The Definite Offensive Measures Thread

I agree with Thomas.  must change the fundamental nature of money.  ending the Fed is a key part of that.  but the problem in our daily lives comes from the commercial banks...we'll eventually see how much of a problem JPM Chase and their oligopoly with Citi and BoA is.

drkrby, the way to start the Fed discussion with people is to avoid all the tedious details that people like us know.  just ask "do you think you're free?" and take it from there by asking if a few people having the power to destroy the pieces of paper in your wallet is free.  people understand power and control deep in their guts, whereas until they're hooked they could care less about a historical timeline of banker planning.  or ask "do you realize a central bank was 1 of Marx's 10 requirements in the communist manifesto?"  another good hook.

same thing with the usury discussion...keep it on power/wealth/control.

very nicely put.

Now let me see, how many people in the US would have credit cards..... no, MULTIPLE credit cards!  say 200 million, multiplied by five cards, that's uh..... one billion card accounts, then there must be 100 million mortgages, and car loans......

So, exactly how many courts do you think it would take to deal with 25% of 1.2 billion (that's ~300 million) unserviced payments? And then if you just ignored the court orders and judgements, well the cops would have no time on their hands, the jails would be overflowing to the roofs, the government would be sent bankrupt trying to pay to enforce the law....... etc etc etc, and just imagine if we ALL did this!!!!!!  And besides, even before any courts could be called into action, the entire planet's cashflow would just grind to a total halt.

Mike

Mike, you entertain some serious delusions about America my friend.

I hope you don't think your life was wasted when your laying on your deathbed many years from now, and the price of gas is $2.50/gal, the USD is still the world's reserve currency, and America is still "America". 

I applaud you for your lifestyle and I share your desire for self-reliance, but I'm not egotistical enough to think the whole world is doomed. Can't you pursue your own path without degrading the path of others? You don't need Peak Oil to justify your way of life, and you don't have to hate America or anyone else either,

Discard these mental constructs that make you feel superior, because they are just an illusion.

Now excuse me while I go charge a vacation to Australia to one of my five credit cards.

It is typical in a crisis that people initially under react (denial)and then when the crisis is upon them over react (panic). We see this in disasters and accidents of many kinds. In order to reorientate one's self to suit the coming crisis we really need a time machine to go back and start the ball rolling some years ago. Over a decade ago I was finishing an expat contract and could either go back home (UK) or go elsewhere. I looked around at the world I suppose for the first time and said "OK where is the world going?" and decided we were entering a time of major trouble. I knew nothing of finance or investment at the time but out of control population growth can only have one end result - the four horsemen. I decided that the uncontrolled immigration into Europe would eventually destroy its culture and value system. I also predicted eventual global food shortages although I had no clue as to when. All these shortages and pressures are a recipe for war. I also guessed that despite efforts, a nutter would get his hands on a nuke and use it. So I took the long term view, mainly for my kids. I picked another home based on my extrapolation: It was geographically isolated It was a major food exporter It had sustainable agriculture and abundant resources It had a culture I liked. English based with lots of 'outdoors' to play in. Didn't have a major ethnic or language clash In addition I don't own a single USD, have zero debt, own a little gold and up until recently have stayed well away from the stock market (which I instinctively thought was overvalued and a con even then) So I think I've just about done all that I can do. Any suggestions? Oh by the way - I chose New Zealand for my home

Mike, you entertain some serious delusions about America my friend.

How so?

Gas is $464 here.....

And I don't feel superior. You entertain some really weird ideas about me mate...

Mike

strabes - I gotta agree with docmims, your comments were "nicely put"   +1 or better yet, fractional reserve points

We all know that the issuance and control of money is a monopoly of huge financial rewards.  One unique thing about the U.S. is that we have a rich history of accruing the benefits of money creation to the people as opposed to private banks, communists, corporations (fascism) and monarchs.  I don't think you will find another nation within the last 300 years that was as creative and successful with monetary policies as the U.S. (subtract recent history).

In case you didn't know, Thomas Hedin and Byron Dale may be at the tip of the spear as they are moving an entire state (Minnesota) to creative monetary reform.  Are they on to something by taking a state by state approach as opposed to simply putting our efforts at the washington - wall street level?  States can fund their own recovery free from the dictates of washington and the usury of wall street.

If one state goes, the success would sweep across the country.

Fortunately, we have some concrete evidence of what may happen when a state decides to participate in the issuance of new money.  Ellen Brown recently wrote:

Cut Wall Street Out! How States Can Finance Their Own Economic Recovery

Pouring money into the private banking system has only fixed the economy for bankers and the wealthy; it has not done much to address either the fundamental problem of unemployment or the debt trap so many Americans find themselves in.

