- The important matter is not gold backing or gold itself
as the national currency. Monetarism -- pick any token and establish it
in the proper way to condition it as a positive reinforcer effective that
figures in their exchanges with other people and it will be money -- and
its supply and demand can be altered by those who have exclusive issue
of this token system.
-
- But what is important today is the existence of 1) a
credit monopoly; 2) a two-class financial system -- what I called two-loop
system in my writings of the late 1990's. The global elite are international
and they own the debt of the world. The Fed is the institution. It is
the link between the elite international loop and the domestic debt-slavery
tax-slavery loop of M1 money. (The plebian loop is that of the domestic
commercial banks, their regulation by the Fed, their system for creating
demand deposits by making loans under a fractional reserve system and the
ability to borrow from the Fed at the discount window.) The international
banks are free of all the laws that constraign the domestic (plebian) loop.
Because international banks are unregulated by the authorities -- the
elite loop (Money Power, international finance, called investment banks
or merchant banks) live with completely different interest rates at which
they borrow and at which they lend. The internationalist can receive
an deposit rate (when they maintain liquidity) of say 8.75 percent but
have a loan rate that is very very very little higher than that 8.758 let
us say -- the London interbankm offer rate.) Thus there is almost no
spread between the international "offshore" rate at which
internationally held dollars outside the domestic loop are borrowed by
the elite and the international "offshore" rate at which they
can receive money on their deposits.
-
-
- But here is where the blade touches our necks: While
the elite international financier can both borrow at approximately the
same interest rate -- the ruling elite have regulated the US domestic
economy so their is a gigantic spread between the best interest rate on
a deposit and the best interest rate on a loan. The lowest borrowing rate
at which the best (plebian) credit can borrow is the U.S. Prime
Rate (for their best corporate customers) and the best rate someone locked
in the plebian loop can get on a deposit is the US Certificate of deposit
rate. So we see how the international elite can make their money -- and
it isn't only by "making money out of air" with the fractional
reserve money multiplier. They have created -- by regulation since they
own the Congress -- a domestic financial system that creates a great spread
between what the people can earn in interest on deposits of their
money and what they must pay in interest to get a loan even at the best
rate. Yet every day the international banker can get his international
dollars (and there are a lot more dollars outside the loop in the hands
of the international money power than there are in the the purchasing power
starved plebian loop of the domestic debt-slave and tax slave economy.
-
-
- The international financier can borrow from London merchant
bankers' rate and always lend out in the plebian US domestic loop for signficantly
less. But on the same day the same financier can borrow money from the
domestic loop US Certificates of Deposit bought from the FED (which interconnects
the two loops) and lend it to the US domestic debt slaves at the U.S prime
rate or even better rates (mortgages etc. -- one reason why
mortgages have been securitized btw.) So, rather than the financial
elite being great entrepreneurs and developers of the world economy --
they just the opposite of course -- they have bought Congress and devised
this system creating an artifical spread between deposit rates and lending
rates (in efficient unregulated markets this spread would not exist, just
as it does not exist in the economic environment of international finace
-- the spread is insigificant, showing efficient unhampered markets only
for the elite) -- so the international financial masters can alway borrow
from the elite loop at much lower rates than they can lend that money in
the US domestic loop and they can get interest on deposits at a much higher
rate than people in the domestic US economy (buying US Certificates
of Deposit.)
-
- Now, we know that the FED owns a lot of US debt. These
holdings are bought and sold in open market operations at the Federal Reserve
Bank of New York. These open market operations are the real power
of the money elite over the US economy. The power of the Federal Reserve
is not the Chairman of the Federal Reserve Board -- he is just an errand
boy. And the twelve Federal Reserve Board bank presidents are nothing.
The Fed open market committee has a little power - but only under supervision
of the greater power I shall mention next. The FOMC can change the discount
rate (a minor tool -- called by the media "the Fed setting the interest
rate" -- when the rate set is only the loan rate between the Fed
and the commercial banks of the domestic system. The FOMC meets only
eight times a year. It is not the center of policy and power.
