You are browsing the archive for federal reserve.

Avatar of MatthewCCox

by MatthewCCox

Following the Money

February 6, 2013 in Finance, United States

“Where does the rest of the money come from?”

I sighed.

I suspected I was getting ready to push against my client’s belief system.

She had been complaining about taxes and, as often happens when a client rants about government theft, she resolved herself to paying taxes because they funded government programs.

I had pointed out that the Grace Commission report, done during the Reagan administration, demonstrated tax dollars only pay for the expenses of collections and the interest on government debt. Income tax doesn’t pay for government programs. There is another source.

“It comes from the Fed.”

My client’s raised eyebrows said she didn’t believe me.

I reached into my back pocket, pulled out my wallet, and opened it. I found a ten-dollar bill and handed it to her while pointing to the top border.

“Read that.”

“Federal Reserve Note.”

“What’s a note?”

“It’s a debt.”

“That’s right. Our money is debt. We use debt for currency. Do you know what the Federal Reserve is?”

“The government bank.”

“You’re half right. It’s a bank but it is privately owned.”

“Who owns it?”

“That’s a good question. As far as I can tell, it has twelve board members. Eleven of them are connected to Rothschild banks and the twelfth one is from Chase, which has Rockefeller connections.”

My client reached for her purse and pulled out her wallet.

She opened it, removed a stack of twenty-dollar bills, and thumbed through them to see if each one had “Federal Reserve Note” printed on it.

“I’ve never seen that before. How long have they been printing that on the money?”

“Every denomination of dollar bill since the sixties is a Federal Reserve Note. In the past hundred years or so, there have been some silver certificates and some treasury notes. Today, they are all Federal Reserve Notes.”

Two dollar bill“I collect two-dollar bills. I don’t remember seeing it on them.”

She reached into another part of her wallet and pulled out her collection.

“See, it isn’t on there.”

She handed me one.

“It is on there. It’s just in a different location. It isn’t on the border of the bill. It’s just above Jefferson’s picture.”

I pointed to it as I handed the note back to her.

She acknowledged it was there and I could see the wheels turning in her mind.

She was worldly wise and set in her ways.

She had reason to be.

After growing up in Europe, she had traveled all over the world while competing as an elite athlete in three sports and then, running a successful business. In the almost twenty years I had known her, she had started several successful businesses in New Mexico, selling some and keeping others.

I have often watched her access and dismiss new information.

I assumed she would do the same with my Federal Reserve story.

“How does this work?”

She pretended to be curious so she could test me.

I knew she had a daily habit of reading the news.

“Have you read the stories about QE3 and QE4 where the Fed purchases debt?”

“I’ve seen them. If I understand correctly, that’s how money gets into circulation.”

“Yes, when the Fed purchases debt, it puts dollars into our economy. Between QE3 and QE4, the Fed is currently committed to purchasing one hundred twenty billion dollars of debt a month. That’s an annual number of 1.4 trillion. Last year’s government deficit was 1.2 trillion. Do you see the connection?”

The look on her face went from skepticism to determination.

“And that is why we have inflation, isn’t it? We have such a financial mess in our country and it only gets worse as we insist on sending our troops all over the world. If we brought them home, our government wouldn’t have to spend so much money.

“Well, if you look closer, you’ll see that those military expeditions are designed for financial profit.”

“What do you mean?”

I sighed again as I realized I was once again pushing against her belief system.

However, she seemed open to hearing what I had to say, so I continued.

Tags: , , , , , , 1 Comment »

Avatar of MatthewCCox

by MatthewCCox

Digging Up the Money Root

May 30, 2012 in Finance, Opinion, World

This article is part three of a five-part series on how we can make a peaceful transition into a peaceful world.

For the purposes of this discussion, I am using this definition.

A peaceful world is one where each person is free to experience life and liberty without depriving another person of these attributes.

This link takes you to an article where I introduce this series and explain my definition.

This link takes you to part one of the series.

This link takes you to part two of the series.

Life and liberty includes a fair, asset-based method of trade. The barrier to this is the current debt-based method of trade.

