Economic Warning, The state and future of the US economy

Taken from THIS address. Take heed and ask questions.

This runs hand in hand with "Machan's Musings - Alan Greenspan's Open Secret" posted a couple days ago. The inner workings are very subtle, but they can be very obvious with a trained eye.

MORAL ARMOR'S Economic Warning for Americans

For years we've suffered under recession, prompting us to ask, When will it end? My
answer is, "It's only the beginning."

Historically, recessions are the result of high interest rates, pushed up as the result of loose
money policies. Recovery comes when citizens begin to spend more wisely, save money
and pay off their debts, but not this time. Never before have credit policies been so loose
for so long, and there has been no decrease in consumer debt. Its still on the rise, but
Americans are NOT fundamentally to blame; immoral monetary policy is.

Banks used to consider a safe loan applicant to have a 36% or less Debt to Income Ratio
(debt divided by gross income). This percentage is a time-proven figure indicating the
financial health of an individual. Now, during the worst economy in twenty years and with
no signs of recovery, our banks gladly loan to applicants with a 56% Debt to Income. What
has changed? Are banks suddenly more generous? I don’t think so. One good question to
ask is, Why are banks willing to accept the additional risk? But the real question to ask is,
Where is this money coming from?

Not one in a thousand Americans knows the true nature of our banking system, so they
have no idea that what happened in 1929 is about to happen again. Nor do they know that it
was done deliberately then, and is being done deliberately now.

We have in this country one of the most corrupt institutions known to Man, and I refer to
the Federal Reserve. Since its inception in 1913, every dollar created has interest being paid
on it as if it were borrowed. This debt cannot be extinguished without destroying the
currency itself, and has spawned a nightmare of debt that presently amounts to over $360
Billion in interest paid per year, accounting for half the personal income tax of the nation.
Due to this, America is forced to create $7 Billion daily to cover the $1 Billion it pays in
interest daily due to the Federal Reserve System. This is where the public comes in.

Federal Reserve bankers have to find a way to spend $6 Billion every day while masking the
inflation it causes. Throughout the nineties it was done through real estate and the stock
market. Now it is almost exclusively being put into real estate. How on Earth could so many
mortgage companies be offering interest only, no money down, multi-hundred thousand or
million dollar loans with high applicant debt ratios?

Here is a hypothetical example of what’s going to happen: Your mortgage banker tells you
that with a 56% debt ratio, you can afford a $300,000 home, no money down. You secure
the loan at 4%, costing $1432 per month. A few years later, you’re thrown out of work for
three months. Back payments amount to $4296 plus late fees, legal fees, etc., and another
$5k on cars, credit cards and everything else. Unable to catch up, you’ll try to refinance,
but interest rates have moved up to 7%. A $310,000 loan now costs $2062 per month--
more than you can afford, but banks will have tightened lending policies back to 36% and
you no longer qualify for the home you own anyway. Accounting for all other debt, you
now qualify for a shocking $360 per month. You are trapped, and the new bankruptcy laws
they pushed for will never let you walk away.

You owned this home in a perfect numbers scenario, but any complications--
unemployment, salary reduction, interest rate increase, debt ratio change, bruised credit
rating, depressed home values--and you’re cooked. One mishap and every financial
measure works against you. Your financial angel has suddenly become your greatest
enemy. Welcome to the Federal Reserve System and their freshly engineered worldwide
depression.

If you were to approach the housing market fresh, you would find that you only qualify for
a $55k house now, along with the market of buyers you were hoping to unload your
balloon-house on. The bank forecloses, auctions it off and you’re personally responsible for
the difference, which could be massive. Bankruptcy is right around the corner, and
deplorably, you are the only one who will be held accountable. You will then be a debt slave
as the Federal Reserve intends, and game over.

My advice is to get as financially stable as you can. Mathematically, our situation is much
worse than that of the Great Depression. No matter how generous these bankers appear,
pare down monthly outlays to 36% D/I or less. Set aside three to six months of mortgage
payments in case you become unemployed. Make sure you can ride out the storm.

