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  • Total Collaspe ! Minsky,Keynes,MISES, All Got It Right.

    A lack of control of the quality and quantity of a nation's currency will lead it to collaspe.

    Excerpt from L. Randall Wray, "...I thought it might therefore be useful to provide a link to a paper I wrote that summarizes many of his papers on the ELR proposal, and to paste here the outline I use in class for a lecture on Minsky's writings. Take a look at the outline, then go to my paper, then use the reference section of my paper to locate Minsky's actual writings on the topic. This is only for those who are serious about trying to understand the argument that we need jobs to solve the "disease" of poverty, and that welfare will not be sufficient because of the perverse dynamics created. My paper is titled "Minsky's Approach to Employment Policy and Poverty, Employer of Last Resort, and the War on Poverty," Levy Working Paper September 2007." L. Randall Wray

    1. Next up: A blog on inflation and efficiency.

      MINSKY'S APPROACH TO EMPLOYMENT POLICY AND POVERTY
      L. Randall Wray

    2. justaluckyfool | June 12, 2012 at 7:38 pm | Reply
    3. "Perhaps Minsky's most important recognition is that the structure of the economy
      affects economic performance, including the volume of, and nature of, employment,
      growth, and inflation."
      The question becomes, how to effect the volume of, and nature of employment
      and at the same time the volume of, and nature of growth,and at the same time the volume of and nature of inflation.
      Employment, growth and inflation vary in different sectors. Whatever remedy is used must be placed in an equal amount as to the degree needed to unequally allow them to gain to a level to where each is at full employment,better growth and with limited controlled inflation. The dose of remedy must be greater in lagging sectors than in leading sectors, and must contain a means for control of quality and quantity.
    4. The remedy must also contain a cure for perhaps "two outstanding flaws of capitalism"
    5. ("Finally, Minsky's vision of the capitalist economy closely followed that of
    6. Keynes.
    7. He endorsed Keynes's Chapter 24 claim that the two outstanding faults of
      capitalism are its failure to provide for full employment and its tendency to result in an
      excessively unequal distribution of income."
      This brings us to a point -Where Minsky Went Wrong.CURE the Flaws:provide for full employment (availability for all willing and able) without inflation
    8. and cure the excessive rate of inequality !
      INFLATION AND INEQUALITY
      " Promotion of growth through
      investment is subject to four problems: it increases financial fragility; it is inflationary; it
      increases capital's share of national income; and it increases the inequality of wages
      (Minsky 1964, 1973). Investment must be financed through a combination of internal and
      external funds. According to Minsky, over the course of an expansion, the weight shifts
      toward external finance, as income flows and safe assets are leveraged by debt (Minsky
      1975b, 1992). Because investment generates profits at the aggregate level (as in the
      Kalecki equation, not added to Minsky's analysis until later), this encourages even more
      investment, external finance, and leveraging-exposing the economy to the possibility of
      a financial crisis (Minsky 1968, 1986). "
      Yet, he states a solution.."euthanize the rentier; put in place a modest bias of taxes and transfers in favor of the poor."
      In conclusion, to ameliorate the fundamental faults of capitalism, Minsky would
      euthanize the rentier through lower interest rate policy and-more importantly-by
      reducing the importance of the private financial system (Minsky 1973). This could be
      accomplished by shifting emphasis away from stimulation of private investment, which
      relies on external finance, and thus creates financial assets that become part of the rentier
      economy. Second, he would modestly bias the tax-and-transfer portion of the budget in
      favor of the poor, although he would not make this the major re distributive mechanism to
      eliminate poverty "
      Right church, wrong pew.
      Is it that all three , Minsky, Keynes, Mises missed the the ways and means used by mankind to control the quality and quantity of all wealth? Did they not recognize "the most powerful force in the universe"?
    9. Perhaps this force was being used solely for the betterment of 1% rather than for all mankind.
    10. WHAT IF ? As in the parable of "The Brothers, Interest and Compound Interest" after they clearly were victorious they had announced, "Now we will serve a new master the "Invisible Hand".
    11. READ; economics-of-compound-rates-of-interest-a-four-thousand-year-overview-part-ii/
    12. We must end the practice of allowing private financial institutions to charge us compound interest on our own money. A system that destroys the remedy because it turns a benevolent solution into one that earns them a profit. It takes away
      the re distribution of the currency for the general welfare and turns it to their own uses. They also would as it is in the very nature of private financial institutions, leverage the assets in order to increase profits and eventually cause disastrous inflation.
    13. Read: http://michael-hudson.com/2012/01/banking-wasnt-meant-to-be-like-this/
    14. WE CAN GIVE OURSELVES THE TOOLS TO FIX WHERE WE WENT WRONG.
      "DON'T END THE FED, AMEND THE FED" READ MORE: IMPROVE IT USE IT AS YOUR OWN.
      http://justaluckyfool.wordpress.com/
    15. Challenge it !
      Improve it !
      How do you in 90 days or less create 4 million jobs ?(EMPLOYMENT)
      Raise $2 trillion income per year for the next 36 years? (GROWTH)
      Control the quality and quality of the currency thru re distribution? (INFLATION)
      ,"The answer lies in not how the most powerful force in the universe is used ,rather how you redistribute what it creates !
      "The most powerful force in the universe is compound interest" - Albert Einstein
      For the solution:"We cannot solve our problems with the same thinking we used when we created them".Albert Einstein
      Perhaps the answer lies in how you redistribute the wealth of a nation; not in how you acquire it.
      EXCERPTS FROM "JUSTALUCKYFOOL"
      A monetary sovereignty must be the only supplier of its currency.
      All transactions must be on a 100% margin (reserve) basis.
      All new issuance is to be done by interest bearing loans.
      NOW THE SOLUTION:(For details you have to read "Great News !! Zero Income Taxes Solves Worldwide Economic Crises"
      The people owned central bank would purchase all real estate loans that the financial institutions do not have 100% reserve.
      Even if at fair market value plus 10%. Some $36 trillion. Modify all the loans at 2% for 36 years.This would solve the housing market and at the same time create a tremendous need for "housing items and new housing" thereby creating 4 million jobs.As for the needs of that industry "the people owned central bank" would lend that industry $1 trillion at 1% for 6 years with first payment due on the one year anniversary date-get the people working,fast.
      And who said,"You must raise revenue somewhere ,if you wish to lower taxes."?
      How's this for over $2 trillion a year income (revenue)?.
    16. PLEASE CHALLENGE,IMPROVE, USE AS YOUR GUIDE.
    17. "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." - Ludwig von Mises
      Translation:NO MEANS TO AVOID COLLAPSE BROUGHT ABOUT BY CREDIT EXPANSION, therein lies the solution,

      turn the credit into cash! But this transaction must be done in a way that will not be hyper inflationary.The new currency created must have a control attached that will allow for the return of that currency while having a very limited circulation.

      The central bank of the monetary sovereignty is the only agency that may issue new currency. The way and means of issuance is by loans bearing repayment with compound interest. This is the solution for the present. The solution for the prevention of future occurrence is all financial expansions must be on a liquid basis, 100%. This is the only protection there is against a bust for all losses can be paid and the transactions remain true and whole. The financial institutions must have that liquidity available and it must be their own.That can be accomplished by a sector loan from the central bank which of course would have quality and quantity control means attached.

    18. justaluckyfool | June 13, 2012 at 11:21 am | Reply

      Minsky, "The financial instability hypothesis takes banking seriously as a profit seeking activity…Bankers (financial institutions) are merchants of debt…" also that profit seeking institutions always try to leverage their assets to the maximum.
      And with Keynes concept of a "veil of money" between what the real assets are and the ultimate owner,they discovered the secret.

      Money = Debt. Money = Credit. Money = debt + credit.
      Private banks exist solely for the purpose of gaining wealth for its owners.
      A central bank should be established to control the currency, quality and quantity as a not for profit, rather as an agency to redistribute its currency , " in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…"

      Read : Where we went wrong and how we can fix it.
      Google "justaluckyfool"
      "Great News !! Zero Income Taxes…"
      "Don't End The Fed, Amend The Fed"
      Challenge it, Improve it, then make it your guide.http://justaluckyfool.wordpress.com/

    MORE:

     

    • justaluckyfool says:

      May 16, 2012 at 9:46 am

      Perhaps you would endorse:
      THE SOLUTION:(by justaluckyfool, "Great News!! Zero Income Taxes…"

      ONE.
      AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (OTC:FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, ("GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens."_The Road to Oz)
      ESTABLISH THE FRBA AS THE ONLY MEANS FOR MONETARY SUPPLY,ALL OTHER INSTITUTIONS MUST MAINTAIN 100% MARGIN ON ALL INVESTMENTS.

      TWO.
      ESTABLISH A ZERO FEDERAL PERSONAL INCOME TAX.
      INTEREST INCOME (REVENUE) WILL REPLACE PERSONAL INCOME TAXES.
      The Federal RESERVE Bank of America,make it the melting pot for Federal Reserve.,FDIC,FHFA,and the GSE's,Fannie,Freddie,Ginnie and Sally, as well as the IRS. These organizations will be needed to service the federal loans.

      All loans by any financial institution must be backed with 100% reserves.No more Fractional Reserve Banking.No more production by private banks of this Monetary Sovereignty's currency.All loans may be used as assets for borrowing from The FRBA so that they comply with the 100% reserve. Any loan that is not in compliance must be sold to the FRBA or the financial institution would be placed into receivership.
      Private banks will have to be self-insured. Risk 100% their own investors money for 100% reward or loss.