I have always been fascinated with the topic of money. I enjoy mathematics, even algebra. I started preparing my own tax returns while I was in high school. I did other people’s tax returns as a favor while going through college, getting a degree in music education, and teaching private music lessons. I even approach music mathematically.

One day, I had an epiphany.

I could use my fascination with numbers to help other people manage their finances. I changed professions.

Since then, I’ve prepared tax returns, done accounting work, and provided business coaching services.

Through doing this work, I began to notice how people struggle with Peace of Mind. My observation is that people worry more about money than anything else. In fact, even when they are focused on something else like health or relationships, money always plays a role in those situations. They worry about how to pay for medical care or how a partner is using money.

I wrote a couple days ago that part of this problem has to do with our ideas of ownership.

The other part of this problem is directly related to our current debt-based method of trade.

MoneyTreeThis system, which started in its current form in 1913 with the creation of The Federal Reserve, has come to symbolize everything that is wrong with today’s economy. It allows bankers to control the money supply through the printing of currency. It is the root of the problem that has brought us to the edge of financial catastrophe.

This debt-based method of trade cannot continue without growth of the money supply. When every dollar created comes from debt, interest must be paid on the debt. The money to pay the interest isn’t created with the original debt. Therefore, it must come from future dollars, which are created from more debt, which require more interest, which must come from future dollars.

As a result of this method of trade, we are faced with three choices:

  1. Massively print more money and create additional inflation.
  2. Fall into a global depression as debt goes unpaid.
  3. Reboot of the whole global monetary system.

Since World War II, The Fed has chosen to print more money to prevent global depression. This is why a gallon of gas, that I watched my parents pay twenty-six cents for, is now almost four dollars. It is the same gallon of gas today as it was forty years ago. However, the value of the dollar relative to that gallon of gas has decreased fifteen times during since then.

This inflation is, in effect, an additional tax that we pay each time we purchase something. It exists because it is needed to pay the interest on the national debt.

Speaking of taxes, it is interesting to note that the Internal Revenue Service, which started using Form 1040 in the same year the Fed began (1913), is now considered to be nothing more than a collections agency for The Fed.

Some writers say this was the original design. While I have not yet found any “official documentation” for this, it is obvious that since all tax dollars are going to pay the interest on the national debt, collecting for The Fed has become the effective role of the IRS.

Those who, like me, have taken the time to study this situation have concluded that the only long-term solution is the reboot of the whole global monetary system.

This means we do away with a debt-based currency that uses notes (debt instruments) as cash and we go to a system based on assets, including gold, silver, and commodities.

This means the end of The Fed and the IRS as we currently know it.

It means a complete jubilee that includes the forgiveness of all debt. (Numerous people have asked me if all debt has to be forgiven before we begin the new system. As an accountant, I can assure you that it does if we are going to practice integrity. Debt is the root of the money problem.)

This idea of a financial reboot has been bantered about quite a bit over the past several months. However, those in the positions of power have not yet demonstrated the courage to step forth and implement it.

Therefore, we teeter on the edge, waiting to see what is next.

What can we do to help this process along?

Some people are espousing the idea of creating a global shutdown starting June 18. Their idea is to stop paying all bills. I understand the logic. However, I’m not convinced it is the peaceful response.

I believe the peaceful response is as follows.

  1. Practice the philosophy of Living Within The Gift. I explain that idea on this page with a free video and an eBook.
  2. Understand the current financial system is debt-based and is, therefore, unsustainable. It must change to an asset-based system to become sustainable.
  3. Selectively share this information with other people so that when the change takes place, and it will happen, either through the system imploding or a proactive change, those people will be prepared to transition peacefully.

Tomorrow, I will continue this series by looking at how accurate information is important for a peaceful transition.

Tags: , , , , , Comments Off

Avatar of MatthewCCox

by MatthewCCox

Riding the Momentum

May 13, 2012 in Finance, United States, World

Momentum waveMomentum for ending The Federal Reserve system is building on several fronts.

Protestors are calling for the end of The Fed because it doesn’t work for everyone.

Watchdogs say ending The Fed is the only way to stop the corruption.

