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Showing posts from August, 2019

China, Built on American Debt

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Last May, echoing the sentiments of President Trump I wrote an article entitled, “America, China’s Piggybank.”  In it I explained why China needs U.S. dollars, which they receive in trade for exports to America.  Essentially, since the early-1970’s Federal Reserve banks on Wall Street have owned the franchise of issuing U.S. dollars, in practically unlimited quantities, sending them all around the world, expecting the U.S. military and intelligence services to enforce their value.  That system has a name.  It is called, “the petrodollar system.”  As a result, the world still uses dollars as its predominant trading platform, which explains why China, the world’s largest exporter of goods, must always have a significant supply of dollars.  One way China obtains dollars is to produce cheap goods that Americans, always shopping for a deal, unwittingly import. Now if you didn’t realize that the U.S. military and intelligence services have been enforcing the value of the dollar around the wo

Fixing the Rigged System

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Over the past several weeks, I’ve shown you how it is that as long as the Federal Reserve private banking system controls the issuance of America’s money supply, it will remain mathematically impossible to pay off the national debt or sustain a balanced federal budget.  For one thing, we know that is true because before the Fed can place new base dollars into circulation, U.S. sovereign debt of equal dollar value must be received by the Fed and held as collateral.  One dollar of U.S. debt allows the Fed to create one dollar of base currency.  Furthermore, at the member bank level, such as that of Wall Street banks, the American money supply is created and loaned into circulation, at interest.  And because Wall Street does not issue dollars to pay the interest, the only way to pay it is for the people to keep borrowing more dollars…from Wall Street. And so, if you look back at the Fed’s balance sheet leading to the financial crisis of ’08 and ’09, you would see an orderly balance betwe

The Federal Reserve is Stuck

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This is the fourth in a series designed to dispel myths about the US national debt, such as the myth that it is caused by government overspending.  It’s not.  In the first article, we talked about why President Trump doesn’t refer to balancing the budget, or paying off the national debt.  Trump knows that while the Federal Reserve system remains in charge of issuing America’s money supply, doing so is mathematically impossible.  Trump doesn’t talk about things that are impossible, only things that are possible. Next we learned the big secret nobody will admit, and which proves what I just told you.  Before a Fed bank, such as the New York Fed, can issue a new dollar into the economy, the U.S. Government must transfer to the Fed a dollar’s worth of U.S. debt, serving as collateral, indebting the American people to pay the Fed’s dollar back.   Once that dollar of debt is received, the New York Fed can electronically deposit a corresponding new dollar into an account in a Fed member bank

Why Stock Markets Keep Going Higher

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Two weeks ago, I introduced you to the reason President Trump does not talk about federal deficits or the national debt.  Very simply, his reason is that as long as the American people and their government are forced by that same government to use dollars, borrowed at interest from private Federal Reserve member banks, and use that currency as legal tender, sustaining a balanced annual budget without borrowing, or paying off the national debt, is mathematically impossible.  Trump doesn’t talk about things that are impossible, only things that are possible. Last week I elaborated on what I told you before, referring to the Federal Reserve’s own publication entitled, “Modern Money Mechanics.”  In that document, the Chicago Fed explains how dollars are created and who creates them.  That document exposes the fact that before a Federal Reserve dollar can be created, a regional Federal Reserve Bank, such as the New York Fed, must take in collateral in the form of U.S. debt, in the same va

The Big Secret

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If you truly want to understand politics, including why D.C. politicians have become certifiably insane, read on.   Virtually every desperate attack various establishment operatives launch against President Trump, including the Russia hoax, calls for impeachment, and efforts by compromised intelligence agencies, originates from one central concern, the need to protect the American money-creation system and those who control it.  Sit back.  Relax.  I’m about to reveal their big secret. What They Don't Want You to Know Recall last week, responding to statements by various “cut-spending,” or “balance-the-budget” advocates running for Congress, I wrote that President Trump chooses not to speak about federal deficits or the national debt, and for a good reason.   That reason is that, as long as our present system is in place, it is mathematically impossible to either balance the federal budget without severely impacting the economy, or certainly to ever pay off the national debt.