The following article from Reuters takes the focus away from the International Bankers, who have planned out the shift from the dollar to a world currency for bank reserves, and suggests this is an Arab Regional plot!

Step Towards World Currency Disguised As Arab Plot

Reuters Article By Daliah Merzaban – Analysis:

DUBAI (Reuters) – Gulf Arab oil producers, torn between rising inflation and exchange rates fixed to a sliding dollar, could consider switching together to a currency basket to buy time for a troubled monetary union project.

A region-wide shift could catch investors unawares after months of market speculation that the United Arab Emirates or Qatar would break ranks with their neighbors and unshackle their currencies from the dollar as Kuwait did this year.

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On our radio program a common theme we stress is teaching the history of the transfer of power worldwide from monarchs to a small handful of powerful bankers. This is the core problem with how history is deceptively taught in most educational institutions. We are taught to believe that the power has shifted from Monarchs to individuals.

Two areas that show this steady shift of power are Campaign Finance Reform and the 17th Amendment. Starting with the 17th Amendment, most people have never even heard of it. What this amendment did was to fundamentally change the way Senators are elected. Before the amendment the state legislators would be the ones to vote for the Senator, thus proving the United States to be a Republic. The fundamental difference between a Republic and a Democracy is that in a republic elected representatives make decisions whereas in a Democracy direct voting, or mob rule, wins the day. It is interesting to note that some of the founding fathers of the United States referred to a Democracy as “two wolves and a sheep voting on what’s for dinner”.

What's For Dinner?

So, in the creation of the Constitution the Senate was put in place to make sure that somewhere in the process there would be representatives with cool heads, so that when the mob would be angered about something and the House of Representatives knew they were all up for re-election in less than 2 years, then the House would be respond to the whim of the people but the Senate would have cooler heads since they were elected by state legislators creating a level of abstraction between them and the mob. Then these two houses would come to some agreement so that the will of the people would be expressed but it would be tempered. In this way they referred the Senate to being like the saucer that a cup of tea sits on. Apparently people used to pour their tea on the saucer if it was too hot to cool it down, and this was the intention of the Senate.

While the founders expounded on the various benefits of this arrangement it does create a problem. The senators were hard to manipulate. If you think about it, the senators answered to one or two hundred of their counterparts in the state legislatures. If a company, bank, or other financial interest wanted to get the senator to do what they wanted they would have to curry the favor of hundreds of state legislators in order to put the pressure on the senator that would answer to the state legislature at the next election.

This was tedious for the banking elite, or for anyone wishing to manipulate legislation, and discouraged consolidation of power by dispersing it to hundreds of state legislators. Also, as the country expanded and new states joined the union the decentralization of power spread. For every 2 senators came another couple of hundred legislators that divided up the nations power.

A Different Sort of Senate

The solution to this problem for the bankers, and other moneyed interests, was the 17th Amendment. This 17th provided for direct election of senators. Sounds good to some; why should the state legislators decide? Why not let “the people” decide for themselves, was the argument. But understanding the nature of people the banking elite knew that the number one determining factor in most elections is name recognition. After the 17th amendment the banking elite could inject huge sums of money into any election where they wanted to decide the outcome. Most campaigns are determined by small sums of money in comparison to the wealth of the most powerful bankers. For example in the last presidential election the winning candidate raised 700 million in campaign contributions, mainly from large corporations filtered through the 527 groups. In the banker bailout alone the bankers are walking away with over 700 billion! And that is truly just the tip of the iceberg. One of the most powerful banking families are the Rockefeller family who, by some estimations, may have as much as 11 trillion (thats trillion with a “T”) under their control. In this light, the money to determine even the top election is tiny. Senators come even cheaper.

The next major change has come with “Campaign Finance Reform”. Now I know when people hear that they think “McCain-Feingold”, but lets take it back to the much more significant Campaign Finance Reform that took place in the early 1970s.

Before discussing the reform we should take a moment to see how elections worked and why they wanted to reform it in the first place. The way most congressional races worked were that they were determined by local or state party bosses. The way it would work is this: say you had a democratic stronghold like Chicago, for example. In Chicago whoever is run by the democrat party for congress is going to win (because most districts are either predominately democrat or republican). So if you can choose who will run in the general election you choose who is going to be elected. Unlike today, before the reform in the ’70s, there was not always a primary to decide who would be the Democrat candidate (or Republican). In fact, in most cases it was up to the local party boss. So if you were head of the Chicago Democrat party you essential got to decide who would be the congressmen representing the districts that fell in your city. This is the problem they were trying to fix when the put in the reforms of the early 1970’s that forced a primary if an appropriate amount of signatures were collected by more than one primary candidate.

