Future Hock
The American Debt Crisis & That Horrible,
Addictive 7% Solution
By Anita Sands
We take it for granted that the ozone is disappearing. As algae is poisoned, and trees are cut down, air is in attrition. (In l945 what we breathed was 22% oxygen; now it's down almost to the level of suffocation which occurs at 17%.)
Trees, paper, fossil fuels, brine shrimp, healthy babies and other things God made aren't the only victims of progress. A lot of man-made inventions cannot be sustained. Social Security, that benevolent pyramid scheme, won't last ten more years. Originally 16 people put into the fund so one could take out. Thanks to all those baby boomers maturing, today 3 workers put in so one can take, and in ten years, it'll be one to one, meaning the SSA is absolutely doomed. City payrolls are vaporizing and occasionally, these days, US Federal payrolls take a hike.
So it should come as no surprise that the world's second oldest profession, MONEY, is scheduled for extinction, too. In a few years, the planet's bankers want only credit cards or electronic transfers used, a cash free society, everybody's hand on the accountable table. No more nostalgic pictures of dead Presidents that one can easily tuck away under the floorboards.
Money is going to be 'eighty-sixed,' obsolete which means secret hoards, cottage businesses, transactions under the table, untaxed, are over, extincto. And, when money goes, planet-wide as planned by the New World Order, roughly 3 billion of the 5 billion humans on this planet will become obsolete.
Some say that was Stepfather Bank's plan. Who? Stepfather Bank. Big Brother's Bastard Old Man. Who do you think designed the 'one world after all,' global, borderless, Uni-Country? The I.M.F. is running the planet Earth like a tightly run corporation, dictating that every debtor in hock to world banks, whether countries, corporations or citizens, must efficiently send blood back to the spider at the center of the web. The BLOODLESS or anemic are expendable.
When we look at the many scheduled extinctions in this global crisis, don't kid yourself, money is the big one and, as that fortells our extinction, DEBT is a hell of a big issue.
Check out the facts. U.S. Public and private debt in 1791 was 75 million dollars. The figures didn't move off a graph much until Christmas l913 when that anti-Christ, the Federal Reserve was born. Its manger? U.S. Congress. Now the debt-monster could get its teeth into a meaty country. Just three years later, in 1916, American debt had grown to a pudgy 82 BILLION dollars. By 1976, the last year the Federal government compiled figures, total debt had reached a seriously gordo 3.8 TRILLION, an increase of 4600% in the 60 years since the Fed's been around.
You might contend that the emergence of big industry during this same period might be the guilty factor. No. Debt has to do with banks and interests, not commodities or manufacturers or business. On a graph, any line measuring these debt figures heads upward vertically. That is, until they abruptly stop short. There are no figures after 1976. The government stopped supplying private debt figures then because the sums simply became too gruesome.
Today researchers can't even imagine what combined public and private debt might be. Seventeen trillion is a figure some experts mention. What we do know is that since we can't pay the interest on the debt, we're paying interest on the interest. The huge increases in debt, most of them since 1940 and the costly War years, are the result of the exponential nature of the compound interest process, a phenomenon of math that no government bureaucrat understands, including the President, but one which a small circle of bankers understands quite well.
Exponential math is full of surprises. Here's one: if you want to make a million dollars, go out and make a penny today, and two tomorrow, four cents the day after. In three months, you'll be a millionaire. It's a little known secret of exponential growth mitosis that the average virus or cancer cell understands quite well but human beings don't ever seem to get a handle on.
High interest rates of the l966-1976 period seemed modest, (they capped at 11% at times) but they contributed to a specially vertical rise in US debt. The usual interest rate for money loaned out is 7% and even at this modest-sounding rate of growth (which is not growth ---we must stop using that word---it is really a terrible shrinkage,) by the year 2000, total corporate debt will be 116 TRILLION.
Such an alarming rate of impoverishment is not explained by surging US population figures. In 1790 there were 4 million people here; by 1984 there were 237 million, or 59 times the 1790 population yet Debt increased 114,000 times over its 1790 level. 59 to 114,000. Population increase is obviously not a key factor.
Economic growth is not responsible. In prosperous times debt can frequently decrease. The GNP in 1790 was estimated to be 268 million. By 1984 the US GNP was 3,663 billion - 13,668 times its 1790 level. But what is horrifying is that debt grew at 10 times the rate of the growth multiple. Even if one deflates the GNP and debt from 1984 back to 1790 prices, the GNP grew by a factor of 2,239 while debt grew by a factor of 18,720. Apparently the 7% solution has a mule kick to it.
In 1790, U.S. total debt was 28% of our GNP. By l984 debt was 234% bigger than the GNP. It's the case of a refrigerator-raiding houseguest outgrowing the house. How, why and when did our government let him in? Way back when is when.
