That “omnibus spending bill” which I mentioned last week, exceeded even my wildest expectations. The final bill, had thousands of pieces of fat in it, was over 3600 pages, and was 14″ thick. Naturally, no one read it before voting on it, and the politicos indeed did bring home the bacon. Another nail has been driven into the bankruptcy coffin of the United States of America. Thanks to legal tender laws, we have been bankrupt for decades anyway, and the final nail will be driven at some future date, which date no one knows.
Thomas Jefferson and Alexander Hamilton were at odds about economics. Jefferson wanted no part of a central bank, and Hamilton was all in favor of one. A central bank, such as Paterson’s Bank of England, or the current Federal Reserve, creates money out of nothing, and lends it to the government today, just as Paterson loaned to the king 350 years ago. The King had to pay interest to Paterson’s bank, even though the pounds were created out of virtual thin air. The current Federal Government has to pay interest to the Federal Reserve, and those who bought its notes, which created the legal tender, or fiat money, out of thin air also. The Federal Government’s income is far less than it spends, as witness the latest omnibus spending bill. It must get the Federal Reserve to issue more legal tender or bookkeeping entries, to pay its bills and interest, which obligates the government to pay even more interest on money created out of thin air, by a privately owned central bank. Does that make the matter clear? I hope so, because it is one of the great frauds of all time.
At the federal level, more than 100% of taxes collected, are paid to the privately owned Federal Reserve central bank and those who bought its notes, as interest on money created by it from nothing. Furthermore, since the interest alone, is more than the collections, and since more fiat legal tender must be created each week, the government’s indebtedness to the central bank and those who bought its notes, continues to grow. This is not all. Since foreign nations also buy our debt, which was created out of nothing; they are paid interest on it by our government. When they bought our debt, they bought it with money they created out of nothing also, so they can receive interest on their legal tender fiat money, which interest also was created out of nothing. The whole shebang is one great big, gigantic, fraud. “Well, since it was all created out of nothing, don’t we owe it to ourselves? Can’t we just eradicate the fiat money, legal tender, debts, notes, and all the complex stuff, and return to the original non-legal tender form? I wish we could, but we can’t, because those who loaned or borrowed, have their capital tied up in this fraud. Their capital, net worth, wealth, and operating funds, are all tied up in this fraud, so if it were all suddenly dissolved, chaos would result. Chaos, rather than slow disintegration, as is now happening. Would you rather die of a lingering disease, or be hit by a dump truck, and end it all suddenly? That’s not quite it, but it may be close.
The entire money system, is based on debt owed to a central bank, now-a-days called the Federal Reserve. If there were no central bank or legal tender, the system would be mostly honest. If the legal tender laws hadn’t been passed, government couldn’t have grown to the preposterous size we now see, and politicians couldn’t be re-elected by promising to bring home the bacon, as in the latest omnibus spending bill. The politicos love the word “omnibus,” because no one will read it, vote against it, or examine it. If they did, and it was published before the vote, the thing would die from sheer outrage by the public. Then there would be no “free” bacon to bring home, and they would not be re-elected. They couldn’t allow that to happen! We then, are all being held hostage by our Representatives and Senators, who are supposed to represent us. They use the word “represent,” differently than do I. They think “represent,” means print more money, issue more legal tender, tons of fiat paper, and a billion dollars of it a day, to finance their pet projects. These pet projects, are the bacon they bring home.
This type of “representation,” is in fact, a wholesale theft of their constituents’ life blood. That new fire station or city park, is built with legal tender created out of nothing, and for which interest must be paid to the privately owned bank, which issues the legal tender. Since more and more legal tender must be created to pay the interest on the already created legal tender, the amount of legal tender in circulation, escalates almost exponentially. The more that is printed, the less it is worth, so that new fire engine or city park was no “gift ” at all, but just another debt. That debt, has then resulted in the fiat legal tender in the constituents wallet or bank account, decreasing in purchasing power or “value.” In other words, thanks to the omnibus spending bill, plus of course Iraq, welfare, and numerous bureaucracies, the legal tender loses value and purchasing power. A gigantic theft has resulted, which certainly has exceeded that new highway or city park in value.
There is no greater theft, which has been practiced throughout the centuries, by 100% of all governments that have ever existed, than legal tender. “Tender,” as was discussed last week, means you can pay someone, or “tender payment.” When the word “legal” is added, the phrase has a fishy taste in one’s mouth. When something is “legal” or “illegal,” to me, it means that the descriptive adjective is indicative of something, which maybe should not exist. One should be able to “tender” payment in a method one chooses to do, rather than tendering payment in a compulsory device, such as a “legal” one.
This brings us to “barter.” “Barter,” which carries the dictionary definition of, “Trade, by exchanging goods or services, without the use of money,” is a method of avoiding the use of legal tender. Barter has several advantages. One of them is the ability to exchange goods or services while avoiding various taxes. Examples might be exchanging a few hours work for various farm or other products. Income, Social Security, and state taxes on the wages are avoided, as are the local sales taxes. If someone hires a laborer and pays them in either out of pocket legal tender or goods, the laborer has in reality been given a 40% raise, and it has cost the employee 40% less. A casual one day laborer, who is paid $10 per hour in legal tender, with no taxes deducted, in reality would have to be paid about $18 per hour, if he or she were “on the payroll,” to end up with the $10.
This is merely one of the evils of the legal tender system. Figure it out for yourself. If there were no legal tender laws, and all were on the up and up economically and monetarily, there would be no debts to a central bank to pay, and no deficits in various budgets. There then would be no income tax or Social Security taxes in existence, and the gold coins and silver coins would be in circulation, with bills and labor costs being paid in them. The $10 per hour labor might be actually paid about 25 honest cents per hour, because the dollars would not have been debased. Social Security would have never been passed by the originator of it, (FDR and his Democrat Congress), because people would have looked out for themselves in a stable monetary system.
And this is not all of the legal tender system which must be examined. We have not even touched on the banks, which I’ll do next time. Have a happy Turkey Day. I am going to take a week off from Dec 13 -17. Protect yourself.