Central bankers and Congress only solution for improving the economy: Just need some more debt to fix the more debt that was added to the debt. It's the same old story... bankers get paid, politicians kick the can down the road, the sheeple are poorer and none the wiser.
Here's the truth. This time isn't different. Keynesian economists are limited in their scope of "solutions" because their psuedo-science of monetary experiments are always evolving when the latest gem of an idea backfires. From what I can see, Keynesians only have one weapon: the creation of new money to paper over bad debts (or the last batch of money creation). Call it QE, Operation Twist, money printing or anything, it's still the same thing. It's a transfer of wealth and the first people or corporations who get their hands on the newly created money benefit the most. By the time it gets to you and me, we collectively wonder why our grocery bill is higher this month.
Unfortunately, we the people are the ones who have to live with the consequences of manipulated interest rates (LIBOR scandal), the current Zero Interest Rate Policy (ZIRP), an unaccountable Federal Reserve, crony politicians who look the other way, and a mainstream media that won't report the truth that I and others (Peter Schiff, Doug Casey, Lew Rockwell, Ron Paul, Jim Rogers, Charles Hugh Smith, Thomas Woods, Bill Bonner, Nelson Nash, Rick Bueter, Barry James Dyke, Mike Maloney, Jeff Berwick, and countless others) share on the web. By the way, if you don't follow these people on Facebook and/or Twitter, I highly recommend you do.
I would be doing everything I can to protect whatever assets you have from a government starved for more revenue and a Wall Street financial system rigged to exploit you. The answers are out there. Do the research. If want to know what I'm doing and recommending for my clients, reach out to me here: http://jlmwealthstrategies.com/contact-us/
John Montoya
Showing posts with label federal reserve. Show all posts
Showing posts with label federal reserve. Show all posts
Friday, July 20, 2012
Wednesday, July 18, 2012
The Facts about the Federal Reserve
The Facts about the 'Federal' Reserve
The Federal Reserve is a private institution. It is owned by the 12 regional Federal Reserve banks, which are each in turn owned by a combination of regional banks, commercial banks, foreign banks, and miscellaneous individuals who have inherited pieces passed down through generations. (Rockefellers, Rothschilds, etc.)
The Federal Reserve holds a monopoly on the issuance of currency in the USA. In essence, this is the power to borrow an infinite amount of money at 0%. The dollar bill in your pocket is a 0% loan to the Federal Reserve. The Federal Reserve then uses these 0% loans to purchase income-producing assets. Before 2008, the assets purchased were primarily Treasury debt, which is backed by the taxation power of the US Government. In other words, we are exchanging the property rights to our valuable assets (land, labor, entrepreneurship) for little slips of green paper to buy trinkets with. The government can then tax these valuable assets to pay for our excess. The more we spend, the more the Fed owns.
If all money created is debt and counts as principal, where does the money come from to pay interest on this debt? It comes from the money that gets printed in the future. This is why inflation is a natural result of our current monetary system.
Prior the the Emergency Economic Stabilization Act/TARP Act of September 2008, commercial banks were required to hold 10% of deposits as reserves. This placed a limit on the potential amount of money creation at around 9x the original deposit. An obscure clause in the TARP Act changed the reserve requirement to 0%, immediately making the potential money supply infinite.
The reason for the credit spread blowups of October/November 2008 was because in the same TARP Act the Fed was allowed to pay interest on deposits without publicly stating the interest rate. Before the TARP Act, there was around $20 billion deposited by commercial banks at the Fed. After the TARP Act, deposits immediately jumped 50x to $1 TRILLION. This resulted in a disappearance of demand for risky assets, which led to blowouts in credit spreads.
As a result of various acts of Congress in 2008, the Federal Reserve now has the authority to buy all sorts of assets (commercial paper, corporate bonds, mortgage loans, etc.). A cynical person would say this essentially allows the Fed to seize all valuable assets in this country directly by exchanging fancy bits of green paper for them without having to go through the intermediate step of coercing the US Government into spending more money and taking on more debt.
Much of the Fed’s activity is not made public because of the use of off-balance sheet vehicles.
There is debate over the constitutionality of the Fed’s various awesome powers.
From:
http://fedsecrets.webs.com/
The Federal Reserve is a private institution. It is owned by the 12 regional Federal Reserve banks, which are each in turn owned by a combination of regional banks, commercial banks, foreign banks, and miscellaneous individuals who have inherited pieces passed down through generations. (Rockefellers, Rothschilds, etc.)
The Federal Reserve holds a monopoly on the issuance of currency in the USA. In essence, this is the power to borrow an infinite amount of money at 0%. The dollar bill in your pocket is a 0% loan to the Federal Reserve. The Federal Reserve then uses these 0% loans to purchase income-producing assets. Before 2008, the assets purchased were primarily Treasury debt, which is backed by the taxation power of the US Government. In other words, we are exchanging the property rights to our valuable assets (land, labor, entrepreneurship) for little slips of green paper to buy trinkets with. The government can then tax these valuable assets to pay for our excess. The more we spend, the more the Fed owns.
