Subprime Crashes Into Criminal Monetary System
-------- "Central banking is perhaps the most brilliant scam ever perpetrated, and the U.S. Federal Reserve stands as the most successful of all central banks in history. The Fed is able to transfer wealth away from the people who earned it, and into the hands of the Federal Government and member banks, relentlessly, stealthily, year after year, and all the while maintaining the preposterous claim of social benefit in the form of "managing the economy." The method of this theft is sophisticated and disguised enough as to escape the attention of most, and when combined with propaganda, leads most people to the conclusion that we'd be in trouble without it. Yet I wish to show here that central banking can be well understood by most people for exactly what it is: the fraudulent theft of trillions of dollars via the monopolization of money."
-- Johnny Silver Bear
"The Fed", 15 Jul 2004
Gary North --Just finished reading your piece, "Will The Big Banks Collapse?", 29 Dec 2007, on the Populist Party site. Enjoyed your thorough description of the continuing subprime meltdown and central banking's role.
Some few of us are doing what we can to shift the national discussion from hand-wringing and clothes-clutching to the hard-biting, effective remedies and solutions available in the legal arena. As it was for Nixon, so it should be for Bush. Most Americans, of course, are lost in clothes-clutching, pie-in-the-sky daydreams of striking back with an electoral system that died of pathogenic electronic voting corruption in 2002, and sundry reform strategies that play to predator elitism's corruption machines and cannot possibly succeed.
While you're not one who is talking effective remedies and solutions, you are a blazing, citizen expert on central banking. We could use your expertise.
Little help, please.
Brief subprime/central-banking recap first, then the legal landscape, then your unfortunate parroting of predator elitism's pooh-poohing of legalities (which, by the way, has the appearance of being your self-serving contribution to holding together our massively failed political-economic system of fascist elites über alles -- how do you make your money?), then questions for you at the bottom.
As you've said, subprime is one of the all-time horrific banking errors. It was created almost single-handedly by greed-players within the global central banking system, with the major players being within or tied to our very own unconstitutional and federally illegal central bank, the Federal Reserve.
Subprime is now a global trainwreck. It has crashed into most of the national top-tier central banks -- ironically the trainwreck's creators -- with the damages running into probably-untold hundreds of billions of dollars. And it's clear that subprime is not a self-limiting crash.
Contrariwise, it seems to be an open-ended collision that will go on colliding with banking services, money, and credit -- for the ordinary-people victims of the subprime frauds -- for a very long time. As you quote lawyer Sean Olender (from his "Mortgage Meltdown: Interest Rate 'Freeze'--The Real Story Is Fraud", 09 December 2007, San Francisco Chronicle), "... The problem isn't just subprime loans. It is the entire mortgage market. As home prices fall, defaults will rise sharply -- period. ..."
You also quote Olender on the matter of greed-player lawyers jumping in to sue the banks for the investors who were clearly defrauded with bad paper. The lawyers will seek to force the banks to buy back the bad paper at face value, regardless of current near-worthlessness. "... The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would ... cause even the largest U.S. banks to fail. ..." Investor lawsuits, legally proper and greed-driven, can only add dimensions and depth to the crisis.
Clearly, this ongoing subprime crash has all the earmarks of an uncontrollable, worldwide, Great Depression II.
The Legal Landscape
The unconstitutional passage of the Federal Reserve Act in 1913, on the vehicle of inferior statute law, has always been an unconstitutional "anti-law regime".
From the Constittuion Society's essay, "Law and Anti-Law", sub-section, "Two Bodies of Jurisprudence" --
"Since the statutes and official acts not based on the Constitution are null and void from inception, and in conflict with the real law, which is based on the Constitution, we may call this body of jurisprudence antilaw. ...
"Almost any effort to enforce such antilaw infringes on the civil rights of persons, and is therefore itself a crime, specifically, violation of 18 USC 241, Conspiracy Against Rights, or 242, Deprivation of Rights Under Color of Law. ..."
The Federal Reserve's continuation has always involved felonies and felony conspiracies, including its usurous "fractional reserve banking", which is more properly "fractional lending ad infinitum". Whatever, the steadily increasing money supply caused by "fractional reserve banking", has ruined the dollar with its underhanded, under-the-table inflation. In the Fed's case, the felonies have been perpetrated minute-by-minute, every minute, since 1913. That's a lot of felonies.
Per the Constitution, the American people have a right to debt-free currency issued and valued by Congress.
Debt-based currency, issued and valued by a federal-statute-defined monopoly of private corporations (the Federal Reserve) violates 18 USC 241 -- felony conspiracy against citizen rights -- as well as both the letter and the spirit of the Constitution.