However, as is the case much of the time the cure was worse than the disease. We see again that the pre-1970’s system, while having its problems for sure, spread power to local and state party bosses. Therefore if you are trying to consolidate power it is more difficult because you need to curry favor with hundreds of party bosses around the country. Also, the amount of corruption was limited since the congressman only had to please one party boss. Of course the party boss would have all his family members in plush government jobs, he would likely have business interests that would receive lucrative government contracts, along with various other favors. But the point is that the congressman only had to please one local party boss who was satisfied with a relatively small amount of privileges.

Transfering Power to Whom?

Campaign Finance “Reform”

Now with the 1970’s campaign finance reform a few things changed. As mentioned, it made it much easier for candidates to force a primary election to decide who would be the party’s candidate. Now money could be injected into campaigns to determine who would come out on top. With this change came the creation of Political Action Committees (PAC) which created the “Special Interest Groups” that everyone has been beating up on. It also shifted power from the local party bosses to the national parties who could receive an almost unlimited amount of “soft money” that could be spent to elect their candidates.

Now a congressional candidate needs to please every special interest group, not to mention every corporate and banker interest that provided the soft money through the national parties.

We hardly have time to get too deep into the most recent Campaign Finance Reform, McCain-Feingold, but suffice it to say that it has not “taken money out of politics” nor has it returned the “power to the people”. What it has done is drastically increase the power of the 527 groups that are not as restricted as the PAC’s. It took this power from the national parties that were the brokers of the large corporate and banker contributions of the past.

Their Names Were Known

So by all this power is even more consolidated. Those flush with cash, mainly the small banker elite and the companies that are under their control, can directly inject money to determine the outcome of elections. The power has slowly shifted from state legislators, to local party bosses, then to national parties, and now directly to the wealthiest banking elite. While bankers have been the dominate holders of power since the demise of the Monarchs, never before in history has so much power been so consolidated in the hands of a few than it is today. And unlike the pharaohs, the Caesars, the kings and emperors, most people don’t even know their names.

By

Jordan Kaufman

Jordan is host of the Las Vegas based radio program Corruption Radio, on KDWN 720 AM and is editor and main contributor of CorruptionRadio.com

Send Jordan your comments at Jordan@CorruptionRadio.com (VM: 702-560-1948)

Article by Ron Paul:

The continuing financial crisis has made clear to many people the deep problems that exist within our financial system. One of the key decisions to be made in any of the reform proposals floating around deals with the Federal Reserve System and its powers.

Federal Reserve: Beyond The Reach of an Audit

For nearly 100 years the Federal Reserve has operated largely in the shadows. The Fed’s monetary policy operations, including open-market operations and agreements with foreign governments and central banks, are exempt from audit by the Government Accountability Office.

Congress itself never delves into these areas in the limited time it has during the Fed chairman’s semiannual appearances before the House Financial Services Committee, and any pointed questions are evaded. Former Fed Chairman Alan Greenspan was adept at this — his “Greenspan-speak” was legendary — but Chairman Ben Bernanke is no slouch, either, at giving vague and nonresponsive answers to direct questions.

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On this week’s Corruption Radio (October 17th) we bring to light how 95% of all money in circulation is created by commercial banks out of thin air.

How Much Debt Is Too Much?

What happens is you go to take out a loan for a car, home, or other large purchase. At the very moment you sign the loan agreement, committing yourself to pay bank the principle plus interest, the bank creates the principle by entering the amount into their computer screen. The money does not come from anywhere because it did not exist before you signed the loan application.

See, the bank considers your agreement to pay them back an asset, backed by the item you will purchase with the money. So they use this “asset” on one side of the transaction, and balance it on the other side of the transaction by creating the same amount of the principle in what is commonly called “checkbook money”. These are not physical paper dollars, but rather a commitment from the bank to pay that money when demanded. These electronic commitments transfer between banks and in most case cancel each other out so very little actual money changes hands. In other words, Chase bank will have outstanding commitments to Citibank and vice versa; only the small variance in commitment amounts causes actual transfer of money (and sometimes not even then).

Get the full story by downloading the latest broadcast!

In any modern discussion of Imperialism the onus is almost always on times past. In other words, Imperialism was something those evil British white people (in their funny costumes) used to perpetrate before Democracy re-established itself to bring on a Second Renaissance of cultural and economic liberation for the common man. Of course this perspective is based on a glaring illusion.

