| Larry Parks, Executive Director, FAME | "With the monetary system we have now, the careful saving of a lifetime can be wiped out in an eyeblink." |
| George Bernard Shaw | “You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.” |
| Voltaire (1694-1778) | “Paper money eventually returns to its intrinsic value ---- zero.” |
| Daniel Webster, speech in the Senate, 1833 | “We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.” |
| Thomas Jefferson to John Taylor, 1816 | “I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” |
| Daniel Webster | "Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." |
| St. Louis Federal Reserve Bank, Review, Nov. 1975, p.22 | "The decrease in purchasing power incurred by holders of money due to inflation imparts gains to the issuers of money--."++ |
| Federal Reserve Bank, New York The Story of Banks, p.5. | "Because of 'fractional' reserve system, banks, as a whole, can expand our money supply several times, by making loans and investments."++ |
| Federal Reserve Bank of Philadelphia, Gold, p. 10 | "Without the confidence factor, many believe a paper money system is liable to collapse eventually."++ |
| Federal reserve Bank of New York, I Bet You Thought, p.19 | "Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU."++ |
| Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3 | "The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money."++ |
| U.S. Supreme Court, Craig v. Missouri, 4 Peters 410. | "Emitting bills of credit, or the creation of money by private corporations, is what is expressly forbidden by Article 1, Section 10 of the U.S. Constitution."++ |
| James A. Garfield | "Whoever controls the volume of money in any country is absolute master of all industry and commerce."++ |
| Frederic Bastiat, The Law | "When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it."++ |
| Irving Fisher, 100% Money | "Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess."++ |
| John Maynard Keynes, The Economic Consequences of the Peace, 1920, page 240 | "If, however, a government refrains from regulations and allows matters to take their course, essential commodities soon attain a level of price out of the reach of all but the rich, the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer." |
| John Maynard Keynes, The Economic Consequences of the Peace, 1920, page 235ff | "Lenin is said to have declared that the best way to destroy the Capitalistic System was to debauch the currency. . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose." |
| Ralph M. Hawtrey, former Secretary of Treasury, England | "Banks lend by creating credit. They create the means of payment out of nothing."++ |
| Robert H. Hemphill, former credit manager, Federal Reserve Bank of Atlanta | "Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon."++ |
| Sir Josiah Stamp, former President, Bank of England | "Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back."++ |
| Rt. Hon. Reginald McKenna, former Chancellor of Exchequer, England | "Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people."++ |
| John Adams, letter to Thomas Jefferson | "All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation."++ |
| Wm. Jennings Bryan | "Money power denounces, as public enemies, all who question its methods or throw light upon its crimes."++ |
| George Washington, in letter to J. Bowen, Rhode Island, Jan. 9, 1787 | "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 Bancroft, A Plea for the Constitution (1886) | "Madison, agreeing with the journal of the convention, records that the grant of power to emit bills of credit was refused by a majority of more than four to one. The evidence is perfect; no power to emit paper money was granted to the legislature of the United States."++ |
| Article One, Section Ten, United States Constitution | "No state shall emit bills of credit, make any thing but gold and silver coin a tender in payment of debts, coin money---."++ |
| John C. Calhoun, Speech 5/27/1836 | "A power has risen up in the government greater than the people themselves, consisting of many and various powerful interest, combined in one mass; and held together by the cohesive power of the vast surplus in banks." |
| Andrew Jackson: To delegation of bankers discussing the Bank Renewal Bill, 1832 | "You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out." |
| Treasury Secretary Woodin, 3/7/33 | "Where would we be if we had I.O.U.'s scrip and certificates floating all around the country?" Instead he decided to "issue currency against the sound assets of the banks. [As opposed to issuing currency against gold.] The Federal Reserve Act lets us print all we'll need. And it won't frighten the people. It won't look like stage money. It'll be money that looks like real money." [Emphasis added.] (Source: 'Closed for the Holiday: The Bank Holiday of 1933', p20 - Federal Reserve Bank of Boston) |
| John Kenneth Galbraith | “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” Money: Whence it came, where it went - 1975, p15 |