If all money created is debt and counts as principal, where does the money come from to pay interest on this debt? It comes from the money that gets printed in the future. This is why inflation is a natural result of our current monetary system.
Prior the the Emergency Economic Stabilization Act/TARP Act of September 2008, commercial banks were required to hold 10% of deposits as reserves. This placed a limit on the potential amount of money creation at around 9x the original deposit. An obscure clause in the TARP Act changed the reserve requirement to 0%, immediately making the potential money supply infinite.
The reason for the credit spread blowups of October/November 2008 was because in the same TARP Act the Fed was allowed to pay interest on deposits without publicly stating the interest rate. Before the TARP Act, there was around $20 billion deposited by commercial banks at the Fed. After the TARP Act, deposits immediately jumped 50x to $1 TRILLION. This resulted in a disappearance of demand for risky assets, which led to blowouts in credit spreads.
As a result of various acts of Congress in 2008, the Federal Reserve now has the authority to buy all sorts of assets (commercial paper, corporate bonds, mortgage loans, etc.). A cynical person would say this essentially allows the Fed to seize all valuable assets in this country directly by exchanging fancy bits of green paper for them without having to go through the intermediate step of coercing the US Government into spending more money and taking on more debt.
Much of the Fed’s activity is not made public because of the use of off-balance sheet vehicles.
There is debate over the constitutionality of the Fed’s various awesome powers.
From:
http://fedsecrets.webs.com/
Tuesday, April 17, 2012
Monday, March 19, 2012
Monday, February 6, 2012
End the Fed (With a Comedic Twist)
This guy is funny and knows the truth about the Fed. Share it with your network.
Monday, January 23, 2012
Wednesday, December 28, 2011
What's In Store for 2012
There are still lots of brewing calamities that could cause a major financial panic in 2012. Among them are:
- The failure of one or more of the world’s largest banks
- The outright debt default of one or more significant national governments
- The US government takes further steps toward seizing the assets of private retirement accounts
- A default in delivery by a sizable gold or silver exchange traded fund
- A declaration of force majeure and the inability of the COMEX or London markets to continue operations
- More concrete evidence that the Federal Reserve and other major central banks do not have all the gold reserves that they are reporting as being in their vaults
- A continuing major downturn in the US real estate market
- If governments around the world are uniformly unsuccessful at achieving major spending cuts
- A detailed report of how and where hundreds of millions to billions of customer dollars were effectively stolen in the MF Global Holdings bankruptcy
- Huge inflation of the money supply by major nations
There are more potential catastrophes than these few, but I think it gives you the idea.
If you have you're head in the sand, I would like you to realize that no magic cures for the world’s financial woes have been achieved, and if anything, the troubles are getting worse by the day. I think you will only feel more comfortable once you have taken the steps to protect your family and assets.
To learn more on how you can do that, contact JLM Wealth Strategies.
Friday, December 16, 2011
Thursday, November 10, 2011
Are the Federal Reserve and Its Primary Dealer Banks Manipulating the Stock Market? by Gary D. Barnett
The U.S. economy has continued to falter since the housing bubble burst. Virtually every part of the economy has worsened, and continues to do so. This is also true on a global scale. Whether discussing unemployment, housing, inflation, GDP, retail sales, etc., the picture is clear, we are still in a depression. Even though the economic picture is bleak, the stock markets have continued to go up in value during this period. Why is this happening?
After the market collapse of 2008 and 2009, where losses were generally around 55%, the markets have gone up substantially. During that same period were QE1 and QE2. This is no coincidence. Bernanke took full credit for the rise in the stock markets, and for good reason. The "Quantitative Easing" programs were structured to transfer money (out of thin air) from the New York Fed to its primary dealer banks. This is done when the Fed purchases treasury bonds from these dealers, some of which include Goldman Sachs and J.P. Morgan, along with 18 others. This process infuses the banks receiving this money with instant liquidity. During QE2 for example, from November 3rd of 2010 through June 30th of 2011, the New York Fed bought from its primary dealers $770 billion worth of treasuries, not the $600 billion it claimed. These banks acquired many of these treasuries during the bailouts by trading worthless securities for full value treasuries. This was, by the way, at taxpayer expense.
There is a direct correlation between these bond purchases and stock market performance. When QE1 ended, after an increase of approximately 90% in the markets, the markets began to fall. After falling about 23% from those highs, QE2 was announced, and began in November of 2010. The markets proceeded to go up again until QE2 ended in June of 2011. After the money stopped flowing, there was a sudden drop of over 18% from July through September of this year.
Now it gets even more interesting. In just the past two weeks, the stock markets have gone up about 11%. During that same time frame, the Fed has purchased $39.9 billion of treasuries from its dealer banks, in the same manner as it did during QE1 and QE2. If continued, this is an $85 billion a month pace, similar to that of QE2. But remember, there is no announced QE3, and no report that I’ve seen has mentioned anything about this bond buying, but it is going on nonetheless.