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    • Richard Wilson says:
    • May 17, 2012 at 2:36 pm

      [1] Roger writes: "In the 9/14/11 post titled, "How about socialized banking," and elsewhere, I have suggested that all banks be federally owned - i.e. the elimination of private banking."

      Yes, I have been saying this for years. Why not make banking and currency like a public utility? This would get us past the debt trap, and revolutionize mankind. Private control of central banking is an elephant in the room that few economists never dare mention. It causes 95% of all our financial woes, plus most of our political woes, since politicians are on the payroll of private bankers.

      Private control of currency and central banking is tyranny. It is the greatest power on earth, and the greatest scourge. Whoever has this power can buy armies, police forces, media outlets, governments - everything. That is why it is so viciously guarded. It's why it is never mentioned in the lame-stream media. Politicians dare not mention it, since they are on the private bankers' payroll. The only exception was Rep. Dennis Kucinich, who consistently introduced bills to make the Fed a public institution. All bills were ignored.

      In Ireland, no politician dares mention the public banking option, not even Sinn Fein, or the "socialists," or the United Left Alliance, all of which claim to oppose the new household tax and the "European Stability Treaty," which puts all European governments under the direct control of Brussels and the ECB in Frankfurt. All whine about austerity, but none dare mention the solution to everything, which is public banking.

      In Greece, Alexis Tsipras, head of the "Radical Left Coalition," whines about austerity, but he is adamant about keeping the euro, and would NEVER consider public banking. He just wants to get on the payroll of the ECB bankers, like every other European politician.

      The "Occupy Wall Street" crowd just wants to punish the rich by taxing them. This is not only useless (since it will never happen), it is unnecessary. Instead of trying to bring the rich down, why not bring everyone up via public banking?

      Private control of banking is the disease. Unless we admit this, all discussion is blind chatter about the symptoms.

      PUBLIC banking is tied directly to monetary sovereignty. People who don't want to talk about pubic banking and monetary sovereignty are either idiots, or else they are shills directly or indirectly on the payroll of private bankers.

      Consider Paul Krugman, to take an example. He too whines about austerity, but Krugman thinks the problem is not debt (controlled by private bankers). No, he thinks the government simply needs to borrow more from those same private bankers, with the debt dumped on the masses. Thus Krugman seems to be a "populist," when in fact he is a shill for the bankers. That's why he gets so much exposure in the media.

      [2] Roger writes: "There is not one good reason why banks should be privately owned, and a multitude of reasons why they should be owned by the federal government."

      Banker shills say that if the bankers' godlike powers were given back to the public, then governments would print too much money, causing inflation. This is another lie. In reality, inflation only happens when there is an imbalance between money supply and money demand. The money supply can be regulated, such that balance is maintained. If there is not enough money in circulation, then we can print more. If there is too much money, and inflation looms, then we reduce the money supply via temporary taxes. By contrast, today's federal taxes all go to pay the interest on the debt on the national currency we borrow from private bankers. This is insane.

      Among the masses, many idiots say that public banking would be worse than private banking. This is like saying, "The ship is sinking, and we are all doomed to die, but let's not do anything about it, since the alternative might be worse." Bankers love these clowns. One of the fools (above) says the failure of regulators is proof that government is worthless. Excuse me, but those regulators, like politicians, are on the payroll of unaccountable private bankers!

      As for the cretins that rail against "socialism" in any form, Roger has already disposed of them above. As I said, bankers love these retards.

      [3] We can keep private banks, but make public the central (federal or national) bank. The only state in the USA that is not is fiscal trouble is North Dakota, since that is the only state that has a public central bank. The Bank of North Dakota partners with private banks and oversees them, such that the private banks do a healthy business, but may not engage in fraud and theft, as we see in the Too-Big-To-Fail banks.

      [4] Some people think the solution is not public banking, but a "gold standard." These idiots fail to understand two things. First, gold prices can be (and are) easily manipulated for the benefit of elitists. Second, ALL currency INCLUDING GOLD is fiat currency. Gold, like paper money, only has value because people agree that it does. It is not like land or food, which have absolute value.

      Regardless of the currency we use (gold, paper, sea shells, tally sticks, or whatever), fiat systems go awry when they are privately controlled.

      [5] Public banking brings up the issue of bailouts. Nobody "bails out" the big banks. The big banks bail themselves out, via shell games. How could governments bail out the big banks, when governments get all their money from those same banks? Therefore, whining about "government bailouts" is another means to avoid looking at the reality of private control.

      [6] Suppose you lived on an island with 10 other people, with each of you living in his own hut. And suppose you and the others used a currency - let's say sea shells. Now suppose that only one hut had total control of the sea shells. The one person in that one hut has sole power to determine what shells are "currency," and to determine how many shells are in circulation. That one hut would rule the other nine. That is the situation we have today.

      THINK ABOUT IT, PEOPLE. We are poor because we have no bits of paper called "money." Who controls those bits of paper? Target them, and you target almost all of your problems.

      [7] As long as our currency and central bank remain under private control, "nationalization" will simply mean that private bankers' debts and losses are dumped on the public. When we "nationalize" a financial institution, we leave it under private control, while socializing the debt. This is false nationalization. True nationalization means public control, which all begins with public control of the currency and central bank.

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    • Craig Harmon says:

      June 7, 2012 at 11:28 pm

      Heck yes!

      We can't have people mutually and consensually storing their money voluntarily with other people! That sounds too much like "freedom"!

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      • Zarepheth says:

        June 8, 2012 at 3:12 pm

        People storing their money with other people is not the problem.

        The problem is that the banks' privilege to create money comes from the community but is denied to everyone except the banks. It is also the only source of money in our economy. Thus, the banks hold everyone else in servitude by only creating and giving out money if people agree to pay back more than they borrowed. Since the bank only created enough money for the principle, there is not enough money in the economy to pay both the principle and the interest on all the debts. This whole system forces the community as a whole to go into debt, and thus slavery, to the banks. Even if a few individuals avoid debt, the total debt plus interest in the economy has to exceed the amount of money in the economy. There is no way this system can possibly work without having serious problems - like inflation and deflation, booms and busts - a the while, those at the top skim the interest off the top to enrich themselves while everyone else has to pay for it. Even the few debt-free individuals have to pay higher prices to their indebted suppliers of goods and services.

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    • Rodger Malcolm Mitchell says:

      June 8, 2012 at 4:02 pm

      Zarepheth,

      The other source of dollars is federal deficit spending, which does not require interest payments.

      I've not thought about this before, but I'll speculate that so long as total federal deficits are higher than total interest, there always will be sufficient dollars to pay interest. Have to give this further thought, though, because I may have overlooked something obvious.

      The following graph is a bit confusing, as it uses two different scales, but the red line is the federal deficit, scaled on the left. The blue line is Total Assets Interest-Earning, All Loans And Leases, Gross, Consumer Loans, Credit Cards, All Commercial Banks, multiplied by 2%, scaled on the right. As you can see by comparing the scales, the red line today is 100 times as high as the blue line, today.

      Monetary Sovereignty

      This year there are about $600 billion in assets earning interest, which assuming an arbitrary interest rate of say, 2% (probably high), would equal $12 billion in interest. The federal deficit is about $1.3 trillion - about 100 times higher - plenty of dollars to pay interest.

      If I have more time to think about it, I may publish a post on this.

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      • Zarepheth says:

        June 8, 2012 at 7:03 pm

        It's too bad that the federal government does not realize that it could create the dollars for it's spending instead of "borrowing" them from the federal reserve - or whomever chooses to buy treasury bonds. If those government bonds were counted as part of the debt, I'm pretty sure the total debt would exceed the money supply. By the way, does the blue line also include corporate bonds and similar debt instruments?

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    • Rodger Malcolm Mitchell says:

      June 8, 2012 at 9:33 pm

      The money supply = Total Debt Outstanding Domestic Non-financial Sectors. Every form of money is a form of debt.

      The blue line = Total Assets Interest-Earning, All Loans And Leases, Gross, Consumer Loans, Credit Cards, All Commercial Banks

      Rodger Malcolm Mitchell

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      • justaluckyfool says:

        June 9, 2012 at 12:11 pm

        Your response, Money supply=Total Debt Outstanding Domestic NON-FINANCIAL SECTORS !
        Does that include the verified $300 trillion in derivatives held by the FINANCIAL SECTOR. Also does that include the trillions owed by borrowers that have trillions of future interest payments on financial assets (loans) held by private financial institutions?
        In your quest for what you may are overlooked ,please read,"How the Banks Broke the Social Compact, Promoting their Own Special Interests "
        by Michael Hudson …"Governments can create new credit electronically on their own computer keyboards as easily as commercial banks can. And unlike banks, their spending is expected to serve a broad social purpose, to be determined democratically. When commercial banks gain policy control over governments and central banks, they tend to support their own remunerative policy of creating asset-inflationary credit - leaving the clean-up costs to be solved by a post-bubble austerity. This makes the debt overhead even harder to pay - indeed, impossible.

        It is too early to forecast whether banks or governments will emerge victorious from today's crisis. As economies polarize between debtors and creditors, planning is shifting out of public hands into those of bankers. The easiest way for them to keep this power is to block a true central bank or strong public sector from interfering with their monopoly of credit creation. The counter is for central banks and governments to act as they were intended to, by providing a public option for credit creation.Read more..by Prof. Michael Hudson ; http://www.globalresearch.ca/index.php?context=va&aid=28938

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      http://rodgermmitchell.wordpress.com/2012/05/12/at-long-last-are-we-ready-to-end-private-banking/

      Reply http://rodgermmitchell.wordpress.com/2012/05/23/7342/

    • justaluckyfool says:

      May 24, 2012 at 1:45 pm

      To RMM,
      It should be obvious that I lack writing skills (not to mention also other skills),but I believe that my opinion of
      where we have gone wrong and how we can fix it may be of value.
      Or correct it so that it could be.
      This is a long post but I do not know any other way to present it to you. At least I know you will read it, even if not posted.
      Please challenge it , improve it, and post it.
      It has as a basis some of your
      "Mitchell's laws: The more budgets are cut and taxes increased, the weaker an economy becomes.
      No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia."

