Money as Debt

The Blog

There is only one cause of inflation (legalized theft.). That is the creation of wealth by printing it. Everything else is just a symptom of the disease.
Me

Amchel Rothchild said,” Give me control of a Nations economy and I care not who make the laws.”
“If the American people ever allow private banks (the Federal Reserve Bank is a privately owned bank) to control the issue of currency (paper money), 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.”
Thomas Jefferson
(DOES THIS SOUND FAMILIAR TO ANYONE???)
On Tue. Aug 16, 1787, in Convention (the following is taken from James Madison’s notes taken DURING the Convention in 1878).

Mr. Gov Morris moved to strike out “and emit bills on the credit (paper money) of the U. States” If the United States had credit such bills would be unnecessary: if they had not, unjust & useless.
Mr. Butler 2nd the motion.
Mr. Madison, will it not be sufficient to prohibit the making them a tender? This will remove the temptation to emit them with unjust views. And promissory notes in that shape may in some emergencies be best.
Mr. Gov. Morris, was for striking out, without inserting any prohibition. If the words stand they may suggest and lead to the measure.
Col. Mason had doubts on the subject. Congress, he thought, would not have the power unless it were expressed. Though he had a mortal hatred to paper money, yet as he could not foresee all emergencies, he was unwilling to tie the hands of the Legislature. He observed that the late war could not have been carried on, had such a prohibition existed.
Mr. Ghorum, The power as far as it will be necessary or safe is involved in that of borrowing.
Mr. Mercer was a friend to paper money, though in the present state & temper of America, he should neither propose not approve of such a measure. He was consequently opposed to a prohibition of it altogether. It will stamp suspicion on the Government to deny it discretion on this point. It was impolitic also to excite the opposition of all those who were friends to paper money. The people of property would be sure to be on the side of the plan, and it was impolitic to purchase their further attachment with the loss of the opposite class of Citizens.
Mr. Elseworth thought this a favorable moment to shut and bar the door against paper money. The mischief’s of the various experiments which had been made were now fresh in the public mind and had excited the disgust of all the respectable part of America. By withholding the power from the new Government more friends of influence would be gained to it than be almost any thing else. Paper money can in no case be necessary. Give the Government credit, and other resources will offer. The power may do harm, never good.
Mr. Randolph, notwithstanding his antipathy to paper money, would not agree to strike out the words, as he could not foresee all the occasions which might arise.
Mr. Wilson. It will have a most salutary influence on the credit of the U. States to remove the possibility of paper money. This expedient can never succeed whilst its mischief’s are remembered, and as long as it can be resorted to, it will be a bar to other resources.
Mr. Butler. Remarked that paper was a legal tender in no Country in Europe. He was urgent for disarming the Government of such a power.
Mr. Mason was still averse to tying the hands of the Legislature altogether. If there was no example in Europe as just remarked, it might be observed on the other side, that there was none in which the Government was restrained on this head.
Mr. Read, thought the words, if not struck out, would be as alarming as the mark of the Beast in Revelations.
Mr. Langdon had rather reject the whole plan than retain the three words “and emit bills”.
On the motion for striking out
9 for striking out “and emit bills”, 2 for not striking out.

Then, on Aug 28th , 1787

Mr. Wilson & Mr. Sherman moved to insert after the words “coin money” the words “nor emit bills of credit, nor make (use) any thing but gold & silver coin a tender in payment of debts” (Art. I Sec. 10 u.S. Constitution) making these prohibitions absolute, instead of making the measure allowable with the consent of the Legislature of the U.S.
Mr. Ghorum thought the purpose would be as well secured by the provision of art: XIII (by the end of the Convention, the Constitution was pared down to only seven articles but, at the time of this debate, there were several more) which makes the consent of the General Legislature necessary, and that in that mode, no opposition would be excited; whereas an absolute prohibition of paper money would rouse the most desperate opposition from its partisans.
Mr. Sherman thought this a favorable crisis for crushing paper money. If the consent of the Legislature could authorize emissions of it, the friends of paper money, would make every exertion to get into the Legislature in order to license it.
The question being divided; on the 1st part _ “ nor emit bills of credit”
8 to deny it, 1 undecided and 2 against..

So, in 1787, at the Constitutional Convention, the founders of this country reached the decision, and wrote into the Supreme Law of our land, that paper money would NEVER become a medium of exchange in this country.

