Founding Father Thomas Jefferson repeated warning against the privatization of the creation of money, such as occurred in 1913 by stealth.
He said in a letter to John Taylor in 1816, “And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
“Bank-paper must be suppressed, and the circulating medium must be restored to the nation to whom it belongs,” he said to John Wayles Eppe.
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
In 1913, the private banks did get control of the US Federal Reserve and the issuance of the dollar, the legal tender in the USA, by blackmailing the governor and slipping in legislation over Christmas.
That same year, 1913, the US government reintroduced federal income taxes. The Revenue Act of 1913 was instituted because the bankers knew that the stealth privatization of the money supply would be hugely expensive burden for the population and they needed to install a rigid tax system to collect the hidden fee.
Wikipedia reports on the Act…
“The Act also provided for the reinstitution of a federal income tax as a means to compensate for anticipated lost revenue because of the reduction of tariff duties. The most recent effort to tax incomes (Wilson-Gorman Tariff of 1894) had been declared unconstitutional by the Supreme Court because the tax on dividends, interest, and rents had been deemed to be a direct tax not apportioned by population. That obstacle, however, was removed by ratification of the Sixteenth Amendment on February 3, 1913. The Act provided in part that:
“…subject only to such exemptions and deductions as are hereinafter allowed, the net income of a taxable person shall include gains, profits, and income derived from salaries, wages, or compensation for personal service of whatever kind and in whatever form paid, or from professions, vocations, businesses, trade, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in real or personal property, also from interest, rent, dividends, securities, or the transaction of any lawful business carried on for gain or profit, or gains or profits and income derived from any source whatever….”
The incomes of couples exceeding $4,000, as well as those of single persons earning $3,000 or more, were subject to a one percent federal tax. Further, the measure provided a progressive tax structure, meaning that high income earners were required to pay at higher rates.
It would require only a few years for the federal income tax to become the chief source of income for the government, far outdistancing tariff revenues,” says Wikipedia.
What happened in 1913 when the Federal Reserve was privatized?
Imagine a situation whereby a country like say Greece with an average income of 15,000 euros privatized its air. The monopoly company could then charge every person 10,000 euros a year simply for breathing air. By controlling the local government, it could seize houses if people could no longer pay their debt to the air company or even cut them off from air altogether.
The way out of this disaster is to make air free again.
In the same way, the only way out of the ongoing financial US disaster is to make money as the key medium of trade free again as it was before 1913 in the USA. It should be put in circulation by the government with inflation controls.
The USA should return to the status quo of Thomas Jefferson. That would end the boom and bust cycles. It would also allow for huge cuts in federal income taxes since a vast amount of this tax goes to pay for privatized money.
Donald Trump appears to be considering spending a trillion dollars on an infrastructure project by borrowing from the banks on the advice of bankster bankruptcy vulture Wilbur Ross and his treasury pick, apparently pushing a disastrous repeal of the Frank Dodd Act.
Yet this money will add to the country’s debt and likely cause inflation. As inflation rises, the central bank will hike up interest rates. The higher interests in a shrinking economy will put a lot of companies out of business, including potentially his hotel empire. The end effect will be fewer jobs. Wilbur Ross and the banksters will be able to clean up on the assets for a pittance.
What can Trump do?
He can legislate to return the USA to the sovereign issuance of money and renationalize the Federal Reserve. Then he becomes the banker who can decide what to spend and where with no hidden costs in the form of interest. The best plan is to focus on all projects that are likely to result in actual production. This includes education and infrastructure etc.
To keep prosperity, all he has to do is install strict inflation controls and drain money out of the system if increases in actual production in the real economy stall.
This and a strong domestic market will be the basis of long lasting prosperity.
A switch over will have to be accompanied by some kind of debt cancellation scheme and a reset of the financial system.
Does Trump have to be a banker, a financial insider, to understand sovereign money?
It is common sense. Thomas Jefferson figured it out without a degree from Harvard Business School two hundred years ago.
If the Trump team needs advice he could turn to reliable people in the Swiss or Iceland sovereign money initiative.
That said, if Trump does take on the banksters and drain the likes of George Soros and James Rothschild of their unlimited wealth to commit mischief, he had better stay extremely well protected.
Some believe that John F Kennedy was assasinated in 1963 for trying to rein in the power of the Federal Reserve.
A collection of links on Sovereign money…
IMF’s epic plan to conjure away debt and dethrone bankers
So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan.
Strip private banks of their power to create money
The giant hole at the heart of our market economies needs to be plugged
April 24, 2014 by: Martin Wolf
Printing counterfeit banknotes is illegal, but creating private money is not. The interdependence between the state and the businesses that can do this is the source of much of the instability of our economies. It could – and should – be terminated.
Iceland looks at ending boom and bust with radical money plan
Icelandic government suggests removing the power of commercial banks to create money and handing it to the central bank
Switzerland to vote on banning banks from creating money
Referendum on radical proposal to give central banks sole money creation power will be held after petition gains 110,000 signatures
Vollgeld-Initiative in 20 Sekunden
Was viele nicht wissen: Banken stellen eigenmächtig Geld her. Unglaublich, aber leider wahr!
Das betrifft alles Geld auf unseren Bankkonti (genannt Buchgeld) und macht 90% des ganzen Geldes aus. (Von der Nationalbank hergestelltes Bargeld: 10%). Mit diesem von den Banken selbst gemachten Buchgeld spekulieren sie in grossen Finanzblasen. Wenn es Profite gibt, gehören sie den Banken. Bei Verlusten werden die Steuerzahler zur Kasse gebeten bzw. der Staat muss sie retten. Die Schweizerische Nationalbank hat diesbezüglich heutzutage leider ungenügende Einflussmöglichkeiten. Das ist ein Fehler! Das muss sich ändern. Mit der Vollgeld-Initiative. JA zu einer einfachen und vernünftigen Verbesserung unseres Bankensystems!
• Dein Geld auf Deinem Privatkonto soll wirklich krisensicher sein, direkt garantiert von der Schweizerischen Nationalbank!
• Nur die Schweizerische Nationalbank soll Franken herstellen dürfen!
• Das ganze Finanz- und Bankensystem soll sicherer werden!
• Auch die Banken sollen sich an die Bundesverfassung (Art. 99) halten müssen!
Genau das will die Vollgeld-Initiative. Sie ist eine einfache, aber wirkungsvolle Verbesserung des Bankensystems. Diese Verbesserung kostet die Steuerzahler nichts und bringt allen deutlich mehr Sicherheit. Das ist kein Anliegen, das man im parteipolitischen Links-Rechts-Schema einordnen kann. Man könnte es mit der Einführung des Frauenstimmrechts oder der AHV vergleichen.