Wednesday, April 21, 2010

Wake Up America: Stand Up For Freedom

I work as an Emergency Physician in the South and witness on a daily basis the consequences of poverty, ignorance, and complacency. I used to be your average LDS Reagan Sean Hannity Conservative. I was a conservative like most LDS because I am Pro-Life and I believe in Limited Government and reject Socialism and "Big Government". I believed in the Left-Wing Conspiracy to make the US a more socialist country. But not until recently did I come to understand and believe that the Left was also correct in warning us against the Right Wing Conspiracy by the so-called Neo-Cons or what is called "Big Business." Only recently did I come to understand that both this Left Wing Conspiracy and Right Wing Conspiracy is the same conspiracy. Our government leaders and both major political parties are controlled by special interests which are instituting policies that consolidate economic power into the hands of large cooperations and bankers on one side and other social policies which usurp individual liberties on the other side.

The current economic situation and fraud charges brought by the SEC against Goldman Sachs has really served to open my eyes. I have been arguing for some time that it was not only the subprime loans that caused the most recent economic and banking meltdown but the selling of these toxic assets/mortgaged backed securities/collateralized debt obligations. But this is not all. It the selling of these volatile derivative toxic assets which were deceitfully given AAA rating by the rating agencies, but also the inherent instability of fractional-reserve banking.

Because of fractional-reserve banking (which you have never heard of), when a FED member bank borrows a dollar from the FED (our tax money), they can lend 10$ or even 50$. That means the Bank and not the US Treasury nor even the FED is creating money out of thin air. This is known as the money multiplier = M3/M0. But while the consequences of fractional-reserve banking mean huge profits for the big banks, it means great instability for the smaller banks. Banks have to hold on to their small fractional reserves to lend. But Banks don't hold onto cash, but stocks and bonds. If the stock market crashes, then the banks lose their fractional reserves, cannot lend, and fail. They fail unless they are bailed out by the FED and if they are a FED member. Throughout US History, our economy has gone through one orchestrated economic depression after another which necessitates the Federal Government in picking winners and losers (those that get bailed out and those who don't).

Goldman Sach's and Paulson and Co's fraudulent selling of these risky CDO's while at the same time betting against them, is only part of the story. Do not forget who are the big winners here. The Big Banks got not just 700 billion in bailout money, but they got nearly 10 trillion in all. And due to fractional reserves, these banks turned that 10 trillion into 100 trillion. That is why cooperations like GMAC and Goldman which are not and never were traditional banks before filed for banking status. And with this free bailout money the banks turned around and bought US T-Bills which earn 3% interest. When the banks are asked what they did with the bailout money, they evade the question, but the FED recently bought 300 billion in long-term T-Bills which it never does saying it was do drop the rate of T-Bills so that Banks would quite buying T-Bills and lend money like they normally should. But these bailed out banks and cooperations received their 3% interest payment and then could easily pay the FED back for the initial free bailout with our own money we gave them as interest on the original money we gave them. Instead of Banks paying us prime to use our money we have paid them to take our money.

This whole thing was orchestrated. I believe that the Banks purposefully had John Paulson go to Goldman Sachs to create the CDO's for them to buy. We know from internal emails that Paulson and Goldman knew these CDO's were designed to fail and that knowing this Paulson and Goldman shorted or bet against these derivatives. However, Paulson isn't that smart of a guy, and I don't think he was smart enough to think of this scheme on his own. He was a nobody before, and I am not buying another lone gunman scenerio. I think Paulson was just selfish enough to take a bribe promising millions at the expense of the rest of us. I believe the Banks knew these derivatives would fail, that they would get hurt, and that they would get bailed out by the FED while the little banks would fail. The evidence for this is the fact that the FED stopped releasing M3 data in 2006 which tracts the money supply due to derivatives claiming the value held no significant additional information. Failing to release M3 data hid the degree of leverage in the system, it hid the money multiplier, it hid the artificial bubble being created. Thereupon, M3 ballooned to record levels and then was sharply contracted in 2008 triggering the failure.

Also, just ask yourself why the SEC is always so late in cleaning up these economic scandals. Why did the SEC do nothing pre-emptive with ENRON, WorldCom, Bernie Madoff, and now Goldman Sachs. A whistle blower outed thousands of ultra-elite tax evaders with offshore Swiss Bank Accounts. The result is that the US doesn't request a full list of US citizens with Swiss Bank accounts but only a select list, grants amnesty to the names that are given, and then sends the whistleblower to jail for withholding one of his clients. So, noone goes to jail but the whistleblower.