To insure that this would never happen they wrote Art. I. Sec. 10, which states specifically that, “Congress (NOT THE FEDERAL RESERVE BANK) shall have the power to COIN (NOT PRINT) money and regulate the value thereof.” and in Art. II. Sec. 8 that, “No State shall make (use) any Thing but gold and silver COIN in the payment of debts.”

In the Federalist Papers, No 44, in the attempt to ‘sell’ the Constitution to the public, James Madison (writing as Publius) wrote, “The extension of the prohibition of bills of credit (paper money) must give pleasure to every citizen in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace (referring to the Revolutionary war), from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated (forgiven) no otherwise than by a voluntary sacrifice on the altar of justice of the power which has been the instrument of it. In addition to these persuasive considerations, it may be observed that the same reasons, which show the necessity of denying to the States the power of regulating coin, prove with equal force that they ought not to be at liberty to substitute a paper medium in the place of coin.

Note: The Federalist Papers were a series of letters written by Alexander Hamilton, John Jay (the 1st Chief Justice of the United States Supreme Court) and James Madison, in a New York paper (New York state was a swing vote that, prior to the Federalist Papers, was against ratification.)

And that is what We, the People, agreed to when We, the People ratified the Constitution of the united States.

Note: Most people don’t know that the Constitution was NOT ratified by the State Legislatures. It was ratified directly by delegations of The People chosen within the State..

RESOLUTION OF CONGRESS OF SEPTEMBER 28,1787, SUBMITTING THE CONSTITUTION TO THE SEVERAL STATES
Friday Sept. 28,1787

Congress assembled present: New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Virginia, North Carolina, South Carolina and Georgia and from Maryland, Mr. Ross.
Congress, having received the report of the Convention lately assembled in Philadelphia
Resolved Unanimously that the said Report with the resolutions and letter accompanying the same be transmitted to the several legislatures in Order to be submitted to a convention of Delegates chosen in each state by the people thereof in conformity to the resolves of the Convention made and provided in that case.

For those of you who believe in a Supreme Being, here’s what YOUR BIBLE TELLS YA.

Duet. 25:13-16

Thou shalt not have in thine bag divers weights, a great and a small (a fluctuating medium of exchange – paper money).
Thou shalt not have in thine house divers measures, a great and a small (a fluctuating medium of exchange – paper money).
But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the Lord thy God giveth thee.
For all that do such things and all that do unrighteously, are an abomination unto the Lord thy God.

How can it be made… simpler to understand? Don’t put your thumb on the scale when you’re selling by the pound or short the seller when you’re buying. What this boils down to is don’t deal unfairly with or cheat others.

Moses version was much shorter; thou shalt not steal!

It doesn’t take a rocket scientist to know that the money supply will continue to be expanded (it’s called “INFLATION”). It doesn’t take a rocket scientist to understand that, with an expanded money supply, each dollar bill (bill of credit) will be worth less than the one you hold in your hand (and, if you don’t spend it soon enough, the bill you hold in your hand will not have the purchasing power it had when you earned it.).
Has it occurred to you yet that, whoever is expanding the money supply is stealing from every American… No! Make that every human being (other than themselves) on the planet? Granted, it’s mere pennys, but, if it’s just 10 pennies from each person in the United States (and it’s much worse than that) every time they increase the money supply, multiplied by just the 300,000,000 people in the United States, that’s $3,000,000 they steal.

That being the case, what would induce you to “save” whatever “money” you’ve accumulated? Any idiot can see that the only way to keep up with inflation/expanded money supply is to exchange “money” for something of value before the money supply is expanded (buy real estate, wait til they expand the money supply and, magically, you have earned a profit… or have you?). Try to see to it that ‘the other guy’ gets stuck with the worthless (worth less) paper!!! Can you see how a fluctuating medium of exchange works to destroy the morals of the People?

Money is the instrument, the vessel, in which we store the VALUE of our labor until we need it to exchange for the things we need/want. We must have a medium of exchange that will ALWAYS hold the value that it did when we accumulated it OR whomever controls the fluctuation of the money supply will/does STEAL from every one of us each time they expand the money supply..

