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The seven "C's" of Currency fraud .......................................65

The Treasury creates $50 million bond.

The Treasury sells $50 million bond to Fed for $50 million "deposit credit."

The Treasury has $50 million in checking account. Fed has $50 million bond. The Treasury owes Fed $50 million plus interest.

The Treasury gives Fed $50 million in currency (Fed notes) for distribution by the Fed (to

cash treasury checks).

Fed has $50 million in "coins" and bills.

Fed has $50 million bond from Treasury.

Treasury owes $50 million to Fed plus interest.

Fed received $50 million from Treasury at no cost to distribute.

In 30 years, Treasury pays Fed $90 million in interest.

Total Treasury received: Total Fed received:

$50 million "deposit credit." $50 million in "coins" and bills.

Minus $50 million Treasury $90 million in interest.

gave Fed in currency. $140 million

Net receipts of Treasury: Net receipts of Fed:

-0- $140 million

Many voices throughout our country are in agreement today that in the federal reserve system, fractional reserve banking is the root cause of our "inflation" and related difficulties.

The purpose of this writing is not to disagree with that conclusion in any way.

Many voices are in agreement that in the federal reserve system, fractional reserve banking should be taken over by Congress and run for the benefit of the people.

With this suggested solution this writing disagrees.

Our nation's difficulties are due to the fractional reserve system, and it would not matter who operated same, our difficulties would continue. What must be observed is that inflation is the "dollar" and that imaginary demand vs. supply (dollars vs. wealth) is exactly what "fractional reserve" is all about.

When our citizens could at any time enter a bank and demand "specie" payment (gold or silver coin) for their dollars, they were in fact actually checking the amount of spread between the dollars (imaginary demand) in- circulation and the specie (wealth) held in reserve for their redemption. Specie was in fact the "wealth" the "dollar" tokens were imagined to represent. The dollar tokens could always be exchanged for specie (wealth) at the point of issue (banking system). The issuance of dollars could not exceed, by more than ten times, the amount of specie held for their redemption, or it became evident and the banking system collapsed.

Because the operators of the system wished to exceed the "ten times" barrier, it was necessary for the redemption privilege to be removed, first the gold coin in 1933, and then the silver coin in 1965. Specie redemption was no more!

The removal of all redemption privilege "from the issuer" left them (the operators) free to expand, expand, and continue to expand the dollar volume without any discipline whatever, or any way for the people to check the volume of inflation being created.

When we the people write a check we must have the necessary "credit" on deposit to

cover" our check. Dollars issued and nonredeemable are in effect "bad checks" that circulate and are exchanged for wealth by the people amongst themselves, but are never discovered to be "bad checks" because the "clearing house" (redemption window) is closed; they can circulate almost forever with no one the wiser.

It is this condition that has led to the belief of many people that if the system survived to date on just the "people's faith" in dollars, it can go on forever. It would appear that it has "worked" without any "side effects" so far, but this is not true. Nonredeemable dollars are loaned into circulation and convey to the issuer the vested title to the wealth that is pledged as collateral, and is purchased outright with the interest income.

As the total dollars created accumulates, the vested title to the wealth they "expropriate'' accumulates to the ''issuer" and the "wealth producers" are left with a tremendous accumulation of depreciating and eventually worthless paper.

At the present time the accumulated title to wealth vested in the dollar creators is greater than the entire worth of the United States. Inflation and its related difficulties will not be eliminated until we return to a redeemable currency, and the people's right to test that redemption, with demands for redemption in specie. Since it was the removal of the privilege of specie redemption that allowed the situation to deteriorate to its present condition, it is quite evident that only a return to the privilege of specie redemption can be a cure.

Sound banking existed in the past and it could function again in the future without any fractional reserve "Inflation" or related wide-spread over-extension. We the people have to make good" our checks, why not the bankers on theirs? By restoring the people's right to trade in sound "specie" (wealth media), the old nonredeemable dollars would suffer natural depreciation and eventual total discount.

The situation is far too grave now for sudden deflation or repel The total of the FED, collapse of the monetary unit that would follow that action would create-chaos. It would be much wiser to allow gradual return to sanity and monetary integrity by a slower process of the natural application of Gresham's Law and the eventual elimination of the non-convertible dollar by having wealth media competing with it in the economy.