The "letter" of Constitutional law is violated by the Fed's conflict with Article 1, Section 8, Paragraph 6 -- "The Congress shall have the power ... To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures".
The "spirit" of Constitutional law is violated by the Fed's conflict with the 1935 SCOTUS decision in Schechter Poultry, 295 US 495, which barred Congress from delegating any of the core powers assigned to it in the Constitution.
The American people pay compound interest on every dollar of the Fed's debt-based currency, which is created out of thin air in a variety of usurious ways and at many physical locations. Every act that creates any amount of that "fiat currency" marks a new felony under 18 USC 241. Every payment of compound interest on that "fiat currency" marks a new felony under 18 USC 241.
Every govt act under color of law that supports the Federal Reserve is another violation of 18 USC 241, another felony conspiracy against citizen rights. When Bush nominated Ben Bernanke to be Fed Chairman on 22 October 2005, he joined the chairman-replacement felony conspiracy, adding to his mantle as the Criminal President. When the Senate confirmed Bernanke by voice vote on 31 January 2006, it joined the felony conspiracy, adding to its mantle as the Criminal US Senate.
Per the Constitution, felony forfeits legislative immunity. "... They shall in all cases except treason, felony, and breach of the peace, be privileged from arrest...". There is no absolute legislative immunity.
Between seeking Bernanke as Fed Chairman and his Senate confirmation, several govt hierarchies became principals or accessories-after-the-fact in the felony conspiracy.
That is, there are hundreds of felons-in-waiting and accessories-after-the-fact, in and out of govt, who need to go to prison for Federal-Reserve-related crimes -- right now, before the fascist thugs in central banking, the govt, and powerful corporations spring the North American Union and its dollar-dumping MEXCANUS Amero on us.
Getting to those criminal prosecutions, of course, will not be easy. But they are the effective remedies, I'm convinced, that the American people need to get to. And we do have options that can force the issue.
Predator Elitism's Vacuous Argument
For Non-Prosecution Of Its Own Criminals
In your otherwise-excellent article, you unfortunately parrot predator elitism's vacuous argument for not prosecuting those guilty of subprime fraud and Federal-Reserve-related crimes. You write --
"... There appears to have been fraud at every level. But this, it seems to my judicially untrained eye, is the very loophole the banks need. If everyone knew, as seems likely, and nobody blew the whistle, which is clear in retrospect, then these practices were common. If they were common, then they were not criminal. The government knew, and the government did nothing. Ditto for the Federal Reserve, the Comptroller of the Currency, and every other regulatory agency - Federal, state, and local.
"When a criminal conspiracy acts in a criminal fashion, it can be prosecuted. But when a criminal conspiracy has been licensed by the government, and has de facto run the government of every major nation for a century, it will be difficult to get a conviction. None dare call it criminal."
There's lots of logical fallacy squirming around in this vacuous argument. Briefly, the argument is -- if everyone knew ... and nobody hollered 'fraud' ... then its all unprosecutable 'common practices'.
This is a revolutionary view of law. It would give govt and corporate predators whatever the hell they want, whenever. Laws would never impose limits on predator behavior. Collusions would be automatic and mutually understood. "Everybody knew", therefore nothing criminal happened.
A whole world of legal concepts would be in the toilet. "Statute conspiracy", which took hundreds of years to develop into its modern form, and which underpins 18 USC 241 (felony conspiracy against rights) would never apply -- could never apply.
But here's the first hammer --everybody did not know. The subprime victims did not know that they were being victimized -- and most of the Federal Reserve victims still do not know that they are victims of the IRS personal income tax based on wages, which is the Fed's private money-pump, the criminal and unconstitutional mechanism for the redistribution of American wealth into the hands of central banking's private corporations. See especially, Aaron Russo's video, America: Freedom To Fascism".
Therefore, because the victims did not know, the criminal conspiracies -- subprime and Federal Reserve -- were and are acting in a criminal fashion.
That's just a touch of semi-rigorous logical examination of predator elitism's "everybody knew" gibberish. I could rant on through many other counter-examples, starting with the post-WW2 prosecutions of German, Italian, and Japanese war criminals -- cases in which all perps and all victims knew exactly what the 'common practices' were. Common practices did not preclude criminality. The common practices were criminal. Prosecutions happened. Convictions happened. Sentences were carried out.
There's no escape from criminality in the nonsense of 'common practices'. Well-- there is, historically proven, if you're a member-in-good-standing in a govt/corporate fascism such as Hitler Germany or the Bush-led 3-branch despotism.
I could rant on, but I think you're smart enough not to need such hammering.