      "To lower taxes,you must raise revenue somewhere."
      This is a concept that could help overcome another misconceived concept,"We must end deficit spending".
      (Note; A Monetary Sovereignty can simply print any funds,BUT may need to overcome "moral hazard and or inflation")
      How could a government fund, "a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…"" at the same time ... LOWER TAXES (PERSONAL INCOME TAXES TO ZERO),... RAISE REVENUE ($4 TRILLION PER ANNUM), ... AND END DEFICIT SPENDING (TRANSFERRING ASSETS) .
      The solution is so simple (to quote Einstein,"Make it simple") that it becomes "too good to be true".
      But we are at a point in history that may allow the 99% to make it happen.
      If in fact correct; "Allow the truth to set us free."

    • THE SOLUTION:
    • Take back the power that was legislated away from the people.
    • Do for the housing industry,construction industry what was done for the automobile industry.
      Almost all economists would agree that the Federal Government as an agent of a Monetary Sovereignty
      has the ability to purchase ALL residential and commercial loans that are in existence on American real estate.
      The Federal Reserve has to power and right to end fractional reserve banking by way of changing the reserve requirement
      to 100% on all loans and financial instruments that are held as assets. There are more consequences to this change but they can be addressed later, for now we will address how residential and commercial loans would work for "we the people".
      In order to prevent a meltdown (systemic failure) by the instant de leveraging of all these loans they must be made "whole".
      They must be purchased at 100% of value that is on the books of the present holders.
      This may be, could be, at only 80% of real "market value"
      That is OK, that is one really great "stimulus" that would prevent the catastrophe
      that seems to be unavoidable from any other solution to end this "credit accelerated" crisis.
      It is not deficit spending,as we will have a 100% matching asset (loans) on the books.
      What is the "magic bullet" that allows this transfer of assets to become profitable (raise revenue)
      and lower taxes ?
      The answer is by using "the most powerful force in the universe, compound interest "
      (may or may not have been stated by Einstein) for the benefit of the 99% instead of the 1%.
      PROOF:
      If $55 trillion is needed to purchase all these loans and they were modified as new Government Assumable
      Loans, not guaranteed by the Feds ( the old stupid way )rather actually funded by the Federal Government, we would create a
      new asset worth, $55 trillion at 2% for 36 years which would produce a revenue of a little over $3 trillion per annum
      for a total payback of $110 over the 36 year term.
      There would be no reason for personal income taxes.
      There would be no reason for deficit spending.

      Raise an additional $3 trillion revenue per year, eliminate FDIC by backing financial institutions 100% reserve, not by GUARANTYING the money rather allow them to borrow the additional $55 trillion to pool their "foiled bets " (investments) at 2% for 36 years.
      Let them insure their losses with their money instead of taxpayers money !
      READ MORE…Google…"Great news !! Zero Income Taxes…" OR …"justaluckyfool"
      May the "invisible hand" help guide the 99%. Read:"Don't End The Fed, Amend The Fed"...http://justaluckyfool.wordpress.com/

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: FAS, FAZ, TIP, Economy, Debt
    Jun 14 8:13 PM | Link | Comment!
  • Great News!!Zero Income Taxes Solves Worldwide Economic Crises !

     

    "Great News !! Zero Income Taxes Solves Worldwide Economic Crises"

    Summary

    To lower taxes,you must raise revenue somewhere.How does a government fund, "a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…"" at the same time reduce personal income taxes to zero ?

    ***** "Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings - that doctrine believe and cling to,and take it as your guide."- Buddha[Gautama Siddharta] (563 - 483 BC), Hindu Prince, founder of Buddhism.

    The answer lies in not how the most powerful force in the universe is used ,rather how you redistribute what it creates !

    albert einstein"The most powerful force in the universe is compound interest" - Albert Einstein

    Great News!!Zero Income Taxes Solves Worldwide Economic Crises !

    For the solution:"We cannot solve our problems with the same thinking we used when we created them".Albert Einstein

    Perhaps the answer lies in how you redistribute the wealth of a nation; not in how you acquire it.

    Have you read the Federal Reserve Act? The authorizing legislation projected a body:

    "…to provide for the establishment of the Federal Reserve banks…

    Where we went wrong- Established Federal Reserve Banks owned by private banks, domestic and foreign.

    How we can fix it-Establish Federal Reserve Banks owned "by the people,of the people,for the people

    … to furnish an elastic currency…

    Where we went wrong-The elastic currency's quality and quantity can be controlled by private banks using a legalize counterfeit system called Fractional -Reserve Banking.

    How we can fix it- End Fractional Reserve Banking making the correctly established Federal Reserve Bank the ONLY supplier of new currency.

    … to afford means of rediscounting commercial paper and to establish a more effective supervision of banking in the United States..

    Where we went wrong-Allowing private banks to charge compound interest on the paper they create "out of thin air".

    How we can fix it-Private banks will only be allowed to invest, or purchase assets with 100% margin.They will be responsible for all

    losses and entitled to all gains.

    … and for other purposes."

    Where we went wrong-By now can we identify the operative phrase? Of course: "for other purposes."

    How to fix it-For the purposes of FUNDING, ""We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…"

    Great News!!Zero Income Taxes Solves Worldwide Economic Crises !

    For the solution:"We cannot solve our problems with the same thinking we used when we created them".Albert Einstein

    Perhaps the answer lies in how you redistribute the wealth of a nation; not in how you make it.

    The problems:

    ONE:Possible $1 quadrillion in "potential currency" was created by the financial institutions leading up to the crisis of 2007-8.

    "Hernando de Soto says this credit crisis is all about (a lack of) paper" As stated by Justin Fox (March 25 2009)

    If you think about it, everything of value we own travels on property paper. At the beginning of the decade there was about $100 trillion worth of property paper representing tangible goods such as land, buildings, and patents world-wide, and some $170 trillion representing ownership over such semi liquid assets as mortgages, stocks and bonds. Since then, however, aggressive financiers have manufactured what the Bank for International Settlements estimates to be $1 quadrillion worth of new derivatives (mortgage-backed securities, collateralized debt obligations, and credit default swaps) that have flooded the market.

    These derivatives are the root of the credit crunch. Why? Unlike all other property paper, derivatives are not required by law to be recorded... Nobody knows precisely how many there are, where they are, and who is finally accountable for them. Thus, there is widespread fear that potential borrowers and recipients of capital with too many non performing derivatives will be unable to repay their loans. As trust in property paper breaks down it sets off a chain reaction, paralyzing credit and investment, which shrinks transactions and leads to a catastrophic drop in employment and in the value of everyone's property.Read more: http://business.time.com/2009/03/25/hernando-de-soto-says-this-credit-crisis-is-all-about-a-lack-of-paper/#ixzz1lCKEaF3w

    TWO:Private debt bubble.

    The Debtwatch Manifesto by Steve Keen (Jan 3rd, 2012)

    "The fundamental cause of the economic and financial crisis that began in late 2007 was lending by the finance sector that primarily financed speculation rather than investment. The private debt bubble this caused is unprecedented, probably in human history and certainly in the last century .... Its unwinding now is the primary cause of the sustained slump in economic growth. The recent growth in sovereign debt is a symptom of this underlying crisis, not the cause, and the current political obsession with reducing sovereign debt will exacerbate the root problem of private sector de leveraging."

    THREE:Financial institutions allowed to create "currency".

    How the Banks Broke the Social Compact, Promoting their Own Special Interests
    by Prof. Michael Hudson ; http://www.globalresearch.ca/index.php?context=va&aid=28938
    "The inherently symbiotic relationship between banks and governments recently has been reversed. In medieval times, wealthy bankers lent to kings and princes as their major customers. But now it is the banks that are needy, relying on governments for funding - capped by the post-2008 bailouts to save them from going bankrupt from their bad private-sector loans and gambles.
    Yet the banks now browbeat governments - not by having ready cash but by threatening to go bust and drag the economy down with them if they are not given control of public tax policy, spending and planning. The process has gone furthest in the United States. Joseph Stiglitz characterizes the Obama administration's vast transfer of money and pubic debt to the banks as a "privatizing of gains and the socializing of losses. It is a 'partnership' in which one partner robs the other." Prof. Bill Black describes banks as becoming criminogenic and innovating "control fraud." High finance has corrupted regulatory agencies, falsified account-keeping by "mark to model" trickery, and financed the campaigns of its supporters to disable public oversight. The effect is to leave banks in control of how the economy's allocates its credit and resources.
    If there is any silver lining to today's debt crisis, it is that the present situation and trends cannot continue. So this is not only an opportunity to restructure banking; we have little choice. The urgent issue is who will control the economy: governments, or the financial sector and monopolies with which it has made an alliance.
    Fortunately, it is not necessary to re-invent the wheel. Already a century ago the outlines of a productive industrial banking system were well understood. But recent bank lobbying has been remarkably successful in distracting attention away from classical analyses of how to shape the financial and tax system to best promote economic growth - by public checks on bank privileges.
    ...
    Governments can create new credit electronically on their own computer keyboards as easily as commercial banks can. And unlike banks, their spending is expected to serve a broad social purpose, to be determined democratically. When commercial banks gain policy control over governments and central banks, they tend to support their own remunerative policy of creating asset-inflationary credit - leaving the clean-up costs to be solved by a post-bubble austerity. This makes the debt overhead even harder to pay - indeed, impossible.
    ...
    It is too early to forecast whether banks or governments will emerge victorious from today's crisis. As economies polarize between debtors and creditors, planning is shifting out of public hands into those of bankers. The easiest way for them to keep this power is to block a true central bank or strong public sector from interfering with their monopoly of credit creation. The counter is for central banks and governments to act as they were intended to, by providing a public option for credit creation.Read more..by Prof. Michael Hudson ; http://www.globalresearch.ca/index.php?context=va&aid=28938

    FOUR:The most powerful force in the universe is being used against mankind,rather than for the benefit of mankind.