As of now the Fed "buys" U. S. Treasury Bonds with created deposit credits. The Fed ''buys" U. S. currency (coins and bills) with created imaginary debt "dollars'' as a medium of exchange.

It does not cost the Fed anything to create a "deposit credit," therefore the Fed gets coin and bills (currency) at no cost to itself and lends its created credit at interest. All interest it receives is all Profit at all times.

All expenses of the Fed are paid with created deposit credits which are "free" to the Creator. The Fed's expenses are all expropriated from the people: All created credit converted to bills and coins expropriates wealth when exchanged. All created credit is pure inflation per se. Credit creators do not produce wealth and never redeem their creation for wealth. All credit is wealth expropriating, and is functional only because people accept it.

A deposit credit must be created before it can be a demand for currency and become interest bearing -therefore all Fed currency in circulation is ''earning 11 interest for the Fed.

For "everyone'.' to pay interest, "more" deposit credits must be created to facilitate the issue of currency that is to be the interest payment.

"New" borrowing "to pay interest" becomes "principal" itself "at interest" and the system is "self perpetuating."

There isn't any way to stop the system until the legal tender laws are abolished, and the people can again insist on 'specie' payment of debt.

CREATED CREDIT CONVERTED to CURRENCY COSTS CITIZENS CAPITAL!

The main economic function of money is the expropriation of wealth. People produce goods and services. Banker creates money. People must use money. Money created draws interest. Money loans must be repaid plus interest. Interest is a money charge for the use of money. Only the banker creator creates money. Money borrowed to pay interest becomes principal. Borrowing to pay interest increases debt. Increasing debt, increases interest due. Increasing interest due, increases debt. Debt compounds until the bankers stop creating. No more creation, no more interest payments can be made. No more interest payments, bankers foreclose. Bankers collect all the wealth. People are left with all the paper and ink.

With the banks able to circulate their created dollars and lend them out at interest, they were in a position to manipulate the economy of the nation. Lending newly created dollars into the economy was creating "Imaginary demand" for goods and services. It caused greater need for labor to produce the goods (supply); but the initial effect would always be a decrease in the dollar's parity In relation to commodities, the first indicator of "inflation."

"Inflation": Disproportionate and relatively sharp and sudden increase in the quantity of money or credit, or both, relative to goods available for purchases. Inflation always produces a rise in the price level." Webster.

If creating and lending fiat dollars could cause a -boom,- then it- must hold that withdrawing those dollars could cause a "bust"!

"Interest'' was the gimmick; when a bank lends dollars it always demands that the borrower "return" more than he borrowed. As long as the banker continued to create his money and lend it out people could continue to pay the "interest" on their loans. The money borrowed to pay "interest" was the "principal" of another loan and as such also demanded "Interest"; the system perpetuates itself.

To create a "liquidity crisis" and "panic" all the banker had to do was turn off his credit machine." The flow of newly created dollars ''cut off" and the loan payments and interest coming due, people would have to return to the banker "all" the dollars he had created plus other dollars he had not created "as interest."

This sudden drop in "liquidity" (imaginary demand) would lower competitive bidding for supply which lowers the need for labor causing unemployment, and a "rising dollar parity." This condition being the exact opposite of "Inflation" is called "deflation."

"Deflation": Disproportionate and -relatively sharp and sudden decrease in the quantity of money or credit, or both, relative to the amount of goods available for purchase. Deflation produces a fall in the general price level." Webster.

The banker-engineered "deflation" was perfect for his purpose. The bankers wanted the exclusive" right to issue "money" which of course would increase their already incredible power." To get this "exclusive" right to issue "money," they had to discredit gold, destroy the people's belief in it. People had been accepting the bankers' created "money" in exchange for gold and they believed gold was a form of "money" also.

Throughout this text repeated reference to expropriation of wealth has been made. The accompanying diagram has been constructed with the least amount of complexity. The diagram will make it easy to see the total scope of the process.

Box "A" represents the source of wealth, the people and their daily labor to produce wealth.

Box "B" represents the government or more specifically the Treasury of the United States.

Box "C" represents the Federal Reserve System with all its member banks as one integral central bank.