Spiritual teachers visualize ending The Fed because they believe it is a step towards creating unity.

Members of the United States Congress are calling for ending The Fed too. The article linked here reports on a Subcommittee on Domestic Monetary Policy hearing that took place last Tuesday where alternative economic systems were discussed.

What will it take to reach the tipping point for this change?

There are indicators that we are almost there.

Spiritual teachers and lightworkers say we are currently in a time that is conducive to change because of the alignment of heavily bodies.

Last Saturday, Earth experienced a perigee full Moon.

An annular solar eclipse will take place, Sunday, May 20. Richard Hoagland believes this is so important that he has scheduled a special internet event.

Venus transits the sun on June 5 and 6 (depending upon location).

The alignment of celestial bodies is often tied to historic events. Hoagland has produced a great deal of documentation on this phenomenon. To the casual observer, this seems like so much coincidence. Hoagland implies that many of these events are well-planned ceremony.

This month’s heavenly events appear to set the celestial stage for change.

This is true on the terrestrial stage too.

The Group of Eight (G8) Summit takes place at Camp David on May 18 and 19.

The North Atlantic Treaty Organization (NATO) meets in Chicago on the 20th and 21st.

Rumors are flying that The Fed will be discussed during these meetings. More specifically, an announcement may be made. Like I said, these are rumors.

There are confirmed stories that numerous protests are planned for the NATO meetings. The Occupy Movement, union groups, and many others will be there.

So will the military.

Sections of the city have been declared a “Red Zone” on the ground and a no-fly zone has been established for a portion of the city. The no-fly zone is serious business. It is backed by a shoot to kill order.

The Red Cross in Milwaukee, ninety miles to the north, has been told to prepare to receive evacuations from Chicago.

In fact, the entire Chicago area seems to be preparing for “something big to go down.”

Naysayers continue to tell me the change to a new financial system will usher in riots and martial law. They tell me that a new financial system will give those in power more control. They are afraid that events in Chicago, including protests, an announcement about The Fed, or some kind of false flag/martial law event could be disastrous.

I understand that going through a transition can be scary.

Even though I live in a rural area, I am less than an hour from two nuclear laboratories, an Air Force Base, and a population of more than a million people. I realize that things could become very intense very quickly.

However, responding with fear is not how we get through this.

Opposing the change is not how we get through this.

Instead, we see the opportunity for change.

We prepare for it.

We visualize a peaceful transition.

We trust that we can ride the momentum of this time into a brighter future and an economy that works for all.

Are you with me on this?

Tags: , , , , 1 Comment »

Avatar of MatthewCCox

by MatthewCCox

Looking for a Hero

April 21, 2012 in Spirituality

During my last two years of college and for several years afterwards, I held a position with a local church. My responsibilities included teaching three classes for young adults: one on Sunday morning, one on Wednesday evening, and another on Friday evening. Since my goal was to get those who attended one class to attend all three of them, I taught a series on Bible prophecy. Each class answered questions raised during a previous class.

My plan worked. The attendance gradually increased as many of those who previously only attended one weekly class started coming to all three of them.

The meetings became the cool place to be on Friday evenings and it wasn’t unusual to have more people attend my Wednesday evening class than attended the church’s main service.

When I jokingly asked the senior pastor, who was also a good friend, why this was happening, he gave a profound response.

“You’re talking about the future coming of a hero. I’m talking about present responsibility. Most people prefer it when the spotlight isn’t shining on them.”

In the almost thirty years since then, I have noticed this isn’t only true with Christians. It is true with humanity in general.

We are all looking for a hero.

White KnightWe are looking for a knight in shining armor who will come in on a white horse and rescue humanity from our current situation.

Jews look for the Messiah. Christians look for the second coming of Jesus. Other traditional religions have their heroes too. Those who believe in ETs look to the skies for their salvation from today’s trials.

On a more earthly level, we look to The White Hats, The White Dragon Society, or The Oath Keepers to lead the revolution that will restore democracy, deliver us from The Fed, and give the 99% the opportunities only available to the 1%.

