Home / Contact

REPORT DEAD LINKS --- we can't keep this site up-to-date without your help

This is copied from <<http://www.kamron.com/economics/Economics.htm>>

We hesitated including this report here because much of it is (a) biased, (b) misleading, (c) obviously incorrect and (d) disjointed. As you read it -- be sure to note those problems. It is. in our opinion, a good example of much material on the internet that have these faults, (a) to (d).

Particularly note that it is impossible to tell who wrote the bulk of the article (after the first paragraph).

We wound up including this because some of it is quite logical, valuable and well written. The first paragraph is particularly good -- even though it is very biased.

Read it with an open mind.

We are including a few comments of ours in blue type. We hope they will be considered.

Economics

“Economists have become a plague as dangerous as rabbits, prickly pear or cane toads. Economists have become the cultural cane toads of Canberra, oozing over the landscape and endangering myriad indigenous species. Not only the economy but also mental health would be greatly improved if we could lift the fog of obfuscation on things economic. The first step is to take economists from their pedestal and to see them as the curiosities they are. The first step to reducing their power is to reduce their legitimacy. How is this to be achieved? First, economists’ outpourings should, as a matter of principle, be met with laughter, derision, benign paternalism. They should cease to be employed as media commentators. In the long term they should cease to be hired. Let them be pensioned off and die out. Extinction is a worthy end for a profession whose brief is rotten to the core.”
-- Dr. Evan Jones, Economics Department, University of Sydney

The Problem and The Solution (The word “solution” on the website was a link -- but that link lead to a blank page)

The study of Economics has crafted a perverted understanding of the American Economic System. It obfuscates reality by building a hierarchy of minutia and interactions that is separate and doesn’t relate to any of the other sciences. (not a bad analysis)

The members of the American economics profession perform a vital practical role in maintaining our unique system of corporate socialism.(what does that mean?) They prevent the American public from achieving a correct understanding of the actual workings of the American economic system. Economists dispense a constant tirade of information that allows this farcical business to operate independent of damaging political fallout. (probably true?) The concept is based on a society composed of competing individuals without regard to the real laws of supply, demand and distribution. (??)

This false premise was transferred to the industrial organizations and countries and governments.

As long as the economic system in the United States is not really well understood, the people will not change it. We are educated to believe that the system we have is the only workable system. We are taught that economics is a complex system of money supply, interest rates, productivity rates, employment rates, trade deficits, fractional reserve lending and inflation and deflation. We are taught that if it isn’t regulated and controlled then the systems goes haywire and collapses. (good description)

The Monetary system of America is actually controlled by a private bank, The Federal Reserve Bank. (true) The majority of its stock is owned by banks that are owned and controlled by a consortium of multinational bankers.(??) These banks and The FED manipulate money supplies and the cost of money as well as its availability. This manipulation in this and other forms, controls the destiny of the entire financial system of the United States and the entire World.(might be true?)

The current system is based on debt. All funds in the system start out as borrowed funds with interest attached. (not quite true -- but a good part does start out as debt-- so what?)

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 one dollar of coin or currency in circulation. ...... (that is not true) 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 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.” (probably true)

He worked for the system! All the money in circulation starts as a loan with interest. This is a loan to our government or a loan to a member bank who in turn loaned the money to an individual business or person. The main glaring problem with the system is that the loans draw interest and the interest isn’t funded. (???) The loan therefore cannot be repaid. It is mathematically impossible for the loan to be re-paid. Let me give a mini example. (I think the example is faulty. It fails to take into consideration that much of the money lent will be used to build homes, grow crops and mine metals. In other words -- it will be used to create real wealth)

The Federal Reserve Bank Loans the US government 100 billion bucks at 10% interest. This can be done in a few different ways which is covered on the money page.

In year one the US pays 10 billion in interest. That leaves only 90 billion. Already the loan cannot be paid back ...... ever. Its impossible to pay back 100 billion with 90 billion bucks. After year 10 is over there is no cash left yet the 100 billion is still owed. Then it becomes necessary to borrow additional money just to maintain the interest payments. There is only one way for this system’s balance sheet to go. The debt will increase. There was not enough money to pay back the debt after one days interest let alone many years down the road. It is impossible to pay back the debt, so it grows and draws interest forever! (probably true -- loans to the government are often used for purposes that do not producse wealth)

The old saying goes “You can tell what kind of tree it is by the fruit it produces”

The current system ends up eventually transferring all the assets of the borrowers to the lenders. The process takes a few years but the transfer takes place, eventually all the assets are transferred. (Not absolutely true. If the borrowers create enough wealth to pay back the loan and interest -- those borrowers can keep that wealth)

How did this come about?