President Obama's $787 billion stimulus plan has so far failed to halt the growth of unemployment: 2.7 million jobs have been lost since the stimulus plan began. California has lost 336,400 jobs. Arizona has lost 77,300. Michigan has lost 137,300. A total of 49 states and the District of Columbia have all reported net job losses.

In this dark firmament, however, one bright star shines. The sole state to actually gain jobs is an unlikely candidate for the distinction: North Dakota. North Dakota is also one of only two states expected to meet their budgets in 2010. (The other is Montana.) North Dakota is a sparsely populated state of less than 700,000 people, largely located in cold and isolated farming communities. Yet, since 2000, the state's GNP has grown 56 percent, personal income has grown 43 percent and wages have grown 34 percent. The state not only has no funding problems, but this year it has a budget surplus of $1.3 billion, the largest it has ever had.

Why is North Dakota doing so well, when other states are suffering the ravages of a deepening credit crisis? Its secret may be that it has its own credit machine. North Dakota is the only state in the Union to own its own bank. The Bank of North Dakota (BND) was established by the state legislature in 1919, specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. The bank's stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota.

The Advantages of Owning Your Own Bank

So, how does owning a bank solve the state's funding problems? Isn't the state still limited to the money it has? The answer is no. Chartered banks are allowed to do something nobody else can do: They can create credit on their books simply with accounting entries, using the magic of "fractional reserve" lending. As the Federal Reserve Bank of Dallas explains on its web site:

"Banks actually create money when they lend it. Here's how it works: Most of a bank's loans are made to its own customers and are deposited in their checking accounts. Because the loan becomes a new deposit, just like a paycheck does, the bank ... holds a small percentage of that new amount in reserve and again lends the remainder to someone else, repeating the money-creation process many times."

A State Bank of Florida?

Could the sort of commercial model tested by Commonwealth Bank work today in the United States? Economist Farid Khavari thinks so. A Democratic candidate for governor of Florida, he proposes a Bank of the State of Florida (BSF) that would make loans to Floridians at much lower interest rates than they are getting now, using the magic of fractional reserve lending. He explains:

"For $100 in deposits, a bank can create $900 in new money by making loans. So, the BSF can pay 6 percent for CDs, and make mortgage loans at 2 percent. For $6 per year in interest paid out, the BSF can earn $18 by lending $900 at 2 percent for mortgages."

The state would earn $15,000 per $100,000 of mortgage, at a cost of about $1,700, while the homeowner would save $88,000 in interest and pay for the home 15 years sooner. "Our bank will save people about seven years of their pay over the course of 30 years, just on interest costs," says Dr. Khavari. He also proposes 6 percent credit cards and 6 percent certificates of deposit.

The state could earn billions yearly on these loans, while saving hefty sums for consumers. It could also refinance its own debts and those of its municipal governments at very low interest rates. According to a German study, interest composes 30 percent to 50 percent of everything we buy. Slashing interest costs can make projects such as low-cost housing, alternative energy development, and infrastructure construction not only sustainable, but profitable for the state, while at the same time creating much-needed jobs.

I'm not an advocate of "fractional reserve" lending but this example shows that the power of the state may be underrated in a time when we are led to believe all action takes place in washington.  The Minnesota plan (MTA) is more fair to other states as it does not multiply the money supply, it demands that each new dollar be endowed with the value added transportation infrastructure assets to promote commerce and safety. 

Larry

I have mixed feeling about the effectiveness of this approach.  I'd like to be able to agree with you and think that large scale action would overwhelm them.  However, looking at past history, I can see them isolating Jane Doe or John Smith, making their life a living hell, and publicizing every aspect of it on the media they control to all who will hear and watch as an object lesson.  Think Martha Stewart.  She makes $30K in chump change and gets the book thrown at her while Wall Street insiders make zillions walk off scot free.

Example: During WW2, there was a small town that resisted the draft due to local draft board graft and corruption.  The U.S. government sent in troops who wound up shooting up the town, even using 50cal machine guns.  End of draft resistance. 

 

 

Amen.  There are tough times ahead but the American people are not going to simply dry up and blow away.  Americans' forte has always been their adaptability.  And we don't actually have forked tails and little horns coming out of our head ... but there are about 91 million gun toting morons (moi included). ;-)

Catherine Austin Fitts - On The Edge with Max Keiser 

http://economicedge.blogspot.com/2009/11/catherine-austin-fitts-on-edge-with-max.html

1. Save time
- Cut out TV and Corporate Media
- Get corrupt people and enterprises out of your life!
- Control Personal Data
- Be impeccable about compliance
- Simplify

2. Get Smart
- See things as they are
- Family
- Understand History

3. Reposition Your Assets
- Invest in your health and knowledge
- Stick with long-term trends
- Demonetize