Now to top it all off, I was encouraged when Barak Obama was saying that he was going to institute financial reform to regulate the bankers who earned obscene profits and paid their executives obscene bonuses. However, when you read the financial reform bill, what the bill calls for is for a tax to be levied upon all banking institutions and upon all transactions based on some determination of risk. The international monetary fund and other countries have just released similar proposals. Then all that money will go to the FED or the IMF so that these institutions can decide who deserves to be bailed out the next time. And this is all under the guise that they are doing this so that the tax payer will not be liable to bail out banks in the future because there will be this pool of money.

But, duh people, wake up!!! Whether they tax all transactions as we go along or we get stuck with a big bill at the end, either way its our money. But this way, we give the FED and possibly an international banking organization like the IMF supreme power to arbitrarily determine who will get taxed and how much they will get taxed. To sum up, this bill is nothing short of a total usurpation of individual liberty by the Federal Government and possibly international government.

This kind of thing matches the MO of the conspiracy for a long time. These people prey upon real social and economic problems, some of them they create. But instead of fixing them, they institute policies which only serve to consolidate power into their hands. Examples of this was instituting the FED, instituting the Income Tax, Patriot Act, our current Health Care reform which allows the government to assign an arbitrary quality factor to every doctor and hospital which will determine reimbursement. Carbon Cap and Trade works the same way allowing the Federal Government total control over which business activities would be taxed and how much. Please do not tell me that our Federal Government would never dishonestly exercise such far-reaching power as total control over determining quality factors, determining carbon tax and trade, and determining banking transaction risk. If I learned anything from George Orwell's "Animal Farm," it is that "power corrupts, and absolute power corrupts absolutely."

Wake up people! When there is a social problem, scandal, or threat, the answer is not bigger government. We need to resist the temptation to trade our individual liberties for security. When there is a scandal or threat, the problem usually the fault of too much consolidation of power as opposed to not enough consolidation. the whole point of Constitutional government is that rights and liberties reside with the people and that the Federal Government can only exercise those powers enumerated in the Constitution.

So what to do:
1. End the FED
2. Shift to Full-Reserve Banking
3. Earn fee on full money supply and not just a fraction of it
4. End income tax
5. Institute Protectionist trade policies by using the power of the tariff to protect and rebuild domestic industry and production (Lincoln and McKinley Republicans were historically Protectionist and never Free Trade until FDR lied about the cause of the Great Depression which was really the FED contracting the money supply).
6. Offer no-interest, fee-only home and business loans administered by non-profit local and state banks
7. Allow local and state banks to purchase money from US Treasury
8. Return money to gold standard
9. Reverse 17th Amendment restoring state control of election of senators
10. Return all government lands to States
11. End Derivatives and speculative markets
12. Campaign finance reform
13. Use anti-trust laws to break down global businesses too big to fail
14. Never bailout business but use bankruptcy to allow business to divide and reorganize
15. Shift burden of charity programs from Federal Government to local and state agencies and governments.
16. End or phaseout all non-enumerated activities of the Federal Government
17. Develop domestic natural resources and end dependence on foreign oil. Drill in ANWR, off-shore, and the Bakken formation in Montana and North Dakota.
18. Develop natural gas economy by converting automobiles to natural gas and incentivize Bloom Energy natural gas fuel cell for residential use.


Anonymous said...

I'm always intrigued when hyper-conservative folks use the old Ezra T. Benson material.

What is missing is that context, namely that he was heavily criticized at the time by Hugh B. Brown and N. Eldon Tanner (who had been a socialist-leaning legislator in Canada) who were both in the First Presidency. Hugh B. Brown actually went to BYU after the top talk and denounced it directly.

Benson at one point asked President McKay for an endorsement of his activities --- and was refused.

Context is everything . .

Anonymous said...

The here is a link to some of the response to Ezra T. Benson's conspiracy talks.

Anonymous said...

Joseph Fielding Smith identified Benson's European mission as intentional exile. The Quorum of Twelve's president wrote to Congressman Ralph R. Harding (Idaho) on 30 October: "I think it is time that Brother Benson forgot all about politics and settled down to his duties as a member of the Council of the Twelve." JFS also said, "He (Benson) is going to take a mission to Europe in the near future and by the time he returns I hope he will get all of the political notions out of his system." (Smith to Harding, 30 Oct. 1963, photocopy in folder 2, box 4, King Papers, and in folder 22, box 5, Buerger Papers.)

Greg said...

While context may indeed be everything, it is clear that the "gradualists" have been feeding the American public small doses of socialism for years. No wonder President Hinckley warned us of Pharaoh's Dream and the need for us to Lay Up Grain for Seven Years.

David B said...

now it has come out the SEC is too busy watching Pornography to do their job.

David B said...

I took Reed Benson's Book of Mormon class at BYU and he said his father spoke upon a topic once that he was severely criticized for and he never spoke on it again. Bro. Benson never told us what it was but that it would be easy to find. I never looked into it, but I never forgot the point. This must be it.