stacks





"Slavery is likely to be abolished by the war power and chattel slavery destroyed.

This I and my European friends are glad of, for slavery is but the owning of labor and carries with it the care of the laborer, while the European plan led by England is for capital to control labor by controlling wages.

This can be done by controlling the money.

Debt is a means to control the volume of money.

To accomplish this BONDS must be used.

We are now waiting for the Secretary of the Treasury to make his recommendation to Congress.

It will not do to allow the Greenback, as it is called, to circulate as money any length of time, as we cannot control that." - Hazzard Circular, 1862, Bank of England





1864    International bankers take control.

National Banking Act specifies the entire US money supply will be printed out of debt by the national banks through the purchase of US treasury bonds by issuing them as assets backing treasury banknotes.

US treasury bonds, or T-bills, are guaranteed by the US government.

As long as the US government is solvent US treasury bonds retain value.

A US treasury bond, or treasury note, is a promissary note.

A promissary note is a promise to pay a specified amount on a specified date.
They typically include an interest payment for the use of capital while held.

A bond is a debt security, paper collateral for the loan.

A bearer bond is a bond or debt security issued by an incorporated entity.

Bonds issued by corporations are corporate bonds or junk bonds.


"In years following the war, the federal government ran a heavy surplus.

It could not however pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes.

To pay off national debt was to destroy the money supply." - John Kenneth Galbraith






1861    Moses Taylor, Chairman of the Loan Committee to finance the Union in the Civil War, offers the government $5,000,000 of US treasury bonds at 12% at a 33% shaving to continue financing the Civil War.

It is suggested Abraham Lincoln go to Congress to requestingthe passage a bill authorizing the printing of full legal tender treasury notes.


"To pay the soldiers the Government issued Treasury notes, authorized by act of Congress, July 17, 1861, for $50,000,000, bearing no interest.

These notes circulated at par with gold.

Rothschild agents inspired the American banks to offer to Lincoln a loan of up to $150 million.

But before they had taken much of the loan, the banks broke down and suspended specie payments in December 1861.

They wished to blackmail Lincoln and demanded the 'shaving' of government paper to the extent of 33%, an extortion which was refused.

A bill drafted for government issue of $150 million, which should be full legal tender for every debt in the US, passed the House of Representatives Feb. 25, 1862, and was hailed with delight by the entire country.

The Wall Street bankers were furious." - Arthur Cherep-Spiridovich


1893 "The interests of national banks require immediate financial legislation by Congress (the US Government).

Silver, silver certificates, and Treasury bonds (all government money) must be retired, and National Bank Notes made the only money.

This will require the authorization of $500 million to $1 billion of new bonds as the basis of circulation.

At once retire one-third of your currency and call in one-half of your loans.

Be careful to make a monetary stringency among your patrons, especially among influential businessmen.

Advocate an extra session of Congress to repeal the purchasing clause of the Sherman Law, and act with other banks of your city in securing a large petition to Congress for its unconditional repeal per accompanying form.

Use personal influence with your Congressmen, and particularly let your wishes be known to your Senators.

The future life of national banks depends upon immediate action, as there is an increasing sentiment in favor of government legal-tender notes and silver coinage."- "The Panic Circular", American Bankers' Association 1893



positive money

"Traditional money systems depend on faith and
general ignorance to stay afloat." - Jason Rohrer

fractional reserves

"The truth is that no bank lends as much as a penny of the money deposited with it.

Every bank loan or overdraft is a creation of entirely new money (credit) and is a clear addition to the amount of money in the community.

It is no more than a record in a bank ledger or computer and is actually the creation of new money out of nothing." - Jane Birdwood

"The bank-debt currency system we have today is founded upon interest.

That's the motivation for banks to create money in the first place.

Creating money is only a side effect, irrelevant to the commercial bank, of their main purpose of earning a profit.

Another effect is the necessity of perpetual economic growth and conversion of all common wealth into private monetary wealth." - Charles Eisenstein




I O U


"It started with goldsmiths.

Early bankers initially provided safekeeping services by making a profit from vault storage fees for gold and coins deposited.

People would redeem their "deposit receipts" whenever they needed gold or coins to purchase something, and physically take the gold or coins to the seller who, in turn, would deposit them for safekeeping, often with the same banker.

Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment.

These receipts, promissary notes, were acceptable as money since whoever held them could go to the banker and exchange them for gold and coins.

Then, bankers discovered that they could make loans merely by giving their promise to pay, or bank notes, to borrowers.

In this way, banks began to create money.

More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time.

A fractional reserve of gold and coin had to be kept on hand to redeem whatever volume of notes was presented for payment.

Transaction deposits are the modern counterpart of bank notes.

It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could "spend" by writing checks." - Chicago Federal Reserve, Modern Money Mechanics


Banking families intermarry and keep to themselves building international dynasties of banking families.

Frederick Soddy defines banks: "Institutions which pretend to lend money, do not lend it, but create it, and when it is repaid, de-create it and have achieved the physically impossible miracle thereby, not only of getting something for nothing but also of getting perennial interest from it."

The money changers soon discovered that their control of this fraudulent paper promissary note money supply, as there was more paper in circulation than in deposits, gave them control over the economy and the assets of many of those who had borrowed money.

The money changers exacted their control of the economy and their wealth accumulation by manipulating the money supply - easy money and tight money - economic contraction and expansion.

Economists, financial marketers, refer to "the business cycle," "boom and bust," "recession," "depression", "tech bubble" and "housing bubble" in order to confuse and distract - even so "bubbles" are real.

In a fractional reserve banking system, such as the fiat paper money/fungible asset system used internationally, the debt has to continue to climb until, at some point, it must be forgiven.

The debtors can never aquire enough capital to fully pay off their debt.

In a closed fractional reserve system money is only printed through loans like the ones granted by the BIS today.

When $10 is deposited $100 is loaned out.

Assume an annual interest rate of 10%.

The borrower is required to pay $110 back to the bank, but $10 is still held as reserves by the bank and only $100 has been put out into circulation.

Where does the extra $10 to be paid as interest come from?

"Imagine the first bank which prints and lends out $100.

For its efforts it asks for the borrower to return $110 in one year; that is it asks for 10% interest.

The bank has created a mathematically impossible situation.

The only way in which the borrower can return 110 of the bank's notes is if the bank prints and lends more.

The result of creating 100 and demanding 110 in return, is that the collective borrowers of a nation are forever chasing a phantom which can never be caught; the mythical $10 that was never printed.

The debt is in fact, unrepayable.

Each time $100 is printed, the nation's overall indebtedness to the system is increased by $110.

The only solution at present is increased borrowing to cover the principal plus the interest of what has been borrowed." - Roger Langrick



securitized loans

securitizing loans

Jump You F*#kers

"What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn't be taking it to those who are willing to and are capable of doing so." - Alan Greenspan 2003

"Clearly, derivatives are a centerpiece of the crisis, and Alan Greenspan was the leading proponent of the deregulation of derivatives." - Frank Partnoy 10/08/08

"The derivatives market is $531 trillion, up from $106 trillion in 2002 and a relative pittance just two decades ago. Alan Greenspan banked on the good will of Wall Street to self-regulate." - Peter S. Goodman 10/08/09


Investment banks are able to "balance" and prove adequate reserves by "securitizing" loans which allows investment banks to move those loans off the balance sheets.

There are two ways to securitize a loan:

sell the securitized loan as a 'corporate' bond (originally made popular by Michael Robert Milken* as junk bonds);

or "synthetic" securitization: use of derivatives to get rid of the risk of default (with credit default swaps) and lock in the interest rate due on the loan (with interest-rate default swaps).

Once an investment bank securitizes a loan that it is off the balance sheet.

Once a loan has been moved off the balance sheet the capitalization ratio improves and the investment banks can make even more loans.

Investment banks print trillions of dollars of credit without maintaining adequate capital reserves (leveraged up to 33 to 1 - 3.3 times higher than the traditional fractional reserve of 10 to 1) by providing sub-prime mortgages, student loans and credit card loans to millions of loan applicants who have no documentation, no income, no collateral and a bad credit history for enormous short term profits!

