It is time for a history lesson now that this thing called a bailout has been passed into what passes for law under this administration. To help me with this lesson, three well known gentlemen have come into the classroom to assist me.

So we don’t put the student body to sleep, I’ve limited each to one remark. I also placed the parameter of importance on their one remark. Of course, what is important to them may not be important to you.

All I ask you to do in the way of a quiz is to relate their remarks to your life in this modern America. The first guest is still with us today and is oft quoted because he is considered a guru in the field of economics.

Speakers Three…

His name is Milton Friedman. His resume is impressive and his remarks have impacted government world over.

What is your remark Mr. Friedman?

“The elementary truth is that the Great Depression was produced by government mismanagement [of money]. It was not produced by the failure of private enterprise.“

Thank you, Mr. Friedman. I feel certain both the class and myself can grasp the magnitude of your words. After all, most of us in today’s class reside on the private enterprise side of the ledger. At least we say we do.

Our next speaker, John Maynard Keynes, is no longer among the living. However, he still enjoys a wide following among our present day government elitists. Please tell us your remark Mr. Keynes.

“Lenin was right. There’s no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

I had no idea Mr. Keynes was going to mention a red, white and blue Communist so to stay politically correct let me hurriedly place my denials on the record and say that maybe Mr. Lenin was a member of an alternative political party and certainly not the main stream Democrat or Republican party of today.

After all, would today’s Dems or Reps pass legislation that would continue to enslave the populace and their third to fourth generation offspring? I highly doubt that would ever happen in modern America simply because it would continue the debauchery and that is truly un-American.

On the other hand, our currency is certainly debauched, isn’t it? I don’t know about you, but I’m in mental flux. Maybe I should not have invited Mr. Keynes.

Let’s move on to our last speaker. This gentleman passed away a long time ago but his remark is evergreen (some would say universal). It seems to be the foundational remark for political economics as we experience it in today’s world.

His name is Meyer Rothschild and many of you instantly recognize the name is the same as that in the House of Rothschild. Rothschild is their name and banking is their game. They have centuries of experience lending to kings, queens, prime ministers, dictators, etc.

Mr. Rothschild please make your statement.

“Give me control of a nation’s money and I care not who makes her laws”

Thank you, sir. If I comprehend the gravity contained in your words, what else is there to say about political economics and the laws of nations? And, if what I’m thinking is correct, your words could mean the Wall St banksters would benefit at the expense of the citizen in the event they robbed the said same citizen blind through phony and (probably) fraudulent securities.

Nah, can’t be, won’t happen in the U.S. of A. We would never allow our representatives to bail out their campaign contributors at our expense. After all, we ARE the free and the brave in that song everybody sings at sporting events.

Fuming, But Without Answers

If you guessed I’m still fuming over this ridiculous bailout, you are 100% correct. If you guessed I’m fuming over the in-your-face fact I will shortly see another avenue of potential revenue close, you are 100% correct. If you guessed I’m fuming over the fact we will see, yet again, another 98 to 99 percent incumbent re-election rate, you are 100% correct.

I don’t write these posts as political posts. I write them as financial posts under the explanatory umbrella of politics. It is the legals passed by Congress that get my blood boiling. I’m still waiting for them to pass laws.

This brings me to the subject of my next post – legal versus lawful. If, in my opinion, a person understands the very important difference between legal and lawful, a person will know why mortgage documents, for example, are merely “legal” but demand “lawful” money.

It is our money, our country, our children’s future and our heritage. Shouldn’t we, de minimis, at least fulfill our “lawful” responsibilities?

Photo Credit: srboisvert

If you're new here, you may want to subscribe to our RSS feed or sign up for our real estate social network. Thanks for visiting!

Tags: $700 billion bailout, bailout, currency, Economy

Today I roll out my PMS – People’s Money System. Forget the drum rolls and forget the fanfare because once PMS infects your soul, you will be a different person.

Before I get into the specifics, I think you should visit this page because the author not only lays out what is already in the mill on foreclosure lawsuits but also presents a solution to the problem. I thought you should know I am not the only solution oriented town crier on the boulevard.

When I reread my last week’s post, I noticed I left out an important piece of information. I say important because of its source and because it is germane to PMS. The Federal Reserve Bank of New York publishes a pamphlet titled, “I Bet You Thought” which contains the following revelation:

“Money doesn’t have to be intrinsically valuable, be issued by a government, or be in any special form.”

The phrase, “be issued by a government” implies, in our case, Washington, D.C. If you are in the least bit familiar with the Constitution you know we the people granted Congress the authority to make our money. We never gave them the authority to delegate that power to a foreign entity or any entity for that matter.

That means, if I am correct, we can revoke their money creating power when we believe our best interest is not being served. But, you have heard these arguments before and not paid much attention for various reasons.

However, as you read this post your economic situation may have been altered and may be even radically changed for the worst. You now want a way out of your predicament and are willing to readdress the fact that you are the government. The folks in D.C. are called representatives because they are just that and nothing more.