When a politician wants to get elected what does he do? Where does he go?
Answer: He goes to where the money is because he knows that money will get him elected.
And to whom does he owe allegiance when he gets elected? Answer: To whomever he got the money from. Who did he get the money from? Read, AGAIN, Thomas Jefferson’s comments:

“If the American people ever allow private banks (the Federal Reserve Bank is a privately owned bank) to control the issue of currency (paper money), 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.”– Thomas Jefferson

Hello! Is anyone listening????

Where do our politicians get their money to get elected? From corporations!!! And where do corporations get the money they donate? They borrow it into existence from “The Fed”.
Who will “our” politicians listen to when it comes time to vote? Obviously, to the entity that gave them the money to get elected and re-elected.

A population operating with coins of gold and/or silver in our pockets can regain control of “our” government. No longer can corporations control “our” politicians through the use of fiat money. The politician MUST COME TO US, must listen to us.
Carrying money made of gold and silver, for all intents and purposes, is like carrying portable real estate around in your pocket. If We the People control the gold we control the economy, we control the government. (expand this idea)

If We the People want to regain control of OUR Country we must first regain control of OUR money. Is that a no-brainer???

When We the People control the money (when we have the gold and silver in our pockets) to whom must the politician come? To whom must he listen? Answer: To We, the people who have the money.
Suddenly our politicians must, once again, begin to listen to US instead of those who create money with a printing press (or, in today’s society and with present technology, by simply pressing a computer button) and their friends (read “corporations”).
If the politician wants to have a war in say, Iraq or Viet Nam, he must pass a tax on, as an example, cigarettes and, if you want to support a war you buy cigarettes and pass them out to your friends. If you DON’T want a war, you quit smoking. You vote with every purchase you make EVERYDAY, with EVERY PURCHASE.
If you wanna save a whale or a tree an honest money system allows you to vote yea or nay with every purchase. They can’t go to the bank that creates money, have them create the money they need, loan it into existence (and, at the same time, reducing our purchasing power by increasing the money supply), and leave us with the bill.
Instead, with an honest money system, they (the politicians/corporations) have to sell their idea to us or we won’t finance it.. Kapeesh?

The way it works right now (and this is an extreme simplification but, basically accurate) Legislature decides to finance some Gawd awful, pork barrel project (or a war in Iraq). They apply to the Federal Reserve Bank for a “loan”. The Federal Reserve Bank sends a message to the Treasury Dept. to print the needed amount. When it is printed and delivered FIRST they pay for the printing with the money they just printed THEN they “loan” the “money” (or rather, the wealth they just created out of nothing) they just had printed to Congress and, to add insult to injury, they charge us interest on the “money” that they just printed and “loaned” to us.
Remember what Roger Sherman said in Convention: “Mr. Sherman thought this a favorable crisis for crushing paper money. If the consent of the Legislature could authorize emissions of it, the friends of paper money, would make every exertion to get into the Legislature in order to license it.”
(Madison’s notes taken during Constitutional Convention)

You wanna stop the war in Iraq? An honest money system will do it. How? Cause King George will have to ask YOU for the money or he don’t get it! Get it?

In 1913 the Congress of the United States, in direct violation of the Constitution of the united States and their sacred trust, gave control of our nations economy to a PRIVATELY OWNED Corporation called the Federal Reserve Bank. This bank now “emits bills of credit” AND “regulates the Value thereof”. THAT JOB BELONGS TO CONGRESS!!! (see Art I. Sec. 10. U.S. Constitution)

“This Constitution, and the Laws of the United States which shall be made in pursuance thereof… shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or laws of any state to the Contrary notwithstanding.”
Art. VI, U.S. Constitution.

The Federal Reserve System is NOT constitutional. Article 1, Section 8, of the U.S. Constitution says:

“The Congress shall have Power … To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;”

Coining money is simply a metal stamping process which determines the size and weight of the coin. The value is simply the weight and fineness of the metal in the coin and this information is stamped onto the face of the coin during the “coining” process. Establishing the “value” of the coin does not mean establishing its purchasing power. It is impossible for governments to establish the “purchasing power” of money. The only thing government can do is to cause money to lose its purchasing power and this robs people of their savings and their future.