As I have lived my life, faced daily challenges, and had different levels of success, I have noticed that more often than not…

…you have to be your own damn hero.

Don’t get me wrong. It is always nice to have help, especially the supernatural kind.

The myths of something wonderful happening in the future are so prevalent that I have to believe they contain substance. Each story of help from The Messiah, Jesus, friendly creatures from another galaxy, or the Hopi’s blue star kachina resonates with humanity at a deep level.

The rumors of mass arrests reported by Drake, David Wilcock, and Benjamin Fulford feed our need for a hero.

I believe it is part of our DNA and, as a result, it is something we will manifest.

This in itself is not a problem.

The key is our response. If we are not careful, our response to this innate need, fed by current rumors, will take us out of the present moment. We will abandon our responsibility. We will let someone else, anyone else do our job.

Truthfully, this is how we got here.

We abdicated our responsibility to someone else. We relinquished our financial prosperity to the banks. We gave up our rights to prosper and live at peace.

Now, as we realize the consequences of our actions, we are looking for someone else to do the dirty work so we won’t have to do it. We cling to the idea of a champion.

May I be frank?

I believe the hero we crave is an internal emptiness that each person is attempting to fill.

I believe the hero we are looking for without can only be found within.

Supernatural assistance may be available. A revolutionary movement may be happening.

We are on the threshold of a new world.

However, for true change to take place, each person will have to be his or her own damn hero.

Tags: , , Comments Off

Avatar of MatthewCCox

by MatthewCCox

Responding to The Creature

April 20, 2012 in Finance, World

I finished reading The Creature from Jekyll Island, by G. Edward Griffin yesterday. The final three chapters describe possible future scenarios. Each situation is determined by how society responds to the creature we know as The Federal Reserve.

Griffin bases one chapter on the controversial Report From Iron Mountain. This book was supposedly taken from the “secret meeting” of a government think tank in upstate New York. Or, it may have been political satire.

Its premise is that war is necessary for increased taxation and debt. During times of war, the general population can be motivated to sacrifice. It is politically easier to justify increase taxes. It is easier to get the general population to loan money to the government by purchasing war bonds.

The CreatureThe goal of Report’s think tank was to establish a one-world government. This would eliminate the need for war; therefore, a substitute had to be created to continue to justify increased taxes and debt. This alternative must be substantial enough to distract the general population so that we don’t have time to focus on how much we are being taxed, both through direct tax and through inflation.

Report explores the idea of using violent blood sports like football, automobile racing, hockey, and professional fighting as distractions. It looks at pulling together the population to fight drugs, poverty, and illiteracy.

Each of these issues is important to some part of the general population. However, none of them are life-threatening to the world as a whole. Therefore, the think tank had to come up with something that, like war, was a threat to the world’s survival. Pollution, caused by global warming, was labeled the enemy.

Environmentalism became the distraction for more than thirty years while The Creature worked its sleight-of-hand. Poor science and controversy pushed this to the back burner while the Creature fashioned a new diversion.

This debuted in grand form on September 11, 2001.

Griffin theorizes that terrorism wasn’t on the radar in the 1960s when Report was published. Otherwise, it would have become the distraction. He is certain that, based on how terrorism is presented in the media today, that it is the new focus for the general population while The Creature does its thing.

After all, the terminology is the same as what was used in the 1960s. Then, it was the “war on drugs” and the “war on poverty.” Today it is the “war on terrorism.”

War is always used as a buzzword to distract the general population from the problems with the financial system. Griffin speculates that terrorism is the perfect war for a one-world-government. It allows those in power to manipulate war just as The Creature manipulates the financial system.

As I considered all of the information I gleaned from Griffin’s book, I asked myself the question I always ask. “What is the peaceful response?”

Since peace is an internal sensation, I can choose to respond peacefully to this knowledge. Even though I became angry as I read the first half of Griffin’s book, I came to the conclusion that I don’t have to be upset about how The Creature has attempted to manipulate my life. Instead, I can trust God/the Universe/Spirit to orchestrate The Creature’s role in my life.

Ultimately, this role is for my benefit.