    READ ( http://michael-hudson.com/2001/04/the-mathematical-economics-of-compound-rates-of-interest-a-four-thousand-year-overview-part-ii/

    By Michael Hudson

    ".... The Mathematics of Compound Interest

    A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum.

    ...Flürscheim elaborated that "All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands." To illustrate the dynamic at work, he composed an allegory (pp. 327ff.). Many ages after man was driven from Paradise and told "to earn his bread by the sweat of his brow, mercy began to prevail. A loving angel was sent down by the Great Master, charged with the task of lightening the burden. The angel's name was Spirit of Invention. He began his work by teaching man to make useful tools" and tame animals, and in time to mobilize water power, air and wind power, fire and steam power to drive machinery.

    "It seemed that at last the golden era had come of which men had dreamed for ages past," but "that envious spirit, that fallen angel, Satan," was jealous that his own empire would soon be over for ever. Among the follies of man, one little imp, called Interest, managed to attract his attention. "'What is the matter with you, Interest?' he asked the saucy imp. 'You don't seem to be so dejected as your comrades are?'"

    "'Why should I be dejected, master?' replied the spirit, 'Am I not one of your favorite soldiers? Haven't I always been victorious under your august guidance?'"

    But Satan answered sadly, "Alas, You are no match for the Spirit of Invention." The Interest imp, however, volunteered to demonstrate his prowess in a dual, helped by his son, Compound Interest.

    At this point, Flürscheim introduced an image that Napier had suggested at the outset of his second book on logarithms in 1617, the Robdologia, likening the principle of geometric increase to that of a chess-board on which each square doubled the number assigned to the preceding one. An old Persian proverb told of a Shah who wished to reward the inventor of chess, a subject, and asked what he would like. To the Shah's surprise, the man asked "as his only reward that the Shah would give him a single grain of corn, which was to be put on the first square of the chess-board, and to be doubled on each successive square; which, to the surprise of the king, produced an amount larger than the treasures of his whole kingdom could buy. It is this kind of chess-game which capital is continually playing with labor." The remarkable growth of compound interest soon swallowed "products, capital, the earth and even the workers."

    This was in essence the ploy that Flürscheim's Compound Interest demon used. "Look at this chess-board," he told the angel against whom Satan had pitted him. "It seems just like any other chess-board, with sixty-four squares," but it "had the peculiar quality of extending the dimensions of the squares, so as always to be large enough" to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. "Now, listen well to what I propose," he said to the angel, pointing to the latter's huge army.

    I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors - and so on every succeeding square. . . . When we arrive at the last square, and you have a single soldier left after occupying the same, we shall declare ourselves vanquished, and Satan with all his troops will leave this world for ever. If I win, you and your army are to be at the commands of my master. Are you agreed?

    The angel agreed, expecting his horde of soldiers to easily exceed the number that the Interest Imp and his son, Compound Interest, seemed likely to accrue.

    In the beginning the angel laughed, for, though twenty squares were passed, no noticeable diminution of his forces was perceptible. Demon Interest said nothing, but attended to business, quietly doubling his army on every succeeding square. At the thirtieth square the angel ceased to laugh, and soon saw he was lost.
    'I despised you, little fellow,' he signed despairingly, 'and I am punished for my vanity. I see there is no use fighting against you. Demon Interest is more powerful than the Spirit of Invention. I am your slave. Command your servant!'"

    WHERE WE WENT WRONG .....:'I am the only servant of my great master,' dryly replied the demon.

    "Here I see him coming. He will give you his orders.'

    And Satan gave his orders. He commanded that the angel was to continue in his work with all his troops, which were to be increased with all possible exertion, so that humanity - which did not know the nature of the antagonist it had to fight against - would always keep in fresh hope of final success when the new troops were forthcoming. But as fast as they appeared, Demon Interest was to send forth a larger army to capture the new forces, to enslave them, and - instead of their benefiting man - make them increase the slave-chains which weigh him down.

    HOW WE CAN FIX IT-WHAT IF DEMON INTEREST WERE TO ANSWER? I will now be the servant of a new master,one that will pursue happiness for all mankind."

    READ More ( http://michael-hudson.com/2001/04/the-mathematical-economics-of-compound-rates-of-interest-a-four-thousand-year-overview-part-ii/

    "HOW THE MOST POWERFUL FORCE IN THE UNIVERSE" COULD BE USED TO PUT MANKIND INTO SERVITUDE OR UTOPIA !

    Where we went wrong:

    Fractional Reserve Banking,allowing private institutions to "print" our money ,which then allows them to charge compound interest on that potential money.

    THEREBY MAKING PRIVATE FINANCIAL INSTITUTIONS MORE POWERFUL THAN THE SOVEREIGN NATION.

    If it were possible to sum up the single greatest flaw to capitalism ,it would be :It allows for the "most powerful force in the universe"… to quote Einstein," compounding " interest to be used against that society.The lender becomes the owner of all the money based upon the act of compounding at any rate within a long period of time.

    A cycle that commands total money control or it must bust. When will we learn and believe that a private bank is allowed to print new money ,Ten,twenty,even fifty times what it has in deposit.If a bank has $1 million to loan it is allowed to lend $900,000 at 10% using the process "Fractional Reserve Banking" The lender makes with that creation a bank asset (loan) of $900,000 which allows another loan of $810,000,on and on,even to 30X and 40X leverage.

    THE SOLUTION:

    ONE. AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (OTC:FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, ("GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens."_The Road to Oz)

    ESTABLISH THE FRBA AS THE ONLY MEANS FOR MONETARY SUPPLY,ALL OTHER INSTITUTIONS MUST MAINTAIN 100% MARGIN ON ALL INVESTMENTS.

    TWO:ESTABLISH A ZERO FEDERAL INCOME TAX.

    INTEREST INCOME WILL REPLACE PERSONAL INCOME TAXES.

    The Federal RESERVE Bank of America,make it the melting pot for Federal Reserve.,FDIC,FHFA,and the GSE's,Fannie,Freddie,Ginnie and Sally, as well as the IRS.These organizations will be needed to service

    the FEDERAL LOANS..

    AMEND THE FEDERAL RESERVE CHARTER making it a people's owned bank.

    1a*All loans by any financial institution must be backed with 100% reserves.No more Fractional Reserve Banking.No more production by private banks of this Monetary Sovereignty's currency.All loans may be used as assets for borrowing from The FRBA so that they comply with the 100% reserve. Any loan that is not in compliance must be sold to the FRBA or the financial institution would be placed into receivership.

    1b*The Federal Reserve will no longer be needed as its mandate (control inflation,deflation and stagnation,as well as unemployment) will be passed on to THE FEDERAL RESERVE BANK OF AMERICA. Also the FDIC and FHFA as their mandates will no longer be required. Private banks will have to be self-insured. Risk 100% their own investors money for 100% reward.
    1c*It will be operated by the people,of the people and for the people".THE FEDERAL RESERVE BANK OF AMERICA will be the source for the American borrower to acquire funds and the interest paid shall be revenue income to be used as funding of their government agenda,for the general welfare.

    THE FEDERAL RESERVE BANK OF AMERICA will be the maker of all loans,not guarantee them for others, they will be the maker of these loans and will retain all profits. Profits which by law will be turned over to the US Treasury,as funds for Congress for government expensive's.
    The Federal Reserve Bank of America:
    -Will no longer allow the paying of interest for the use of its own money,rather it will charge interest for the use of its money..
    Will take away from others the right to "print" our own currency.

    Will stop the stupid practice of paying interest on our own money.

    Will wake up and realize that "There is only one fair Income Tax,period; only zero is fair.

    -Will not take deposits from anyone other than for the US Treasury.
    -Will not be involved in any financial investment services.
    The Federal Reserve Bank of America will be the sole lender of legal tender. Any financial institution that wishes to loan American Dollars ,those dollars must be acquired (read borrowed) from the Federal Reserve Bank of America,as all loans must be backed with a 100% reserve from either dollars on hand or borrowed from the FRBA.
    FRBA will purchase ALL residential and commercial REAL ESTATE loans outstanding at full balance owed.Any private lender may retain any loan it has by simply showing 100% reserve.

    The American people will be the lenders and no longer will they be the victims of private greed of those printing our own money..No longer will they allow the banks that they have entrusted with their money to use that money to make profits for themselves .Profits will be made by the people,of the people, for the people. Taxpayers bailout for Taxpayers by Taxpayers paying compounded interest to Taxpayers . These loans would provide trillions of dollars as TAXPAYER PROFIT (REVENUE)!

