A New Monetary System
by Nikki Alexander
March 19, 2009
When Benjamin Franklin was called before
the British Parliament in 1757 and asked to account for the prosperity
in the American colonies. He replied, "That is simple. In
the colonies we issue our own money. It is called Colonial Scrip.
We issue it in proper proportion to the demands of trade and industry
to make the products pass easily from the producers to the consumers.
In this manner, creating for ourselves our own paper money, we
control its purchasing power, and we have no interest to pay to
It was the struggle for financial sovereignty
that precipitated the American Revolution when the (Rothschild)
Bank of England forced the colonies to give up their Scrip and
intense poverty followed.
That war never ended.
Throughout their political lives Thomas
Jefferson, James Madison and Andrew Jackson fought off the European
bankers who intermittently controlled the nation's money supply
through privately-owned banks. When Abraham Lincoln issued 'greenbacks'
that deprived private bankers of their monopoly control of the
nation's money supply he was assassinated. The European bankers
battled for more than a century to establish a private central
bank in the United States with the exclusive right to print their
own paper notes and exchange them for government debt. They succeeded
in 1913 with The Federal Reserve Act, a coup that authorized a
private cartel to create money out of nothing, lend it to the
government with interest and control the national money supply,
expanding or contracting it at will. Representative Charles Lindbergh
called the Act "the worst legislative crime of the ages."
Fifty years later, President John F. Kennedy defied the central
bankers when he issued debt-free Treasury Notes. He too was assassinated.
The Systemic Usury Parasite
In 1913 our sovereign authority to create
interest-free money was unconstitutionally transferred to a transnational
private banking cartel that has systemically infected our economy
with a staggering national debt in the tens of trillions of dollars.
Eighty-five cents of every dollar is now consumed as "interest"
by the systemic usury parasite, draining its host of vital resources
and collapsing our economy in bankruptcy.
Ours is not the only nation to succumb.
Why rob just one bank when you can rob a whole nation? And why
rob just one country when you can rob them all?
The usury parasite has infected 170 countries,
feeding itself through the central bank syndicate, a shareholder-owned
consortium of private banks, headquartered in Switzerland at the
Bank for International Settlements. Created in 1930, BIS obscures
its transactions with an astounding array of legal immunities
that prohibit any form of oversight or intrusion.[i] It functioned
as a Nazi money laundering operation in World War II.[ii] Today
it serves as the cashier's window for the global casino.[iii]
Each central bank member has an exclusive monopoly on its government's
monetary system, with the power to create public debt and expand
or contract the host's economy at will. Coordinating their monetary
policies with each other through the BIS, the central bankers
meet behind closed doors, appoint their own governors and set
their own rules. Their books are not subject to audit by the governments
that host them. The IMF and World Bank are tentacles of this parasite
that strangle governments with insurmountable debt, forcing these
nations through "structural adjustment" policies to
rob their taxpayers, slash social programs, transfer public assets
to private owners and sell the nation's treasures to transnational
predators at fire sale prices. Government treasuries are the parasite's
host. Flushing the global economy of this systemic disease begins
with understanding how a central bank debilitates its host with
Although governments have inherent authority
to create their own money, they borrow it from central banks,
with interest. A central bank fabricates paper money and credit
by "lending" them into existence, in return for treasury
bonds of the host government ~ taxpayer IOUs. This "money"
has no pre-existing value in reality and is conjured up through
accounting entries. It is literally created out of nothing. The
central bank first "lends" these accounting entries
to its own investment banks and then to downline commercial banks,
with interest. The commercial banks then lend nine times the amount
of their borrowed accounting entries held "in reserve."
This nine-fold multiplication of borrowed accounting entries,
described as "fractional reserve banking," creates massive
inflation of the money supply which devalues the currency. Borrowers
further expand the money supply when they pay back these accounting
entry credits with compound interest that multiplies exponentially.
More money must be fabricated to pay this interest. Thus, all
"money" that enters circulation is actually debt contrived
by accounting entries. Every fiat dollar is an IOU from a borrower
to a lender. A debt-based monetary system can never achieve equilibrium
because compound interest that multiplies exponentially overwhelms
the money supply. Escalating interest eventually reaches staggering
proportions and causes systemic collapse.
