Thu, 01/01/2015 - 23:32 | 5613916 MEFOBILLS

Tylers, maybe a little clarification is in order to not lead your readers astray.  Bubbles and all the other failures
you rail about are a predictable output of current system design.

In our current money system, where private bank fiat (credit money) is what we use for our circulating medium,
there must be government borrowing and spending.

In the private sector, people borrow from banks through hypothecation, and that bank money created as loans
circulates in the money supply, to then return to ledger for destruction during its accounting cycle.  More is
always required to return to said ledger because of interest/usury.

In other words, the usury on our private bank credit unbalances the equation to where more must always return. 
Debt instruments and their hypothecated private bank fiat cannot get together to self-extinguish.  It is
impossibility, a fraud really, built into our credit system and is central to an elaborate con and goal is rent taking
and control.  Creditor is always over debtor, thus political control is actually subservient to money power.

In order to cancel private debt instruments, there must be depressions, so real assets can be transferred.  Usually
land is attached to debts for security, as land has title and other legal means.  Land then becomes the fungible
asset backing up private debts.  This is why the land and property in New York exceeds the value of all industry
in the U.S.  So, American’s want jobs and things to be properly priced, how is that possible when land is
distorted while industry is harvested to then become subservient to finance?

In order to keep people from being harvested in depressions, Government must spend its fiat.  Government gets
its fiat by creating bonds (TBills) and then swapping said bonds with private banks.  Private banking
corporations then create their bank money and give it to government.  Government then spends this now
borrowed credit (Federal Reserve notes) into its sector, and ultimately this money ends up in the general money
supply for everybody to use. 

  Government bonds are backed up by taxation, which really is the 16’th amendment, forced on a unwitting
sheeple America in 1913.  It’s no accident the Federal Reserve, and 16’th and 17’th amendments were created
as part of this “progressive era” banking machinery, as banking credit system needs backstop due to its inherent
instabilities.  The 17’th is used to buy off and influence Senators and also disenfranchise States from political
power, thus destroying Federalism.  I must add that this system machinery was foisted on America as a
conspiracy plot funded primarily by Ashkenazi Jews of both England’s and Germany’s (private) banking
sector.  This is the undeniable historical record for any honest researcher.

Government in its sector is the most efficient producer.  Government’s sector is inelastic markets and the
commons.  This is also an undeniable truth.  We need government to do its job, and it is the only force that can
stop rent taking and outright usury theft of the private economy which thus enable rent stealing as profits to
bankers and finance e.g. wall street and international bonds.  Therefore, representative government is both
parasitized and then demonized by this system. Hypnotic suggestion and outright lies, are whispered into our
ear, usually by a paid off prostitute media.

In our current banker credit system, government deficit spends by going into debt to said bankers.  These are
then public debts, which could be jubileed if we had proper law in place.  We owe public debts to ourselves
supposedly, but must pay TBTF private bankers usury for their right to make keyboard entries (to create new
bank credit).  Who owns the private banks at the top of pyramid –are they Americans? Are they loyal to
American foundational principles?
Private debts will always mount and grow with usury and other financial engineering methods such as re-
hypothecations, swaps, derivatives, etc.  The housing bubble was private debts pushing land as an asset class in
a positive feedback loop.  Even NIPA accounting statements show this as “growth” thus accountants are also in
on the con game.

 The population will be harvested when finance chooses. Finance simply calls in loans or slows down finance
rate.  Government going into debt, to then create new money, forestalls this harvesting of the private economy,
allowing producers some respite.

Make no mistake; Greenspan was a monetarist of the Chicago School.  So, he was a stooge and shill for private
banking corporations, and he is direct ancestral lineage to the same Ashkenazi Jews who foisted the progressive
era legal machinery on America in 1912, thus destroying our Federalism and the promise of our founding.