    Compound interest will cause any amount to double over a certain period of time.This doubling alone will provide an enormous income stream. If loans are made for $100 trillion,the incoming payments would exceed $5 trillion a year for 36 years @2%. What a magnificent way to fund a government.

    Since the FRBA will be taking back all currency issued,it would be absolutely necessary to redistribute most if not all over a period of time.(If not ,then the debt would be UN PAYABLE).
    As Einstein said,"Make it simple."
    TERMINATE THE STUPID PRACTICE OF PAYING INTEREST ON OUR OWN MONEY TO PRIVATE BANKS .A PRACTICE THAT CAN ONLY END WITH A FINANCIAL BUST,OR SERVITUDE !

    The next wave of stuff that will hit the fan may be the "CRISIS in the derivatives market" if you think stuff was "too big to fail" before,join me in sleepless nights knowing the derivatives market is more than $800 trillion ! ! That's $800,000,000,000,000 ! What if ONLY 20% is at risk,? That's only $160 trillion !

    If $1 quadrillion is needed,better yet,that would produce(2% for 36 years) an income for "We the People" of over $55 trillion a year .WITH NO INFLATION (it would be an asset purchase, not disposable income) and $55 trillion a year would be vacuumed out of the economy each year ($55 trillion) with only needing to use a portion for funding for the general welfare and the remainder for quality and quantity control of the currency. as well as making new loans.No inflation,no new bubbles (with 100% margin, a greater fool would not be able to continue the escalation needed to fuel the bubble,plus who would be willing to take the risk using "just their own money"..

    MUST IMPORTANT it will allow the financial institutions to de leverage their now 100% margin assets over 36 years,thereby preventing a " burst".

    It will prevent a "crack- up-boom" because the "created potential money" will not be available for circulation,it will be needed to payback the loans, since they would be otherwise un payable.

    "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." -- Ludwig von Mises

    Great News;Zero Income Taxes Solves Worldwide Economic Crises !

    THE MEANS OF AVOIDING THE FINAL COLLAPSE !

    Back the credit with 100% of borrowed dollars,allowing the financial institutions to de-leverage at a cost of 2% for 36 years.Prevent collaspe and at the same time serve a new master-"We The People"

    THE PEOPLE' S CHOICE:

    Total catastrophe

    or

    ZERO Income Taxes.

    ***** "Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings - that doctrine believe and cling to,and take it as your guide."- Buddha[Gautama Siddharta] (563 - 483 BC), Hindu Prince, founder of Buddhism

    When will we show our leaders,

    (as stated on " 60 minutes" (12/11/11)"

    President Obama said,"You can't raise revenues by lowering taxes unless you get the money from somewhere else." ?
    YES, JUST COLLECT INTEREST ON OUR OWN MONEY, INSTEAD OF TAXES !

    The Federal Reserve Bank of AMERICA will be agency for the Federal Reserve Charter and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
    Just like that ,we the people may just have solved our;

    financial crisis (read loan the financial institutions the money to unwind their derivatives to 100% asset based with a rate of 2% for 36 years.) ,

    housing crisis (read modify all loans that are purchased from the lenders AT FULL REAL BALANCE modify with a rate of 2% for 36 years.Very low and affordable payments on an assumable mortgage. READ,how this will make a gigantic increase in revenue for the taxpayers, instead of income taxes.

    How can we prove that the purchase of $51 trillion of REAL ESTATE LOANS with a FAIR VALUE of maybe just $30 trillion give the taxpayers a revenue income GREATER than the $51 trillion.

    THE ANSWER AS EINSTEIN SAYS, "KEEP IT SIMPLE",

    is in the "magic" of that "most powerful force in the universe".

    It allows for the borrower to be willing to pay off the higher amount in order to gain the asset and eventually actually increase the value of the asset.

    E.G., A loan with todays terms and conditions on a home that has a balance of $200,000 on an asset that is valued at $100,000 with a payment of $1,200 per month (6%rate). Why pay it ? If the loan is for 30 years you would have to pay in $360,000. Plus no one would want to get you OUT of that nightmare mortgage, it just ain't worth it. But if you take that same loan, $200,000 on that same value $100,000 with a payment of $960 per month (25/36 years)with an ASSUMABLE MORTGAGE you create an instant "$200,000 " asset value ,because any one out there would be willing to pay $960 a month for that home.Plus if rates increase,they would pay more for the loan because no matter how high interest rates go for new mortgages the payment on this will always remain the same $960/month.You could even get some added cash for that "mortgaged home" ! Plus "We the People" receive a payback of double, yes $400,000.

    ….,monetary crisis: Pay off our debt at a rate of 10% or 10 equal payments per year,by using the income generated by The Federal Reserve Bank of America's interest (revenue) income asset loans.(This would be a symbolic gesture since really we could pay off the debt with a click of a computer.)

    WE NEED TO CHANGE THE PRESENT SYSTEM AND START ON THE PATH OF A GREATER PROSPERITY.
    SOLUTION TO FINANCIAL,HOUSING, MONETARY CRISIS AND CREATION OF MILLIONS OF JOBS (READ BUSINESS LOANS MADE AT 2% FOR 6 YEARS with no payment due till 1 year anniversary date.) IMMEDIATELY AT NO COST TO THE TAXPAYERS;RATHER AT A PROFIT (READ INCOME) TO THE TAXPAYERS.
    The FRBA shall control the money supply by setting terms and conditions for the loans,thereby fulfilling their mandate to control inflation,deflation,and stagnation. .Affordable loans at low rates and longer terms ( 2011 Private loans would be at 3% for 72 years as rates will be changed depending upon economic conditions .2011 Business loans would be at 2% for 6 (six) years with no payments for the first year.)This would create at least 4 million jobs immediately and may even reduce the unemployment to under 4% within that year by creating the jobs and homes and products needed for this new prosperity that would be a result of this new monetary policy.
    The Federal Reserve Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
    AMERICAN GOLD.
    The American Dollar will be based upon THE AMERICAN TREASURE ("ITS GOLD") !
    That is the full faith and credit of the American people backed up by the US Constitution and all assets physical and intellectual...
    Americans " shall and will pay all debts,foreign and domestic."

    The American people are BETTER THAN GOLD, and have tremendously more assets then the worlds gold. Why would we limit our future to only a single metal ?We have all the elements as assets that are greater and in more abundance than gold and intellectual assets that are limitless,why trade them for such a finite amount of gold,gold that is already owned by others?
    Ben Franklin,Thomas Jefferson,and many more used this method ,the lending of taxpayers money , to start the colonies on the road to financial success. Then the lender banks took it away from the people by having legislators replace the practice allowing them to make the loans (make our money) and keep the interest for themselves,and at the same time guarantee that they the lenders get paid. We the people will no longer pay interest for the use of our own money,or guarantee lenders that they will be paid interest on our money for making loans.

    To insure the funding of this great society and insure prosperity there would be a great stream of income:

    (INTEREST FROM DOLLAR LOANS.):
    Lets use a start figure of $51 trillion in loans,that which is already in circulation.(guesstimate,hope it is more)It will go on the balance sheet as $51 trillion loan assets. This asset will double every 18 years….1 X 18 = 102 trillion,2 X 18 =204 trillion.

    Private Banks will be the only source for deposits and savings. Private Banks will no longer be allowed to do fractional banking . All loans will require 100% deposit backing. PRIVATE BANKS WILL BE ENTITLED TO THEIR PROFITS SINCE THEY WILL BE RISKING THEIR OWN MONEY AND MONEY THEY ARE INSURING THEMSELVES. Banks may borrow from The Federal Reserve Bank of the United States of America (HOPE THEY NEED ANOTHER $51 TRILLION) and use that borrowed money for their own account for their own investing;at the prevailing rate and terms. NO MORE FREE RIDE !( Some say they may need over $200 trillion to unwind their derivatives.)
    Good-bye income taxes as they are known today.

    Good-bye bubbles as 100% margin will stop speculation.

    Good-bye inflation,deflation, and stagnation,since trillions of dollars of income will be available to be used to "maintain the quality and quantity of money in circulation" as that money is redistributed.

    CAUTION: They will try FEAR tactics to keep US away from our rights. Remember ,"We have nothing to fear but fear itself"
    They will use the fear producing words,"inflation, hyperinflation, stagnation".
    You can answer with the words,"I will not be enslaved by the most powerful force in the universe because we the people can use that most powerful force for the betterment of mankind and prosperity."

    We the people can use that "most powerful force in the universe to control inflation,hyperinflation and stagnation "! !
    We the people will deal with the present possible economic tsunami,one tidal wave at a time .

    WE THE PEOPLE MUST TAKE CONTROL OF THE MOST POWERFUL FORCE IN THE UNIVERSE AND USE IT FOR THE BETTERMENT OF MANKIND, OR WE SHALL PERISH !

    PERHAPS,WE NEED A MILLION CITIZEN MARCH ON WASHINGTON ORGANIZED FOR AUGUST 2012 .
    -WE NEED:
    TO CHANGE OUR ELECTED CHOICES!
    TO GET THOSE ELECTED TO OFFICE TO AGREE TO THE ONE MOST IMPORTANT ITEM OF CHANGE;THEY WILL ENDORSE THE "AMEND THE FEDERAL RESERVE CHARTER,THE NEW INCOME TAX OF 2012 ,ZERO PERCENT, ( 0% )

    May "The Invisible Hand" continue to bless America.

    justaluckyfool

    Here's something found on the net .Believe it sums up why society or the 99% should not JUDGE AN ENTIRE GROUP IN ITS ENTIRERTY,RATHER JUDGE EACH INDIVIDUALLY.
    From ....aish.com :
    " Wealth and the Occupy Wall Street Movement"
    I wish the Occupy Wall Street movement would be a little clearer about what they're protesting.
    Even as it continues to grow and gain followers outside of New York, with satellite protests in more than 60 American cities as it threatens to go global, the demonstrators still haven't directly identified their enemy.