The only survivor left standing in this economy seems to be the stock market. This performance should not be happening given the dire economic conditions we’re in today. This tells me that when the money stops for good, and the markets crash, all else will follow. In my opinion, the New York Fed is doing everything possible to make sure that the markets remain somewhat stable, and it is taking a lot of money to keep up this sham. Every time the money starts flowing, the markets rise, and when the money stops flowing, the markets go down. There is now a clear pattern, and it is directly related to money pumping by the Fed, money that goes directly to its primary dealer banks. This allows the banks to make large trading profits running up the markets, and allows the government to point to the markets as a sign that things aren’t so bad after all. This is a lie!
By going to this page of the New York Fed Permanent Open Market Operations, you can easily see how many purchases, and in what amounts, have taken place in just the past two weeks. Then compare what has happened in the stock markets over this same time frame. The same can be done for QE1 and QE2. This direct correlation is not accidental nor is it coincidental. Something is very wrong here, and the Federal Reserve is smack in the middle of this fraud.
The Federal Reserve System is not only destroying the value of our hard earned money, but it is involved in lies and manipulation, and is cloaked in secrecy. It is bailing out banks all over the world with fake money. The Federal Reserve is rotten to the core! How could any sane people allow one entity, a very corrupt one at that, to control the entire monetary system? That is a travesty, but it can be remedied. The Federal Reserve should be abolished immediately, and those running it should be prosecuted for their crimes! If it is not abolished, the value of our hard earned money will simply disappear into the dustbin of history, and most will be left with nothing!
October 17, 2011
Gary D. Barnett [send him mail] is president of Barnett Financial Services, Inc., in Lewistown, Montana.
Copyright © 2011 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.
After the market collapse of 2008 and 2009, where losses were generally around 55%, the markets have gone up substantially. During that same period were QE1 and QE2. This is no coincidence. Bernanke took full credit for the rise in the stock markets, and for good reason. The "Quantitative Easing" programs were structured to transfer money (out of thin air) from the New York Fed to its primary dealer banks. This is done when the Fed purchases treasury bonds from these dealers, some of which include Goldman Sachs and J.P. Morgan, along with 18 others. This process infuses the banks receiving this money with instant liquidity. During QE2 for example, from November 3rd of 2010 through June 30th of 2011, the New York Fed bought from its primary dealers $770 billion worth of treasuries, not the $600 billion it claimed. These banks acquired many of these treasuries during the bailouts by trading worthless securities for full value treasuries. This was, by the way, at taxpayer expense.
There is a direct correlation between these bond purchases and stock market performance. When QE1 ended, after an increase of approximately 90% in the markets, the markets began to fall. After falling about 23% from those highs, QE2 was announced, and began in November of 2010. The markets proceeded to go up again until QE2 ended in June of 2011. After the money stopped flowing, there was a sudden drop of over 18% from July through September of this year.
Now it gets even more interesting. In just the past two weeks, the stock markets have gone up about 11%. During that same time frame, the Fed has purchased $39.9 billion of treasuries from its dealer banks, in the same manner as it did during QE1 and QE2. If continued, this is an $85 billion a month pace, similar to that of QE2. But remember, there is no announced QE3, and no report that I’ve seen has mentioned anything about this bond buying, but it is going on nonetheless.
The only survivor left standing in this economy seems to be the stock market. This performance should not be happening given the dire economic conditions we’re in today. This tells me that when the money stops for good, and the markets crash, all else will follow. In my opinion, the New York Fed is doing everything possible to make sure that the markets remain somewhat stable, and it is taking a lot of money to keep up this sham. Every time the money starts flowing, the markets rise, and when the money stops flowing, the markets go down. There is now a clear pattern, and it is directly related to money pumping by the Fed, money that goes directly to its primary dealer banks. This allows the banks to make large trading profits running up the markets, and allows the government to point to the markets as a sign that things aren’t so bad after all. This is a lie!
By going to this page of the New York Fed Permanent Open Market Operations, you can easily see how many purchases, and in what amounts, have taken place in just the past two weeks. Then compare what has happened in the stock markets over this same time frame. The same can be done for QE1 and QE2. This direct correlation is not accidental nor is it coincidental. Something is very wrong here, and the Federal Reserve is smack in the middle of this fraud.
The Federal Reserve System is not only destroying the value of our hard earned money, but it is involved in lies and manipulation, and is cloaked in secrecy. It is bailing out banks all over the world with fake money. The Federal Reserve is rotten to the core! How could any sane people allow one entity, a very corrupt one at that, to control the entire monetary system? That is a travesty, but it can be remedied. The Federal Reserve should be abolished immediately, and those running it should be prosecuted for their crimes! If it is not abolished, the value of our hard earned money will simply disappear into the dustbin of history, and most will be left with nothing!
October 17, 2011
Gary D. Barnett [send him mail] is president of Barnett Financial Services, Inc., in Lewistown, Montana.
Copyright © 2011 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.
Thursday, October 27, 2011
Would An Economics Class Help You Understand The World Today?