See Godley’s sector equations for how government must go into debt for us to have any savings.

http://en.wikipedia.org/wiki/Wynne_Godley

Thu, 01/01/2015 - 23:56 | 5613950 Greenskeeper_Carl

"we need govt to do its job, prevent rent taking and outright theft"

So, what you are saying is, we need the govt to steal from us so that it can then prevent others from stealing
from us? that might be one of the most insanely idiotic things I have ever heard

 reply

Fri, 01/02/2015 - 00:21 | 5613982 MEFOBILLS

A Federalist system has political control.  A parasitized Washington Consensus government, really an
Oligarchy is not of the people.

A constant drumbeat of fiat bad, government bad, everything bad, makes people confused - this is hypnosis in
action.

Think carefully on this.  Our supposedly representative government is subservient to several power groups:

1) Extraction industry - which includes oil and minerals  2) Farming sector  3) Military Industrial Complex  4)
Banking and Finance.

Of these number 4 is the most powerful.  Israeli lobby and Zionism is embedded in Finance, and the money
power can easily overcome and influence the rest of the interests.  These interests run America, not politics, and
certainly we do not have political capitalism.   No Federalism and NO poltical capitalism.  These ideas about
political capitalism and Federalism- the main thrust of America were usurped in 1912.

We now have financial capitalism, run by and for special interests.  Our vote is not important.  We have paid for
political stooges, who use propaganda and the machinery now in place to buy our votes.  Also, power is not
down low in the states and counties.  Power has centralized to Washington, a direct output of the machinery.
A proper Federalist structure puts the polity into balance. For example, States no longer recall their Senators
due to the 17'th.  Example:  Obama care was pushed onto Massachusets despite Romney Care being superior.
When was the last time anybody has heard of a Senator being recalled to be remanded and do the states
bidding?

As soon as the 17'th was passed, Washington had stratospheric growth, as States no longer were a restraining
force. 

Fri, 01/02/2015 - 02:46 | 5614076 Oh regional Indian

MEFOBills, thanks for this series of very well strung together comments.

Very enlightening....

Fri, 01/02/2015 - 10:20 | 5614605 new Greenskeeper_Carl

I understand all that. The first two steps to 'fix' the constitution would be a repeal of the 16th and 17th
amendments. But if history tells us anything, it is that govts tend to move towards totalitarianism, and I don't
think we need it to do any of the things you describe. Govts ALWAYS overstep their bounds. The current near
monopoly a handful of corporations have today could not exist without the govt, neither could out banking
ststem( the fed is obviously part of that too). However, as well intended as out constitution may be, it's a deeply
flawed document. Conservatives like to say 'if only we followed the constitution, everything would be better.
What they fail to understand is that the constitution either outright authorizes this govt in its present form, or is
completely powerless to stop it. Either way, it has been rendered nearly meaningless. Lysander spooner figured
all this out over a century ago, when Lincoln really got out of hand around the civil war. It has only gotten
worse since then. The idea that we can remake this govt into something small and friendly is farcical.

Fri, 01/02/2015 - 00:56 | 5614009 Joe A

"Government in its sector is the most efficient producer." Government in its sector has no competition for it has
monopoly. So it cannot be compared to anything else so how can we determine efficiency? Is there an
alternative?

"We need government to do its job". Government firmly in the hands of interest groups and the financial sector.
And I guess efficient for them. "The population will be harvested when finance chooses." as you said. Question
is, how to regain government to do its job which is to serve the people.

Anyway, keep up the good work. I like your postings. I am not sure about the Jewish component of them
though. For me it is still quite difficult to imagine that such a small group can have so much influence. Although
they seem to be disproportionately overrepresented in the financial system I would not deduce overall
conclusions from that. Most Jews in Israel have a hard time to make ends meet.

Without sounding patronizing, your 'newbee's' contributions are refreshing compared to the influx lately of
either pro Kiev or pro Moskou trolls.
Fri, 01/02/2015 - 01:36 | 5614034 MEFOBILLS

Inelastic markets are things like ports, sewer systems, power lines, the military.  Ports are geographic features,
and hence two side by side ports are not available for elastic competition.  Rents could be taken on ports for
example, where the owner would jack up prices to take tolls on the people.  What are you going to do, sail a far
distance to avoid the extra fees?