With this attitude, I do not have to make The Creature an enemy. A peaceful response means that I take the time to understand the system and correct it. If I can’t do this on a universal level, I do this on a personal level.

This includes practicing the concept of Living Within The Gift. It includes living abundantly in my own life through the open sharing and giving of resources.

It includes not judging the morality of those who run The Fed.

It includes not calling for the death or imprisonment of those that are responsible for The Fed because I know that something greater than me and something greater than them is ultimately orchestrating things for everyone’s benefit.

This seems to oppose the reported rumors of arrests over the past few weeks.

After thinking about this for a couple of months, I think I understand the source of these rumors.

It isn’t as exciting or sensational as our adrenaline induced society might want. However, I believe it is accurate.

I’ll tell you about it in tomorrow’s article.

Tags: , , , Comments Off

Avatar of MatthewCCox

by MatthewCCox

Today’s Hunger Games

April 19, 2012 in Finance, Leisure, World

I write on this site to resolve the things that puzzle me. This is why I keep coming back to The Federal Reserve.

The more I learn about The Fed, the more I realize that our current financial system is not sustainable. I have trouble believing the commitment to perpetuate it. I keep researching and I keep writing because I hope I’m wrong.

Then, I look at the evidence.

I see the promises to pay that I wrote about yesterday. These promises are measured by Federal Reserve Notes (FRNs). We call them dollars.

When these promises are manipulated by The Fed, it affects each person on the face of the Earth.

Astute business people can use this manipulation to make lots of money. Everyone else responds by complaining about the higher prices. They say, “Everything is going up except my paycheck.”

I see how we have been programmed to believe these promises are money. We have been told they are a source of wealth.

It is well documented that money represents debt. Every dollar is created from a loan.

Once interest is charged on that loan, there are not enough dollars in circulation to pay the debt. This creates a false sense of scarcity in our world of abundance.

I see how this scenario helps me understand something else that has puzzled me for a while: the popularity of The Hunger Games.

Hunger Games MockingjayI haven’t seen the movie. I have read Suzanne Collins’ book, the first in a trilogy.

I friend recommended it to me.

My respect for my friend pushed me to read it when I discovered the topic.

Once I started it, I was both disgusted and riveted.

I almost put it down after the first couple of chapters. Instead, I resolved to escaping into a “good novel.”

I hated the premise of teenagers being thrown into an arena to fight to the death while the world watches.

I read to the end because I knew it was an allegory.

I knew this because I remembered a similar feeling while reading Animal Farm, 1984, and Brave New World.

Of course, an allegory needs explanation and I didn’t have one…until this morning.

While preparing this column, I wrote this sentence:

The financial system that we have today throws us into our own Hunger Games arena where we fight for survival in a manipulated environment for the entertainment and benefit of others.

I am both disgusted and riveted.

I am disgusted in that we have a situation where we have been fooled into believing a lie. We perpetuate this lie each time we enact a financial transaction. This system is so masterful that even when presented with the evidence, we have trouble believing it.

I am riveted in in that numerous people are beginning to understand the situation and are acting to correct it.

Several states have enacted legislation to allow for the use of gold and silver as currency.

Individuals are trading their FRNs for gold and silver.

Others are stocking up on sustenance items.

There are rumors of impending arrests and new financial systems.

It seems we realize the arena is about to be destroyed and we will no longer have to participate in The Hunger Games.

Interestingly, I hear that is what happens in the second book of Collins’ trilogy.

Tags: , , , , Comments Off

Avatar of MatthewCCox

by MatthewCCox

Promises to Pay

April 18, 2012 in Finance

“We hate to bother you since today is the tax deadline but we were wondering if you give investment advice?”

“Well, I’m not a Certified Financial Planner. However, I do have opinions about where I think people should be investing.”

“We would like to hear them. We have money in CDs that are about to come to term and we want to know what to do with our money.”

I was glad the couple in my office was the last appointment for the day. I felt a need to take time with them.

I started by telling them about my friend who works at a gold and silver exchange. In a recent conversation, she told me that one to three times a day, her store sells between ten and fifty thousand dollars in gold or silver to someone who has sold paper investments, closed a retirement account, or emptied a bank account.