I don't think an economics class today or even one taken 10 or 20 years would help much at all in understanding why the world is experiencing an unprecedented global financial collapse. Academia teaches Keynesian economics which naturally benefits the government (and it's government grants that support academia in it's study of Keynesian economics... see how self serving it is?).
Although I write much about bankers being the bad guys, they actually need willing co-conspirators in order to execute their plan. After all, without a partner in government to legalize the actions of bankers, they couldn't possibly get away with as much as they do. Make no mistake, bankers need a willing partner and government is that partner in crime. In order for joint effort to work, there must of course be a way for politicians to benefit. Imagine how difficult it would be for politicians to be elected without promising endless entitlements or if they had to pass higher and higher taxes in order to pay for social contracts and endless wars. Politicians needs a way silently tax us. That's where the bankers come in and this is how inflation comes about. It's a stealth tax caused by the creation of money from nothing.
What our government can't collect in taxes from its citizen base, it must borrow from the Federal Reserve which of course has a blank checkbook. Keep in mind, this is not a checking account but a blank checkbook! The check is written from the Fed and taken over to the Treasury and viola, new money is created. The politicians can now pay for anything it wants and the bankers can sit back to collect the interest on money it created from nothing. It's a corrupt system but each party benefits which is why the fraud continues unabated.
Until we have an honest money system, we can't really expect to have honest politicians. Getting back to economics, Austrian economics is the only area of economic study to correctly predict the booms and busts we've experienced since the creation of the Federal Reserve. I highly recommend following the Ludwig von Mises Institute on Facebook or Twitter. Austrian economics is based on sound money principles. For a quick and funny introduction to Austrian vs Keynesian economics, watch this video. It's hilarious and to the point.
Although I write much about bankers being the bad guys, they actually need willing co-conspirators in order to execute their plan. After all, without a partner in government to legalize the actions of bankers, they couldn't possibly get away with as much as they do. Make no mistake, bankers need a willing partner and government is that partner in crime. In order for joint effort to work, there must of course be a way for politicians to benefit. Imagine how difficult it would be for politicians to be elected without promising endless entitlements or if they had to pass higher and higher taxes in order to pay for social contracts and endless wars. Politicians needs a way silently tax us. That's where the bankers come in and this is how inflation comes about. It's a stealth tax caused by the creation of money from nothing.
What our government can't collect in taxes from its citizen base, it must borrow from the Federal Reserve which of course has a blank checkbook. Keep in mind, this is not a checking account but a blank checkbook! The check is written from the Fed and taken over to the Treasury and viola, new money is created. The politicians can now pay for anything it wants and the bankers can sit back to collect the interest on money it created from nothing. It's a corrupt system but each party benefits which is why the fraud continues unabated.
Until we have an honest money system, we can't really expect to have honest politicians. Getting back to economics, Austrian economics is the only area of economic study to correctly predict the booms and busts we've experienced since the creation of the Federal Reserve. I highly recommend following the Ludwig von Mises Institute on Facebook or Twitter. Austrian economics is based on sound money principles. For a quick and funny introduction to Austrian vs Keynesian economics, watch this video. It's hilarious and to the point.
Will The Dollar Crash?
It's not a matter of it could happening. Our politicians are incapable of correcting what was set in motion many decades ago. They are, with a few notable exceptions, subservient to the powers that put them in position of leadership.
When banks control the money supply, they have the ability to buy power in form of elected leaders, media outlets, corporations, etc. How do they do that? By having a window to the money making machine.
The Federal Reserve doesn't have a dual mandate like most people think. Congress has been duped and so have the rest of us although the awareness of the deception is spreading now. The Fed has one mandate and that is to serve the biggest banks.
The Federal Reserve is a cartel meant to stifle competition (which is what a cartel is supposed to do) and it has been overwhelmingly successful in doing that since it's creation in 1913.
I'll keep it simple. The only reason why what we're seeing in Greece hasn't happened here is because Greece can't print their own money. We can and that's exactly what we have been doing. However, before long other countries aren't going to buy our treasuries. The Federal Reserve will have to put itself in position to buy the treasuries. It's already started happening. That's what QEII was.
The bottom line is this, all fiat currencies fail. All of them. Read the dollar bills in your wallet. You are holding bank IOU's. It says Federal Reserve Note at the top. Do you see it? Just like the Mortgage Note you signed to buy your home, it's an IOU. It was created from nothing and like all IOUs, interest is being charged.
Who do you think collects the interest? Banks, of course. It's a scam and we don't know it, but the big banks and the Fed know it and they'll keep the con going for as they possibly can. With the ability to issue debt based money, bankers can control not just individuals but entire countries. Our money, and by extension our country, is controlled by bankers. It's so easy to see if you just know where to look.
The endgame: people holding dollars will be wiped out. These dollars won't be worth the paper they're printed on. A dollar is not money. It's the ghost of money. Once people figure this out (and they are starting to), more people will be running for the exit. When that time comes, it'll be a stampede.