-
-
- The real power resides with a small group of investment
bankers and with the President of the New York Federal Reserve Bank and
in particular with Open Market Account Manager and his staff consisting
of staffers loyal only to the merchant bankers. The open market operations
are decided by them and they inform the FOMC what they have done. That
is how it really works. The directors of each Federal Reserve Bank --
who were supposed to be the governors of the system when the system was
sold to us in 1912 -- are locked out of these decisions as are Federal
Advisory Council. (As powerless as the US presidents cabinet in forming
foreign policy, for example.) Yes, the member banks "own" the
Fed, but the ownership is purley symbolic -- in fact. de facto, a
public relations lie.
-
- Remember, the powr of the money elite over the United
States is the power of the investment bankers of the elite loop to switch
buy and sell securities with the FED in open market operations. The policy
is that the domestic loop is kept on starvation rations and the elite loop
has all the money it wants to invest around the world (but never here)
simply by selling its securites to the Fed for cash which it then uses
abroad. And the US pays interst on those securities with taxes. The tax
system is not needed to fund government, but to fund the predations of
the interntaional financial elite -- including their investments in China
--with our savings (long gone) and our tax money.
-
- They fleece us by this money machine in the internaitonal
loop --our debt slavery and our tax slavery and our credit starvation and
capital starvation and purchasing power starvation stem from this system.
-
- This is how it works. I have studied the subject from
the viewpoint of the average American citizen -- which no one else familiar
with the banking system ever seems to do -- and I have passed my findings
on to you. I have shown you your slavery. Now you can get back to wondering
whether Hillary or Obama will run against McCain -- as if either of those
three have either a clue to the problem or the slightest inclination to
free you from this vampire. Not even Ron Paul has shown that he understands
how the present system dominates the country. A gold system is not the
answer. Populist government is the answer.
-
- All I can suggest politically is that you join me in
attempting to draft Bob Bowman.
-
- Dick Eastman
- Yakima, Washington
-
-
- In 2003 I wrote:
-
- Derivatives are a way that financial insiders could
take the whole price
- structure collapse and shift the burden to the rest
of us. That's what derivatives,
- futures, swaptions etc. are for -- shifting risk upon
others. That is
- good if regulated properly and if there is not insider
manipulation that
- converts "risk managment" to scam in rigged
markets (not only inside
- knowledge, but inside manipulation by the government,
quasi-governmental
- (the Federal Reserve) and other NGO institutions (world
bank, IMF etc.)
- the insiders control for their own purposes.
-
- Don't believe me?: http://groups.yahoo.com/group/frameup/message/3625
-
- ===================================
-
- And here is the basis of the above statement -- the
real nature of this economy. (Written in 1999.)
-
- In article <http://groups.yahoo.com/group/frameup/post?postID=OyQPqgJWyh2
qHX1JFa1Vqzrnvo5Do1N2mTuCgnGN1ZuQwk8HpiczvERS9mvXMfwp-EOK
OS6EMKpKlwGNOmjAuX12CDYsYQ>8547ul$kqe$1@nnrp03.primenet.com>,
"Lawrence Tseung" wrote:
-
-
- The Strategic View Of Banking And Investment
-
- Dr. Tseung,
-
- There already is much international pressure for China
(the Communist-
- held mainland) to adopt the American (also called "globalist")
system
- of central banking and money supply/interest rate management.
-
- If this system is adopted it will prove a great wealth-making
- boon to the financial elites of the New China, but it
will mean
- the constant impoverishment and indebtedness of the masses
of
- the Chinese people. The foreigners will bribe heavily
for China's
- political leaders to adopt their kind of system (they
will share
- mightily in the transfers of wealth!)
-
- I offer the following letter which was meant to warn
Americans
- of the abuse and corruption of their economic system.
The astute
- Chinese student of economics will at once see the relevance
to
- his own country's situation.
-
- If you are a student I urge that you bring this to the
attention
- of your economics professor. I claim no authority for
this essay
- based on my name. (I hold a Masters degree from Texas
A & M where
- I studied Macroeconomics under Dr. Akira Takayama and
Banking under
- Dr. Richard Saving; but this analysis does not stem from
their
- treatment of this topic.)