Box "D" represents the expropriation process whereby "money" created by the Fed is exchanged for the wealth of the people.

Box "E" represents the ultimate receivers and holders of the expropriated wealth, that group of Super Stockholders of the stock of the member banks, which in turn are the stockholders of the federal reserve system. They own the fed and through it control the government of the United States, for all practical purposes they own it also.

Looking at point A-I of block "A" the source of wealth this could be a human who worked for his paycheck, his labor produced goods which the employer will sell, rent or in some way pass on for a profit. The employee who furnished the labor is paid with a checknot-wealthnot even a claim on wealth per se a check which is a claim on the employer's account at a bank. The employee's labor aided in the production of wealth but he receives as his share a piece of paper. The employee must take or send that piece of paper (check) to a bank, and either deposit it in his checking account or exchange it for "money" ("dollars") produced at point C-1 block "C".

At this point in time he still feels that "dollars" are wealth because he knows he worked to earn them and his labor is valuable. If he immediately purchases tangible goods with the "dollars" then that will be the first part of the wealth he had earned, that he has seen. When all of the "dollars" have been spent, he has received all of his share of wealth for the wealth his labor produced. If he saved some of the "dollars" and did not spend them all right away, then, he will be vulnerable to all the things that can happen to "dollars" in a money" system, deflation, devaluation and falling "dollar parity."

The "dollars" that he did spend-will eventually find their way back to the creator via direct payments of principal and interest (through block "A" directly to "C"), or via the taxes route (through block ' "A" to "B" and on to "C").

Looking at point A-2 block "A" same wealth-same source the wealth of the government, is the wealth of the people, the government uses the wealth of the people as collateral for its credit. At point B-1 the treasury creates bonds, and by selling the bonds to the Fed receives in return deposit credits in its checking account.

The government checks written and issued point B-2 to people for their goods and services arrive at the bank, in the same way the payroll check did. Eventually the Fed issues "dollars" to people for their government checks in direct exchange or through deposit-withdrawal procedures. These "dollars" when spent will eventually arrive back at the point of creation, through the same routes, from "A" directly to "C" or via the taxes route, "A" to "B" to "C".

The government creates bonds and gets credit deposits for them.

The public when it wishes to borrow must pledge wealth directly to the bank to receive "dollars" A-1 to "C". All "money" must come from the Fed system it is the only legal source of "dollars." All "dollars" from the Fed is "Imaginary debt" government, corporate or private, borrowed into use under legal tender laws. All "dollars" from the Fed are borrowed at interest, you must pay back all that you have borrowed-plus interest.

Assume the interest charge is 6%, All that you borrowed is 10096 plus interest at 6% you must pay back 106% of what you borrowed-THAT IS IMPOSSIBLE! The Fed is the only source it cannot be paid back more than it issued! We are trapped, the chart shows this very clearly, It is impossible to pay back more than is received from the only source.

This is an impossible situation with only one course to follow we must pay the interest, and just let the principal accumulate.

So as long as the system remains it exacts an ever increasing amount of interest (you have to keep increasing the principal to pay the interest) it feeds on itself and grows larger.

Since the principal is always covered by collateral or bonds, the interest is free and clear income to the bankers. There are some people that believe the member banks pay some income taxes, but a quick glance at the chart will show what happens to taxes collected by the government, (they go back to the bank eventually as payments of principal and interest. This total tax free interest income from the government debt alone is $20 billion a year. On the total national debt, Government, corporate and private the interest alone is over $ 120 billion annually. If you have ever wondered why you never see a shabby bank, perhaps this explains it.

The tremendous gain of lending at high interest that which costs you nothing to create, allows banks to accumulate riches unimaginable. Just as in any business the real income accumulation goes to the director -stockholders that manipulate their income producer, to produce the maximum gain. They take the interest income and buy up the wealth of the world. The bankers know the "dollars" are worthless so they exchange them for vast quantities of tangible possessions.

In the Federal Reserve System there are over 4500 banks under federal charters, and over 1800 state chartered banks that are members, and a total of 14,000 controlled directly. There are so many stockholders of these corporations and the chain of command is so sophisticated, that a nucleus of less than a dozen family's absolutely possess all this wealth extracted from the wealth producing public in the land they manage and regulate.