    And before I can make up my mind whether or not I support them, I think they need to tell us whether this is more about money or morality.
    What troubles me is that much of the anger of the protesters seems to be fueled by a sentiment about wealth ... There have always been people who believed that spirituality demands that we forsake materialism. Rich people are wicked by definition. Accumulating a great deal of money is a sin.
    ....Wealth is not ignoble; it presents us with precious opportunities. ...The philosopher Philo had it right when he summed ..(the) sentiment in these words: "Money is the cause of good things to a good man, of evil things to a bad man."
    Wealth may destroy those who possess it but it can also be the source of the greatest blessing. Precisely because it has this quality, it becomes doubly holy. When we choose to use a potentially destructive object in a positive and productive manner, we have learned the secret of true (wealth).
    "Show me your checkbook stubs," said the noted psychologist, Erich Fromm, "and I'll tell you everything about yourself." Self-indulgence or selflessness? Wine, women, and song or charitable works? Hedonism or helping others? ...
    For those whose crusade against Wall Street is synonymous with a vendetta against all those with wealth, there needs to be recognition of the great good accomplished by many of those who've been blessed with prosperity. Just because someone has "made it" doesn't make him a villain. To add the adjective "filthy" to the word rich in signs hoisted by Occupy Wall Street protesters is to unfairly castigate those who ... may have rewarded because they're wise enough to work on ... creating a better world.
    We could all learn much from Michael Bloomberg, the self-made billionaire founder of the Bloomberg financial information firm and New York Mayor, who for two years in a row was the leading individual living donor in the United States, according to The Chronicle of Philanthropy. He recently said he intends to give away most of his fortune, because "the best measure of a philanthropist is that the check he leaves to the undertaker bounces." And that will insure that he dies a very happy man.
    Capitalism isn't only about accumulating more and more money. Just a few years ago TIME named Bill and Melinda Gates as its "Persons of the Year." Gates, a Wall Street superstar, was acknowledged as one of the most influential people in the country - not because of how much money he has but because of how much of it he is willing to give away. He came to the conclusion that greed isn't meant to be our goal in life.
    Having made more money than he will ever need, he has one more vision that drives him. He would love to convince world business leaders that being socially responsible isn't just altruism but sound business practice. Gates says he has learned that greed is self-defeating. It destroys the very people who make it their god.
    Today Gates is spearheading a drive to get the super wealthy to publicly commit themselves to giving away most of their fortunes for charitable purposes - and Warren Buffett, chairman of Berkshire Hathaway Inc. and one of the world's wealthiest men, among others has signed on to this noble endeavor.
    When the Occupy Wall Street crowd talks about cleaning up corruption, when it points a finger at all those whose financial recklessness plunged the country into the Great Recession, when it gives voice to the anger we all feel at the perpetrators of highly immoral business practices that hurt millions of innocent victims - for all of these righteous causes they deserve our unqualified thanks.
    It's only when they confuse anyone who is wealthy with the enemy that I think we need to remind them that just as much as the poor don't deserve to be despised for their poverty, the rich don't deserve to be hated simply because they have money.
    This article originally appeared on www.aish.com.

    Some banking quotes,

    Lord Acton ,UK,"If I am correct, there are even bigger scandals to come when the tide goes out again, although there will be great efforts made to cover them up and excuse them 'for the sake of public confidence in the system.' The derivatives market is a scandal-in-process, and is likely to rock the US banking system and the Dollar to their foundations when it topples. "

    Lord Acton, Banking quotes:
    "The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
    John Adams, Banking quotes:
    "Banks have done more injury to the religion, morality, tranquilit­y, prosperity­, and even wealth of the nation than they can have done or ever will do good."
    John Adams, Banking quotes:
    "All the perplexities, confusion and distress in America arise not from defects in their Constituti­on or Confederat­ion, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit, and circulatio­n."
    "There may be even larger losses and anxiety for the unsuspecting who have misplaced their trust in false ideologies, slogans and theories promoted by a self-serving oligarchy."

     

    "Great News !! Zero Income Taxes Solves Worldwide Economic Crises" "Keep It Simple" AMEND THE FED, NOT END THE FED !!


    Posted on April 30, 2012 by justaluckyfool

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: TIP, SPY, BAC
    May 09 9:35 PM | Link | Comment!
  • Great News;Zero Income Taxes Solves Worldwide Economic Crises !
    Great News;Zero Income Taxes Solves Worldwide Economic Crises !

    Yes,even a solution for:
    "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. "-- Ludwig von Mises

    For the solution:"We cannot solve our problems with the same thinking we used when we created them".
    Albert Einstein

    The problems:

    ONE:

    "Hernando de Soto says this credit crisis is all about (a lack of) paper"

    By Justin Fox | March 25, 2009 |

    I'm not sure that I entirely understand all the points Hernando de Soto makes in his op-ed piece in the WSJ today, but this one sure is intriguing:

    If you think about it, everything of value we own travels on property paper. At the beginning of the decade there was about $100 trillion worth of property paper representing tangible goods such as land, buildings, and patents world-wide, and some $170 trillion representing ownership over such semiliquid assets as mortgages, stocks and bonds. Since then, however, aggressive financiers have manufactured what the Bank for International Settlements estimates to be $1 quadrillion worth of new derivatives (mortgage-backed securities, collateralized debt obligations, and credit default swaps) that have flooded the market.

    These derivatives are the root of the credit crunch. Why? Unlike all other property paper, derivatives are not required by law to be recorded, continually tracked and tied to the assets they represent. Nobody knows precisely how many there are, where they are, and who is finally accountable for them. Thus, there is widespread fear that potential borrowers and recipients of capital with too many nonperforming derivatives will be unable to repay their loans. As trust in property paper breaks down it sets off a chain reaction, paralyzing credit and investment, which shrinks transactions and leads to a catastrophic drop in employment and in the value of everyone's property.Read more: http://business.time.com/2009/03/25/hernando-de-soto-says-this-credit-crisis-is-all-about-a-lack-of-paper/#ixzz1lCKEaF3w

    TWO:

    The Debtwatch Manifestoby Steve Keen on January 3rd, 2012 at 8:40 am
    Posted In: Debtwatch

    Click here for this post in PDF

    The fundamental cause of the economic and financial crisis that began in late 2007 was lending by the finance sector that primarily financed speculation rather than investment. The private debt bubble this caused is unprecedented, probably in human history and certainly in the last century .... Its unwinding now is the primary cause of the sustained slump in economic growth. The recent growth in sovereign debt is a symptom of this underlying crisis, not the cause, and the current political obsession with reducing sovereign debt will exacerbate the root problem of private sector deleveraging.

    Read More.....

    by Steve Keen on January 3rd, 2012 at 8:40 am
    Posted In: Debtwatch

    THREE:

    How the Banks Broke the Social Compact, Promoting their Own Special Interests
    by Prof. Michael Hudson
    READ ALL ; http://www.globalresearch.ca/index.php?context=va&aid=28938
    "The inherently symbiotic relationship between banks and governments recently has been reversed. In medieval times, wealthy bankers lent to kings and princes as their major customers. But now it is the banks that are needy, relying on governments for funding - capped by the post-2008 bailouts to save them from going bankrupt from their bad private-sector loans and gambles.
    Yet the banks now browbeat governments - not by having ready cash but by threatening to go bust and drag the economy down with them if they are not given control of public tax policy, spending and planning. The process has gone furthest in the United States. Joseph Stiglitz characterizes the Obama administration's vast transfer of money and pubic debt to the banks as a "privatizing of gains and the socializing of losses. It is a 'partnership' in which one partner robs the other."2 Prof. Bill Black describes banks as becoming criminogenic and innovating "control fraud."3 High finance has corrupted regulatory agencies, falsified account-keeping by "mark to model" trickery, and financed the campaigns of its supporters to disable public oversight. The effect is to leave banks in control of how the economy's allocates its credit and resources.
    If there is any silver lining to today's debt crisis, it is that the present situation and trends cannot continue. So this is not only an opportunity to restructure banking; we have little choice. The urgent issue is who will control the economy: governments, or the financial sector and monopolies with which it has made an alliance.
    Fortunately, it is not necessary to re-invent the wheel. Already a century ago the outlines of a productive industrial banking system were well understood. But recent bank lobbying has been remarkably successful in distracting attention away from classical analyses of how to shape the financial and tax system to best promote economic growth - by public checks on bank privileges.

    ...
    Governments can create new credit electronically on their own computer keyboards as easily as commercial banks can. And unlike banks, their spending is expected to serve a broad social purpose, to be determined democratically. When commercial banks gain policy control over governments and central banks, they tend to support their own remunerative policy of creating asset-inflationary credit - leaving the clean-up costs to be solved by a post-bubble austerity. This makes the debt overhead even harder to pay - indeed, impossible.

    ...
    It is too early to forecast whether banks or governments will emerge victorious from today's crisis. As economies polarize between debtors and creditors, planning is shifting out of public hands into those of bankers. The easiest way for them to keep this power is to block a true central bank or strong public sector from interfering with their monopoly of credit creation. The counter is for central banks and governments to act as they were intended to, by providing a public option for credit creation.
    READ MORE : www.globalresearch.ca/index.php?context=...