-
- How the Future Was Stolen
- by Dick Eastman
-
- Everything you hear about the Federal Reserve (and the
Euro Central
- Bank for that matter) raising interest rates to "combat
inflation"
- is private disinformation from a deviant banking elite
intended to
- conceal the fact that the middle-classes are being robbed
blind and
- their hopes for the future are being stripped from their
existence.
-
- Unfortunately the same elite has dumbed down most of
us to the
- point where it is difficult to follow an explanation
of how this
- super-theft is accomplished. So copy this and go someplace
where
- you can concentrate.
- * * *
- The middle class is shrinking because the money supply
that the
- middle class uses, M1, is being contracted while the
wide-transaction
- monies exclusively used by the financial elite and multinational
- corporations are being expanded. So instead of the whole
economy
- undergoing a boom followed by a bust as the state alternately
- inflates a commonly shared currency and bank credit and
then
- tightens it; today we see the middle class languishing
on an
- M1- money contracted "bust loop" (the internal
"little people's
- economy) even as big banks, multinational corporations
and
- billionaire currency traders enjoy an easy money boom
that
- captures most of the real-goods "economic pie"
for itself and,
- more important, all the claims to future economic pie
(the
- result of savings/investment on the elite loop) while
the
- middle class, lacking even the money to meet its
- expected commitments goes into debt (receiving pieces
of
- "negative economic pie" for the future).
-
- The M1 money supply (think: cash and check-book money,
or
- in bigger words, domestically circulating currency and
- bank-loan generated checking accounts called demand deposits),
- both as a stock and as a flow, has been SHRINKING with
very
- little fanfare since the current Fed Chairman assumed
his
- position under Ronald Reagan. This means the circulating
- money media of the middle classes--which the middle classes
- use to pay their debts, buy clothes for school, and take
- the family out for dinner, fix up the house, buy a new
car,
- or make donations to the local orphanage --has been less
and
- less each year. (This explains the shocking rise in middle
- class debt(that the prostitute press downplays falsely
- attributing the rise as the result of "spend-now-rather-than-later"
- decisions of middle class people themselves--as if they
had
- any choice in the matter!
-
- But while the Fed has been shrinking M1 it has been
- allowing the monies of the elite, the so-called "wide
- transactions monies," M2 and M3 to expand. Under
Greenspan
- and during the Presidencies of Reagan, Bush and Clinton,
- the Fed has been holding M2 and M3 (each of which includes
- M1 monies, but then adds the wide transactions money-supply
- components used the multinational-loop transactions of
of
- elite institutions. I'm talking about money market deposit
- accounts and general purpose money market mutual funds,
but
- more important, the overnight Eurodollar deposits issued
to
- US residents from foreign US banks and, most powerful
of all
- the overnight and continuing contract REPURCHASE AGREEMENTS.
- These are the privileged money-supply components that
the
- middle class never gets to touch. What owner of a vacuum-cleaner
- repair shop or a machine shop parks his "excess
liquidity" at
- a commercial bank in the form of a short-term loan to
the bank,
- with a REPO, redeemable the next day for principle and
interest?
- And which middle class guy with "an idea for a better
mouse trap"
- gets to borrow that cash?
-
- By the way, don't be fooled by the "overnight"
aspect of these loans.
- The banks accepting these loans know that they can count
on
- sufficient "parked money" each and every night
to permit
- highly significant, i.e., huge, loans on the basis of
them.
- This is a source of money that the little "building
and loan
- association" managed by "good ol' George Bailey"
- could never touch for the residents of Bedford Falls
- (the character in Frank Capra's populist film of pre-WWII
- Americana: "It's a Wonderful Life.")
-
- The REPO is a computer data entry that, for all practical
- purposes is money. I'll go even further: since it is
a banks
- IOU and can claim the creation of new demand deposits
when
- it is electronically "turned in" it functions
exactly like the
- private-bank generated monies of the early days of the
Republic,
- in the relatively unregulated days before the (American)
Civil War.
-
- I am telling you that the elite have their own private
loop for
- their own less-regulated AND more-privileged monies.