Blame it all on Alexander Hamilton the first Secretary of the Treasury. Casting about for a plan to pay the debts of the Revolutionary War, and being an elitist with big banker friends abroad advising him, Hamilton convinced Congress to create a giant Ponzei scheme, to issue dollar bills that were really DEBT certificates which placed the USA in hock to foreign bankers. This was not fresh, real money printed by our own government which would have been a viable option. After all, the printing press had been invented, this was FUTURE-HOCK.
Hamilton's mischief was a plan to take revenues from future taxes and pay holders of these debt certificates 7% interest per year. He knew that these debt certificates would be as good as money, traded like money; they'd be bought up and paid out like money. And they were. The debt certificates were the first money the US knew but from its first breath, the USA's money supply was in hock to not only a small band of European bankers but to the future itself. Our Government sold us down the river to gain credit abroad. US citizens became hamsters on treadmills in a rat race to pay back debt plus interest, a feat that cannot be done.
A Congressman of Hamilton's time, James Jackson, did his research and warned that a few hundred years down the line, our descendants would be going bankrupt from the incremental nature of such debt. He saw how the debt would suck the lifeblood out of the nation as debts always have to be passed on to citizens through taxes. Jackson told the 1790 Congress that similar plans had led to ruin in Florence, Venice, Genoa, Spain, France and England. He cited chapter and verse, foreseeing that an innocuous looking 7% interest would compound and compound at suffocating speed without any wealth getting back into circulation. Jackson knew then that Keynesian 'trickle-down' was a myth, that the wealthy holders of bonds did not need to touch their principal or even much of their interest in order to live, so the wealth of the country would disappear into the creditors' hands and bank accounts, with not a drop flowing through the country's veins.
It's hard to visualize what happens in the shadowy universe of mathematical equations a money supply can move from the hands of the populace, where it creates a vigorous economy, back into the banks where it molds and a country's economy withers with it, all done by a simple, repeated clicking away every second of the day of the 7% solution but the motor of this attritive syndrome is the fact that for one person to receive compound interest, someone else must pay it. Pay your grandfathers did, and now you pay and soon your children will.
When Congress first decided to use debt as money it created a 75 million dollar money supply made up of debt certificates. Every year it had to service interest on that debt, while the debt grew. Oh, you thought debts shrank when you paid them off? Not while politicians get into office and have friends and pork barrels to accommodate and the flourish of a signature looks like a good way to fund something back in the home state. Today, that original debt is still alive and kicking, grown monstrously huge.
Creditors are still owed for bridges built in the early l9th century. This means a few bankers out there hold your 17 trillion dollar MasterCard debt and you and your children are not going to get off the hook for it. There is one interesting VACATION from debt in our history. From 1826 to 1836, under Andrew Jackson's presidency, Federal debt was reduced from 81 million to $38,000. The World Bankers snarled, precipitating a giant recession which closed (hence emptied) the factories of the East and caused westward expansions.
WHY was the vacation from debt no damn good for the US economy? Is lack of debt bad for countries?? It is a known fact that the spider at the center of the web can exert sanctions against rebellious governments and jerk the foundation bricks of any economy and do so with the smallest of kicks. An engineered depression brought the rebel cur Stonewall Jackson to heel. Subsequent Presidents who tried to get away from these bankers and create an American-made money supply, backed by gold, Lincoln and Kennedy, were similarly dealt with.
We need a fearless President. Debt isn't good for the citizens of a country. High taxes, licensing fees, high costs of products you buy daily, farm foreclosures, bank closings are today at levels comparable to the great depression. Poverty and homelessness are endemic. Corporations reacted to the debt by first raising their prices, then moving their factories to Indonesia leaving US citizens with poverty and joblessness. A suffocating economy is a fresh horror to Americans but not to the rest of the world.
During the 70's, banks thought they could become prosperous by loaning to the third world. 'Loan Arrangers' toured banana republics, and lent tyrants and oligarchs huge amounts of money which the local despots stole, and did not invest in infrastructure, tryants who passed their loot on to their children, who won their prize simply being born. And it is rumored that when there was no payback, the banks belly-upped.
The Arabs who had deposited thirty years of petrodollars in Western banks, (they were forced to, actually by U.S. members of OPEC who had ties to the World Banks), lost it all. Some real power players created a STING operation on the Arabs. Using newly created, 'mushroom' subsidiary banks that TOOK the deposits, LOANED THEM OUT, then collapsed. These were banks which couldn't be traced back to the power players, (the major world bankers). This indicates conspiracy, intent to defraud. Last, as there must be a cui bonum, the possibility that the people who created those doomed banks and didn't put their names on them, scadaddled with a sizeable amount of the missing petrodollars.
