Having the USG charter a new private central bank shares owned by every citizen privately: Abstract

This bank would own all natural resources oil/gas timber all mined materials etc and the means of productions that bring those materials to market within all U.S. lands selling the productions on the open market as an exchange between the newly chartered privately held stock holders in the bank and the USG. This newly created private central bank would be a modern enlighten concept of what is known as a central bank that would have no governance by the the USG except for the appointment of its chairmen by the President of the United States following confirmation by congress.

The bank would function as follows regarding all major depositors:

All foreign raw materials know as "any materials derived from foreign sources that are traded on the open market in USDs" will pay a percentage for the use of our U.S. DoD and intel assets which are used to keep those producers in power and thus in positions of ownership of their productions, plus safe guarding their savings which is to be invested in the central bank earning a relative interest rate with rate of change (ROC) duly applied as changes in the free market occur. Such agreements are to be formalized as sign security agreements with the USG in promises for protection in exchange for individual major depositor's promise to deposit a predetermined share of their profits in the newly chartered privately owned central bank located with in the District of Columbia of which grounds would be privately owned.

Private ownership of the newly created central bank

Every U.S. citizen registered to vote who would get an equal share in the banks ownership. An ownership to be renewed every two years when updating voter registration forms. Such form would also exempt from all income taxes for the specified biannual time period of the shareholder's taxes owed no matter how much they earned as personal income from all income sources. Dividends paid out to share holders would be paid less depositor's interests and other operational costs/overhead, and less the operating budget of the USG.

This bank would issue U.S. private bank notes known as U.S. Dollars.

Bad idea or good idea?

We have had this bank in the past and our government chose to deliver it into the hand of the robber barons.

This bank is the United States Treasury. This bank contains and controlls all wealth of the United States. Each citizen had a vote in its managment thru there elected representative.

Its money was the actual metal ie. gold or silver, or nickle, or copper. Its money was NEVER subject to inflation or depression. If money was loaned or borrowed it was an actual transfer of wealth, not just adding some digital zeros to an account. The lender actually had to hold and transfer REAL monies to another. The only way to increase the amount of wealth was to add to the pool of dollars REAL gold, silver etc.

We can have this banking system again. We must repeal the Federal Reserve Act. Wealth is not a mulitude zeros on some computer at the Fed.

ALL original wealth comes from the Earth.
The Wealth of the United States belongs to the People of the United States, not a handful of bankers.

Originally posted by brokedown
We have had this bank in the past and our government chose to deliver it into the hand of the robber barons.

This bank is the United States Treasury. This bank contains and controlls all wealth of the United States. Each citizen had a vote in its managment thru there elected representative.

Its money was the actual metal ie. gold or silver, or nickle, or copper. Its money was NEVER subject to inflation or depression. If money was loaned or borrowed it was an actual transfer of wealth, not just adding some digital zeros to an account. The lender actually had to hold and transfer REAL monies to another. The only way to increase the amount of wealth was to add to the pool of dollars REAL gold, silver etc.

We can have this banking system again. We must repeal the Federal Reserve Act. Wealth is not a mulitude zeros on some computer at the Fed.

ALL original wealth comes from the Earth.
The Wealth of the United States belongs to the People of the United States, not a handful of bankers.

Actually, I am not advocating going back to a national bank nor one that is on any precious metal standard. Gold for example is an emotional commodity. Nothing can run on gold. Energy is another matter entirely. Other natural resources such as gold could play role in creating and maintaining upstream demand pulls (please see explanation of up/down stream demand pulls at the bottom of this post) of on the bank's currency through trade one the open market. So the central banking model I am advocating would function just like the current Federal Reserve only it would be held in private trust by the people of the nation it operates and is chartered within instead of being owned by its depositors like it is now. The "robber barons" you speak of. I think such a model of ownership would help safeguard against any retake over attempt by the "robber barons." If they tried to take the bank back they would have to do it in plain site. And this is why. Every registered voter would have a certificate of ownership as a partner in the bank. That's something physical, tangible, and would mean something to everyone personally. try to take that away, and people would riot once they understood what their certificate of ownership really meant to them on a personal level. On top of that everyone would be receiving quarterly reports, a copy of an income statement of the bank. This stating how much the bank grossed and what the overhead was and payments made in lieu of taxes broken into how many shares were out. No one could sell their share so it would be a set percentage only changing as voter registration were renewed then what ever was the number of shares being issued based on the number of current registered voters. It could be 1 share of 300,000,000 two years before and at reregistration two years later it could be 1 share of 301,000,000. their would be no dividends because congress would drain ever penny. Not that I think that is a good thing mind you, it's just the way politics and government spending interlace together in the inevitable process of governmental functioning within any free republic. And that's what is most important to maintain, a free republic. However there would still be a 100% Federal income tax exemption applied to the status of the owner/shareholder. Because the USG would be deriving most of its revenue from the sale of natural resources of all domestically produced natural resources sold on the open market, and from the sale of protection services for clients such as King Abdullah and his Saudi Aramco oil company.