Yes, Imperialism emerged out of the middle ages during the 16^th century with Great Britian eventually coming out on top. But that is hardly the end of the story. The world felt directly the force of British imperialism because it was confrontational in nature. However, in actuality the time we live in now is by far more imperialistic with greater wealth disparity that has been created, not by any free market, but by managed and manipulated trade, and domestic monetary policies. This needs to be understood now more than ever because the world is about to enter the most imperialistic time period in human history, in part by adopting a Global Reserve Currency.

"The Bank Wars"

The first thing that needs to be understood is “Why did European countries begin engaging in Imperialism in the first place?”

Did some greedy king one day decide that he did not have enough wives, or foreign delicacies, or timber and then ordered troops to go terrorize some indigenous people in some distant land to satisfy his royal fancy? HARDLY!

The middle ages were marked with what I will refer to as “normal wars”, or small wars over border disputes or civil wars between warring dynasties (normally when a clear heir was not put in place by the previous Monarch). Europe did not begin engaging in any real imperialism until FRACTIONAL RESERVE BANKING took effect. There is hardly the opportunity in this article to detail all the dynamics of this financial deception. And I know the average person will mentally check out (possible even bemoaning to themselves “BORING”) when they start to hear financial terms discussed, but this idea of fractional reserve banking has caused more war and death than the invention of the Atomic Bomb. Families are torn apart because of it; our food is being corrupted because of it; the thought process of the average person is being crushed because of it; vast sections of the world are in a state of near starvation because of it; and everyone is up to their eyeballs in debt because of it.

To keep it simple fractional reserve banking is basically the ability for bankers to create money out of thin air. The money we have today does not represent gold or some other real asset like it used to. It is just a piece of paper that the bankers can print as much of as they like. In addition to fractional reserve banking, in almost every country of the world there is a central bank (the bank that has the right to authorize the printing of new money – like the Federal Reserve in the United States). All these central banks are either owned or at least controlled by a handful of powerful bankers. So the Federal Reserve, for example, is not part of the government but a corporation whose stock is owned by bankers (many of them foreign to the United States). As the saying goes “The Federal Reserve is about as Federal as Federal Express”.

So in the 1600’s (after a few hundred years of individual banks issuing pieces of paper for gold they didn’t have) the bankers smartened up and basically said to themselves “Instead of issuing paper certificates from our bank that people could come to us and try to redeem for Gold, wouldn’t it be better if we could print money that had the countries seal on it and people thought was printed by the government?”

See before that if people lost faith in their bank they would take the paper promises for real gold they issued and bring them in for redemption (before the bank went bankrupt). This limited how much fake paper money the bankers could issue because they feared mass redemption. Since entire nations don’t regularly go belly up, the bankers used the stable image of the nation to fool people into accepting paper money.

Sound Money?

To make matters worse, these bankers would not just print money, but then they would “loan” the money back to the government at interest. So, now the bankers had a huge motive for the government to go into debt. See, the bankers flush with cash would buy up legislators in a countries parliament with campaign money (and other dirty money for sure). Then they would get their bought legislators to get the government to spend vast sums of money on wasteful endeavors, such as wars and costly public projects. Of course the government never wants to directly tax people for these projects because that is unpopular. The taxes came for sure but there is a limit to what they could tax people. It is much easier to turn to the bankers who can print the money (thereby stealing money evenly from the public through inflation which is not immediately felt).

So they went to the bankers who would print the money and the exchange goes like this. The bankers give the government the money to spend wastefully, and at the same time the government gives the bankers an IOU or bond saying the taxpayer will pay them back with interest. Imagine having the ability to print money like that. Most people are happy to get 4% interest in a CD, or by buying stocks or bonds, and that is on money we actually earn. The bankers could print the money out of thin air and loan it to the government at interest. Amazing! Of course, I am drastically simplifying this at the moment but the principle holds true.

THERES THE RUB

So now that the bankers were given this ability to print money endlessly did they print like crazy to the point that the public rejected the phony money and it lost all its value? Well no, they were smarter than to do that. They want the illusion to continue so they would bring the currency back and forth from the brink of collapse only to save it by cooling off on the printing (I mean even they need a break now and then to count their piles of stolen money).

But the hunger of the bankers to print ever more money was strong but they wanted a way to print like crazy and still have the money hold its value. But that’s kind of like saying you want to eat like a pig, not exercise, and still be in great shape.

Unfortunately, while your body has defined limitations bankers are always finding ways to further manipulate money and other “financial instruments”. So the question arises: how can you drastically increase the supply of money without destroying its value? The answer is quite simple: like any other market commodity increased demand can stabilize the price or value of something that has increased in supply.