| John Kenneth Galbraith | “The process by which banks create money is so simple that the mind is repelled.” Money: Whence it came, where it went - 1975, p29 |
| Senator Carter Glass, Author of the Banking Act of 1933 | "Is there any reason why the American people should be taxed to guarantee the debts of banks, any more than they should be taxed to guarantee the debts of other institutions, including merchants, the industries, and the mills of the country?" |
Chief Justice Salmon Chase, formerly Secretary of Treasury in President Lincoln’s administration, in dissent of Knox vs. Lee (The Legal Tender Cases, 1871) | “The legal tender quality [of money] is only valuable for the purposes of dishonesty.” |
| Dr. Alan Greenspan, Chairman of the Federal Reserve Board of Governors, 11/20/2003 | "As long as we issue fiat currency, I see no alternative to a legal tender law." |
| John Adams | "All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation." |
Friedrich A. Hayek (1899-1992) Austrian Economist, Author and 1974 Nobel Prize-Winner for Economics | “With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.” |
| Dr. Edwin Vieira, FAME Foundation Scholar | "You can fool some of the people all of the time, and all of the people some of the time, and that's good enough." |
Friday, December 16, 2011
Notable Economic Quotes
Root of your Economic Problems
The Root of Your Economic Problems
"The prime function of government is the protection of the different and unequal faculties of men for acquiring property."
JAMES MADISONRising debts and increasing bankruptcies are the result of Congress suspending the free coinage of metals - into money - and switching us to bank credits as our medium of exchange. These acts converted our nation from a wealth monetary system, where people created money for society's benefit through the fruits of their labor, to a monetary system, where now ....
All new money is loaned into circulation as an interest bearing debt. Since this system only creates the principal and never the interest, the debt is always greater than the money supply.
This fraudulently created debt forces American citizens to borrow constantly so the system can function. Eventually, the process becomes unworkable as society, mortgaged to the hilt, can no longer afford to borrow. This debt creates extreme stress for us as we struggle to meet impossible money obligations. The results are: a constantly rising cost-of-living, layoffs, bankruptcies, family breakdown, increased drug and alcohol use, an increase in crime and a general moral breakdown.http://web.archive.org/web/20030416010517/http://darren.lib.utah.edu/money_problem1.htm
The Switch From Wealth to DebtSince 1792, our money has been "switched' from wealth to debt. By changing our money back to wealth, we can reverse the tide of ever increasing prices, taxes, debt , bankruptcies and economic ills that are destroying America and her people. How money is put into circulation is the most important principle. The real issue is not gold and silver vs. paper, not commodity money vs. fiat money, but wealth vs. debt, honesty vs. fraud. Let's follow the trail of United States money, from when it was gold and silver commodity money, put into circulation as a wealth to the people, by the people, to what it has become - a monetized debt, put into circulation by the banks, as interest bearing debts to the people, for the personal profit of bankowners.
The real reason gold and silver coinage initially worked well as money for the people, is that the people produced the gold and silver, a raw resource of the earth, through their labor. The 1792 Coinage Act allowed anyone to take that resource to the United States mint and have it monetized (coined) free of charge. We, the people, furnished our own money, based on our production, as a wealth to ourselves and spent it into circulation as a benefit to all of society with no debt attached to it.
Gold and silver are very heavy metals and not as convenient to carry as paper money. If we didn't want to carry the gold and silver coins around with us we could take them to the United States Treasury's National Bank and store/deposit the coins. The Treasury would issue depositors gold and silver certificates as receipts. They stated on their face that there was X amount of gold or silver coin on deposit in the Treasury, payable to the bearer on demand. Now, we had paper money. As long as just this principle was followed you still had good, honest, wealth money with no debt, no excessive profit, nor excessive purchasing power to anyone.This 1922 series ten dollar gold certificate is a good example of honest money. The note states on it's face "THIS CERTIFIES THAT THERE HAS BEEN DEPOSITED IN THE TREASURY OF THE UNITED STATES OF AMERICA TEN DOLLARS IN GOLD COIN PAYABLE TO THE BEARER ON DEMAND" Fully backed and redeemable paper money that was as good as gold.