Could a miracle happen? I suppose. I think people would be best diversifying out of the dollar until that happens. Just don't hold your breath. I do believe the greatest transfer of wealth will happen in our lifetime in the next 10 years, possibly sooner. Those who study and know how to prepare will wealthy overnight compared to those have faith in the govt and our financial system and are decimated. Voting left or right will not be a solution. Neither side can prevent what will happen. Only the free market can correct it and the longer the crash is delayed, the worse it will be.
When banks control the money supply, they have the ability to buy power in form of elected leaders, media outlets, corporations, etc. How do they do that? By having a window to the money making machine.
The Federal Reserve doesn't have a dual mandate like most people think. Congress has been duped and so have the rest of us although the awareness of the deception is spreading now. The Fed has one mandate and that is to serve the biggest banks.
The Federal Reserve is a cartel meant to stifle competition (which is what a cartel is supposed to do) and it has been overwhelmingly successful in doing that since it's creation in 1913.
I'll keep it simple. The only reason why what we're seeing in Greece hasn't happened here is because Greece can't print their own money. We can and that's exactly what we have been doing. However, before long other countries aren't going to buy our treasuries. The Federal Reserve will have to put itself in position to buy the treasuries. It's already started happening. That's what QEII was.
The bottom line is this, all fiat currencies fail. All of them. Read the dollar bills in your wallet. You are holding bank IOU's. It says Federal Reserve Note at the top. Do you see it? Just like the Mortgage Note you signed to buy your home, it's an IOU. It was created from nothing and like all IOUs, interest is being charged.
Who do you think collects the interest? Banks, of course. It's a scam and we don't know it, but the big banks and the Fed know it and they'll keep the con going for as they possibly can. With the ability to issue debt based money, bankers can control not just individuals but entire countries. Our money, and by extension our country, is controlled by bankers. It's so easy to see if you just know where to look.
The endgame: people holding dollars will be wiped out. These dollars won't be worth the paper they're printed on. A dollar is not money. It's the ghost of money. Once people figure this out (and they are starting to), more people will be running for the exit. When that time comes, it'll be a stampede.
Could a miracle happen? I suppose. I think people would be best diversifying out of the dollar until that happens. Just don't hold your breath. I do believe the greatest transfer of wealth will happen in our lifetime in the next 10 years, possibly sooner. Those who study and know how to prepare will wealthy overnight compared to those have faith in the govt and our financial system and are decimated. Voting left or right will not be a solution. Neither side can prevent what will happen. Only the free market can correct it and the longer the crash is delayed, the worse it will be.
Wednesday, September 21, 2011
Bill Still: There is No Gold at Fort Knox
Which part of his argument do you agree with?
Commercial banks are responsible for 90% of inflation because of the fractional reserve banking system. If this is true, than what Still says about controlling the money supply has merit. A gold standard with fractional reserve banking is only a slight improvement over what we have. It seems to me we need to end the criminal banking cartel that is the Federal Reserve and also the fractional reserve banking system.
Why not have gold and silver compete with interest free money? Let the free market decide. It least both options are based on sound money principles.
Thursday, September 8, 2011
G. Blake Griffen Interview 9-8-2011
G. Edward Griffin interview. Listen by clicking here.
Skip to 7:00 for the beginning of the interview. Mr. Griffin is THE source for information on the Federal Reserve. I also highly recommend reading his book: The Creature From The Jekyll Island.
Most people don't understand inflation. You should. Mr. Griffin explains the Federal Reserve creates inflation and more.
Skip to 7:00 for the beginning of the interview. Mr. Griffin is THE source for information on the Federal Reserve. I also highly recommend reading his book: The Creature From The Jekyll Island.
Most people don't understand inflation. You should. Mr. Griffin explains the Federal Reserve creates inflation and more.
Monday, August 8, 2011
Gerald Celente on the Economy-August 2011
If you haven't heard of Gerald Celente, pay close attention. He calls it as he sees it and unlike the Federal Reserve, he's usually right.
Monday, July 11, 2011
Ignorance Enables Corruption
"When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you… you may know that your society is doomed.
–Ayn Rand, novelist & philosopher, author of Atlas Shrugged
–Ayn Rand, novelist & philosopher, author of Atlas Shrugged
Our society has passed the tipping point to where I believe Ayn Rand's statement 50 years ago has now come true. I think the reason is not so much the reluctance for to look at history but really it's the belief that the history we've been told is actually correct. What's really eye opening for me is the perspective from which history has been written and why our govt continues to approve textbooks that indoctrinates new generations of tax paying citizens who fail to grasp the money power system they've been born into and won't ever be able to comprehend.
As a kid growing up, I never understood why the price of movie tickets and my favorite candies would rise over time. If we were taught by our parents and through our school system the history of money, it would be very easy for us to understand why wars are fought, socialism fails, and ultimately who is responsible for it all. Those that control the money supply control nations and individuals alike. Debt is another form of slavery. Here in the United States we are forced to accept our income paid in dollars and use dollars to pay debts private and public. But what ensures the value of that dollar will buy the same things tomorrow that it did today when more can be printed at will reducing the value of each dollar we earn?