    FOUR:

    READ ( http://michael-hudson.com/2001/04/the-mathematical-economics-of-compound-rates-of-interest-a-four-thousand-year-overview-part-ii/

    By Michael Hudson

    ".... The Mathematics of Compound Interest

    A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum.

    ...Flürscheim elaborated that "All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands." To illustrate the dynamic at work, he composed an allegory (pp. 327ff.). Many ages after man was driven from Paradise and told "to earn his bread by the sweat of his brow, mercy began to prevail. A loving angel was sent down by the Great Master, charged with the task of lightening the burden. The angel's name was Spirit of Invention. He began his work by teaching man to make useful tools" and tame animals, and in time to mobilize water power, air and wind power, fire and steam power to drive machinery.

    "It seemed that at last the golden era had come of which men had dreamed for ages past," but "that envious spirit, that fallen angel, Satan," was jealous that his own empire would soon be over for ever. Among the follies of man, one little imp, called Interest, managed to attract his attention. "'What is the matter with you, Interest?' he asked the saucy imp. 'You don't seem to be so dejected as your comrades are?'"

    "'Why should I be dejected, master?' replied the spirit, 'Am I not one of your favorite soldiers? Haven't I always been victorious under your august guidance?'"

    But Satan answered sadly, "Alas, You are no match for the Spirit of Invention." The Interest imp, however, volunteered to demonstrate his prowess in a dual, helped by his son, Compound Interest.

    At this point, Flürscheim introduced an image that Napier had suggested at the outset of his second book on logarithms in 1617, the Robdologia, likening the principle of geometric increase to that of a chess-board on which each square doubled the number assigned to the preceding one. An old Persian proverb told of a Shah who wished to reward the inventor of chess, a subject, and asked what he would like. To the Shah's surprise, the man asked "as his only reward that the Shah would give him a single grain of corn, which was to be put on the first square of the chess-board, and to be doubled on each successive square; which, to the surprise of the king, produced an amount larger than the treasures of his whole kingdom could buy. It is this kind of chess-game which capital is continually playing with labor." The remarkable growth of compound interest soon swallowed "products, capital, the earth and even the workers."

    This was in essence the ploy that Flürscheim's Compound Interest demon used. "Look at this chess-board," he told the angel against whom Satan had pitted him. "It seems just like any other chess-board, with sixty-four squares," but it "had the peculiar quality of extending the dimensions of the squares, so as always to be large enough" to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. "Now, listen well to what I propose," he said to the angel, pointing to the latter's huge army.

    I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors - and so on every succeeding square. . . . When we arrive at the last square, and you have a single soldier left after occupying the same, we shall declare ourselves vanquished, and Satan with all his troops will leave this world for ever. If I win, you and your army are to be at the commands of my master. Are you agreed?

    The angel agreed, expecting his horde of soldiers to easily exceed the number that the Interest Imp and his son, Compound Interest, seemed likely to accrue.

    In the beginning the angel laughed, for, though twenty squares were passed, no noticeable diminution of his forces was perceptible. Demon Interest said nothing, but attended to business, quietly doubling his army on every succeeding square. At the thirtieth square the angel ceased to laugh, and soon saw he was lost.
    'I despised you, little fellow,' he signed despairingly, 'and I am punished for my vanity. I see there is no use fighting against you. Demon Interest is more powerful than the Spirit of Invention. I am your slave. Command your servant!'"

    (THIS IS THE TIPPING POINT ! Justaluckyfool's comment explained in next paragraph)

    'I am the only servant of my great master,' dryly replied the demon.

    "Here I see him coming. He will give you his orders.'

    And Satan gave his orders. He commanded that the angel was to continue in his work with all his troops, which were to be increased with all possible exertion, so that humanity - which did not know the nature of the antagonist it had to fight against - would always keep in fresh hope of final success when the new troops were forthcoming. But as fast as they appeared, Demon Interest was to send forth a larger army to capture the new forces, to enslave them, and - instead of their benefiting man - make them increase the slave-chains which weigh him down.

    WHAT IF DEMON INTEREST WERE TO ANSWER? (Justaluckyfool's comment explained),

    I will now be the servant of a new master,one that will pursue happiness for all mankind.".

    Where we went wrong:

    Allowing private financial institutions to charge compound interest

    on our own money,money we are allowing them to issue (print).

    If it were possible to sum up the single greatest flaw to the American form of its democratic capitalism ,it would be :It allows for the "most powerful force in the universe"… to quote Einstein," compounding " interest to be used against that democracy.
    This "most powerful force" is being used only for the enrichment of a few (1%) and the servitude of all others (99%).
    The lender becomes the owner of all the money based upon the act of compounding at any rate within a long period of time.The present system has to change .

    Private banks are lenders to the taxpayers who become borrowers. They are allowed to charge interest to taxpayers.

    Where we went wrong:

    Fractional Reserve Banking,allowing private institutions to "print" our money ,and allowed them to charge compound interest on our own money.

    A cycle that commands total money control or it must bust. The real kicker is that the borrower by todays system guarantees the lender, they the lenders will not lose their money because the borrowers ( taxpayers) are guarantors of their own servitude !When will we learn and believe that a private bank is allowed to print new money ,TEN times what it has in deposit.If a bank has $1 million to loan it is allowed to lend $900,000 at 10% Reserve banking. But with that creation is a bank asset (loan) of $900,000 which allows another loan of $810,000,on and on,even to 30X and 40X leverage.

    THE FIRST TWO BITES TO THE SOLUTION:

    1. AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (OTC:FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, ("GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens."_The Road to Oz) ESTABLISH THE FRBA AS THE ONLY MEANS FOR MONETARY SUPPLY,ALL OTHER INSTITUTIONS MUST MAINTAIN 100% MARGIN ON ALL INVESTMENTS.

    2. ESTABLISH A ONE PAGE INCOME TAX FORM,AN INCOME TAX THAT STARTS WITH 0% AND FICA 0%.INTEREST INCOME WILL REPLACE PERSONAL INCOME TAXES.

    An Income Tax form is needed only to help obtain information needed for redistribution and for the control of the quality and quantity of the currency. Since the FRBA will be taking back all currency issued,it would be absolutely necessary to redistribute most of not all over a period of time.(If not ,then the debt would be UNPAYABLE).

    The Federal RESERVE Bank of America,make it the melting pot for Federal Reserve.,FDIC,FHFA,and the GSE's,Fannie,Freddie,Ginnie and Sally.

    AMEND THE FEDERAL RESERVE CHARTER making it a people's owned bank.

    1a*All loans by any financial institution must be backed with 100% reserves.No more fractional reserve banking.No more production by private banks of this Monetary Sovereignty's currency.All loans may be used as assets for borrowing from The FRBA so that they compley with the 100% reserve. Any loan that is not in compliance Must be sold to the FRBA os the financial institution will be placed into receivership.

    1b*The Federal Reserve will no longer be needed as its mandate (control inflation,deflation and stagnation,as well as unemployment) will be passed on to THE FEDERAL RESERVE BANK OF AMERICA. Also the FDIC and FHFA as their mandates will no longer be required. Private banks will have to be self-insured. Risk 100% their own investors money for 100% reward.
    1c*It will be operated by the people,of the people and for the people".THE FEDERAL RESERVE BANK OF AMERICA will be the source for the American borrower to acquire funds and the interest paid shall be revenue income to be used as funding of their government agenda,for the general welfare.

    THE FEDERAL RESERVE BANK OF AMERICAThe Federal Reserve Bank of America will be the maker of all loans,not guarantee them for others, they will be the maker of these loans and will retain all profits. Profits which by law will be turned over to the US Treasury,as funds for Congress for government expensive's.
    The Federal Reserve Bank of America:
    -Will no longer allow the paying of interest for the use of its own money,rather it will charge interest for the use of its money..
    -Will not take deposits from anyone other than the US Treasury.
    -Will not be involved in any financial investment services.
    The Federal Reserve Bank of America will be the sole lender of legal tender. Any financial institution that wishes to loan American Dollars must acquire(read borrow) any legal tender that it may need from the Federal Reserve Bank of America,as all loans must be backed with a 100% reserve from either dollars on hand or borrowed from the FRBA.
    FRBA will purchase ALL residential and commercial loans outstanding at full balance owed.Any private lender may retain any loan it has by simply showing 100% reserve. The American people will be the lenders and no longer will they be the victims of private greed.No longer will they allow the banks that they have entrusted with their money to use that money to make profits for themselves .Profits will be made by the people,of the people, for the people. Taxpayers bailout for Taxpayers by Taxpayers paying compounded interest to Taxpayers . These loans would provide trillions of dollars as TAXPAYER PROFIT (REVENUE)!

    Compound interest will cause any amount to double over a certain period of time.(Rule of 72). A 2% compound yearly interest rate will double the base amount in 36 years. The taxpayers will be the direct lender and make the profit (interest).This doubling alone will provide an enormous income stream. If loans are made for $100 trillion,the incoming payments would exceed $5 trillion a year. What a magnificent way to fund a government.
    As Einstein said,"Make it simple."
    TERMINATE THE STUPID PRACTICE OF PAYING INTEREST ON OUR OWN MONEY TO PRIVATE BANKS .A PRACTICE THAT CAN ONLY END WITH A FINANCIAL BUST,OR SERVITUDE !

    The next wave of stuff that will hit the fan may be the "CRISIS in the derivatives market" if you think stuff was "too big to fail" before,join me in sleepless nights knowing the derivatives market is more than $800 trillion ! ! That's $800,000,000,000,000 !

