Business & Economics

2-8-2010 What is This Stuff Called Money

Can America ever catch up with its debt?
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  What is this stuff called Money? United States of America’s Currency Kanook – Tlingit NationFebruary - 2010 Even since a group of International Bankers created the US Federal Reserve in1913 as a World Wide response to prior financial panics and bank runs, the mostsever at the time was the Panic of 1907, it has evolved into a entity today that haspositioned the people it serves into a perpetual debt scenario, one they will neverbe able to crawl from with under. Today, February 8 th , 2010 the USAs National debt is $12,357,242,315,627 that is$12.36 Trillion and as such there is 307,804,156 people living within its borders thistranslates into each and every person owning $40,146.44 of that debt. A debt thatour current method of generating money can never repay, so quit bitching aboutthe National Debt and move on, why?If the US Government came to every individual and took every single penny fromeach to pay off that debt, there would not be enough liquid cash available – why?First let me explain the different types of designations we put on our moneysupply:“ MO ”: This is the total of ‘all’ physical bills and currency, plus the money on handin bank vaults, and all the deposits those banks have at reserve banks – in the Mid-2009 timeframe the Federal Reserve said this amounted to $908 billion.“ M1 ”: This includes ‘all’ the currency in the “MO” supply along with ‘all’ themoney held in checking accounts and other checkable accounts at banks, as well as‘all’ the money held in Travelers’ Checks, in mid-December 2009 this total $1.7 Trillion, of which $908 billion was the “MO” supply.“ M2 ”: This includes everything in the “M1” supply ‘plus’ most other savingsaccounts, money market accounts, retail money market mutual funds, and smalldenomination time deposits such as ‘certificates of deposit or under $100,000.According to the Federal Reserve, this amount totals $8.5 Trillion again in Dec-2009.“ M3 ”: This includes the entire amount noted in “M2”, plus ‘all’ other CDs, whichare large time deposits and institutional money market mutual fund balances,deposits of EuroDollars, and repurchase agreements – whereas the Federal Reserve DOES NOT track “M3” anymore, according to the “M3” is somewhere in the neighborhood of $14 Trillion,some neighborhood.Hold on, the amounts noted in “M1, M2, and M3” actually DO NOT exist! Why?Simple, our system is based on an abstract known as “Fractional ReserveBanking”, whereas the banks can do some pretty funny stuff with the money youdeposit in their institutions.For example, let’s say after receive you lowly paycheck and survived the trip tothe grocery store you want to deposit $100 with your local banker, now by law he isNOT required to have that $100 sit in his vault until the day comes when you want  it. Today, by law he is required to keep only a certain percentage – let’s say 10%.What this means if that before you even drive out of the parking lot I walk in andborrow $90.00, he dips into the same $100 and removes $90 – BIINGO. For thesake of the demonstration let’s assume I deposit the $90 in another account, followthis through and observe how far we can run the “Fractional Banking” scheme.  In this example the srcinal $100 gets loaned out a multitude of times, whereasthe only “real” money there is the $100 – and the bank loaned out $887, this is notreal money! Even though the only “real” money is your srcinal $100, the systemfunctions because “we” DO NOT run down to the bank and demand all of our moneyat the same time.In more than a sense (cents-get it), most of our money floating around is made upof “thin air”, in fact most banks have NO RESERVE REQUIRMENTS at all on savingsdeposits, CDs and certain kinds of money market accounts, whereas “reserverequirements” only apply to transaction deposits, or checking accounts.Keep in mind, that “multiplied” money is only PAPER, it doesn’t actually exist – inother words the money supply reference in the “M2 and M3” accounts are vastlyoverstated in how much “real money” actually exists in the US system. You can quickly see that is the US Government ran out into the street anddemanded every single dollar from all banks, businesses and individuals within itsborders it could not collect the $14 Trillion (“MS”) or even the $8.5 Trillion (“M2”)because the amounts are based on FRACTIONAL RESERVE BANKING.When you study the Federal Reserve, you soon realize what it was designed toaccomplish, to slowly drain the massive wealth of the American people into thepockets of the International Bankers, giving them an eternity of cash flow whileslowly bringing the American economy under their thumb. Face it, it is a project orscenario the American government (ie-you) cannot win…it is an impossibility toeven believe we could ever catch up – that is unless we change the game. The US Constitution calls for the control of currency to be dictated by the USCongress, but as we know the politicians in our Nations’ capital will never let thathappen, despite the words of one of the Nations’ founding fathers Thomas Jeffersonwho said: If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks andcorporations that will grow up around them (around the banks), willdeprive the people of their property until their children will wake uphomeless on the continent their fathers conquered.  Today, let’s assume we even had enough money to make a monthly payment onthe $12+ Trillion dollar debt, the 1 st months payment based on the Federal Reserveexchange of T-Bills for more printed money, would be $62,758,997,038 or $62.76million of which $46,545,413,968 or $46.55 Million would be interest or 74.17% -okie Dokie – how do we solve this huge discrepancy. The only way is to SHUT DOWN the Internationally controlled Federal Reserve andrestore the power of issuing US currency to the US Congress – if you are unwilling todo this, then quit your bitching about our National Debt and get on with your lifeand get used to the fact that other countries own more of your pocket book thanyou realize.
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