Sadly, third world people pay with blood. Today, in those countries where tyrants signed for loans, peasants still must pay back their country's indebtedness. Hundreds of thousands of babies die a month because beans, meat, fruit and mosquito neeting are too costly for the landless peasant to buy in economies with l000 to 10,000% annual inflation. Inflation caused by those 'sting' loans. Banana republics from Africa, Asia to the Americas cannot service their immense debt load to Northern hemisphere banks. (So real is the crisis, the U. N. has now demanded a tax upon the Northern Countries to help the Southern Hemisphere carry the debt load.) That tax will go on American middle and lower class shoulders. We have so many flat taxes now, which always hit the poor hardest, the rich with their tax attorneys, not at all.
The 3rd world's inability to pay its debts has caused Americans problems, too, as these mushroom banks that failed took US citizens' life savings with them. All this need not have happened. We didn't have to let the foxes into the hen house in the first place. In 1790, the first Congress could have paid its debts with government-issued money and created a money supply with no debt at all. Why didn't it? The good Time Cop should always look for a cui bonum.
Wasn't it possible that behind the scenes there were bankers or wealthy investors who wanted absolute control of the economy and government? Hamilton was on the board of several banks and an avowed elitist who said that only the wealthy and educated could vote properly, (he called the people 'the great beast') rule properly, decide properly, and that a 'master' group was needed. And the Master group, naturally, made decisions that favored the Master group. But today, as we note the sharp intelligence of the average citizen, by reading 'Letters to the Editor' in our morning paper, we see that is no longer true.
Average citizens have remarkable minds. They can't help the fact they're mushrooms who have been left in the dark and fed nothing but B.S by an ignorant, maybe irresponsible and maybe 'bought' Congress and news media. Once the people know about the Debt Crisis, and how it repercusses on their life, they can demand that our government reverse Hamilton's decisions and maybe even put a few statues to Aaron Burr in public parks. A popular mandate is needed and it is needed NOW. People like you and your relatives and friends can join existing activist groups and start demanding that our government stop the exponential growth in debt with a spending freeze, putting decisions on municipalities, then by dumping the IMF, paying all existing debt and like a good addict in a twelve step plan, vow to never incur a cent of debt ever again.
One step at a time. The U.S. banking system must swear off. It must stop using % rates to calculate charges for the use of money and stop allowing foreign bankers to do it to us. It's Usury and it's outlawed in some parts of the world, (by the Arabs, who invented numbers and who must have understood math pretty well.) A service fee as we have on our bank accounts, would be sufficient to service loans that people or businesses or even governments make. AND WHAT ABOUT THE FEDERAL RESERVE? Hamilton's Horrific Hock was only the first blow to the American economy, the first battle of an economic coup, the next was accomplished by a small clique of Senators Christmas week of l913, which held Congressional sessions with a handful of the anointed among the appointed, while 98% of their confreres were blithely home slogging down eggnog.
This small cabal secretly passed the Federal Reserve Act, creating a privately owned central bank to control all monetary affairs for the US government. It was put in the hands of a few honchos of the planetary bank. Three years after he signed it into law, Woodrow Wilson realized what he had done and said that with this act, he had destroyed his country. He was correct, but a coup de grace was to be delivered to the cadaver.
In l933, the 26th amendment was added to the Constitution requiring us all to pay income taxes. Taxes collected do not go to the United States, not a cent of it. Look on the back of your cancelled check to the IRS. Our money goes straight to the Federal Reserve to pay US debt. The burden of our trillions of dollars of debt is literally on the workers' backs. And not one cent you give goes to your country. It all goes to the Federal Reserve. Through your taxes.
One way that the Fed gets its blood is through your inheritance and gift taxes which have soared to unusual heights recently. Leave it to the Democrats--for the first time, the wealthy have been targeted. Estates valued at over $600,000 are taxed 37% and the rate slides upward at an even pace to the altitudes where estates of over 21 million are taxed 50% on first half, then 60%. This also refers to family-owned corporations. What small business can survive cutting itself in half when its owner dies? The business will die with him. The upshot? Today, even the super rich are screaming. "Enough already. Let's dump the Fed."
Americans must dump the Federal Reserve. The Fed is not Federal. It is a privately owned bank created by Rothchilds, J.P. Morgan and the Warburgs. It is not looking out for our interests. The US can and should find trained economist-bureaucrats to do the Fed's job. The USA must print our own money and clean our own barn, debt-wise. Asking outsiders to do it is like asking a flock of goats to do your gardening. Money should be available to anyone who wants to build infrastructure. Micro-lending works in deepest Africa, where there's 92% payback. It should work here.