Our monetary system is corrupt. Where we need to start is by taking back the power of our money supply from the Federal Reserve (which is run by unelected central bankers) while also teaching people how to set up their own financial systems on an individual level so they never have to rely on banks again. We have to do this as country, too, which for anyone who reads the Constitution will know it's why the founding fathers gave Congress the ability to create it's own debt free money.
The sad thing is that the bankers are always fighting to have control over our money and ultimately, that's exactly what happened in 1913 with the passing of the Federal Reserve Act. We gave the power to control our money supply and set interest rates to the bankers. Is it any wonder what happens when bankers acquire the ability to control nations and individuals through debt? These international bankers rule unseen because they belong to no party or nation. They cannot be removed or wiped out because they were never elected in the first place but we should know how they operate so we can better identify a wolf in sheep's clothing in order to keep them out of government and from controlling everything once again.
Schools should teach math, science, music/arts/literature, and most importantly, in order to keep a check on tyranny, we should be taught the history of money. It's the only historical perspective that really matters. The information is out there but people need to learn to think for themselves and stop following political leaders who are taught the exact the same things we learned in schools and from our parents. We have the blind leading the blind...and the bankers keep on winning unbeknownst to most everyone who fails to understand the history of money.
For more more information on what you can do to raise your awareness and how to protect yourself and your families wealth, visit JLMWealthStrategies.com or call 855-254-5433 and ask to speak to John Montoya.
For an additional article on the US Dollar and inflation, read what John Williams has to say. Click here.
Final note, it should be added that the title of this blog post comes from Steve Roeder, host of radio show Innovators Radio. I've heard him say it countless times. If you aren't connected to him on Facebook, do so. And if you aren't connected to me on Facebook, connect with my JLM Wealth Strategies page as well...
For an additional article on the US Dollar and inflation, read what John Williams has to say. Click here.
Final note, it should be added that the title of this blog post comes from Steve Roeder, host of radio show Innovators Radio. I've heard him say it countless times. If you aren't connected to him on Facebook, do so. And if you aren't connected to me on Facebook, connect with my JLM Wealth Strategies page as well...
Wednesday, June 8, 2011
My Reason For Teaching The Infinite Banking Concept (IBC)
Sometimes when I tell people what I do for a living, my explanation flies right over their head. We are all so accustomed to depositing our money at our local bank and then using those banks as our source of capital for larger financing needs that it's beyond our comprehension to think we don't ever have to rely on a local bank again. It's almost like I'm telling people the world is round while everybody still believes the world is still flat!
It's often said that the greatest trick the devil ever pulled was convincing the world he doesn't exist. I believe the greatest trick bankers ever pulled is making all of us believe we can't function without them. This, of course, simply couldn't be further from the truth.
Why do I dislike our banking system so much? It's dishonest. The banks take our money and lend it right back to us at interest. Then the banks go one step further. They create money out of thin air, money that never existed before, and they lend that money out as well. Anybody that lends money that doesn't exist is evil. The power to corrupt is unimaginable. It should be no wonder our economy and country is where it's at today after nearly 100 years of the Federal Reserve controlling our money supply.
Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take this power away from them, and all the great fortunes disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit. - Silas W. Adams in The Legalized Crime of Banking (1958)
Need I say more? Bankers know if they control the debt, they can control individuals and countries alike. This is the reason behind all central banking and our Federal Reserve banking system here in the United States: Control. The essence of banking is to make us slaves to debt. Once they own our debt, they own us. And if you didn't know, our money is debt. Simply look at the dollar bill in your pocket. It's say Federal Reserve Note. It's an IOU. The Federal Reserve creates the money out of thin and we pay interest on these debt notes.
Read this article by Gary North: The Safe Banking Fantasy. My hope is that after reading this article, you'll start to question your belief in our banking system. Remember the greatest trick a banker pulls is convincing you that you need them. It's a fantasy. This article helps to expose the safety we believe banks have. Banks are actually the riskiest financial institution that exists because they lend out your money and money they don't have.
So why do I love what I do for a living? I get to help people take back control of their money and their financial life from the banks. It's that simple. The sooner you start learning about how banking really works, the sooner you can free yourself from your banks grip on your money. Change in this country will have to start from the ground up. It's obvious to me as it should be to you by now that real change will not happen from the top. Our political leaders lack the will to do so. Any real change must be come from individuals.
Privatized banking is not only safer than traditional banking, it doesn't create inflation (an increase in the money supply). The Infinite Banking Concept is built upon a sound money principle which is something we all need to practice.
Visit CashValueBanking.com to learn how you can get started with your own banking system or email me at John@JLMws.com for more information.
Finally, watch this clip from the movie The International. I hope what I'm sharing with you is starting to resonate. For more detailed reading about the history of the Federal Reserve, I highly recommend you read The Creature From Jekyll Island by G. Edward Griffin. It reads like a mystery novel and is all the more fascinating because the book is based on facts. You'll have a hard time putting it down.