It would not do to have competing nuclear power plants, or competing Air-Forces, etc. as this is duplication and
waste. 

Therefore, inelastic markets and their regulation is a prime feature of government.  These markets and public
commons are the province of government.  Without regulation of these markets and the commons, they will
soon be turned over to monopoly forces who would take rents. 

Tolling formerly free roads, already paid by our ancestors, is a good example of the commons being usurped for
oligarchy.  Britain recently selling off its postal holdings to private entities, and then getting kickbacks to
politicians is another example of rent takings on the commons to fund oligarchs.

When money is created through hypothecations, it is really your credit.  You are being hypothecated.  You then
spend this bank credit into the money supply, WHERE OTHER PEOPLE USE IT.  Therefore, money is of the
commons, and is a government prerogative.  Private banking corporations do not want the sheeple to know that
money properly is of the commons – they will lose their easy life of rental income and power control. 

All of this disinformation that is spewed by the media is designed to confuse the minds of the sheeple, and keep
their eye off of the ball. 

A properly constituted government is a necessary evil to prevent rent takings and keep the commons free, and
most importantly keep prices low.  Without efficiency in the market, your output cannot be priced properly, and
you don’t get the fruit of your labor. 

Those that demean all government often are rent seekers who would love to toll the commons and keep labor in
perpetual bondage.  They are already rent takers and want to keep their position.  Witness the now supercharged
industrial revolution we have entered.  Production is up many times due to robotic production and high speed
communications.  Yet, where is the leisure dividend?  I ask again, where is it? 

People are working harder than ever, to then have their output shifted away from them into oligarchy.  People
know this to be true, even though they cannot articulate how it works. 

Here is a good video that describes financial empire, of which are now in:

https://www.youtube.com/watch?v=96c2wXcNA7A

Fri, 01/02/2015 - 01:56 | 5614047 TeethVillage88s

Clear and powerful post.

Fri, 01/02/2015 - 03:40 | 5614118 Joe A

I agree to all that. But ports and other inelastic markets are being privatized at an alarming rate. Government is
clearly in bed with big business. Also the post the other day on the privatization of the US prison system.
Anyway, good posts. Keep 'em coming.

Fri, 01/02/2015 - 06:08 | 5614189 Nockian

Elegant but faulty.

Real monopolies don't exist without States and governments to maintain them. Regulations are simply the
mechanisms of monopoly. They appear to be chains on the rentier, but are really the levers by which they
operate.

its this faulty thinking on supposed 'public goods' that has resulted in our present predicament. We need to free
the markets and break the politically granted priviliges that are destroying competition and innovation.

Money is not a tool of the commons. It is a state granted monopoly which is entirely in the hands of private
corporations known as banks. No other form of authority can grant that privilege other than the state. It has
allowed carteling of the banks, lawful fraud, single issuer corruption which has resulted in privatised profits and
socialised losses.

I was once told to 'build the pipeline'. However, the pipeline is expensive to build and difficult to profit by. The
market decides how much profit can be made and not the pipeline builder. Another pipeline can always be built
or an alternative type of pipeline created if the pipeline owner tries to raise prices too high. In order to protect
the investment he must ensure that his is the only pipeline and for that he requires legislation and regulation.
The only place he can obtain that is by government decree backed by state law and its guns.

Fri, 01/02/2015 - 07:13 | 5614228 GreatUncle

Like the post ... this point.

Yet, where is the leisure dividend?

You cannot have it why? Imagine you have a leisure dividend of 50%v time. The price should be governed by
what people can afford, half the take on half hours and the price must fall accordingly otherwise even with
leisure dividend you can't take it. DEFLATIONARY.

If anything the central bank directly opposes this through stimulus to preserve the sovereign debt and inflate
values / prices. INFLATION.

At the moment this low growth world? Or is a cancellation of the natural deflation and the induced inflation.
THINK SO.