All businesses are infrastructure and you're doing the economy a favor when you create one, so the economy should abase itself before you, lend you start-up cash, not tax and license your infant business into non-existence. Legislation should encourage cottage industries, not make them illegal as is now the case. (Illegal in the sense that there are laws against seeing clients in your home.)
Start now revitalizing the American economy. Brainstorm up a list of businesses you could run out of your home, with no licenses, no taxes--totally underground. Do it with elegance, aplomb and sang froid. If the government won't help you, stay invisible. Keep no receipts and if you really want to back out of a corrupt country that has sold you down the river, get rid of all fiscal ties to the U.S. Government. Your State will help you become a state citizen. Inform the IRS that they can no longer tax you. Join a "getting tax-free" group. Refuse to sign a bank signature card saying you will adhere to the rules of Federal Banks and the IRS. Open a trust account. Subtract yourself from the Social Security System by never using your SS number again. Get back all papers you've ever signed for the I.R.S. They don't get the money anyway. It all goes to the Federal Reserve, and it's a lot of money when you consider that the average dollar changes hands 26 times a day. Everyone who touches it must pay a tax on it if this receipt is recorded. The sad thing is that enough fools will continue to volunteer to pay taxes to keep this corrupt system going but you know, now, that income tax is 100% voluntary and you don't have to volunteer.
Run your business for your children. Don't make the Federal Reserve the recipient of the blood that runs through our country's veins. As an underground entrepreneur with a small business, you pump more blood into this country's economy, give employment, render services and sell products that are needed at a fair price. It is your company that is valuable, not the government's taxes and licensing fees. The US sold you down the river in l790 with Hamilton's friends, in 1913 with Wilson's, and in l933 when you were harnessed like a mule to endlessly grind corn for the super-rich who don't care that a baby dies every 2 seconds of starvation-related diseases. This government consented to their murder and your rape and holds you down with patriotic clap-trap while it continues to allow private bankers to suck citizens dry and dictate legislation.
What can we do? Stop paying taxes to these people. Do it as a heroic act; do not consider yourself a tax cheat. Consider yourself the Crown Prince of business, a Guerilla capitalist, a tycoon of valor, giving employment to those who need it, services and products at a fair price. Vow to use the same physical laws that enriched the banks. Use the exponential factor in attracting clients, one brings two brings four. But omit their one hallmark activity; neither charge interest nor live by it. Go and sin no more.
When the U.S. government and IRS doesn't get those revenues and see that We the People are running dry, it will figure another way to pay its debt to these trillionaire thieves. Dissident politicians will arise. They may have to dodge bullets, the way Lincoln did when he came up with the idea of the USA printing its own money, but enough will survive to make American sufficiency law.
Meanwhile, heroes like you, or like the writers who espouse these ideas and start this movement, and even private heroes who softly quietly spread the truth about these issues to their friends, thru E-Mail, xeroxes or faxes will grow in number. They will attract the attention of lawyers who will say 'wow, what an idea! Represent the mothers of dead babies, and sue the Rockefellers not as corporations but as responsible individuals! When that spate of suits starts happening and the publicity hits media and the super rich realize that there is GUILT for GREED and that the have-nots SUFFER, AND that the law works both ways, we will have change.
Meanwhile take out the ten dollar bill and study that weak- mouthed fop's face, and get mad as hell for what he did. That righteous rage will trigger and inspire the thought of what you can do. Do something, as then you will definitely end up being remembered kindly by posterity for being prescient. Would you like to be remembered as such by your grandchildren? Would you like to HAVE grand children? If so, ponder these issues. It is time to devise alternative methods for solvency. It is unlikely the American people can demand and get the banking practice and money-minting changes that would make the inequities go away. There is no informed electorate on this matter, and even if we could get the attention of our politicians and get them to scrap the banking practices which makes the super rich richer and the rest of us poorer, it is unlikely politicians could create change.
The presidents that have tried to dump the Federal Reserve, Lincoln, Reagan and Kennedy, keep getting shot at or assasinated. The only reasonable way of escaping the banking behemouth that sits on our chests is to go underground with part of your earnings. Do a search on Ithaca dollars, do this kind of barter with your friends. Buy a food-growing acre far from the city, and netsurf sites that teach survival tricks. Belong to groups that are working to get rid of the IRS. It is a vulture in Eagle's clothing, it has no legal reason to exist. Zero states passed it, two states were in doubt. It has to pass 2/3rds of the states to become a constitutional amendment. The IRS IS as corrupt as any part of this government, it is an instrument of the corporate/national security state which is what we have. The original definition of Mussolini that Facism is Corporatism still holds. We have a cosmetically concealed Fascism with a friendly face. Crypto Facism. It is characteristic of a brain washed populace that they think they can do nothing.

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