Here is a little secret about what is happening now in that regard:

We keep him and some other foreign oil producers in power, and the only agreement is an unwritten one for that protection service we provide. The unwritten agreement is that we will protect the Saudi royal family's potions of ownership as a domestic Saudi Arabian dictatorship and thus royal personal ownership holdings in Saudi Aramco. This service provided as long as King Abdullah keeps trading the oil Saudi Aramco produces in USD. Same is true with the Kuwaiti royal family, the Al Sabah family and etc etc etc. With a new arrangement it would just all be official and transparent. Who are the going to run to who is capable and that they trust? Europe? They are incapable of providing such security guarantees. The Chinese or the Russian? They can't be trusted. We are the only true "Pinkerton-s." Both trusted and capable.

Now about those zeros. This is another little secret. That's all a lie. Actually deposits at the FED are made in the form of CDs. Most are purchased by folks such as King Abdullah. Due to the dynamic set up by the "unspoken agreement" that I have explained above. What is said to be money printed out of thin air is actually really money attached to an owner such as King Abdullah. He and others like him buy a lot of CDs in the member banks that make up the Federal Reserve System, comprised of 12 member banks. These banks have partners too. Who are the partners? People such as King Abdullah. No surprise there. Him and others in his peer group own the 12 banks is what I am saying because they are major depositors in those banks. Being partners in the 12 banks, makes them primary owners of the Federal Reserve System. Who are the "common owners?" Everyday people who buy CDs from member banks. (note that, important relevance coming up further into this explanation) That a barometer used to gauge how much money should be loaned out. And now I'll explain how that all works.

You see that's, still using the example of King Abdullah, his savings is being recycled back through "discount window." His snow ball. It's not stored away in a volt somewhere, it's loaned back out almost immediately. All deposits in the member banks, CDs are none transparent, so it appears that the money is just being printed out of thin air or just a bunch of zeros are being added at the FED. But if they loaned out more than the total amount demanded by all their customer banks, none member affiliates, rapid inflation would occur. And if that was happening you would be paying double for each gallon of milk each time you went back to the grocery store. that's how bad it would be. That is why there has to be a barometer in place somewhere to keep everything governed. That governor are common depositors off the street, everyday people who purchase those 5k CDs. they are the "common owners." think of it like common stock. The king has preferred stock. Management say so. (Think about this? When the FED chairmen is selected by the President, whose the ones doing the suggesting for whom to be selected? The major stockholders, the partners. They like them to be Jewish and from Harvard. Most are Arab oil sheiks, but that's the type they like. Because that profile usually guarantees smartness. This is their money, so ethnic emotions take a backseat.) The common everyday CD purchase tells the FED at the discount window how mach should be fractionally loaned out. 5k CD can buy just 10k or it can buy 50k or even 100k if money is really tight etc etc at the discount window depending on current FED policy. They could have a loose monetary policy or a tight one. If banks need to create more common CDs they offer a more attractive interest rate. If they have too many they decrease, but to costumer banks, they can never have too many CDs from their perspective of desire. So the FED will then increase their discount rate causing the banks to pay more for the money they borrow from the FED having to lower what they pay on CDs. That's how that works. This happens when there is a decrease in major deposits coming in feeding the discount window. This sometime happens when the major depositors think the market which the central bank they are invested in has cause market bubbles. So they, the major depositors begin to hang on to their money. They start slowing their new purchases major CDs. This will eventually cause bubbles to pop and then whole markets crash. This process takes a few years to take place as the major CDs mature, and new ones are not bought to replace the old ones. Why would these folks crash a market they are propping up and so heavily invested in? They simply buy up all the great deals later putting the money they had before in CDs purchasing undervalue hard investment and paper stocks. That's why there still is no liquidity to speak of yet things are being bought up at the moment mysteriously raising home values and the stock market gradually rebounding. Plenty of money is rolling into the King's pocket right now because he is getting top dollar for his oil. But he and his peers are still staying clear of making the kind of FED deposits/investments like they were before the crash they caused by pulling their money out of the FED whose costumer banks were making a lot of home loans in a hyper, over valued housing market. It came to the King and his peer's attention that their were shows on American TV such as "Flip this House" That PISSED them OFF because more money, their money was being loaned out on collateral that was not there. Was it HUD loans to blame. No that was U.S. tax dollar guaranteed. It was the "try to get rich in real estate fast" yuppie crowed flipping houses that caused the crash. Then the American mainstream news media lied about the true cause blaming the crash on the poor. And another thing that pissed off the major depositors in the FED was borrowing money to pump and dump stock. They gave a waring back in the late 90's that was not going to be tolerated, and the Wall Street yuppies who refuse to work for a living did it again and kept doing it over the next decade. This time the major depositors are not going to flooded the FED with cash again until the American MSM starts telling the truth about what caused the crash. And that upper middle income yuppies who speculate levered out on hyper inflated over valued assets.