Investment banks did this without tying up any of their capital reserves while con-vincing the purchasers of the securitized commercial paper that there was no risk of default!



modern banking 101

The National Debt Scam


"Bankers are in the debt business, and if governments are allowed to create enough money to keep themselves and their constituents out of debt, lenders will be out of business.

The central banks charged with maintaining the banking business therefore insist on a stable currency at all costs, even if it means slashing services, laying off workers, and soaring debt and interest burdens.

For the financial business to continue to boom, governments must not be allowed to create money themselves, either by printing it outright or by borrowing it into existence from their own government-owned banks." - Ellen Brown


Federal Reserve issues stock which is held by over 2,900 banks.

The Federal Reserve pays a 6 percent dividend which amounted to $1.637 billion in 2012, the last year of available data.

Fed Open Market Committee creates money out of nothing!

Most "currency" is now in the form of electronic spreadsheets, rather than paper records such as ledgers.

Open market operations are conducted simply by electronically increasing or decreasing ('crediting' or 'debiting') the amount of currency that a bank has in its reserve account at the central bank in exchange for a fungible instrument - an entry in an electronic spreadsheet !

Currency magically appears when the balance in a reserve account is increased.

The newly printed currency is then used by the central bank to purchase on the open market fungible instruments which may or may not be backed with tangible financial assets, such as US bonds, foreign currency, or gold.

When the central bank sells fungible instruments on the open market, the amount of currency the purchasing bank holds decreases, effectively destroying currency.

The US Treasury sells marketable securities - T-Bills, promissary notes, bonds, and Treasury Inflation-Protected Securities (TIPS) to the public through regular public auctions to raise the cash needed to operate the US government and to refund maturing securities.



purchasing power


Marketable securities are fungible financial instruments.

Marketable securities are simply government IOU's.

Marketable securities can be bought, sold or transferred after they issue.

Marketable securities are purchased in order to get a secure rate of interest.

At the end of the term of the marketable security, the US Treasury repays the principle, plus interest and the marketable security is destroyed - ie. the fungible instrument is deleted from the electronic speadsheet.

For example one of the twelve Fed banks - Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco - that make up the Federal Reserve system exchanges a fungible instrument for $1,000,000 of marketable securities with the US Treasury.

When the fractional reserve is 10% - $10,000,000 can then be loaned on a $1,000,000 purchase of marketable Treasury securities.

Regional Federal Reserve Banks then issues loans to regional member banks.

To reduce the amount of money in circulation this process is simply reversed.

When the Federal Reserve sells marketable securities to the public the money flows out of regional banks.

When the fractional reserve is 10% - regional loans must be then reduced by ten times the amount of the US Treasury marketable securities.

A purchase of $1,000,000 in marketable securities results in a $10,000,000 reduction of currency in the regional economy when fractional reserve rules are observed.





"The financial system has been turned over to the Federal Reserve Board. That board administers the finance system by authority of a purely profiteering group." - Charles A Lindbergh Sr.

Federal Reserve controls the amount of currency in circulation in two ways.

The first way the Federal Reserve controls the amount of currency in circulation is through the purchase and sale of marketable securities.

The second way the Federal Reserve controls the amount of currency in circulation is through the interest rate it charges its member banks.

But the Federal Reserve also controls the interest rate on the marketable securities through the purchase and sale of marketable securities.

When the US Treasury offers more marketable securities than the rate of demand of those marketable securities then the Federal Reserve can step in and purchase the excess capacity to keep interest rates low or the Federal Reserve can refuse to purchase those marketable securities and the interest rate on those marketable securities will increase to draw in needed capital.

When interest rates go up less currency is loaned out and less currency in the system creates contraction - recession or depression.

Monetary policy, set by the privately owned and operated Federal Reserve, is highly independent of effective political control.

Federal Reserve is subservient only to Bank of International Settlements.



municipal bond debt

municipal debt bonds



Christopher "Kit" Taylor, the former chief regulator and executive director of the Municipal Securities Rulemaking Board from 1978 to 2007, said the members of the board wouldn't allow the group to set rules on credit default swaps and derivatives for the $2.69 trillion municipal bond market.

"The big firms didn't want us touching derivatives.

They said, 'Don't talk about it, Kit.'

I saw bankers looking out for their self interest in my years at the MSRB.