We've got to get back to the the old notion, dura lex, sed lex -- the law is harsh, but it is the law. There are hundreds of felons-in-waiting and accessories-after-the-fact who need to go to federal prison very soon.
Questions For You
I'm nowhere near the expert you are on central banking. But it's clear to me that effective remedies and soltuions for our central banking abominations involve making it right with the law.
In my world, making central banking right with the law means repealing the Federal Reserve Act and generally obliterating central banking as we know it. I think you agree.
Yes, reasons for JFK's murder undoubtedly included his moves toward a debt-free currency and abolishing the Fed. But that's a story for another day.
My first order of business is to describe an institution that can replace the Federal Reserve, starting us with the issuance of debt-free currency.
Do you have any starting places to recommend? Can you recommend a biblio of thinkers and works dedicated to replacing the Fed? Have you engaged this topic yourself, and, if so, where can I read your discussion of it? Would you venture out now to engage the topic in new discussions?
Clearly, we can't go on with this national discussion of hand-wringing and clothes-clutching. We're running out of time. Americans will not continue to take the abuse and lies so typified by the byzantine subprime financial instruments, the consequent housing market crash, and the zero accountability for those who commit such abuses against the people. With the safety-valves into change blocked by the governing and corporate elites, and with many industries carpet-bombing the middle-class, the next stop could easily be bloody revolution.
Thanks for any consideration you can give -- toward a peaceful revolution.
Update, Sat 12 Jan 2008 --
Email Response from Gary North:
"My first order of business is to describe an institution that can replace the Federal Reserve, starting us with the issuance of debt-free currency."
There should be no such institution. There should be 2 laws:
1. No fractional reserve transactions: 100% reserve banking.
2. No legal tender laws.
Then get out of the way. The market will create the institution.
Stephen's commentary: I was hoping for something a bit more chatty, a bit less cryptic. In any event, given the serious complexity of replacing the Fed and displacing its raw corruption powers, setting the laws that eliminate debt-based currency and then letting the market sort things out might seem to be an option.
There are certainly many Americans who will believe this to be an effective option. It is not. It plays to predator elitism's corruption machines, and it cannot possibly succeed.
Unfortunately, it only seems an option because of the propaganda that has propped up the fiction of free markets for the past three decades plus.
There's simply no such thing as free markets. Why would we let market forces -- a morass of demonstrated legal, financial, and trade corruptions -- sort out and create anything?
Mr. North's first law has obvious merit. Barring fractional reserve lending, the source of currency devaluation through inflated money supply, seems necessary no matter what else we do.
However, Mr. North's second law conflicts too broadly with the Constitution: "The Congress shall have the power ... To coin money, regulate the value thereof, and of foreign coin, ...". That is a legal tender law of the highest order. It says that at least some of our money will be coined and valued by Congress, and, by implication, that such money will be accepted for payment of debt. Congressionally coined and valued money might be only the core of our eventual debt-free monetary system, but it is a Constitutional reality. For now, I'm convinced that the Constitution's authors were right about this matter and that we need such a core currency for the sake of our uniquely American federalism.
Untangling our criminal monetary system cannot be a one-dimensional fix trusted to the elites who have been responsible for its constant criminality for the past 95 years.
Mr. North's two laws do not repeal the unconstitutional Federal Reserve Act of 1913 or the Fed's money-pump, the unconstitutional personal income tax on wages. Even if we enacted Mr. North's two laws, the unconstitutional fragments of the Fed and the personal income tax on wages would still be available to the predator elitists of our now-entrenched, fascist, govt/corporate despotism.
Many individuals in all three branches of our national fascist govt, along with many of their fascist corporate clients, need to be criminally prosecuted and convicted before we can have a healing process for our Constitution and our rule of law. Our governance of, by, and for the financial and governing elites has revolved too widely around the "anti-law regimes" of unconstitutional statute law -- such as the Federal Reserve Act of 1913 and the personal income tax on wages (illegally redistributing wealth upward since the fraudulent non-ratification of the non-defining 16th Amendment, also in 1913). We as a nation owe too many debts to those who have been terribly wronged by the anti-law governance done by the elites. We cannot approach being the nation of our Declaration of Independence principles until those criminal prosecutions have cleared away the wrongs.
All of that must be a part of untangling our criminal monetary system. And until all of that is understood as the class warfare that it has been at least since 1913, we're doomed to live in realities that are twisted, distorted, and rejected by the cognative dissonance of our politically naive belief systems.
There are better, more comprehensive remedies to the starting place questions.
More analysis to come.
Last modified Sun 13 Jan 2008, about 7:30 am CST
© 2007-2008 by Stephen Neitzke