While you are soaking that in, you can ask yourself “how can you increase the demand of a country’s money?” Well you need to find homes for it outside your country. If you can imperialize another country, open up the market under conditions favorable to investors in your home country then they will pour money into the new markets. More importantly you get the money out of your home country, thus hiding the inflationary printing of the money.

It is no coincidence that inflationary paper fiat money and imperialism arose in the same time period in Europe. As long as there is paper money printed by privately owned central banks imperialism will keep increasing.

And it has. Many text books and reference works refer to the last vestiges of imperialism ending in 1914 C.E. with the outbreak of WWI. Nothing could be further from the truth. After WWI the League of Nations was set up supposedly to keep any future wars from breaking out and to establish world peace so everyone can hug each other singing “we are the world, we are the children”. In actuality, its purpose was to set up its Economic Council which induced League of Nation members (especially those on the losing end of the war) to stock British Pounds (instead of actual gold) in their central banks. This was called the “gold-exchange standard” and it allowed Great Britain to still print and spend pounds like crazy and still have the pound hold its value (because they would float to other countries and stay there – not increasing supply in England itself).

No Peace

Sounds great for Great Britain but this came at the expense of the dominated nations that agreed to pretend these paper bills were equal to their face value in gold when they were not. This equated to nothing else than a transfer of wealth from the world’s nations to Great Britian (and the US actually but that is complicated). Now you can understand why England “appeased” Germany as they started to welch on the payments they had to make to pay back for WWI. See, as long as England could keep their pounds stored in central banks throughout Europe they were happy and did not want to upset the apple cart. Incidentally, while this program exploited the League of Nation members most of their leaders were not too bothered by it, because they still had access to inflationary money. See, as an example, let’s say Germany wanted to print 10 marks. Before the WWI (since they had a central bank) they would need to have 10% reserved in gold, 1 mark worth of gold. Under the Gold-Exchange system they would hold 1 mark worth of British Pounds instead. So the local politicians were satisfied with storing British pounds and getting access to inflationary money. This is what prevented them from taking the Pounds back to England for Gold Redemption. See if they redeemed 1000 Pounds that would take 10,000 Pounds worth of German Marks out of circulation in Germany because of the relationship of circulated money and money reserved in the central bank.

With WWII the system broke down and out of the ashes came the United Nations, which was really set up to establish the Bretton Woods financial system. Basically it was a remake of the Gold-Exchange Standard but this time the US Dollar was the reserve currency of choice. This is one of the main contributors to the relative prosperity of the United States in the 1950’s and early 1960’s. Excess dollars were being printed but the inflation was not being felt at home because neo-imperialism made sure the dollars not only went abroad but stayed there.

Even as the dollar as the reserve currency of choice is crumbling, China and other countries have huge reserves of dollars that they have been induced not to dump onto the open market. But they are getting restless and a Global Reserve Currency that is a composite of the following currencies is being floated to replace it: British Pound, US Dollar, Japanese Yen, Euro, Saudi Arabian Riyal, Indian Rupee, Chinese Yuan.

The end result is that demand for the dollar will wean, as it has been since the Euro and Yen have been gaining status already. For the other currencies listed demand will increase and wealth will be transferred to those countries from basically any other country on the planet that will be forced to stock this common currency. Mind you the Dollar, Yen, Pound, etc. will not be going away. The Global Currency will not actually replace the individual currencies, but a global bank (they will probably use the Bank of International Settlement in Bassel – possibly in conjunction with the IMF, think IMF = Treasury and BIS = Federal Reserve) will set the exchange rates so that the basket of currencies inflate together evenly. Every other country will suffer. India will become dominate in sub-continental Asia, Saudi Arabian will make their dominance in the middle east permanent, Europe will dominate Africa like never before, Japan and China will be master over the rest of Asia, and the United States will keep its dominance in the Americas while somewhat taking a step down.

United We Stand To Rob The World

However sometimes it clouds the issue to speak of Nations as distinct entities. Great Britain in general will not benefit, nor will Japan and the other dominate countries – in the sense that a pimp doesn’t truly benefit from his exploitation of prostitutes. What would truly benefit everyone is for them to return to sound money, which is not based on debt. As long as debt is tied to the money supply domestic policy will include wasteful and manipulative spending and taxation.

Also, as if national central banks were not bad enough, a global bank owned by offshore bankers will be even harder to stop. Recently there has been increased pressure to audit the Federal Reserve, which they oppose with all their might. The audit will not go through but the Bankers do not like to have to answer tough questions in congressional hearings. With the dollar being king, one country could turn on the Bankers (as JFK tried to do 5 months before he was assassinated with Executive Order 11110) and interfere with their operation. With the super power broken down and the power divided among about 8 nations it is much easier for them to manipulate the power from an unseen seat of power. No one President or Prime Minister will be able to oppose them because the financial regulatory power will have been handed over to a global private bank.