Now no more golf for you, no leisure dividend because you must work 100% to hold up the values :-0.
Fri, 01/02/2015 - 09:21 | 5614409 new tyrone sholaces

MEFOBILLS,

You make it sound as though the government protects the sheep and is not itself under the very same control.

Fri, 01/02/2015 - 11:30 | 5614887 new MEFOBILLS

I notice nobody commented on link I provided above.  It will take about 1 hour of your time.

I'm sorry that people hate government.  But, anarchy doesn't work.  Also, the worst instincts of man need to be
supressed. 

If a goverment bureaucrat issues sovereign money, by law, into the money supply - he gains no benefit.  It is not
for his profit.

Somebody may try to give him a kickback, but then it wouldn't be within a legal framework, and he can go to
jail.

Sovereign debt free money is recalled with taxes.  If they raise or lower taxes, then that is also supervised by the
people and avaiable to be seen

When money is private, and when government is private, and when things are done behind closed doors - that is
when sneaky rent takings begin to happen.  Psychopaths are attracted to these sort of powers.

Limit the psychos from those sort of positions, and keep it lawful.  Law done in advance has the ability for
morality to be encoded.  We can also brain scan for psychopathy now.

Conservatives who think govt bad- govt bad- govt bad, better rethink their positions.  Rent taking bad- Rent
taking bad- is a much better mantra.  

Man is a rent seeking animal, and the worst of us will even create religions and national movements to codify
this behavior.

I just elucidated governments role, and nobody can deny that inelastic markets must have some legal
framework.  If you do deny this, then your are an ideologue who cannot think logically. the commons also make
us all more efficient.   

For example, having clean water makes all of labor stay healthy.

http://sovereignmoney.eu/

Fri, 01/02/2015 - 02:14 | 5614055 TeethVillage88s

Still reading the article.

"The US imported central planning with the Great Depression, but it worked no better here than it had for
Stalin. "

But didn't the banks in 1880 start getting rid of Silver Certificates which farmers like to use since farmers could
not afford gold certificates. Didn't Banks start tightening up the money supply & credit about this time ... and on
up to 1928... then continued tight credit till the US President & Congress passed legislation????

How do you address tight credit in a Recession or Depression when Private banks don't lend and have no
confidence in the US Economy??

Public Banking?? Or National Legislation??

Fri, 01/02/2015 - 03:07 | 5614088 MEFOBILLS

Actually it was recall of greenbacks with the resumption act.  Silver certificates were issued much later under
President Kennedy, which in turn funded much of the Apollo program.  Actually, Kennedy allowed some
reissue of Greenbacks as the law was still on the books.

Between Kennedy forgiving third world debt, and then issuing silver certificates (thus bypassing the FED)
Kennedy was made an enemy of money powers.  As soon as Johnson came into power, the silver certificates
were canceled as legal money, and also nuclear timers were allowed to be stolen by Israel.  Some think that
Johnson was a crypto Jew on his mother’s side.  I must also add that all of the Kennedy family was killed in
Kaballa (Jewish) numerology significance, and when constellations were in alignment.  This clearly indicates
statistically, that money power agents were behind the assassination.  Kaballa is direct descendant of Zohar
mystery religion, learned in the 1000 year sojourn in Babylon, and promulgated by the Sages.

Going back to Greenbacks.  Greenbacks were Civil War treasury instruments that circulated as money.  At first
they had some debt association but were never redeemed.   Lincoln just wanted some money to pay the soldiers
and pay for the war without usury and associated debts. Greenbacks then circulated debt free in the money
supply.  Bankers could put them in their reserve loops and then have bank credit ride on top in a ten to 1 ratio. 
Whenever Greenbacks would leave banker reserve loops, that would unbalance their towering credit as money. 
Greenbacks would often leave local banks and go to Wall Street Banks, to then be played in the stock market. 
Call in loans would retrieve greenbacks especially during harvest season.  This then caused credit bankers
instability as greenbacks (now as base money) would disappear.  So, the bankers hated greenbacks because they
didn’t have enough of them to stabilize their reserves, and they hated them if they circulated outside of their
credit system as debt free money.