The Dollar is Sick

I liked this comment from an earlier post on usury so much that I think it deserves its own space. Here it is:

"The Federal Reserve Back creates ALL Dollars in circulation, and the individual banks assist in creating digital Dollars through fractional reserve banking. 100% of all Dollars created, whether printed by the Department of Treasury, or created digitally by banks, are interest bearing documents (hence the name Federal Reserve Note), which must be repaid only with more Federal Reserve Notes. This is a very important distinction.

"Because of the Federal Reserve Act, ALL Dollars (FRNs) are perpetual debts without the ability to pay back in full, since all interest on the Dollars borrowed can only be paid with more Dollars, each bearing interest payments. More plainly, not only are the Dollars debt, but the interest payments are also debt.

"ANYONE (especially politicians) who claim they will reduce the debt, are either lying, ignorant, or both, as the Dollar based debt can NEVER, EVER, EVER, be repaid. It can only be defaulted upon. But since the bankers who control the Federal Reserve Bank are in control of most western governments, including the US, this nation will only become more indebted until The People revolt and ensure the Dollar debt is defaulted upon. But until more people realize how Dollars are created and used, and that 100% of all Sixteenth Amendment Income Taxes are used only for interest payments (not SS, Medicare, Defense, etc.) towards Dollar debt to the privately owned Federal Reserve Bank, little will change."

Surely someone's getting very rich through this ponzilike scheme of ad infinitum usury. But feel free to disagree.

In other news, I got a haircut, like a depositor in a Cypriot bank. Short's the word.

Your old buddy,

LSP

Usury, Aquinas and Baphomet

Usury, taking interest on a loan, used to be considered a sin. Now it's the keystone virtue of our civilization. Here's some Aquinas, from somewhere in the Summa:

Article I.—Is it a sin to take usury for the lending of money?

R. To take usury for the lending of money is in itself unjust, because it is a case of selling what is non-existent; and that is manifestly the setting up of an inequality contrary to justice. In evidence of this we must observe that there are certain things, the use of which is the consumption of the thing; as we consume wine by using it to drink, and we consume wheat by using it for food. Hence in such things the use of the thing ought not to be reckoned apart from the thing itself; but whosoever has the use granted to him, has thereby granted to him the thing; and therefore in such things lending means the transference of ownership. If therefore any vendor wanted to make two separate sales, one of the wine and the other of the use of the wine, he would be selling the same thing twice over, or selling the non-existent: hence clearly he would be committing the sin of injustice. And in like manner he commits injustice, who lends wine or wheat, asking a double recompense to be given him, one a return of an equal commodity, another a price for the use of the commodity, which price of use is called usury. 

Our present economic and financial system is based on usury; every Dollar we grasp in our eager spending hands is issued by the Fed, at interest. The borrower (USGOV) must repay this debt by getting more money, which comes, ultimately, from selling more things.

But there's only so much you can sell in a finite world, and only so much that people want, or need, or are able to buy. Despite the marketeers, infinite usurious growth is unsustainable.

As a last ditch measure, the financial powers are leaning towards negative interest rates and a ban on cash, in a desperate bid to get people to spend more and fuel the debt engine. This will fail and end in a reset, which will not be pretty, to put it mildly.

With that in mind, why do you think local PDs are investing in MRAPS?

Message to market: Prepare for the worst, and be happily surprised if it doesn't come down, Baphomet-Style, on our iniquitous and devilish society. But perhaps it already is? You be the judge.

Your Pal,

LSP

Audit the Fed

Andrew Jackson had this to say to the Bank of the United States in 1834:

I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, I will rout you out.

The Fed, which creates our money and loans it to the government at interest, ponder that, doesn't want to be audited. Well that's really weird.

You might want to read this, at ZeroHedge.

LSP

Your Money or your Life!

Anyone following the slow-moving(ish) train-wreck that is the Sovereign Debt crisis, will have noticed that France and Belgium have pledged to prop up Dexia, one of several rotten franchises in the heart of Europe. Presumably taxpayers will come to the rescue, but in the meanwhile, Dexia dropped a miserable 22 points on the Brussel's 'change. You can read about it in the SF Chronicle, if you like.


Belloc wrote somewhere that the Roman Empire was plagued with periodic financial crises brought on by usurious bankers. Interest on non-productive loans (his definition of usury) would mount up over the years until the burden became unsustainable, leading to financial collapse and ever higher tax burdens. Odd how history seems to repeat itself.

Jefferson had this to say about the banks:


"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..."


Prescient, that Founding Father.


LSP