“Why are people trading cash for gold and silver?”

Pinky promise“They understand that cash is only a promise to pay. It doesn’t have any value other than someone’s promise.”

I detailed how dollars are Federal Reserve Notes (FRNs) and that they are created out of thin air through debt.

By the time they left, we had discussed money, gold and silver, real estate, and paper investments like stocks and bonds. I encouraged them to call me if they had questions.

Afterwards, I thought about what I had said about cash. I realized that every transaction we enter into is based on trading a promise to pay. Sometimes, we trade this for another promise to pay. Other times, we trade it for goods and services.

When a dollar, a Federal Reserve Note (FRN), is created out of thin air, the other side of the accounting entry is a debt that someone has promised to pay. The value of that FRN comes from that promise.

When I pay for something with that FRN, the person who accepts it accepts the promise to pay represented by the FRN.

If I don’t have a FRN in my pocket, I might pay with a check. The check is a promise that I have a certain amount of FRNs (promises to pay) in my checking account.

If I don’t have FRNs or a check, I might pay with a debit or credit card. Again, these are promises to pay.

The person who accepts any form of my promise to pay then uses my promises to make his promises.

All of these promises are based on the promises of the person who received the FRNs from the initial loan.

If someone along the way doesn’t keep his or her promise to pay, those in the chain may not have enough FRNs to keep their promises to pay.

If numerous borrowers don’t keep a promise to pay, a bank may collapse. At that point, if The Fed believes that bank must not collapse, it distributes money to that bank. This money is usually created through purchasing United States Treasury Bonds which are – say it with me now – promises to pay. This expands the money supply and causes inflation.

The resulting increase in prices becomes a tax that each person pays with additional FRNs when making promises to pay for goods and services.

This is what happened during the bank bailout of 2008. The largest banks received FRNs, – created out of thin air – that allowed them to continue to exist.

Other banks weren’t so lucky. The resulting inflation made it impossible for borrowers to keep their promises to pay to these smaller banks. The larger banks then swooped in and gobbled up the assets of the smaller banks.

What happens if the United States Government doesn’t keep its promise to pay?

It legally cannot do this.

The promise to pay system, as described in this article, is no accident. It is a purposeful system, designed by the largest bankers, in cooperation with the United States Congress, to guarantee that the largest banks can always stay in business.

This system works because a banking bill, passed by Congress, and amended almost two hundred times says that when certain banks’ customers don’t keep their promises to pay, these banks can look to United States taxpayers, via the United States Congress, for relief.

The United States Government legally must keep all promises to pay.

Eventually, this will destroy the system.

Those who understand this are using their FRNs to acquire real assets, things they can own and hold with their own hands.

They want to make sure they don’t have to depend on anyone else when they have promises to pay.

Tags: , , 1 Comment »

Avatar of MatthewCCox

by MatthewCCox

Without Money, We’d All Be Rich

April 17, 2012 in Finance

At the end of yesterday’s article I wrote, “There are not enough dollars in circulation to pay back all the debt…Dollars are created when debt is created. No dollars are created when interest is paid. Therefore, once the first dollar of interest is paid, there is no longer enough money in circulation to pay all the debt.”

After I wrote this, I better understood an oddball quote that I had seen a few days before.

Without money, we’d all be rich.

Without MoneyI recognized more of this truth as I visited the local IRS office with a new client to correct a previous year’s tax return. The correction was simple. The IRS agent decided to make it complex. He obviously didn’t understand the tax code. When I asked questions, he answered rudely.

Before I could say anything, my client picked up his paperwork and headed for the door; carrying his anger with him.

As I ran to keep up with him, I realized the scarcity of not enough money was the source of the anger and frustration both for the agent and my client.

Without money, we’d all be rich.

I gained greater appreciation for this idea as another new client discussed her taxes with me later that day. She worked in a service profession that didn’t pay enough money for her to live on in our inflationary economy.

I realized the inflation, caused by an increased money supply, which came from increasing national debt, would likely chase this wonderful woman from her passion of teaching children into some other profession that paid more money.