Now it is time to revoke their misused power and start issuing our own currency. I hope you read the CAFR material as CAFR assets are what will back PMS. Theoretically, we will never deplete this collateral because the agencies fiscally operate under an annual budget and the CAFR is fed through the budget year after year after year.

We will also use for collateral the bonds every government office holder is supposed to have in place before he/she takes office. This one is a bit tricky as almost every level of government in existence today has formed risk management pools with one or more levels of government in one or more counties within their state.

We will get around this sleight of hand by simply using the bond’s legislatively determined face amount as the true amount of collateral. Attaching this collateral and transforming it into PMS will be easy as every office holder has committed at least offense while serving.

This offense can be as minor as violating the open meeting laws. If we use Mike Nifong as an example of the most egregious type, the 3 people he wronged can use his entire amount as collateral behind their PMS certificates.

In fact, these will be very strong certificates because not only will his bond amount be attached but so will his paycheck, retirement account, bank account and any other asset he may own. My thoughts say even his medical policy can be attached.

Since I know you are intelligent, I’ll move on with my PMS as you can figure out how to utilize our representative’s collateral as PMS. You attach it and make it yours by filing a UCC-1 (or maybe another type of document) against that or those public figure(s) who have committed transgression(s) against you.

You not only file against their bond but their paycheck, retirement account, home, car and everything else they own. Remember they are public figures. Violation of their fiduciary duty as delineated in their oath of office to their principals (you and me) makes everything they own subject to attachment.

Note: For those wanting a short course on principal/agent relationship, please read that particular section in the California Codes. CA does a great job of laying it out for an easy read.

Let’s look at your paycheck and convert it into PMS. This deposit is a deposit of credit and not of cash. It is done electronically therefore no one ever sees any cash. Some people never use cash as they operate under a full credit, non-cash, type system.

They write checks use their credit or debit cards and if any cash falls into their hands it is residual as a result of a transaction in which they got cash back. Yes, I know, everyone else writes a check in order to obtain cash.

That’s wonderful because nothing will change under PMS. You can write a check so you have some PMS in your pocket just like you do now. Or, you can be on a complete PMS free system and write checks to pay bills and buy goods, food and trinkets.

Your balance at the bank won’t change. If your company deposits $3000 a month, it will still deposit $3000 a month. The only difference is the $3000 will be PMS units and not FRN units.

The PMS units will be backed by real assets. The PMS will have real value and not contrived value.

How do we convert your FRNs into PMS units? Easy, we simply translate your present deposits in all of your accounts into PMS units on a one for one basis. If you have $2,000,000 in your account, it will be $2,000,000 PMS. One for one.

What will be the office that does the bookkeeping to be sure only real PMS units are circulating? Another easy answer. Your present banking/financial institution with the present Federal Reserve functioning only as the national bookkeeper.

Who will print the PMS certificates? The same printer who prints the FRNs.

What will it look like? Pictures of dead presidents can adorn PMS certificates since we seem to like that style of bill. The PMS will also have numerical denominations so we will know what amount we are receiving.

Will it be accepted? Are you kidding, of course it won’t be but it is a great system that will re-introduce true value into the nation’s monetary system.

Maybe the real benefit is it will not only reduce the Federal Reserve to bookkeeper (its only role in my opinion) but make it the guardian of the people’s assets. This behemoth of an agency has enjoyed a free ride for too long and now should be harnessed to execute the type of manual labor it truly was designed to perform.

Are there some holes in my proposal? A few but none that can’t be worked out by some talented finance/economic oriented minds populating our universities and think tanks. Heck, I hope some BP members step up and run with it.

Tags: currency, Economy, federal reserve, foreclosure, money, rederal reserve note

On Friday, Gold hit a 27 year high as investors around the world ran to safety from the plummeting US dollar. Hitting $752.80 an ounce, Gold is at levels we haven’t seen since January of 1980.

Additionally, the dollar index, which measures the greenback against six major currencies, fell 0.8 per cent to a record low of 77.66 on Friday. The index has fallen 5 per cent since mid-August. (Source: FT.com). All you have to do is look at this index to see that we’re on a free-fall.

I’ve begun to hear people from around the country asking about putting their money in foreign currencies, something I’ve never personally experienced. It seems as though those people who are aware of what is happening to the Dollar are really getting quite nervous.

To make matters worse, The dollar fell to a record low against the euro for the seventh consecutive session while the Canadian dollar hit a 31-year high as inflation data raised expectations that the Federal Reserve Bank would again lower interest rates. Longer term, the U.S. has been running large trade and budget deficits for years — factors that tend to undermine a country’s currency in the long term, unless they are offset by foreigners willingness to invest their money in the United States. (Source: Yahoo Finance)

Unfortunately, it seems as though there is a new global unwillingness to invest in the US, thanks to the growing fear of recession, and countries pegged to the dollar are wondering how to stop the bleeding in their own countries.

As the Dollar falls, people globally are looking for an alternative, and I think the Euro will reap the benefits of renewed confidence. The Euro will only grow in strength and stature as the Dollar falls.

Tags: Canada, currencies, currency, dollar, Euro, gold, platinum