When you sit down and plan something you first have to have an idea of the final result. The final perfect result could be called the ideal scene. If you are planning a house you start out with an idea of how many rooms and what size you want and as the plan develops you get a full set of drawings showing how the whole house will be built.

The current monetary system is an extension of the Bank of England and was planned in 1910. There was a secret gathering of 7 men at a place called Jekyll Island, Georgia. The gathering was hosted by Nelson Aldrich.

These gentlemen spent nine days planning the Federal Reserve Banking System and the Internal Revenue Service. They knew exactly what they were doing and knew what the ultimate result or fruit of the system would be.

The main purposes of the system are;

1. Eliminate competition between banks and increase profits for the Banksters. (Don't bankers compete?)

2. Establish an exclusive cartel that could create money out of nothing (elsewhere on this website we shall try to show that creating money out of nothing is a wonderful invention -- and that money can be used for good purposes to the benefit of us all) for the purpose of lending at interest, to eliminate the formation of private capital, and the system can bail out troubled banks whenever this suits the Banksters.

3. Get control of the reserves of all banks and pool them, create additional profits by managing the reserve requirements and charging interest on loans of printed paper or electronic credits, more money for the Banksters.

4. Force the taxpayers to pay for the losses and interest on the government borrowed funds through the IRS and have them deposited directly into the Banksters Federal Reserve Bank. (This was recently changed in the 1990,s and now the funds go to the Treasury to help hide the truth). Create a hidden tax by inflating the money supply resulting in more profits for the Banksters. This isn’t done by printing money, it is done by lowering the discount rate and flooding the economy with loans.(??)

5. Disguise this private money cartel as a quasi government agency by naming it Federal Reserve Bank and convince congress that the purpose of this exclusive cartel was to protect the public and not to hide the Banksters. (probably true)

6. Have exclusive knowledge of what will happen to the interest rates and money supply ahead of time. How would you like to know what the rates were going to do a few days ahead of schedule? You could get rich beyond your wildest dreams, and the Banksters have. (probably true)

The plan followed a devious plot from the start. The name itself makes it sound like a federal agency. The word bank was eliminated to disguise the central bank nature. It was split up into twelve regional banks to further convince that it wasn’t a cartel or single bank. It was set up with a very conservative nature that has been changed little by little in un-noticed fashion. University professors have been used from the start to give it the appearance of academic approval. (probably true)

The bank also demanded good money to pay the interest. They didn’t want any of their own debt money as payment until all the real money had been removed from the system. (??)

I had dinner once with a recently graduated Harvard economics student and I was amazed at how this intelligent young man was totally brainwashed by academia into believing the FED was the salvation of the world. He was sobered by the fact that all money is loaned into the system at interest. Somehow this crucial fact was not part of his education. (probably true)

Take a fresh look at what is really happening and you too will be shocked with what is going on. (true -- if you are wise enough to recognize the truth)

Milestones for the Cartel

The name itself is designed to deceive the populace and even a lot of savvy bankers into thinking it is a government agency. The act, conceived in 1910, was not passed right away. President William Howard Taft made it clear he would veto any attempt as long as he held office. The cartel tried to get Republican Teddy Roosevelt elected but he lost in the primaries. Then they backed the democrat Woodrow Wilson in exchange for his support. They ran Teddy as a third (Bull Moose) candidate to draw votes away from Taft and Wilson became president. (could be true or not) Sounds a lot like the Ross Perot deal doesn’t it?

The Federal Reserve Bill was held until two days before Christmas. It passed on December 23rd 1913 when all opposition had gone home for Christmas.(sounds shady -- but there must be more to the story)This effectively placed control of the nation's money into the hands of this private corporation. ( in violation of the U.S. Constitution. How this happened is way less important than the fact that it did happen and should not have happened. The constitution should not be ignored or violated)

In 1920, the 66th Congress passed the Independent Treasury Act. (??)

In 1921 the United States abolished the U. S. Treasury. This allowed the monies of the allowed the Federal Reserve to manage all the money as a single unit. (??)