Without money, we’d all be rich.

That idea screamed at me as a friend and client came by so I could do her taxes. While I worked, she told me about a local business owner who hasn’t paid taxes for years. He believes federal taxes are a scam perpetuated on the American people who do not understand the law.

This business owner is so convinced of this that he has held this belief even though the IRS has come into his store twice and cleared out his inventory to pay tax bills. He has learned through his challenges and found legal remedy. As a result, he has had almost three hundred thousand dollars in tax liability disappear.

She didn’t know his entire story. However, she said he would talk with me if I visited him. I may do so this week.

Without money, we’d all be rich.

During every experience yesterday, this oddball quote bounced through my head until I saw the numerous facets of its wisdom.

Through the creation of money, The Fed has taken our abundant world and turned it into a world of scarcity. The system doesn’t have enough money to pay back the debt. Therefore, each person who operates in this system feels the shortage.

We have created a world of lack in the midst of a plentiful world. This dearth is the cause of war and strife.

This is a façade.

Without money, we’d all be rich.

Those who invented this system love it because they get to “play God” with the money supply. They may create money without providing an equal exchange of value. They literally produce money out of thin air.

The consequences of this practice haunt our society.

The only way I see to correct this situation is to forgive debt.

Each dollar of debt forgiven would eliminate a dollar of money.

This would reduce prices. It would reduce income.

It would increase the value of each dollar.

Eventually, the debt would completely disappear, taking money with it.

During this process, our medium of financial exchange would need to revalue. It would need to change. It would have to be based on something of actual worth, not debt.

Because we live in an abundant world, this new financial system would give us whatever is needed to experience an abundant livelihood. Our supply would be unlimited because nature is unlimited in her abundance.

This transition to no money may be rocky. It may be a challenge. However, for all to experience abundance, it will be necessary.

I believe this is true…

Without money, we’d all be rich.

What do you think about this idea? I invite you to leave your comments below.

Tags: , , , 2 Comments »

Avatar of MatthewCCox

by MatthewCCox

War’s Interest

April 16, 2012 in Finance, World

After writing yesterday’s article about debt forgiveness, I started reading a new book, The Creature from Jekyll Island, by G. Edward Griffin. It is a 600-page book about the history of the Federal Reserve. By the time the day was over, I was more than halfway through it.

As I read, I realized why universal debt forgiveness is so important.

The forgiveness of debt will produce world peace because war cannot exist without debt.

Religion and political ideology may be used to motivate the masses to war. However, the real reason for all war is money.

I am not saying that modern day wars are fought to plunder, steal, and rob countries – although that certainly happens.

I am saying that the purpose of all war is to make money through the paying of the interest on the debt that is needed to fund the war.

Griffin carefully documents this practice from the 1700s to the present. He lists the bankers, the countries, and the kings who participated in the wars. He shows their relationships and how the wars could not have happened without the bankers funding both sides.

Griffin draws a direct line between the creation of The Federal Reserve in 1913 and the increase in size and scope of wars as demonstrated by World Wars I and II.

As I read, I learned that the American Civil War that took place in the 1860s was not so much about slavery as it was about economic issues between the North, the South, and Europe.

Lusitania by Chris ButlerI learned that the sinking of the Lusitania, the event that brought the United States into World War I, was a carefully staged event. The English purposely took the ship though waters patrolled by U-boats so they could blame the Germans.

Indeed, a small torpedo, shot from a German U-boat hit the ship.

However, the torpedo didn’t sink it.

The evidence found at the wreckage site shows an internal explosion blew a hole in the ship that allowed this massive carrier to sink in only eighteen minutes.

As the Lusitania went to the bottom of the ocean, it took almost 1200 lives with it, including 195 Americans. Shortly thereafter, the emotional outcry of the American population spurred the United States Congress to declare war.

Why was it necessary for the United States to enter the war?

Just follow the money.

JP Morgan’s bank had loaned billions of dollars to England and France to fund their war efforts. As the war turned against these two countries, these debts were in danger of defaulting. The United States Government could not provide funding to England and France because it was a neutral country

However, once the United States entered the war, it could support its allies.

