Sent to me by the author.
(Note: revised Oct. 1, 2008)
by Nikki Alexander
Sept. 29, 2008
Einstein wisely observed that you cannot solve a problem with the same consciousness that created the problem in the first place. This Wall Street financial crisis is an opportunity to correct systemic disease at its source. Being stampeded by the consciousness of the same individuals that orchestrated massive financial fraud will only exacerbate the crisis. We need to shift our attention from mushroom cloud narratives and focus on the solution: creating a stable financial structure that is grounded in public ownership of the monetary system. The constitutional authority to create money and issue credit rightfully belongs to the government ~ not to a private cartel of self-serving international financiers.
We can all agree that radical deregulation of the financial industry strategically removed the legal obstacles to premeditated wholesale fraud. Replacing the firewalls between public assets and gambling casinos is an obvious necessity. And we can all agree that speculators do not produce anything of value that contributes to a productive economy (goods or services). Their reckless gambling has collapsed a stunning array of legitimate businesses, embezzled the savings and investments of hard-working citizens, destroyed the real estate values of every homeowner in America, doubled the price of essential commodities and flooded the financial industry with trillions of dollars in worthless derivatives, a global Ponzi scheme. Strict regulation of Wall Street casinos is mandatory.
Clearly, the ringleaders of this financial assault on our nation must not be allowed to dictate the terms of our recovery. The Secretary of the Treasury and the private banking consortium known as the “Federal” Reserve have historically served the interests of international financiers and corporate hustlers, not the citizens of the United States, as Alan Greenspan, Ben Bernanke and Goldman Sachs CEOs Henry Paulson and Robert Rubin so aptly demonstrate. Treasury Secretary Henry Paulson’s recipe for disaster unashamedly compounds systemic financial fraud with alarming demands that would permanently cripple American taxpayers and transfer unprecedented powers to the Treasury Secretary for exclusive control over the economic and financial life of the US forever:
- The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. In other words, $700 billion is only the very beginning of what this cartel of thieves will extort.
- Private financial institutions are “designated as financial agents of the Government.”
- “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”
Paulson is a member of the International Monetary Fund Board of Governors, the nexus of predators that bankrupted Argentina in the blink of an eye. Like every nation victimized by the IMF since World War II, Argentina was strategically gutted by crippling debt, radical deregulation and privatization schemes to seize public assets. Federal Reserve Chairman Alan Greenspan and Milton Friedman’s free market buccaneers applauded the carnage as the lifeblood of one nation after another was sucked dry by roving vampire capitalists. This Shock Doctrine “financial crisis” is a prelude to classic IMF asset-stripping.
Predatory lenders that jacked up the interest rates on victims of mortgage fraud could have readjusted their loan terms at reasonable fixed rates rather than foreclosing and destroying home values in every state in the country, thereby wiping out the only real asset of the middle class. These institutions have not earned taxpayer bailouts. Nor should taxpayers be expected to assume the losses of private financial institutions that engaged in deliberate and reckless gambling ~ $700 billion for Goldman Sachs with no ceiling on future demands, $85 billion for AIG, the bogus “securitized” debts of Fannie May and Freddie Mac and trillions of dollars in worthless derivatives contrived by Wall Street hustlers. Reimbursing gamblers for their losses will not produce the systemic correction that is needed. Stabilizing our financial system requires abolishing the privately-owned Federal Reserve System, firing (and perhaps indicting) the Secretary of the Treasury, strictly regulating financial markets and restoring direct government control of our monetary system, as our Constitution mandates. The federal government was constitutionally authorized in 1787 to create its own legal tender and issue credit.
Money is a legal fiction which derives its value from social consensus. Legal tender does not require commodity backing, such as gold or silver, but only social agreement that it can be used as a medium of exchange. Publicly-owned credit issuing mechanisms can function as a non-profit public service or the interest on loans can be used to finance government in lieu of taxes. Publicly-owned mechanisms would keep money circulating as a convenience that facilitates the exchange of goods and services and would reward productivity by making investment capital available to legitimate businesses that serve society.