The operation of the Federal Reserve System during the years 1913 to 1933 under authority of our Congress used the nation's Gold to back their currency and at the same time charge the nation interest on loans that it had made. This is like charging interest on our own gold. The gold was taken to pay the interest, in fact most of our gold was shipped out of the country.(probably true??)

Roosevelt was inaugurated on Saturday, March 4, 1933. Shortly after midnight the morning of Monday, March 6th, he issued two emergency executive orders. One declared the bank holiday; the other called the special session of Congress on Thursday, March 9th. At the special session, Congress was held hostage & forced to vote on the banking relief act that divorced the Federal Reserve “bank” note from gold backing and pretty well forced state banks into the Federal Reserve system. (??) The proposed bill was drafted by banksters at the New York & Chicago Federal Reserve Banks and the only copies in the House or Senate were in the hands of secretaries -- printed copies weren’t distributed for consideration prior to or at the special session. It was rammed through both houses on up or down votes, without the option of amendment, prior to midnight on March 9th. (?? might be true)

On March 9, 1933 the United States was forced to declare bankruptcy.(??) This was done by President Franklin Delano Roosevelt in Executive orders 6073, 6102, 6111, and 6260. These executive orders are some of the worst examples of Un-constitutional law that has been perpetrated on the American people. FDR declared a national emergency and made it unlawful for citizens to own gold. The Congressional Record for March 9, 1933 should be mandatory reading. Citizens were ordered to turn their gold in by Executive Order 6260. They were informed that their safety deposit boxes would only be opened in the presence of an agent of the INTERNAL REVENUE SERVICE. My grandparents remember turning in their gold. They did it in a confused patriotic state, to save the United States, from what, ..... they weren’t sure. They received less than the spot market price and were paid by crisp new freshly printed Federal Reserve Bank Notes. American Gold traded to multinational Banksters for their paper notes. In the next hundred days, the New Deal forces socialized national government, and over the ensuing year, state governors & legislatures accommodated the scheme. This is an American travesty. The constitutional coup de grace came on the heels of four years of hard depression that was orchestrated by the control the Federal Reserve had attained over the money supply. From 1929 to 1933, approximately 40% of American’s industrial capacity was shut down and non-farm unemployment topped 25%. In the months prior to the Roosevelt inauguration, panic intensified due to bank runs set off by speculators exporting massive quantities of gold. (This may or may not be exactly true. This account probably does not tell the entire story. And even if it does -- it is MUCH MORE important to straighten out the existing violation of the Constitution instead of railing about how it happened. We do not have to know how it happened to correct it -- we simply have to know that the Constitution is being violated TODAY)

Lewis T. McFadden a State Representative documented in his speech before the House, June 10th 1933, transfers to Germany of more than thirteen million dollars of our gold in a four week period. Find a copy of his speech here. (this link did not work for us on 8/19/08) He requested investigations of criminal conspiracy to establish the privately owned Federal Reserve System. He asked congress to investigate a vast scope of criminal acts including the conspiracy to remove our gold and transfer it into the control of the owners of the Federal Reserve Banks. During 1933 all the balance of the gold had been transferred out of our treasury. (this is, if true, shocking -- but not as shocking to me of the current vioation of the Constitution by allowing the Fed to control our money)

The United Sates Government has since that time been owned and controlled by the Federal Reserve Bank owners and the interests they serve. (true)

After all the Gold was turned in, and all of it transferred into foreign hands the design of Federal Reserve Notes were changed slightly. While the minor design change went unnoticed there was a very significant change in their value basis. The FED notes originally said they were redeemable in lawful money at the United States Treasury. This acknowledged that their notes were not lawful money. After the change they became non redeemable. In 1933 these FED notes were declared legal tender. On June 5, 1933 Congress passed HJR-192. It suspended the gold standard and abrogated the gold clause in the national constitution.(??)

In 1963 Kennedy was assassinated and his EO 11110 which would have converted our financial system into a healthy wealth based system was stopped. (How did the President think he had the right to take over the control of the money system? That would have been more shocking than the Fed being in control)

In 1965, under President Johnson, Congress terminated the coinage of constitutional silver dollars and authorized the first debased coinage, cheap metal washed in nickel. (??)

In 1978 under president Carter, Congress took America off the Gold Standard. (??)

The Monetary Control Act of 1980 gave the Federal Reserve System control over all depository institutions, even non member banks. It effectively allows the FED to use Foreign Debt as collateral for additional FED notes issues, saddling the taxpayer with Foreign Debts. (??)