John Montoya
JLM Wealth Strategies, Inc.
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
CA Life#0C42222
It's often said that the greatest trick the devil ever pulled was convincing the world he doesn't exist. I believe the greatest trick bankers ever pulled is making all of us believe we can't function without them. This, of course, simply couldn't be further from the truth.
Why do I dislike our banking system so much? It's dishonest. The banks take our money and lend it right back to us at interest. Then the banks go one step further. They create money out of thin air, money that never existed before, and they lend that money out as well. Anybody that lends money that doesn't exist is evil. The power to corrupt is unimaginable. It should be no wonder our economy and country is where it's at today after nearly 100 years of the Federal Reserve controlling our money supply.
Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take this power away from them, and all the great fortunes disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit. - Silas W. Adams in The Legalized Crime of Banking (1958)
Need I say more? Bankers know if they control the debt, they can control individuals and countries alike. This is the reason behind all central banking and our Federal Reserve banking system here in the United States: Control. The essence of banking is to make us slaves to debt. Once they own our debt, they own us. And if you didn't know, our money is debt. Simply look at the dollar bill in your pocket. It's say Federal Reserve Note. It's an IOU. The Federal Reserve creates the money out of thin and we pay interest on these debt notes.
Read this article by Gary North: The Safe Banking Fantasy. My hope is that after reading this article, you'll start to question your belief in our banking system. Remember the greatest trick a banker pulls is convincing you that you need them. It's a fantasy. This article helps to expose the safety we believe banks have. Banks are actually the riskiest financial institution that exists because they lend out your money and money they don't have.
So why do I love what I do for a living? I get to help people take back control of their money and their financial life from the banks. It's that simple. The sooner you start learning about how banking really works, the sooner you can free yourself from your banks grip on your money. Change in this country will have to start from the ground up. It's obvious to me as it should be to you by now that real change will not happen from the top. Our political leaders lack the will to do so. Any real change must be come from individuals.
Privatized banking is not only safer than traditional banking, it doesn't create inflation (an increase in the money supply). The Infinite Banking Concept is built upon a sound money principle which is something we all need to practice.
Visit CashValueBanking.com to learn how you can get started with your own banking system or email me at John@JLMws.com for more information.
Finally, watch this clip from the movie The International. I hope what I'm sharing with you is starting to resonate. For more detailed reading about the history of the Federal Reserve, I highly recommend you read The Creature From Jekyll Island by G. Edward Griffin. It reads like a mystery novel and is all the more fascinating because the book is based on facts. You'll have a hard time putting it down.
John Montoya
JLM Wealth Strategies, Inc.
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
CA Life#0C42222
Wednesday, May 26, 2010
The Truth About The Federal Reserve
The Federal Reserve is not Federal and has no Reserves. The existence of a central bank occurred 3 times previous to our current one and failed each time. The accepted opinion of the Fed is that it resides to stabilize our economy. The results since 1913 when it was created show it has failed miserably.
Since the Federal Reserve was created, it has presided over the market crashes of 1921 & 1929, the Great Depression of 1929-39, the recessions in 1953, 1957, 1969, 1975, and 1981, "Black Monday in 1987, the dotcom bubble in 2000 and recession of 2001, and the real estate bubble and Great Recession we are currently experiencing. And don't forget ...the 1000% inflation which has destroyed 90% of the dollars purchasing power since 1913. If that is not failure, I'm not sure what is. So don't believe the mainstream press and politicians who will have you believe the Federal Reserve's role is to stabilize our economy. Sure, it is one of the goals. However, it's primary objective is to serve commercial interests. If you look up the definition of a cartel, then learn who was behind the creation of the Federal Reserve and how it operates, you'll understand the Fed's true objective. It sounds crazy. But it's all been written about, but just totally ignored.
The Fed has the ability to stabilize the economy but it's not its primary objective. The Fed in its current form was created to serve the interests of major commercial interests by allowing the money supply to become more elastic which creates the need for financing and ultimately, a reliance on large commercial interests.
There is no free ...market discipline when the banking system is allowed to create money out of nothing versus having to make wagers against its actual capital. If banks were forced to take responsibility for it's actions, it would mean bankruptcy for not managing money properly and not bailout by taxpayer money. Having the endorsement of the government under the guise of protecting the American public allows banks to take risks no other business is allowed to make and have those risks ultimately secured by taxpayers. The Federal Reserve was created to do just this. It ensures the stabilization of the banking industry and allows big banks to become even bigger (which of course means "too big too fail". The reason why the economy is what it is right now is largely due to the market manipulation of the Federal Reserve and its ability to set interest rates and create fiat money that is no longer tied to gold.