Today the nation is essentially bankrupt
and hoping Barack Obama's team of Wall Street advisors will forestall
economic collapse. This expectation is equivalent to hoping that
Al Capone will make our streets safe. Obama's economic recovery
team is a Trojan horse filled with the same Wall Street racketeers
that infected the global economy with a quadrillion dollar derivatives
bubble, using deliberately deregulated mechanisms.[iv] They have
successfully held the nation hostage with a universal credit freeze
and threats of systemic collapse if trillions of dollars in ransom
demands are not met. But why would our government agree to double
its public debt to save crooked financiers and reckless gamblers
from bankruptcy? Why would our government re-victimize taxpayers
who did not participate in this global fraud and whose investments,
retirement savings, pension plans and real estate values have
already been eviscerated by these swindlers? The answer is that
the Treasury Secretary and Federal Reserve Board have historically
represented a parasitic crime syndicate, not the host government
and its taxpayers.
The racketeers who bribed members of Congress
to deregulate Wall Street, could not have held our nation hostage
without collusion from the Treasury Secretary and Federal Reserve
Board. These monetary "authorities" represent Robber
Barons, Inc. ~ the crime syndicate that ransacks government treasuries
through the central bank system (IMF/World Bank/BIS),[v] investment
banks and private equity firms (JP Morgan Chase, Citigroup, Bank
of America, Morgan Stanley, Lehman Brothers, Salomon Smith Barney,
Goldman Sachs and Carlyle).[vi] Treasury Secretary Henry Paulson,
a Goldman Sachs CEO, is also a Board Governor at the IMF. Treasury
Secretary Lawrence Summers' Harvard team organized the looting
of Russia, stripping one trillion dollars from Russia's struggling
economy and shifting state-owned assets to private owners. Summers
succeeded Robert Rubin as Treasury Secretary and successfully
completed Rubin's repeal of Depression-era laws that protected
public assets from Wall Street fraud. A former co-chairman of
Goldman Sachs, Rubin joined CEO Sanford Weill at Citigroup to
fully embrace the benefits of deregulation. Rubin's Citigroup
pooled bogus loans as AAA securities and sold them as collateralized
debt obligations. Larry Summers championed the deregulation of
financial derivatives, ensuring the globalization of losses from
those securities. With $2 trillion in toxic assets, Citigroup
fraud has metastasized to 100 countries making it too infectious
to quarantine ("too big to fail"). Rubin protégés
advised Obama that taxpayers should be held liable for $306 billion
of Citigroup's junk loans.[vii] Rockefeller owns Citigroup and
JP Morgan Chase, two of the investment banks that own the Federal
Reserve. Paul Volcker, the head of Obama's economic advisory team,
is the Rockefeller banker whose policies under Reagan ignited
the strongest political protests in the history of the Federal
Reserve.[viii] Obama's Treasury Secretary, Timothy Geithner,[ix]
is an IMF Director, BIS committee Chairman, ex-president of the
Federal Reserve and a protégé of David Rockefeller,
Henry Kissinger, Robert Rubin and Lawrence Summers.
If it doesn't govern, it isn't a government.
What is masquerading as government is a crime syndicate with a
flag. The US Government is an instrument of organized crime, alternatively
described as the Octopus, the Washington Consensus, the Shadow
Government, Wall Street, the Round Table (Bilderbergs, Trilaterals,
Council on Foreign Relations, Royal Institute of International
Affairs), and the New World Order. There is nothing new about
this Underworld Order. The sordid criminal record of this syndicate
dates all the way back to European "colonizers" and
operates through the Morgan-Rockefeller-Rothschild banking dynasties,
American, European and Asian "royal" families, "philanthropic"
foundations, advisory councils and transnational corporations.
Pillaging the earth at gunpoint, syndicate families have amassed
fortunes from drug trafficking, slave labor, weapons, blood diamonds,
banking, gold, oil and genocide.
From the very beginning of America's fledgling
republic these international gangsters surreptitiously gained
control of the banks, railroads, oil and vital infrastructure,
using a maze of corporations, offshore banks and holding companies
that disguised foreign ownership of national resources.[x] During
the 19th and 20th centuries this syndicate secured private ownership
of vital infrastructure and natural resources worldwide by engineering
both covert and overt wars, crushing democracies and installing
brutal dictators. They financed Trotsky, Lenin and Hitler, using
syndicate members within the US Treasury and Federal Reserve to
protect "their" international assets. Thomas Lamont,
a self-described fascist, was the JP Morgan banker who represented
the US Treasury at the 1919 Treaty of Versailles negotiations.