The circulation of "money" and its implied thought, that it all just circulates, that we use it over and over-very neatly conceals its main function, (the expropriation of wealth).

The circulation system of "money" exchanges, corporation to individual, and individual to bank and then, from bank to corporation again is essential to their purpose. It is perfectly efficient as an expropriation of wealth machinery, the wealth is extracted neatly and no one ever even surmises that it is going on. It would collapse in a very short time if we all refused to use it.

If it were possible to educate the people, and if it were possible to go back to wealth media, the extraction of wealth would cease, and our nation would again resume its progress toward ever greater individual standards of living. That is why they outlawed gold and silver coins, they are wealth media. That is why they melted our old silver coins and sold the silver at auction. They don't want us to use wealth media, if we use wealth media, we own our wealth and our elected officials become the servants of the people. The public would regain the power to direct the policies of their government.

Others may ask why can't American citizens own gold. I know why, and so do you now.

Just think of all the income taxes you would not have to pay if you did not use money --there are no income taxes on capital gains until they are sold for ''money".

73 goes here chart

The monetary authority creates money (dollars) using paper and ink.

Money is accepted as a medium of exchange for wealth.

Money is force over people and government.

The monetary authority has power and control.

Only people produce wealth; Money expropriates wealth.

Increasing money volume, increases transfer of wealth to the monetary authority. Production increases with incentive.

Wealth expropriation destroys incentive and some people will settle for subsistence on welfare. Reduction of the work force reduces production.

Reduction of production due to an increase in expropriation.

Reduction of production due to an increase in the money volume.

Less production plus increased money volume increases dollar volume bid per unit of production.

Increased dollar volume bid per unit of production = falling dollar parity.

Falling dollar parity increases cost of production.

Increased costs of production equals less production per dollar.

Less production per dollar equals falling dollar parity.

Falling dollar parity perpetuates a falling dollar parity.

Falling dollar parity causes loss of confidence in dollars.

People purge themselves of dollars for things of value (wealth).

People begin to trade with wealth in "under-ground" free markets.

Using wealth media doesn't require the use of money (dollars).

Money not in ''use" does not control.

Money authority loses control.

The monetary authority "gains" control over people and government by the creation of money. The monetary authority 'maintains" control by the people's acceptance of, and confidence in money (dollars). The monetary authority "loses'' control by the creation of too much money (dollars). People free to trade with wealth, control their government and enjoy freedom. Loss of the right to trade in wealth (gold and silver coin etc.) enslaves people to the monetary authority.

We have been told that where "money" is concerned, we owe it to ourselves, yet foreigners hold some I 10 billion "dollars." Who owes them? We have been told, from time to time, that we have a surplus in the balance of payments on the "official settlements" basis when all that means is that we are in surplus if we don't count the "dollars held" unless they are held by officials. Private foreigner's holdings are not counted.

"Broadly the U.S. registers a payment deficit when foreigners acquire more dollars than they return in all transactions. But although the U.S. lately has been incurring massive deficits on the "overall" basis, it has been in surplus on the "official settlements" measure, which disregards the dollars acquired by private interests abroad and counts only those accumulating in official hands abroad" ...........W.Sj. September 24, 1969

We are told we have gold at Fort Knox, and at the stabilization fund and some on deposit in vaults under the Chase Manhattan Bank. We are told that 371,428,571.423 ounces under the Chase Manhattan Bank is on deposit there by foreign central banks. We are told we have 285,714,285.714 ounces and are left to believe, if we want to, that it is owned by the people of the United States. We are not told that 6,514,285.698 ounces of it is owned by the I.M.F.. and is only loaned to us to hold so we can say that we have it. We are not told that the I.M.F. holds U.S. treasury securities for 22,857,136.000 ounces of gold which is a first claim on "our" gold.

. . . . .. In addition to its regular gold stock of $2.3 billion, the I.M.F. has $800 million of gold temporarily invested in U.S. treasury securities, plus $228 million on 11 special deposit" in the U.S. and $41.4 million in the United Kingdom, a practice that allows those two countries to simultaneously count the gold so deposited in their own stocks . .