FDIC is ultimately a hoax, too. The guise is to protect depositors, but all one has to do is deposit a $100k in multiple accounts in order to get around the system. Furthermore, the FDIC operates on it's own fractional reserve system meaning it doesn't have the money to secure all deposits. If banks, like life insurance companies, were regulated the same way, there would be no need for the "insurance". FDIC ultimately protects the banks from taking large risks with the imaginary money. The loans created by banks from the money created out of nothing (fractional reserve system) ultimately is repackaged and repackaged (also called a "rollover") allowing the banks to continue to earn interest (the life blood of it's business) in order to avoid using the banks own capital to cover the losses, which by the way are losses on money that didn't exist before! If the bank had to actually to use it's own capital, it couldn't possibly take on as much risk as it does. Eventually, though, the scheme ends and borrowers finally realize they'll never pay off the loan. If this happens among too many borrowers, eventually the bank cannot be saved (the fraud is exposed!) and it leads to a bailout and the help of "the lender of last resort" which is the Fed and again the reason why it was created...To ensure that commercial interests can take these risks and if they don't work out, pass it onto the American public.
The history of the creation of the Federal Reserve is an incredible read.
Allow banks to stand on their own two feet. No market manipulation and government backing. Eventually, money will be created from capital instead of debt. Banks would obviously prefer money created from debt since greater elasticity of money lowers competition for the banking industry and creates more opportunity to earn interest.
And know this, when business comes together in order control profits and drive out competition, it is called a cartel. The Federal Reserve is a formal organization, a union of banks, that agree to coordinate prices, marketing, and production of our currency and set rates. It is a cartel but cleverly disguised and the American public is none the wiser.
The more I learn about the Federal Reserve and the banking industry the more I come to think that there is reason why money isn't taught in school. Ignorance is a very powerful weapon.
Since the Federal Reserve was created, it has presided over the market crashes of 1921 & 1929, the Great Depression of 1929-39, the recessions in 1953, 1957, 1969, 1975, and 1981, "Black Monday in 1987, the dotcom bubble in 2000 and recession of 2001, and the real estate bubble and Great Recession we are currently experiencing. And don't forget ...the 1000% inflation which has destroyed 90% of the dollars purchasing power since 1913. If that is not failure, I'm not sure what is. So don't believe the mainstream press and politicians who will have you believe the Federal Reserve's role is to stabilize our economy. Sure, it is one of the goals. However, it's primary objective is to serve commercial interests. If you look up the definition of a cartel, then learn who was behind the creation of the Federal Reserve and how it operates, you'll understand the Fed's true objective. It sounds crazy. But it's all been written about, but just totally ignored.
The Fed has the ability to stabilize the economy but it's not its primary objective. The Fed in its current form was created to serve the interests of major commercial interests by allowing the money supply to become more elastic which creates the need for financing and ultimately, a reliance on large commercial interests.
There is no free ...market discipline when the banking system is allowed to create money out of nothing versus having to make wagers against its actual capital. If banks were forced to take responsibility for it's actions, it would mean bankruptcy for not managing money properly and not bailout by taxpayer money. Having the endorsement of the government under the guise of protecting the American public allows banks to take risks no other business is allowed to make and have those risks ultimately secured by taxpayers. The Federal Reserve was created to do just this. It ensures the stabilization of the banking industry and allows big banks to become even bigger (which of course means "too big too fail". The reason why the economy is what it is right now is largely due to the market manipulation of the Federal Reserve and its ability to set interest rates and create fiat money that is no longer tied to gold.
FDIC is ultimately a hoax, too. The guise is to protect depositors, but all one has to do is deposit a $100k in multiple accounts in order to get around the system. Furthermore, the FDIC operates on it's own fractional reserve system meaning it doesn't have the money to secure all deposits. If banks, like life insurance companies, were regulated the same way, there would be no need for the "insurance". FDIC ultimately protects the banks from taking large risks with the imaginary money. The loans created by banks from the money created out of nothing (fractional reserve system) ultimately is repackaged and repackaged (also called a "rollover") allowing the banks to continue to earn interest (the life blood of it's business) in order to avoid using the banks own capital to cover the losses, which by the way are losses on money that didn't exist before! If the bank had to actually to use it's own capital, it couldn't possibly take on as much risk as it does. Eventually, though, the scheme ends and borrowers finally realize they'll never pay off the loan. If this happens among too many borrowers, eventually the bank cannot be saved (the fraud is exposed!) and it leads to a bailout and the help of "the lender of last resort" which is the Fed and again the reason why it was created...To ensure that commercial interests can take these risks and if they don't work out, pass it onto the American public.
The history of the creation of the Federal Reserve is an incredible read.
Allow banks to stand on their own two feet. No market manipulation and government backing. Eventually, money will be created from capital instead of debt. Banks would obviously prefer money created from debt since greater elasticity of money lowers competition for the banking industry and creates more opportunity to earn interest.
And know this, when business comes together in order control profits and drive out competition, it is called a cartel. The Federal Reserve is a formal organization, a union of banks, that agree to coordinate prices, marketing, and production of our currency and set rates. It is a cartel but cleverly disguised and the American public is none the wiser.
The more I learn about the Federal Reserve and the banking industry the more I come to think that there is reason why money isn't taught in school. Ignorance is a very powerful weapon.
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