breakfast, eggs, sausage, hashbrowns, shortstack, juice, and coffee for $.39. This morning I paid $9.60 for the same, an inflation of 2460%]
"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank
"There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be t***sfered, even though the t***sferee takes it subject to it's disability incident to the discharge." -- Stanek vs. White, 172 Minn.390, 215 N.W. 784
"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." -- John Danforth (R-Mo)
"Capital must protect itself in every way...Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd." -- Taken from the Civil Servants' Year Book, "The Organizer" January 1934.
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs." -- Thomas Jefferson, U.S. President.
"If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by...[the government] and not to be delegated to individuals or corporations." -- President Andrew Jackson, Vetoed Bank Bill of 1836
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." -- James Madison
"Should government refrain from regulation (taxation), the worthlessness of the money becomes apparent and the FRAUD can no longer be concealed." -- British Lord John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).
"But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice." -- George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787
The economic Crash of '29 and the Great Depression were caused by the money vultures and foreign swindlers of the Federal Reserve withholding currency from circulation and raising interest rates after an inflationary easy money policy in the early 1920s. The Federal Reserve's fear of excessive speculation led it into a far too deflationary policy in the late 1920s, "destroying the village in order to save it."
The U.S. economy was already past the peak of the business cycle when the stock market crashed in October of 1929. The Federal Reserve did "overdo it" -- raising interest rates too much, bringing on the recession that they had hoped to avoid.
This contrived "emergency" by the money vultures and the political manipulations of FDR, et. al. since then has created innumerous abuses, usurpations, and abridgments of Constitutionally delegated Powers and Authority as clearly stated in Senate Report 93-549 (1973):
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years, [-1818 years now in 115] freedoms and governmental procedures guaranteed by the Constitution have in varying degrees been abridged by laws brought into force by statutes of national emergency."
Reproduction of all or any parts of the above text may be used for general information.
This HTML presentation is copyright by Barefoot, January 2006
"The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform Commercial Code)." -- The Federal Tax Lien Act of 1966
"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863
"Give me control of a nation's money and I care not who makes it's laws."-- Mayer Amschel Bauer Rothschild
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States." -- Sen. Barry Goldwater (Rep. AZ)
"Whoever controls the volume of money in any country is absolute master of all industry and commerce." -- James A. Garfield, President of the United States
"Banks lend by creating credit. (ledger-entry credit, monetized debt) They create the means of payment out of nothing." -- Ralph M. Hawtrey, Secretary of the British Treasury
"To expose a 15 Trillion dollar ripoff of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business." -- Buckminster Fuller
"Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job." -- Robert A. Heinlein, Expanded Universe
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford
"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982
"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it." -- Congressman Louis T. McFadden in 1932 (Rep. Pa)
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers." -- Congressman Louis T. McFadden (Rep. Pa)
"Some [Most] people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers." -- Congressional Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." -- Money Facts, House Banking and Currency Committee
"...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks." -- Eustace Mullins
"As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again." -- Eustace Mullins
"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." -- British Lord John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).
"These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world-- no longer a government of free opinion, no longer a government by conviction and v**e of the majority, but a government by the opinion and duress of small groups of dominant men." -- President Woodrow Wilson
"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." -- Robert H. Hamphill, Atlanta Federal Reserve Bank
"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States 9th Circuit 1992
"The Federal Reserve banks, while not part of the government,..." -- United States budget for 1991 and 1992 part 7, page 10
"The Federal Reserve bank buys government bonds without one penny..." -- Congressman Wright Patman, Congressional Record, Sept 30, 1941
"The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes -- a little over 2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidentally, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." -- Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system
"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." -- Charles A. Lindbergh, Sr. , 1913
"From now on, depressions will be scientifically created." -- Congressman Charles A. Lindbergh Sr. , 1913
"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. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923
"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913
[Note From 1913 until now inflation of the dollar has been 2950%. A 1913 dollar would now be worth $.034. When I became a wage earner in 1950 I could buy a full breakfast, eggs, sausage, hashbrowns, shortstack, juice, and coffee for $.39. This morning I paid $9.60 for the same, an inflation of 2460%]
"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank
"There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be t***sfered, even though the t***sferee takes it subject to it's disability incident to the discharge." -- Stanek vs. White, 172 Minn.390, 215 N.W. 784
"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." -- John Danforth (R-Mo)
"Capital must protect itself in every way...Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd." -- Taken from the Civil Servants' Year Book, "The Organizer" January 1934.
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs." -- Thomas Jefferson, U.S. President.
"If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by...[the government] and not to be delegated to individuals or corporations." -- President Andrew Jackson, Vetoed Bank Bill of 1836
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." -- James Madison
"Should government refrain from regulation (taxation), the worthlessness of the money becomes apparent and the FRAUD can no longer be concealed." -- British Lord John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).
"But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice." -- George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787
The economic Crash of '29 and the Great Depression were caused by the money vultures and foreign swindlers of the Federal Reserve withholding currency from circulation and raising interest rates after an inflationary easy money policy in the early 1920s. The Federal Reserve's fear of excessive speculation led it into a far too deflationary policy in the late 1920s, "destroying the village in order to save it."
The U.S. economy was already past the peak of the business cycle when the stock market crashed in October of 1929. The Federal Reserve did "overdo it" -- raising interest rates too much, bringing on the recession that they had hoped to avoid.
This contrived "emergency" by the money vultures and the political manipulations of FDR, et. al. since then has created innumerous abuses, usurpations, and abridgments of Constitutionally delegated Powers and Authority as clearly stated in Senate Report 93-549 (1973):
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years, [-1818 years now in 115] freedoms and governmental procedures guaranteed by the Constitution have in varying degrees been abridged by laws brought into force by statutes of national emergency."
Reproduction of all or any parts of the above text may be used for general information.
This HTML presentation is copyright by Barefoot, January 2006
Jan 6, 2015 15:55:46 #
J Anthony
Loc: Connecticut
@eagleye13: thanks for posting that, I am familiar with alot of those quotes, as I've been studying the topic for awhile now, and have also been trying to make it a top-priority issue, which it is and should be, on sites such as tthis one. Here on OPP, though,,, it seems few are prepared to grasp this subject, as it is rather complex and ultimately gets to the root of many of the problems facing us today. For the monetary-system is the fulcrum on which all other systems turn. Understanding how it works and what's been done to this country through it's owners' machinations ought to be obligatory knowledge for all citizens, all ages, starting now.
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