This wont happen overnight. They are just introducing the idea and they are giving lip service to the dollar as the worlds reserve currency in Pittsburgh at the G-20 meeting. What that ignores is that the Dollar is already sharing reserve status with other currencies. See they talk about doing things when they are already half way towards accomplishing it. That is evident in Exhibit A:

Exhibit A - Ground Work for Global Reserve Currency Already Laid

The global bank is at the center for the push for World Government, which will make it so no corner of the earth is out of the reach of a few bankers that are more powerful than any king or emperor from the history books. Do you think you have seen world hunger? Do you think you have seen atrocities? Have you seen genocide, corruption, wealth disparity, and fighting over scarce resources? Just you wait!

By

Jordan Kaufman

Jordan is host of the Las Vegas based radio program Corruption Radio, on KDWN 720 AM and is editor and contributor of CorruptionRadio.com

Send Jordan your comments at Jordan@CorruptionRadio.com (VM: 702-560-1948)

[This article was originally published in the Freeman, July 13, 1953 by Ludwig Von Mises]

Most people take it for granted that the world will never return to the gold standard. The gold standard, they say, is as obsolete as the horse and buggy. The system of government-issued fiat money provides the treasury with the funds required for an open-handed spending policy that benefits everybody; it forces prices and wages up and the rate of interest down and thereby creates prosperity. It is a system that is here to stay.

Now whatever virtues one may ascribe — undeservedly — to the modern variety of the greenback standard, there is one thing that it certainly cannot achieve. It can never become a permanent, lasting system of monetary management. It can work only as long as people are not aware of the fact that the government plans to keep it.

The Alleged Blessings of Inflation

The alleged advantages that the champions of fiat money expect from the operation of the system they advocate are temporary only. An injection of a definite quantity of new money into the nation’s economy starts a boom as it enhances prices. But once this new money has exhausted all its price-raising potentialities and all prices and wages are adjusted to the increased quantity of money in circulation, the stimulation it provided to business ceases.

What's Your Money Really Worth?

Thus even if we neglect dealing with the undesired and undesirable consequences and social costs of such inflationary measures and, for the sake of argument, even if we accept all that the harbingers of “expansionism” advance in favor of inflation, we must realize that the alleged blessings of these policies are shortlived. If one wants to perpetuate them, it is necessary to go on and on increasing the quantity of money in circulation and expanding credit at an ever-accelerated pace. But even then the ideal of the expansionists and inflationists, viz., an everlasting boom not upset by any reverse, could not materialize.

A fiat-money inflation can be carried on only as long as the masses do not become aware of the fact that the government is committed to such a policy. Once the common man finds out that the quantity of circulating money will be increased more and more, and that consequently its purchasing power will continually drop and prices will rise to ever higher peaks, he begins to realize that the money in his pocket is melting away.

Then he adopts the conduct previously practiced only by those smeared as profiteers; he “flees into real values.” He buys commodities, not for the sake of enjoying them, but in order to avoid the losses involved in holding cash. The knell of the inflated monetary system sounds. We have only to recall the many historical precedents beginning with the Continental currency of the War of Independence.

Why Perpetual Inflation Is Impossible

The fiat-money system, as it operates today in this country and in some others, could avoid disaster only because a keen critique on the part of a few economists alerted public opinion and forced upon the government cautious restraint in their inflationary ventures. If it had not been for the opposition of these authors, usually labeled orthodox and reactionary, the dollar would long since have gone the way of the German mark of 1923. The catastrophe of the Reich’s currency was brought about precisely because no such opposition was vocal in Weimar Germany.

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Scholars well versed in the theories of the Austrian School of economics were able to present a unique and credible perspective of the dot-com bust and high-tech meltdown. The maestro at the Federal Reserve had created mechanisms whereby easy credit became available to players in high-tech and information-sector enterprises. Almost any business idea that could be classified as being in the high-tech or information sectors became eligible for such loans.

THE FED: Federal Crime Syndicate

During the 1980s, there were several innovations in the telecommunications sector that supplied small business and the home market. These innovations enhanced productivity on the individual and commercial levels and gained the attention of government bureaucrats who saw an opportunity to “stimulate” the economy. The result was a malinvestment boom, as hordes of marginal entrepreneurs gained access to easy credit.

Read Entire Article at Mises.org