The problem is one of design since the gold standard has been abolished and replaced by economic theorem leading to the nilly willy creation of money by fractional reserve lending.

If I were to give you security worth $10 and based on that you are entitled to procure $7.50 worth of guarantee by a third party and it turns out that I only had $2.50 to start off with – I would be sharing a cell with “Bubba” for fraud and a number of other state offences.

However the banking system operates on Fractional-reserve banking, this determines the relationship between the amount of central bank money (currency) in the official money supply statistics and the total money supply.

Most of the money in these systems is commercial bank money . Fractional reserve banking involves the issuance and creation of commercial bank money, which increases the money supply through the deposit creation multiplier.

The issue of money through the banking system is a mechanism of monetary transmission, which a central bank can influence indirectly by raising or lowering interest rates (although banking regulations may also be adjusted to influence the money supply, depending on the circumstances).

In January 2007, the amount of central bank money was $750.5 billion while the amount of commercial bank money was $6.33 trillion.

Now look at the graph of supply versus asset as alleged at http://en.wikipedia.org/wiki/Fractional-reserve_banking#Formula .

It is one big circle – The Federal Reserve loans bank A on reserve A then loans to bank B, C and D effectively on the same security.

In my mind all Kudos to Ron Paul – love your work you have global supporters even in Australia, where we wish we had a “Bruce Paul” to do the same thing….

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I we -the people- are not able to punish the prepetrator of crimes and offenses from the simple citizen to the local officer up to the President, we will never have our freedom back.

US constitution is clear, simple and can be understood by my 10 year old kids. Yet University professors can stretch it to non-sense levels and Presidents apply the inhumane results and none has the gutts to hold them accountable. Actually propaganda history makes them heroes.

This is insane, and what makes even less sense is that mankind is repeating this throughout history.

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Re: Israeli bankers, Israel is a place. Zionists are people. Israel is a tool. Zionists are the users. Jews are presumably “a people,” perhaps adherents to a set of religious beliefs, though many are, in fact, not of Semite origin. Zionists are individual people, also not necessarily of Semitic origin. (Palestinians are a better example of Semites, making many Israelis the most virulently anti-semitic people on Earth.)

Of course you are right about the Zionist banker/brokers (you don’t have to be Jewish to be a Zionist, or to be used by a Zionist), they have robbed us blind. Not by accident, they obviously have an agenda. We losers get to play a big part.

I make a distinction between Jewish and Zionist (knowing that most Zionists are Jews, but most Jews are not Zionists). It is indisputable that the major banking houses are mainly Jewish (including the Fed, and certainly those investment houses with Jewish names), but it is also worthy of note that some were fraudulently taken down by the promulgation of rumors followed by illegal (but unregulated) naked short selling, and that what we witnessed was a form of financial cannibalism occurring between major, predominantly Jewish banking houses. Hence Goldman-Sachs gobbles Bear-Stearns, and so on.

Is it such a surprise that so many of Madoff’s victims were Jewish, including Jewish charities?

And on the subject of massive Ponzi schemes, one need look no further than Social Security, a government mandated rip-off on a par with income tax (well, it is, in fact, another income tax, but it is also just another form of “securitization”; it is the government saying: “I will gladly pay you Tuesday, for a hamburger today…”, eating the burger, then moving on to the next generation of wage-slave victims).

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The Federal Reserve is a private bank, self-regulation didn’t work, wars that the media lied us into to pay off the Fed didn’t work, two more terms of military engagements plus the taxes of the Fed didn’t work and the IRS continued the Federal Reserve’s system.

Today, the Federal Reserve continues to be an entirely private bank unanswerable to anyone. Let me emphasize the word “anyone”, as alot of people are not familiar with the fact that while the Federal Reserve does support or hamstring the appointment / codifying of laws, it does not actually have to answer to the same, by the Congress, as dictated in the Federal Reserve act of 1913.

Its entire operation is therefore, kept secret, beyond the minimal information the Treasury Secretary can give us and beyond what check stubs you see when the GAO formally requests those stubs.

http://www.ronpaul.com

It can be said that very simply, the Federal Reserve has made itself into a fourth branch of Government right underneath every person’s nose.
http://www.campaignforliberty.com

Without oversight or transparency the Federal Reserve can continue to make large mistakes with its Credit Default Swaps, can continue to counterfeit supply & demand, and does not face any audit.

Which leads us to today’s current issue and a viable solution. HR 1207 has been introduced, the Federal Reserve transparency accountability act. This is nothing more than a nationwide official audit. For the first time in a great many years, the Federal Reserve will have to answer all questions to Congress directly and the people for whom which they serve in full.

Support HR 1207 and spread the word to your legislators, so that the American people can get much demanded answers and lift the veil of secrecy where we can see what the Federal Reserve bank is really doing, and therefore, take the most supported actions in response.

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It is not Obama who is a complete mystery; entire US Congress barring few like Ron Paul and so called Economist like Bernanke, Greenspan, Geithner etc. from prestigious Universities like Harvard advising them; all have become a big mystery. It is beyond the understanding of sane people like you and me to digest and understand how some one can spend $200.00 when that person is earning only $100.00? The only way it is possible is to steal from others. Although I don’t like economy ignorant John McCain as a politician at all but I have to give him credit for coming up with a simple conclusion, Obama economic plan is a Generational Theft.

Clinton & Bush with Foreign & Domestic Policies tailored for the benefit of Israel only; both encouraged the US Government with the help of Israeli & Pro Israeli bankers to steal from the world and Americans by selling them AAA rated investment grade Paper which they all knew from day one is not even worth as Toilet Paper; so that American Politicians, Big business owners & American-Israeli & Israeli leaders can live in super luxuries.

Obama is perpetuating Clinton-Bush era grand theft to maintain the life style of his masters this time by stealing exclusively from the Americans. Obama with his team of Israeli & Pro Israeli Bankers and quasi criminals in US Congress have already wasted more than $2 trillion of your money and my money to buy back this Toilet Paper from US financial institutions. The final bill to the tax payers will be around $10 trillion. Well it looks like it is Pay Back Time. Obama’s 14 big Financial backers who financed his purchase of $1 billion for the White House are all from the Wall Street! People who say Maddoff ran the largest Ponzy scheme in the world are dead wrong when the History will be written it will be Obama who will get the credit of running the biggest Ponzy scheme with $1 billion financed by white collared criminals to steal $10 trillion from present & next generation of America.

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Keep the transcripts coming please!

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