We are coming to a point in American society to where its either them or us, and mass
awareness is the key to our survival. Most believe the Federal Reserve is a part of the
government, but its just a name. The Fed is a private corporation set up for private gain,
with a dark history of stock market crashes, financial panics, political manipulation and
ultimately, mass poverty and hunger riots. Our struggle is not new: currency control has
switched from public to private hands EIGHT times since our country’s inception, and
needs to be reclaimed by the people, one last time.

Don’t think you can play helpless and expect our political leaders to protect you from
financial calamity; they never have. You must become Morally Armed on your own. Don’t
be coaxed into believing the system is optimized for the good of all. The Federal Reserve
System is not an equitable institution, and it was never intended to be. They believe if they
have us strung out on debt, we are no threat to them. Let us prove otherwise.

Currency reform is the most important issue facing Americans today. How it plays out will
determine whether you and your children eat or not, whether you have a place to live or
even a future to look forward to. The major media will ridicule anyone speaking against the
Fed, so to validate history’s greatest moral dilemma for yourself, just google "Jackson bank
veto."

America must abolish the Federal Reserve System to regain control over the economy and
our government. For a concise history of world monetary policy and how it shapes world
events, see Moral Armor. Then share this knowledge with your friends. Email this article to
everyone in your address book and stay tuned for further developments. We'll change the
system together and bring a brighter dawn to Mankind.

All thanks to Ronald E. Springer.

Post 1

Friday, September 16, 2005 - 1:10pm

Chris,

Are you "Springer," or just a stooge for his bizarre amalgam of Thomism and Scientology, with occasional lip service to and plagiarism from Ayn Rand? I'd bet a stooge, but "on the Internet nobody knows you're a dog."

Troll on.

Post 2

Saturday, September 17, 2005 - 11:31am

Don't worry Adam. Just close your eyes and it will all go away--for a while.

Apparently there is a contrast in our debating styles. Usually, when I am attacking something or attempting to debunk it, I tend to shy away from generalities, random opinion, and insults. I find FACTS to be much more reasonable.

Post 3

Monday, September 19, 2005 - 9:57pm

Chris, I took your advice and found this Jackson veto (excerpts below). I may need help from scholars to get things straight -- so I've interjected questions and comments along the way.

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The bank is professedly established as an agent of the executive branch of the Government, and its constitutionality is maintained on that ground. Neither upon the propriety of present action nor upon the provisions of this act was the Executive consulted. It has had no opportunity to say that it neither needs nor wants an agent clothed with such powers and favored by such exemptions. There is nothing in its legitimate functions which makes it necessary or proper. Whatever interest or influence, whether public or private, has given birth to this act, it can not be found either in the wishes or necessities of the executive department, by which present action is deemed premature, and the powers conferred upon its agent not only unnecessary, but dangerous to the Government and country.
=================

Question 1:
Is this the "Fed" (or a National Bank of America 'prelude' to it?)?

Question 2:
It appears that Congress cooked up this National Bank thing-a-ma-jigger -- and that A. Jackson had known nothing about it (and wanted nothing to do with it). Is that correct?

Comment 1:
It does seem to follow, necessarily, that if the Nat. Bank deal-io was an Exec. thing, AND the Exec. -- at the time -- didn't ask for, or even state a case for it, THEN it's just a friggin power-ploy by some who would like to be given the opportunity to rape and pillage their neighbors blind (ie. an entirely dishonest, nation-harming ploy).

=================
It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society-the farmers, mechanics, and laborers-who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.
=================

Comment 2:
Love the talk about no necessary evils in government -- only abuses. This point resonates well with Rand's busting of the Moral-Practical Dichotomy. Also, the anti-Egalitarian (ie. jurisprudent and just) view is great to see written down in black and white permanently.

Comment 3:
It's odd to find Jackson's mature sentiment (already, in the early 1800s) of pull-peddling. I had thought that the 1800s were a time when men were angels. Maybe we could say that they were angels COMPARED to the obnoxious, anti-life pull-peddlers of today?!