That's a little taste about what really goes on behind the curtain of OZ, and why I digressed a bit there at the end. People need to understand the truth, or the major depositors will never feed back their cash into a system that is all based on lies and deception. Blaming the poor for this last crash was the last act of deception.

Now there is an alternative. Rechartering the bank as I have outlined.

otherwise people like King Abdullah are going to dry up the FED unless America wants to start reining in their yuppie spoiled brat population by curbing their irresponsible investment habits somehow. And that is done through instilling strict banking regulations. One that needs to be implemented is if you take out a mortgages you have to hang on to it for at least two years. that should stop the irresponsible market practice of flipping houses.

It's no joke people like the King don't play fast and loose with their savings because their whole country's future survival depends on that "snow ball." people like Ron Paul can lie about that their saved USDs that are recycled are just a bunch of made up zeros at the FED and printed money created out of thin air all he wants, but that yuppie house flipping game and levering hyper inflated stocks, and what AIG was doing is no joke to the MAJOR DEPOSITORS OF THE FEDERAL RESERVE. It's not tiddlywinks. That snow ball is HARDBALL. And those guys play for keeps. Bottom line poor people are not the issue. Yuppies who most hold college educations, and so should know better, are. And the major depositors want that sh!t cleaned up. Wiped off their college educated A$$es or something. As long as they all get potty trained that's what is important. Then liquidity will begin again in earnest.

But how about we just re charter the bank instead the way I outlined?
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Up/down stream pulls:

Upstream demand pulls on are needed on currency in order to function. This is the demand created on currency by each level of suppliers leading all the way up to energy/natural resource producers. Currency must have the agreement of natural resource producers to demand the currency. They do that by trading their energy and raw material commodities on the open market in exchange for the agreed upon currency. That is why it is so important for the function of any currency to be traded on the open market for raw materials, or pegged to one that is, because every one down stream needs to use such a currency in order to purchase raw materials to make things, people have to be able to buy those things in stores which have to be exchanged in the currency that energy and raw material producers demand located at the headwaters of economy; mines and oil/gas wells. That means employers have to pay people in that specified currency, so their employers can buy the things they need. People wont work for any would be employers that pay in any other form of currency. I guess some folks would barter for wages, and that's what gold really is anyway, a partnering commodity as it makes for a lousy medium of exchange. Carry around a few ounces of gold in your wallet for a day. You'll see what I mean.

Goods and service are demand down stream and are the counter force to the upstream demand for currency. It works like a balancing scale that is on a perpetual cycle.

The producers need a place to store their profits, their savings, wealth, so they invest their profits back into the currency issuing bank. That is then loaned out again. This completes the cycle and because this U.S. Dollar (USD) economy is so petro dependent it's called petro dollar recycling. You can't recycle gold the same way or any other precious metals because their is not a whole lot of real use in the economy for it. That is you can function a modern economy without gold and silver, but you cannot function a modern economy without oil. Gold and silver have mostly emotional values contained within them. It's all psychological. Take gold out of the economy and people still eat. Take oil out of the economy, and there will be mass starvation.

reply to post by brokedown


There isn't enough Gold and silver available to back our money. If we didn't use debt and zeroes to increase our moeny supply then we would need lots of hard cash per citizen to just make things move smoothly. The need would probably be about one month's living expeneses per person. Even at a measly $1000 per person, we would need about $300 billion in currency. If you can show me how the Treasury can accumulate that much in Gold and Silver then i would be willing to listen. I don't think it is possible and that's why we went off gold and silver in the first place.

Originally posted by sligtlyskeptical
reply to post by brokedown

 

There isn't enough Gold and silver available to back our money. If we didn't use debt and zeroes to increase our moeny supply then we would need lots of hard cash per citizen to just make things move smoothly. The need would probably be about one month's living expeneses per person. Even at a measly $1000 per person, we would need about $300 billion in currency. If you can show me how the Treasury can accumulate that much in Gold and Silver then i would be willing to listen. I don't think it is possible and that's why we went off gold and silver in the first place.

Absolutely 100% true. But the part about why we went off the gold standard............. we went off the gold standard because things don't run on gold.