Attorney Ellen Brown, historian Stephen Zarlenga and economist Michael Hudson have documented historical precedents for US government-owned monetary systems with blueprints for implementing the mechanisms. Publicly-owned monetary systems were very successful in colonial times, flourished again under Thomas Jefferson and Abraham Lincoln, and would have been restored by John F. Kennedy with Executive Order 11,110, had he not (also) been assassinated.
In the short term a government lending institution could be established immediately to refinance the loans of defaulting homeowners at reasonable fixed rates, allowing families to keep their homes and stabilizing the real estate market. Long term, government-issued credit and sound money could be extended to legitimate businesses and qualified borrowers to stimulate a productive economy, rebuild our public infrastructure, end our dependency on fossil fuels, develop renewable energy resources, create a clean energy economy, retool our auto industry for electric cars and plug-in hybrids, create efficient public transportation, revive our manufacturing base, decontaminate our waterways and soils, and empower farmers and organic growers to nourish our local communities. We cannot accomplish any of this if we remain enslaved by the masters of fraud that have ravaged our country.
The Federal Reserve System is not federal and has no reserves. It is a privately-owned bank consortium that deliberately engineers bubbles and depressions by arbitrarily expanding and contracting its credit. It has devastated the public’s purchasing power by steadily inflating its worthless fiat “notes.” The cycles of economic chaos and national despair will continue until this private debt monopoly is banished.
In his 1899 book, The History of Money in America, the great monetary historian Alexander Del Mar, described the catastrophic error made by our “Founding Fathers.” While the Constitution assigns the function of money creation to the federal government, it does not explicitly describe the mechanism for issuing currency and credit, leaving that function open to predators:
“Never was a great historical event [The American Revolution] followed by a more feeble sequel. A nation arises to claim for itself liberty and sovereignty. It gains both of these ends by an immense sacrifice of blood and treasure. Then when victory is gained and secured, it hands the national credit – that is to say a national treasure over to private individuals, to do as they please with it! … Americans of the revolution had before them … the historical examples of Greece and Rome. In all these states the main contention from first to last between the aristocratic and popular factions arose out of and centered in the monetary system; that greatest of all dispensers of equity or inequity. They had only to take care that the seed they planted was genuine and uncontaminated. Nature was certain to do the rest. Well they planted; and now look at the fruit and see what it is that they planted! They planted financial corporations … they planted private money … they planted financial exemptions from public burdens…In a word they planted another revolution.”
Had Congress corrected this fatal omission by legislating the mechanism for creating currency and issuing credit, our monetary system would not have been hijacked at the turn of the 20th century. In 1934, Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, described the cabal of world bankers who enslaved America 1913. He stated on the Congressional record:
“These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky’s passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors.
“Mr. Chairman, when the Federal Reserve Act was passed, the people of these United States did not perceive that a world system was being set up here which would make the savings of the American school teacher available to a narcotic-drug vendor in Acapulco. They did not perceive that these United States were to be lowered to the position of a coolie country which has nothing but raw material and heart, that Russia was destined to supply the man power and that this country was to supply the financial power to an “international superstate” ~ a superstate controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.”
The financial crisis we are facing at this moment is not the result of random chaos, gross incompetence or simply widespread fraud. The ‘gigantic train of crime that was set in motion’ one hundred years ago has been a premeditated and skillfully orchestrated assault on our freedom. Speaking to the Trilateral Commission in June 1991, David Rockefeller, godfather at the Council on Foreign Relations, expressed the collective cabal’s enthusiasm for global colonization (globalization):
“We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But the world is now much more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”
One can hardly describe a totalitarian regime as “preferable to auto-determination.” This self-described “intellectual elite” manifests classic psychopathic delusions of being above the law with “supranational sovereignty” that disregards the inalienable rights of others. Rockefeller’s gratitude to media ventriloquists for their complicity in destroying our national sovereignty and undermining our right to self-determination ~ “forty years of discretion” ~ is not shared by the millions of Americans who voluntarily choose the form of self-governance proscribed by our Constitution. Perhaps this media complicity with treason explains the nationwide hysteria being broadcast throughout every channel of public discourse with prophecies of total economic collapse if we do not surrender our assets to the masters of fraud whose ransom demands include exclusive control over the economic and financial life of the US forever, with legally-binding agreements that “may not be reviewed by any court of law or any administrative agency.”