=================
Nor is our Government to be maintained or our Union preserved by invasions of the rights and powers of the several States. In thus attempting to make our General Government strong we make it weak. Its true strength consists in leaving individuals and States as much as possible to themselves-in making itself felt, not in its power, but in its beneficence; not in its control, but in its protection; not in binding the States more closely to the center, but leaving each to move unobstructed in its proper orbit.
=================

Question 3:
Is this about mere 'nationalization' (read: standardization) of currency? I'd think that that would actually be a GOOD thing (because of the objectivity in trade that is thereby made possible).

=================
Experience should teach us wisdom. Most of the difficulties our Government now encounters and most of the dangers which impend over our Union have sprung from an abandonment of the legitimate objects of Government by our national legislation, and the adoption of such principles as are embodied in this act. Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress. By attempting to gratify their desires we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union.
=================

Comment 4:
Chilling premonition of the current state of the union. Jackson was about 150 years ahead of his time.

Ed
Master Troll-feeder

Post 4

Thursday, September 22, 2005 - 10:46am

My apologies for the delay in reply Ed.

Question 1: Is this the "Fed" (or a National Bank of America 'prelude' to it?)?

The central banking system in the United States has been around for along time. Over the course of the years it has been chartered and un-chartered multiple times. The core elements of the bank have managed to stay the same—as these elements allow for control and manipulation over our currency.

The Bank of North America 1781-1785
1st Bank of the United States 1791-1811
2nd Bank of the United States 1816-1836
The Federal Reserve 1913-Present.

Notice the intervals between the institutions. After each charter failed renewal and ran out, it only took a couple years for the bankers (they’re not all bankers so let’s refer to them as the money vultures) to gain power again and buy the bank back into charter under “slight modification”. Finally after it ran out in 1836 (thanks to A. Jackson’s speech) the bank would face considerable opposition for the coming years.

Question 2: It appears that Congress cooked up this National Bank thing-a-ma-jigger -- and that A. Jackson had known nothing about it (and wanted nothing to do with it). Is that correct?

Precisely. Andrew Jackson new exactly what the vultures were trying to do and was against it from the start.

Question 3: Is this about mere 'nationalization' (read: standardization) of currency? I'd think that that would actually be a GOOD thing (because of the objectivity in trade that is thereby made possible).

A standardized currency is completely a good thing—dependant upon one condition: The body that governs the currency is regulated and non-corrupt.

The fractional reserve system allows the banks to loan out on average of 7 times the amount of the item secured (under the gold standard this item would be gold, in this case—bonds).

Let’s get this straight. With our current level of debt, the interest accrues at around $1 billion daily. To cover this massive amount the government borrows $1 billion everyday from the banks. The government pays for this $1 billion with bonds secured by the Federal Income Tax. Essentially, the $1 billion is created out of thin air. Multiply this by 7 and you have a whopping $7 billion created out of nothing every single day. That's $7 billion stuffed into the economy everyday and the Vultures collect interest on every cent of it!

With the institution of The Fed, the money vultures have been able to multiply their power many fold. They now work behind the scenes and beneath so many layers that they are now able to operate directly underneath our noses—everyday.

They own and actively control the major media television and newspapers.
I was overseas in Iraq for a year. One thing that surprises me was that every time I talk to someone about it, usually the first thing they ask is “Well, how is it really over there? I know we can’t really trust what the media is telling us.” Most American’s know that the media has multiple screws loose, but the vultures win two for the price of one here. Not only do they get powers for infinite persuasion, but who takes the fall for “misleading news”? Business and corporation.

Close ties with the intelligence community (chiefly the CIA) allow them infinite covert muscle.
When they get the right people in the right seats, getting legislation passed has been a breeze. 1913 is the year not only the The Fed was brought into power, but it is also the year the income tax was initiated. And by no coincidence! They had their plan for the next 3 decades hatched before the bank ever came into power!

Unlimited money will buy them damn near whatever and whoever they need.
All this power has allowed the Vultures have virtually engineered every major war the United States has been involved in. Why would they do this you ask? Let’s see here, latest figures have US military expenditures for the Iraq war calculated at $260 billion by the end of 2006. Where did all that money come from?

www.themoneymasters.com has some great information. Even better is the 3 hour educational DVD that they sell.

Post 5

Thursday, September 22, 2005 - 4:04pm