It is these
- monies of the elite that are the components of money-supply
- definitions of M2 and M3 within the definition of M2
and M3
- that have expanded as the M1 component has been shrinking.
- (In other words, the relative share of M1 has been shrinking
- against the REPO's and CD's within M2 and M3.)
- Thus M2 appears to be stable, to be "held relatively
constant,"
- ostensibly to "keep inflation under control"
in the manner of
- monetarists.
-
- This money circulates in the multinational corporate
and
- financial realms of Wall Street, not in your home town
or
- backwater state. (WHY are some states backwater states?;
a
- related topic for another time.)--and when it is spent
it is
- spent on new factories on the Communist mainland of China,
- or a new Wal Mart that will put "Ma and Pa"
stores of your
- home town OUT OF BUSINESS. (Ma and Pa spend their PROFITS
in
- your town; Wal Mart sends its profits to Arkansas. Get
it?
- The Waltons (billionaires) get the profits that used
to go to
- middle-class mom and pop. (Ma can be seen today offering
you
- free samples of cheese spread as an a senior-citizen
employee
- of Wal Mart. (I am not knocking Wal Mart. I'm just saying
- that the capital for those giant stores came from a lending
- source unavailable to Ma and Pop. And before someone
tells
- me that Wal Mart is better than Ma and Pa; let's switch
our
- example to restaurants. Could your grandmother cook a
better
- meal than McDonalds? Then why hasn't she driven McDonalds
out
- of business? Maybe she does not belong to the little
circle
- of pals on the closed investment loop, closed to little
guys
- that is.
-
- At this point we need to consider the effects of a monetary
- contraction.
-
- The 1929 crash destroyed a third of the money supply.
- That monetary contraction (caused by the mass calling
in
- of bank loans to meet the cash demands brokerage houses
that
- investors meet their margins (they had bought stock on
credit
- during the good times) plus downward rigidity of
- wages (there is less money circulating and lower prices
at
- the stores but no one cuts wages to bring them into balance
- with other depressed prices--they settle for firing a
third
- of the work force instead, so that those who kept their
jobs
- now have their old wage and lower prices in the store.
That
- is why those who kept their jobs in the Great Depression
where
- much better off than before, as one can see by comparing
the
- average home build in the twenties with the average home
of
- the 30's. (And I think the massive margin calls by brokerage
- firms was deliberate--why else would Winston Churchill
have
- been on Wall Street that day? (Britain needed the crash
because
- Churchill, the Chancellor of the Exchequer had set the
gold
- content of the Pound too high considering the weakened
economic
- condition of Britain after WW1; Wall Street Relatives
were
- willing to help out, and wipe out a lot of their competition
- from middle-class businessmen at the same time.) It is
true.
- It is as John C. Calhoun said back in 1836: "A power
has
- risen up in the government greater than the people themselves,
- consisting of many and various and powerful interests,
- combined into one mass, and held together by the cohesive
- power of the vast surplus in the banks." Today such
a vast
- surplus exists, but only for the benefit of those with
- access to the privileged money-circulation loop.
-
- The elite-serving media denies that the middle class
- is hurting. The truth is the upper income groups have
had
- great growth in income and wealth accumulation, the poor
- are slightly better off (except for their prospects
- of entering the middle class someday), but the middle
- has been hollowed out. Real wages of the middle class
are
- dropping in the Clinton "boom." Think of the
manufacturing
- jobs (the "elite of the blue collar" jobs)
gone to China.
- Think of the middle-management jobs eaten up by mergers
and
- downsizing (increasing monopolistic concentration of
firms).
- Think of the Ph.D.'s driving cabs. Think of the burger-flipping
- jobs awaiting college graduates. Think of the small businesses
- that have vanished due to Wal Mart and a middle class
that
- can no longer afford their advantages. Think
- of the designer tee-shirts that pass for fashion. (It
is
- amazing how the servitors of the Establishment can conceal
- our own impoverishment from us. (Kids today have no clue
- how good it once was for the typical person). And the
- gains of the poor are not moves towards the middle class
|