This private bank has created unimaginable wealth for the stockholders. It has effected a transfer of most of the wealth of this nation over to them, lock stock and barrel. It controls the nations economy and manipulates it for its own agenda.(probably true -- it is time for a change)

Debt Based Monetary System & Money Supply

The money in circulation is a key issue because it is the basis of the speed of the economy. In the debt based system it is possible to alter the natural supply of money. In the debt based system if no new money is loaned into the system then the cash supply dries up. It is a simple mathematic certainty. The money is loaned into the system , but the interest is never funded, so as the interest is paid from the funds that were loaned the amount of cash in the system is reduced, even if the debt is never repaid. All funds end up in accounts receivables and companies and people cannot buy because they have not been paid. This debt based system is unnatural and will fail, it is just a question of when there are no more borrowers or when the controllers of the system want it to fail. A quick review of the history of the system will show that every time that the borrowed money or debts are reduced the entire system goes into depression. See Debt Reduction causes Depressions. (??)

This fraudulent ridiculous system is maintained because the learning institutions have been funded and controlled. They promote this debt based system as the only way for economics to function. Once this concept is established the worlds attention is on the regulation and fine tuning of the system instead of the fraud and deceit of the operations. The institutions turn out the managers of the system. Those that see through it or question it never get promoted and it continues.(probably true)

Wealth Based or Value System and the Money Supply

In a wealth based system all money is asset based. That is, based on actual commodities and the time value of humans. (is there such a system? -- In our opinion, the current problem is not in our basic system -- it is because the system is not being run by Congress -- in accordance with the Constitution)

The role of the government central bank is to manage the cash, that is, keep enough cash in the system for commerce to flow as necessary. Individuals could use their assets as collateral to fund expansion. There is no reduction of the cash supply by an outside force bleeding off interest. There is no manipulation of the interest rate with only a select few knowing where the rates will go ahead of time. Rates would be fixed and eventually would be very low as the economy grew and prospered.

As commodities and human time availability increase so does the money supply. If the economy is good then cash increases as the economy increases. If the economy slows then the expansion naturally slows as the use of human time deceases. When our Government sponsored loans and programs funds and human time are made available to the system without the problematic interest associated with our current system. These increase the flow of goods and services without creating inflation.

The Changing Definition of Inflation

There has been a progressive change in the definition of terms to obfuscate the real problem

Webster’s 1957 New 20th Century Unabridged Dictionary of English Language; Inflation: an increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and a rise in prices.

Webster’s New Collegiate Dictionary1979. Inflation: an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in general price level.

This subtle change in definitions shows how completely the persons inflating control things. They have conned the public into thinking inflation is part of the economy, caused by the market. It is not a natural process. It is caused by the current expanding and confiscatory monetary system. (a poor argument - those definitions are not that different in meaning)

Currency Value

Currency should be stable and its value should not change. It is essentially a promise to pay a certain value. The promise should remain good. The fact that the Federal Reserve Note is losing value is another proof that the Fed is not fulfilling their promise. If you traded a days work in 1933 for $3.00 then the $3.00 today should buy a days work. If it doesn’t it is because the promise has been broken. If I trade an IOU for a piece of property for a years worth of work. Then the IOU should be good for that property in ten years. If however I give the same IOU to ten other people and all ten come for the property then the property needs to be divided into ten pieces so the IOU is only worth one tenth. This is exactly what has happened to the Fed notes. The issuers have stolen the value of the property by issuing too many IOU’s. (a poor argument that is not germane to the main problem)

This is really an orchestrated, hidden tax. Our economists are so proud of the current 3% to 5% inflation rate. How nice that is. Lets look at what it really is. It is a massive tax that is hidden. It relentlessly erodes away cash assets, and it is operating on all your funds, those you earn today and those you earned in the past. (inflation can reasonably be seen as a hidden tax and inflation can probly be controlled in a well run economy -- but that is a different problem that pales into insignificance in the light of our current problem)

If we take a 5% inflation rate and apply it cumulatively to assets over a 45 year working period the hidden tax will be 90% on those original funds. Add to that the income and other taxes and you begin to get the idea of what is happening. (That would not be a problem if the wealth of the country was growing at the rate of 5% a year. It is foolish to ignore the growing wealth that the money is supposed to make possible)

Solutions to the Problem
This link was dead