However, when someone deposited their gold and silver coins in private non-governmental reserve banks, a totally different principle went into action. The private banks held the coins as a reserve for making new paper money to issue as loans, expanding the paper money supply. Making the new paper money loans equal to 10 times the face value of the coins deposited. This fractional reserve system seemed well and good as the banks raked in huge sums of interest and shared some of the earned interest with depositors. At that point, money switched from wealth to debt. The expanded money supply now had a fiat backing (only a fraction of the paper money was really backed by gold or silver coin).Private Bank Note Money.Because of the popularity and tactics of these private non-governmental banks the United States National Bank established in 1791 by congress was unable to compete and had to be shut down in 1832. From the beginning private banks have been lobbing congress and congress has been deceived into making laws allowing private banks to take control of our money.Americans have lacked this understanding. Lack of understanding is why America is the world's greatest debtor nation with over $26 Trillion in public and private debt at the end of 1990.
On January 24, 1939, Robert H. Hemphill, credit Manager of the Federal Reserve Bank of Atlanta stated:
"If all the bank loans were paid no one would have a bank deposit and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent 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. When one gets a complete grasp of the picture the tragic absurdity of our hopeless position is almost incredible, but there it is. It (the banking problem) 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."
At first glance, private non-governmental banking looks like a good deal for everyone. The banks get more profit. The people can get quicker and easier loans. More capital is available to engage in commerce. Production picks up. But, sooner or later, more and more people can not make their loan payments. An unseen by-product of fractional reserve banking is: it makes a few people very rich, and leaves everyone else constantly in debt (even if you are personally out of debt the taxes you pay are your interest payments on an unpayable public debt). Fractional reserve banking creates compounding, unpayable public and private debt, which causes the cost of living to constantly go up for all Americans.Throughout the nineteenth century, larger banks worked to get laws passed that would consolidate all paper money issuance under the control of just a few. After years of hard lobbying and manipulation, The banking élite made a major leap forward under the guise of a standardized national money. They were successful in 1863 with the passage of the National Banking Act. It allowed newly chartered (privately owned) national banks to create new uniform national bank notes. A few years later their efforts payed off again, getting the federal government to tax state bank notes out of existence. Then in 1873 another triumph in getting the government to stop all free coinage of metals. To fully establish this newly nationalized form of fiat (fraud) money it's creators began switching the backing of paper money from gold and silver to United States Certificates of indebtedness "United States Bonds". Forcing the government to create certificates of debt as security for the paper currency. Real money was removed from circulation first by government mandated confiscation in 1933 then by revaluation in 1973. Our "We the people" owned money was completely replaced with fiat money distributed by the unconstitutional and privately owned Federal Reserve Bank.
This 1914 series one dollar note is a good example of fiat (fraud) money. The note states on it's face "THE FEDERAL RESERVE BANK (A private banking corporation) WILL PAY TO THE BEARER ON DEMAND ONE DOLLAR" However, it does not say what this dollar when demanded will be made of, if anything. It also says "SECURED BY UNITED STATES CERTIFICATES OF INDEBTEDNESS" You can now clearly understand why our government and private sector are so deeply in debt. All we use for money is (monetized) DEBTS. The switch from wealth based money to debt-based money was in the final stage of completion. All that was left was to remove all gold and silver based currency out of circulation."I cannot morally blame all Americans for allowing, for instance, the birth of the Federal Reserve System (a private cartel with full control over the issuance of national debt) and the money destruction that has followed. They are simply ignorant about it and don't know what happened or what is happening. They think that prices go up rather than that dollars go down. Unsound money imposes an environment of immorality, which in turn makes people behave in different ways for reasons they know not. Sometimes you can blame immorality for the imposition of bad structures (bad people do it with full knowledge of what they are doing), but sometimes it is simply stupidity. People revere democracy, but democracy ends in plunder by the majority. Are people immoral for supporting democracy? I think rather that they lack a deep understanding of its essence. At a very deep level, I would say that the reason such structures are created is due to both a lack of knowledge and a false morality, which in turn is due to a lack of knowledge."
President of Elliott Wave International
Thursday, December 15, 2011
Friday, December 9, 2011
Tuesday, December 6, 2011
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