With the declaration of war, Congress approved a billion dollar debt package to fund it. The first three hundred million of this package went to England and France. These two countries used that money to make interest payments on their debt to Morgan’s bank.

Griffin recounts story after story of how war is all about the bankers’ pocketbooks.

In addition, he clearly describes how debt is used to create money.

Even though I have researched and written about this topic for almost a year, I didn’t completely wrap my brain about this process until yesterday.

What I finally understood is that someone is paying interest on every dollar that is in circulation. In fact, that dollar wouldn’t be in circulation unless someone had borrowed it.

I’ve heard this before but I didn’t believe it. Now, I know this is true.

I understood something else too.

There are not enough dollars in circulation to pay back all the debt.

Here is why.

Dollars are created when debt is created.

No dollars are created when interest is paid.

Therefore, once the first dollar of interest is paid, there is no longer enough money in circulation to pay all the debt.

It has been called the “biggest Ponzi scheme of all time.”

Now, I know why.

The only way to keep it going is to increase growth through the emotional acquiring of new items.

War is how bankers entice government and its citizens to do that at a billion dollar level.

Debt forgiveness would end this process.

I’ll write more about this tomorrow. Feel free to leave your comments below.

Click here for more information about today’s image from The Chris Butler Art Gallery

Tags: , , , , , 2 Comments »

Avatar of MatthewCCox

by MatthewCCox

Creating Money Out of Thin Air

March 15, 2012 in Finance

I started my accounting practice almost twenty years. One of my first clients, I’ll call him Johnny, owned a transportation company. Johnny, for reasons that will soon be made obvious, is no longer my client. He hasn’t been my client for years.

Johnny was brilliant in a sneaky sort of way. He was also religious.

He had a religious charity and he constantly took money from his business and put it into the charity. This would not have been a problem if the business had lots of cash.

It didn’t.

In fact, because of Johnny’s charitable interests, the business was always short on cash. Therefore, Johnny developed a practice.

Back then, the banks took several days to process checks. So, depending on how short Johnny was on cash on a given day, he would write as many hot checks to his employees as he needed to cover the shortage.

Check to cashHe knew the local grocery store would cash checks if they were under a thousand dollars. If he needed twenty-eight hundred dollars, he would write three checks for nine hundred and change to three employees. Each employee would go to the store, cash his or her check, and bring the cash back to Johnny so he could put it into his bank account and cover his shortage for the day.

Johnny didn’t do this occasionally.

He did this almost every day.

It worked for him and, because his checks never bounced, Johnny was never charged with kiting checks.

He attributed it to God blessing his creative way of thinking.

Of course, the practice eventually caught up with Johnny and his transportation company.

The New Mexico Public Regulation Commission regulates pricing for transportation companies. When Johnny went to the commission for a rate increase, they audited his bank account. The result was that the commission, in spite of explanations to the contrary, decided all of that cash deposited from cashing rubber checks was income. Therefore, Johnny’s company didn’t need a rate increase.

Johnny didn’t face criminal charges. However, he learned his lesson and he cut back on his charitable work for a couple of years until he could go back in front of the commission and present a clearer picture of his financial woes.

I tell the story today because I recognize Johnny’s old behavior in the actions of our banking and other financial institutions. Like Johnny, our institutions have figured out how to play the money game dishonestly while barely remaining within the law.

They use tomorrow’s promises to pay today’s obligations

This happens when The Fed purchases United States Treasury Bonds. This accounting trick implies a demand for bonds that really isn’t there.

This happens every time “fractional reserve” banking is practiced and money is created out of thin air. This creates more money and false evidence of increased wealth because the numbers are bigger.

These practices skew our society’s understanding of wealth, work ethic, and value.

The larger numbers hide the significance of the issues we face today.

Therefore, the practices continue.

At some point, the results of these practices will catch up with The Fed. They will catch up with the banking and financial industries – just like they caught up with Johnny.

Is it possible we are quickly approaching that point?

Is it possible we have reached that point?

It is and I’ll tell you why I think that tomorrow.

Tags: , 1 Comment »