    If $1 quadrillion is needed,better yet,that would produce(2% for 36 years) an income for "We the People" of over $55 trillion a year .WITH NO INFLATION because that is the amount that would be vacuumed out of the economy each year ($55 trillion) with only needing to use a portion for funding for the general welfare and the remainder for quality and quantity control of the currency. as well as making new loans.No inflation,no new bubbles with 100% margin.

    MUST IMPORTANT it will allow the financial institutions to deleverage their positions over 36 years,thereby preventing a " burst".

    It will prevent a "crack- up-boom" because the "created potential money" will not be available for circulation,it will be needed to payback the loans, since they would be otherwise unpayable.

    QUOTE MISES..."
    There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. -- Ludwig von Mises

    Great News;Zero Income Taxes Solves Worldwide Economic Crises !

    THE PEOPLE' S CHOICE:

    Total catastrophe

    or

    ZERO Income Taxes.

    Lord Acton ,UK,"If I am correct, there are even bigger scandals to come when the tide goes out again, although there will be great efforts made to cover them up and excuse them 'for the sake of public confidence in the system.' The derivatives market is a scandal-in-process, and is likely to rock the US banking system and the Dollar to their foundations when it topples. "

    Lord Acton, Banking quotes:
    "The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
    John Adams, Banking quotes:
    "Banks have done more injury to the religion, morality, tranquilit­y, prosperity­, and even wealth of the nation than they can have done or ever will do good."
    John Adams, Banking quotes:
    "All the perplexities, confusion and distress in America arise not from defects in their Constituti­on or Confederat­ion, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit, and circulatio­n."
    "There may be even larger losses and anxiety for the unsuspecting who have misplaced their trust in false ideologies, slogans and theories promoted by a self-serving oligarchy."

    "Don't End The Fed, Amend the Fed;Bonus,ZERO Income Taxes"

    When will economist "Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings - that doctrine believe and cling to,and take it as your guide."- Buddha[Gautama Siddharta] (563 - 483 BC), Hindu Prince, founder of Buddhism
    WHEN,when will we the people take away from others the right to "print" our own currency. WHEN will we stop the stupid practice of paying interest on our own money.When will will wake up and realize that "There is only one fair Income Tax,period; only zero is fair. When will we show our leaders, as On 60 minutes (12/11/11) ,President Obama said,"You can't raise revenues by lowering taxes unless you get the money from somewhere else."
    YES, COLLECT INTEREST ON OUR OWN MONEY, INSTEAD OF TAXES !

    The Federal Reserve Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
    Just like that ,we the people may just have solved our

    … financial crisis (read loan the financial institutions the money to unwind their derivatives to 100% asset based with a rate of 3% for 36 years.) ,

    … housing crisis (read modify all loans that are purchased from the lenders AT FULL REAL BALANCE moditfy with a rate of 3% for 72 years.Very low and affordable payments.) READ,how this will make a gigantic increase in revenue for the taxpayers, instead of income taxes.

    ….,monetary crisis (read pay off our debt at a rate of 10% or 10 equal payments per year,by using the income generated by The Federal Reserve Bank of America's interest (revenue) bearing loans.This would be a symbolic gesture since really we could pay off the debt with a click of a computer.

    WE NEED TO CHANGE THE PRESENT SYSTEM AND START ON THE PATH OF A GREATER PROSPERITY.
    SOLUTION TO FINANCIAL,HOUSING, MONETARY CRISIS AND CREATION OF MILLIONS OF JOBS (READ BUSINESS LOANS MADE AT 2% FOR 6 YEARS with no payment due till 1 year anniversary date.) IMMEDIATELY AT NO COST TO THE TAXPAYERS;RATHER AT A PROFIT (READ INCOME) TO THE TAXPAYERS.
    THE FEDERAL RESERVE BANK OF AMERICA would be the only legal tender provider for all residential and commercial real estate loans,private personal and business loans.It would have branches in every state and territory.The FRBA shall control the money supply by setting terms and conditions for the loans,thereby fulfilling their mandate to control inflation,deflation,and stagnation. .Affordable loans at low rates and longer terms ( 2011 Private loans would be at 3% for 72 years as rates will be changed depending upon economic conditions .2011 Business loans would be at 2% for 6 (six) years with no payments for the first year.)This would create at least 4 million jobs immediately and may even reduce the unemployment to under 4% within that year by creating the jobs and homes and products needed for this new prosperity that would be a result of this new monetary policy.
    The Federal Reserve Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
    AMERICAN GOLD.
    The American Dollar will be based upon THE AMERICAN TREASURE ("ITS GOLD") !
    That is the full faith and credit of the American people backed up by the US Constitution and all assets physical and intellectual...
    Americans " shall and will pay all debts,foreign and domestic."

    The American people are BETTER THAN GOLD, and have tremendously more assets then the worlds gold. Why would we limit our future to only a single metal ?We have all the elements as assets that are greater and in more abundance than gold and intellectual assets that are limitless,why trade them for such a finite amount of gold,gold that is already owned by others?
    We the people will create millions of jobs with commercial loans that will insure positive growth and employment.
    We the people will have special terms and conditions for student loans that will insure the educational growth of all Americans Ben Franklin,Thomas Jefferson,and many more used this method ,the lending of taxpayers money , to start the colonies on the road to financial success. Then the lender banks took it away from the people by having legislators replace the practice allowing them to make the loans (make our money) and keep the interest for themselves,and at the same time guarantee that they the lenders get paid. We the people will no longer pay interest for the use of our own money,or guarantee lenders that they will be paid interest on our money for making loans.

    PART OF THE SOLUTION:

    To insure the funding of this great society and insure prosperity there would be only one stream of income.
    THE ONLY INCOME STREAM:
    1. REVENUE (INTEREST) FROM DOLLAR LOANS.
    Lets use a start figure of $51 trillion in loans,that which is already in circulation.(guesstimate,hope it is more)It will go on the balance sheet as $51 trillion loan assets. This asset will double every 18 years….1 X 18 = 102 trillion,2 X 18 =204 trillion. Private Banks will be the only source for deposits and savings. Private Banks will no longer be allowed to do fractional banking . All loans will require 100% deposit backing. PRIVATE BANKS WILL BE ENTITLED TO THEIR PROFITS SINCE THEY WILL BE RISKING THEIR OWN MONEY AND MONEY THEY ARE INSURING THEMSELVES. Banks may borrow from The Federal Reserve Bank of the United States of America (HOPE THEY NEED ANOTHER $51 TRILLION) and use that borrowed money for their own account for their own investing;at the prevailing rate and terms. NO MORE FREE RIDE !( Some say they may need over $200 trillion to unwind their derivatives.)
    Good-bye income taxes as they are known today.
    The Return on Investment could be $3 to $5 trillion a year. US TREASURY INCOME to be used to pay off debt,promote the general welfare .
    Good-bye income taxes as they are known today.
    THIS INCOME STREAM WOULD AVERAGE OVER $5 TRILLION DOLLARS A YEAR.
    We the people would demand the debt be paid off ,end the possible servitude of our heirs.
    We the people would demand a balanced budget.
    We the people would demand a real monetary reserve be left in THE FRBA.
    We the people would demand the general welfare,life,liberty,pursuit of happiness,for all the people
    .

    CAUTION: They will try FEAR tactics to keep US away from our rights. Remember ,"We have nothing to fear but fear itself"
    They will use the fear producing words,"inflation, hyperinflation, stagnation".
    You can answer with the words,"I will not be enslaved by the most powerful force in the universe because we the people can use that most powerful force for the betterment of mankind and prosperity."

    We the people can use that "most powerful force in the universe to control inflation,hyperinflation and stagnation "! !
    We the people will deal with the present possible economic tsunami,one tidal wave at a time .

    How can we prove that the purchase of $51 trillion of REAL ESTATE LOANS with a FAIR VALUE of maybe just $30 trillion give the taxpayers a revenue income GREATER than the $51 trillion.

    THE ANSWER AS EINSTEIN SAYS, "KEEP IT SIMPLE",

    is in the "magic" of that most powerful force in the universe.

    It allows for the borrower to be willing to pay off the higher amount in order to gain the asset and eventually actually increase the value of the asset.

    E.G., A loan with todays terms and conditions on a home that has a balance of $200,000 on an asset that is valued at $100,000 with a payment of $1,000 per month (6%rate). Why pay it ? If the loan is for 30 years you would have to pay in $360,000. Plus no one would want to get you OUT of that nightmare mortgage.

    But if you take that same loan, $200,000 on that same value $100,000 with a payment of $500 per month (3% rate)

    with an assumable mortgage you create an instant "$200,000 " asset value ,because any one out there would be willing to pay $500 a month for that home.Plus if rates increase,they would pay you some added cash for that "mortgaged home" !

    WE THE PEOPL MUST TAKE CONTROL OF THE MOST POWERFUL FORCE IN THE UNIVERSE AND USE IT FOR THE BETTERMENT OF MANKIND, OR WE SHALL PERISH !

    PERHAPS,WE NEED A MILLION CITIZEN MARCH ON WASHINGTON ORGANIZED FOR JUNE 2012 .
    -WE NEED:
    TO CHANGE OUR ELECTED CHOICES!
    TO GET THOSE ELECTED TO OFFICE TO AGREE TO THE ONE MOST IMPORTANT ITEM OF CHANGE;THEY WILL ENDORSE THE "AMEND THE FEDERAL RESERVE CHARTER,THE NEW INCOME TAX OF 2012 ,ZERO PERCENT, ( 0% )

    May "The Invisible Hand" continue to bless America.

    justaluckyfool

    Mar 03 2:30 PM | Link | Comment!
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