We must recognize that the authors of the Constitution viewed “money” as gold or silver coin — not paper. For many years before the American Revolution, the Colonies had been artificially creating paper money. Large quantities of paper “Continentals” were printed to finance the American Revolution. By the time the Revolution was over the “Continental” was practically worthless and the phrase “not worth a Continental” was commonly used to denote anything that had a very low value. Also, Shays’ Rebellion” was a result of states’ tinkering with money. Because of these experiences with manipulated money, the Founding Fathers tried to prevent the fraud always perpetrated on the working class by money manipulators. The only effective way to accomplish that was to mandate gold and silver as “money”. Article 1, Section 10 says:

“No State shall, … make (use) any Thing but gold and silver Coin a Tender in payment of Debts; …”

Thus there is no place in the Constitution that authorizes government to be in the banking business in any way. Neither governments nor banks can “create” money. Government’s only proper function regarding money is to insure honesty. The only proper function of banks is to supervise the investment of money entrusted to them by savers. But how would money get created and circulated in the economy without government and banks? A brief review of the “Coinage Act of 1792″ will help answer that question. This act says: (Emphasis added)

“Section 14. And be it further enacted, that it shall be lawful for any person to bring to the said mint gold or silver bullion, in order to their being coined; and that the bullion so brought shall be there assayed and coined as speedily as may be after the receipt thereof, and that free of expense to the person or persons by whom the same shall have been brought. And as soon as the said bullion shall have been coined, the person or persons by whom the same shall have been delivered, shall upon demand receive in lieu thereof coins of the same species of bullion which shall have been so delivered weight for weight, of the pure gold or silver therein contained: Provided nevertheless, that it shall be at the mutual option of the party or parties binging such bullion, and of the director of the said mint, to make a immediate exchange of coins for standard bullion, with a deduction of one half per cent from the weight of the pure gold, or pure silver contained in the said bullion, as an indemnification to the mint for the time which will necessarily be required for coining the said bullion, and for the advance which shall have been so made in coins. And it shall be the duty of the Secretary of the Treasury to furnish the said mint from time to time whenever the state of the treasury will admit thereof, with such sums as may be necessary for effecting the said exchanges, to be replaced as speedily as may be out of the coins which shall have been made of the bullion for which the monies so furnished shall have been exchanged and the said deduction of one half per cent shall constitute a fund towards defraying the expenses of the said mint.”

In other words, the Coinage Act of 1792 was simply the implementation of Article 1, Section 8 of the Constitution.

The basic concept behind this act was to provide a means for owners of gold or silver bullion to have it minted into a coin whose weight and value (fineness) would be certified by a trusted agent (government). The owners of these coins could then spend them into circulation and thus provide money for public use. Notice that no banks are necessary to accomplish this goal and the government only provides the service of coining the bullion. It is also noteworthy that the Constitutional authorization for coining money is included in the section on weights and measures. In other words government’s only role was to provide a standard for the coinage of money just like they provide standards of weights and measures and this is the limit of their authority This is a vastly different concept from the one currently practiced in the U.S. today — and by practically every other nation on earth.

Incidently, the Coinage Act of 1792 is still in effect — it has never been repealed.

The Constitution of the united States is kinda like a coral… It’s a fence of sorts and it surrounds… GOVERNMENT! It’s there to protect We the People from a runaway GOVERNMENT. It’s there to govern… government! NOT to rule over people.

We the People, of the united States, in order to: (1) Form a more perfect union, (2) Establish Justice, (3) insure domestic tranquility, (4) Provide for the common defense, (5) Promote the GENERAL welfare and (6) Secure the blessings of Liberty to ourselves and to our posterity, do ordain and establish THIS Constitution for the united States of America.

The very purpose of the government that We the People established is stated quite clearly:

1. To form a more perfect union.
2. To establish Justice.
3. To insure domestic Tranquility.
4. To provide for the common defense
5. To promote the general Welfare.
6. To secure the Blessings of Liberty to ourselves and our Posterity.

Article IX (also known as part of the Bill of Rights)

The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people.

Article X.

The powers NOT DELEGATED to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

EVERY GOVERNMENT OFFICIAL (State AND Federal) IS BOUND TO UPHOLD AND DEFEND THE CONSTITUTION. OF THE united STATES. THEY TAKE AN OATH TO DO SO!

A Law, in order to have any effect, must be in pursuance of one of these six ideals WITHOUT violating the other five… Tough job but that IS the job!

This is the test that EVERY law must pass in order to be considered law.

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