Money Masters Transcripts Part 24


1. Pay of the national debt with debt-free U.S. Notes (or Treasury department credits convertible to U.S. Notes). As Thomas Edison put it, if the U.S. can issue a dollar bond, it can issue a dollar bill. They both rest purely on the good faith and credit of the U.S. This amounts to a simple substitution of one type of government obligation for another. One bears interest, the other doesn't. Federal Reserve Notes could be used for this as well, but could not be printed after the Fed is abolished, as we propose, so we suggest using U.S. Notes instead, as Lincoln did.

2. Abolish Fractional Reserve Banking. As the debt is paid off, the reserve requirements of all banks and financial institutions would be raised proportionally at the same time to absorb the new U.S. Notes and prevent infiation, which would be deposited and become the banks' increased reserves. At the end of the first year, or so, all of the national debt would be paid, and we could start enjoying the benefits of full-reserve banking. The Fed would be obsolete, an anachronism. This same approach would work equally well in Canada, England and in virtually all debt-based, central bank controlled economies.

3. Repeal of the Federal Reserve Act of 1913 and the National Banking Act of 1864. These acts delegate the money power to a private banking monopoly. They must be repealed and the monetary power handed back to the govemment (in the U.S., the Department of the Treasury), where they were initially, under President Abraham Lincoln. No banker or person in any way afflliated with financial institutions should be allow to regulate banking. After the first two reforms, these Acts would serve no useful purpose anyway, since they relate to a fractional reserve banking system.

4. Withdraw the U.S. from tbe IMF, the BIS and the World Bank. These institutions, like the Federal Reserve, are designed to further centralize the power of the international bankers over the world's economy and the U.S. must withdraw from them or lose its sovereignty and independence. Their harmless, useful functions such as currency exchange can be accomplished either nationally, or in new organizations 1imited to those functions. …

{p. 83} Issuing debt-free currency, not tied to bond issues, is not a radical solution. It's been advocated in its parts by Presidents Jefferson, Madison, Jackson, Van Buren and Lincoln. It's been used at different times in Europe as well. One current example is one of the small islands off the coast of France in the English Channel. Called Guernsey, it has been using debt-free money issues to pay for large building projects for nearly 200 years.

Guernsey is an example of just how well a debt-free money system can work. In 1815, a committee was appointed to investigate how best to finance a new market. The impoverished island could not afford more new taxes, so the State's fathers decided to issue their own paper money. They were just colorful paper notes, backed by nothing, but the people of this tiny island agreed to accept them and trade with them.

To be sure they circulated widely, they were declared to be "good for the payment of taxes." Of course this idea was nothing new. It was exactly what America had done before the American Revolution and there are many other examples throughout the world. But it was new to Guernsey, and it worked. The market is still in use, and remember, it was built with no debt to the people of this island state.

But what if we follow Guernsey's example? The resulting advantages would include: no more bank runs; bank failures would be very rare (on the rare massive theft); the national debt would be entirely paid-off; the monetary, banking, and tax system would be more efficient and simplified; significant inflation and deflation would be eliminated; booms and busts would be reduced to insignificance; banker control of our industry and political life would end.

How would the bankers react to these reforms? Certainly the international bankers' cartel will oppose reforms that do away with their control of the world's economies, as they have in the past. But it is equally certain that Congress has the Constitutional authority and responsibility to authorize the issuance of debt free money - U.S. Notes, just the same as Lincoln's Greenbacks, and to reform the very banking laws it ill-advisedly enacted.

Undoubtedly, the bankers will claim that issuing debt-free money will cause severe inflation or make other dire predictions, but remember, it is fractional reserve banking which is the real cause of over 90% of all inflation - not whether debt-free U.S. Notes are used to pay for government deficits. The simultaneous transition to full reserve banking will absorb the new notes, thus preventing inflation, while stabilizing banking and the economy.

In the current system, any spending excesses on the part of Congress, are turned into more U.S. debt bonds. The 10% of the bonds purchased by the Fed (in order to provide the high-powered money liquidity in the capital markets needed to purchase of the rest of the new bonds), are then multiplied ten times over by the bankers, causing over 90% of all inflation. …

Educate yourself and your friends: read. "When you know a thing to recognize that you know it, and when you do not, to know that you do not know - this is knowledge." - Confucius

Our country needs a solid group who really understand how our money is manipulated and what the solutions are, because if a depression comes, there will be those who will come forward advancing solutions framed by the international bankers.

Beware of calls to return to a gold standard. Why? Simple. Because never before has so much gold been so concentrated outside of American hands. And never before has so much gold been in the hands of international governmental bodies such as the World Bank and International Monetary Fund. In fact, the IMF now holds more gold then any central bank.

The Swiss are under intense pressure from the Money Changers to dispose of their gold. This is most likely either a prelude to the complete demonetization of gold (like silver before it), or to its monopoliation and remonetization by the Money Changers.

Therefore, to return to a gold standard would almost certainly be a false solution in our case. As was repeated in the Great Depression: "In gold we trusted; by gold we're busted."

Likewise, beware of any plans advanced for a regional or world currency - this is another international banker's Trojan Horse - a deception to open the national gates to more international control.

Educate your member of Congress. It only takes a few persuasive members to make the others pay attention. Most Congressmen just don't understand the system. Some understand it, but are influenced their bank stock ownership or by bank PAC contributions to ignore it, not realizing the gravity of their neglect. Obviously, there is little chance for significant monetary reform at present. But if an opportunity ever does present itself, perhaps in a crisis, at least they will have been given the information to avoid merely floundering in banker-inspired confusion as did many sincere reform-minded Congressmen in the Great Depression.

We hope we have made a useful contribution to the national debate on monetary reform. It remains for each man to do his duty, consistent with his state in life. May God give us the light to help reform our nation, and ourselves. We say ourselves, because ultimately vast multitudes of men are going to be driven more and more to desperation by the accumulation of the world's wealth in fewer and fewer hands. Men will be tempted more to become like their oppressors, selfish and greedy. Rather, let's keep in mind a warning not to lose sight of greater things. As Pope Pius put it:

"For what will it profit men that a more prudent distribution and use of riches make it possible for them to gain even the whole world, if thereby they suffer the loss of their own souls? …"

Acknowledgement and credits

The Money Masters: How International Bankers Gained Control of America

Video Script
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998

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