Wall Street tactics are predictable. At the turn of the 20th century, the cabal of world bankers that hijacked our monetary system staged a “money panic” to create public demand for banking reform. Orchestrated bank runs conveniently collapsed their competitors’ banks. The architects of banking “reform” who wrote the legislation for the Federal Reserve Act were the same masters of fraud who created the panic ~ Rockefeller, Rothschild, JP Morgan, Warburg, Kuhn Loeb, Lehman Brothers. Not satisfied with capturing a monopoly on the nation’s credit and debt, the international banksters set off a second wave of plunder and greed known as the global Great Depression. They deliberately constricted the flow of credit. Loans were called in. The stock market crashed. Hundreds of banks collapsed. Large corporations swallowed up smaller corporations for pennies on the dollar. Mass unemployment led to cascading foreclosures. Real estate values crashed as speculators happily expanded their portfolios. The same massive transfer of wealth is being repeated today. The grotesquely-wealthy are embezzling the life savings of working families and destroying small businesses to expand their malignant global monopolies.
The architects of this “Wall Street financial crisis” are strangling our economy with “structural adjustment policies” that will permanently devastate our country. The middle class is being deliberately destroyed by the international financiers who control our government and our financial system. They are “supranational elitists” as Rockefeller stated, imposing their twisted ideology of global despotism on every nation they bankrupt and devour. They call their pathology globalization. This is the source of global debt. This is the source of global poverty and war. This is the source of systemic disease that must be corrected.
Every citizen must pressure Congress to completely reject Henry Paulson’s demands as a first step toward protecting our country. No bailouts for criminals. Not one penny. Insist on a new bill that will resolve the short-term crisis with long term stability:
- Abolish the Federal Reserve System and establish publicly-owned banks.
- Transfer all assets held by the “Federal” Reserve to a new agency, exclusively controlled by the US government and staffed by loyal US citizens that have no vested interests in the private sector.
- Establish a government-owned lending institution with authority to issue credit to qualified borrowers.
- Freeze all foreclosures and reschedule loans for victims of mortgage fraud at reasonable fixed interest rates for thirty years.
- Return stolen homes or compensate victims of foreclosure fraud with reparations paid by the perpetrators ~ not the taxpayers. If necessary, freeze the assets of perpetrators.
- Amend the bankruptcy laws to allow courts to provide relief to victims of usury and fraud.
- Repeal the Commodities Futures Modernization Act. Reinstate the Glass-Steagall Act and every other regulation that protected public assets from Wall Street speculators. Impose strict regulations on the financial industry. (Nomi Prins timeline of deregulation)
- Investigate systemic financial fraud and indict criminals.
- Allow institutions to fail that willingly participated in Ponzi schemes. No taxpayer bailouts.
- Replace the “fractional” reserve banking system with a genuine reserve system.
- Break up monopolies and separate financial sectors.
Congressman Ron Paul (R-TX) has introduced HR 2755 to repeal the Federal Reserve Act and to abolish the Board of Governors of the Federal Reserve System and the Federal Reserve banks. This is the most important legislation of our lifetime. With the whole nation braced for catastrophe, this is the moment to demand reform of our monetary system. If your representatives will not commit to supporting this bill NOW while the whole nation is watching, replace them in November with candidates who are committed to passing this legislation. As one unified field of consciousness we can change our destiny by building unanimous support for this bill before it is brought to the floor for a vote.
We are living in a critical moment of American history ~ and we are no less extraordinary than the brave revolutionaries who dared to “declare these truths to be self-evident; that all human beings are created equal, that they are endowed by Creation with certain inalienable Rights, that among these are Life, Liberty and the pursuit of Happiness ~ That to secure these Rights governments are instituted among Men, deriving their just powers from the consent of the governed ~ That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness…. But when a long train of abuses and usurpations, pursuing invariably the same object, evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.”
This is the moment to reclaim our sovereignty and create a genuine legacy of freedom for future generations ~ a new monetary system wholly owned by the People of the United States.
Nikki Alexander welcomes comments from readers, email her at firstname.lastname@example.org.