The attitude changed from, 'What can we do for the good of the market,' to, 'What can we I do to ensure the future of my business.'

The profit wasn't in the underwriting, it was in the swap.

Right up until the day we went to real-time disclosure, I was getting calls from bankers wanting to delay it.

The only ones who benefited from delaying transparency were those who profited from the trades."- Christopher "Kit" Taylor


1975 Congress set up the Municipal Securities Rulemaking Board to make rules for firms that underwrite, trade and sell municipal debt.

The board, funded by member firms, generates $22.2 million in fiscal 2008..

As a self-regulatory organization, members of the industry are granted the authority to supervise their own practices.

A 15-member board oversees the organization and 10 of the directors are from Wall Street firms.

Enforcement is handled by the Securities and Exchange Commission.

August 1983 Washington Public Power Supply System bonds to build five nuclear reactors default.

January 2010 Las Vegas Monorail bonds default.

November 9, 2011 Jefferson County Commission voted 4 to 1 to declare bankruptcy on roughly $4 billion in municipal debt.

2011 28 defaults totaling $522 million.

June 28, 2012 Stockton files for Chapter 9 protection.

2012 21 defaults on muni debt totaling $978 million, according to Richard Lehmann, publisher of Distressed Debt Securities Newsletter.

July 18, 2013 Detroit files for bankruptcy on a municipal debt of $20 billion.

Aug 04, 2015 Puerto Rico defaults on a $58 million bond.

July 1, 2016 Puerto Rico defaults on $ 2 billion bond.





unique library index

This web site is not a commercial web site and is presented for educational purposes only.





This website defines a new perspective with which to engage reality to which its author adheres. The author feels that the falsification of reality outside personal experience has forged a populace unable to discern propaganda from reality and that this has been done purposefully by an international corporate cartel through their agents who wish to foist a corrupt version of reality on the human race. Religious intolerance occurs when any group refuses to tolerate religious practices, religious beliefs or persons due to their philosophical ideology. This web site marks the founding of a system of philosophy named The Truth of the Way of the Lumière Infinie - a rational gnostic mystery religion based on reason which requires no leap of faith, accepts no tithes, has no supreme leader, no church buildings and in which each and every individual is encouraged to develop a personal relation with the Creator and Sustainer through the pursuit of the knowledge of reality in the hope of curing the spiritual corruption that has enveloped the human spirit. The tenets of The Truth of the Way of the Lumière Infinie are spelled out in detail on this web site by the author. Violent acts against individuals due to their religious beliefs in America is considered a "hate crime."

This web site in no way condones violence. To the contrary the intent here is to reduce the violence that is already occurring due to the international corporate cartels desire to control the human race. The international corporate cartel already controls the world economic system, corporate media worldwide, the global industrial military entertainment complex and is responsible for the collapse of morals, the elevation of self-centered behavior and the destruction of global ecosystems. Civilization is based on coöperation. Coöperation does not occur at the point of a gun.

American social mores and values have declined precipitously over the last century as the corrupt international cartel has garnered more and more power. This power rests in the ability to deceive the populace in general through corporate media by pressing emotional buttons which have been preprogrammed into the population through prior corporate media psychological operations. The results have been the destruction of the family and the destruction of social structures that do not adhere to the corrupt international elites vision of a perfect world. Through distraction and coercion the direction of thought of the bulk of the population has been directed toward solutions proposed by the corrupt international elite that further consolidates their power and which further their purposes.

All views and opinions presented on this web site are the views and opinions of individual human men and women that, through their writings, showed the capacity for intelligent, reasonable, rational, insightful and unpopular thought. All factual information presented on this web site is believed to be true and accurate and is presented as originally presented in print media which may or may not have originally presented the facts truthfully. Opinion and thoughts have been adapted, edited, corrected, redacted, combined, added to, re-edited and re-corrected as nearly all opinion and thought has been throughout time but has been done so in the spirit of the original writer with the intent of making his or her thoughts and opinions clearer and relevant to the reader in the present time.


Fair Use Notice



This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of criminal justice, human rights, political, economic, democratic, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information see: www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Dedicated to the establishment of knowledge, truth, justice and a clear understanding of reality as the American way!
Copyright © Lawrence Turner
All Rights Reserved