He personally raised $100 million to finance Benito Mussolini.
William Boyce Thompson, director of the New York Federal Reserve
traveled to Russia to undermine the Russian Revolution, ensuring
that railroads, banks, oil and vital resources would remain in
private hands.[xi] Thomas McKittrick, Rockefeller's Vice Chairman
of Chase National Bank, was the president of the Bank for International
Settlements during World War II, coordinating Nazi money laundering
operations.[xii] Hitler was armed and financed by Anglo-American
corporations that provided the money, oil, weapons and extermination
gas used for genocide.[xiii] Allen Dulles, a Wall Street attorney,
negotiated their contracts. As CIA director, Allen Dulles and
his brother John Foster Dulles (Secretary of State) continued
to brutally suppress every democratic uprising that threatened
syndicate control over international assets. Across the globe
democratically elected leaders were deposed or assassinated that
dared to return natural resources to their rightful owners.
General Smedley Butler is best remembered
today for his oft-quoted statement in the socialist newspaper
Common Sense in 1935: "I helped make Mexico and especially
Tampico safe for American oil interests in 1914. I helped make
Haiti and Cuba a decent place for the National City Bank boys
to collect revenues in. I helped in the raping of half a dozen
Central American republics for the benefit of Wall Street. The
record of racketeering is long. I helped purify Nicaragua for
the international banking house of Brown Brothers in 1909-12.
I brought light to the Dominican Republic for American sugar interests
in 1916. I helped make Honduras 'right' for American fruit companies
in 1903. In China in 1927 I helped see to it that Standard Oil
went its way unmolested.... Looking back on it, I felt I might
have given Al Capone a few hints. The best he could do was to
operate his racket in three city districts. We Marines operated
on three continents." [xiv]
Author Bernard Lietaer, a former central
banker, writes in "The Future of Money:"
"Your money's value is determined
by a global casino of unprecedented proportions: $2 trillion are
traded per day in foreign exchange markets, 100 times more than
the trading volume of all the stock markets of the world combined.
Only 2% of these foreign exchange transactions relate to the "real"
economy reflecting movements of real goods and services in the
world, and 98% are purely speculative. This global casino is triggering
the foreign exchange crises which shook Mexico in 1994-95, Asia
in 1997 and Russia in 1998. These emergencies are the dislocation
symptoms of the old Industrial Age money system."
These emergencies are also the hallmark
of the transnational crime syndicate manipulating the global economy
through financial terrorism. Collapsing healthy economies with
currency speculation, fabricated debt and naked short selling,
these vultures have swarmed across the globe devouring the assets
of one nation after another with coordinated "privatization"
schemes. The US is their current victim.
Instead of allowing a handful of corrupt
Wall Street investment banks to implode from well-deserved bankruptcy,
the Swindler Bailout engineered by the US Treasury and Federal
Reserve extorts trillions of taxpayer dollars to pay off the gambling
debts of racketeers, reward criminal CEOs for fraud, finance acquisitions
to devour healthy banks and to further consolidate syndicate banking
monopolies. Taxpayer loans could have been directly issued to
victims of predatory lenders to stabilize the housing market and
"bailout" funds could have been directly injected into
the REAL economy. Instead, the confiscated wages of American workers
were transferred to corrupt investment conglomerates and their
foreign creditors. Tim Geithner plans to use confiscated American
wages to create a "bad bank" to purchase toxic waste.
Fed-Treasury gangsters serve the syndicate, not taxpayers. Crippling
national debt from illegal wars, Swindler Bailouts and Obama's
"stimulus" lay the groundwork for classic IMF "structural
adjustment" of the American economy, permanently stripping
citizens of their remaining assets, health care protection and
confiscated wages held in trust by the Social Security Administration.
This premeditated Grand Theft is the prelude for national insolvency
and subsequent sale of the nation's assets to transnational pirates.[xv]
Alan Greenspan, Federal Reserve Chairman,
and Board Director at the predatory Bank for International Settlements,
used the standard Rockefeller-Rothschild blueprint for engineering
the US financial collapse: deliberate expansion of cheap credit
to inflate the web of debt and entice rampant speculation followed
by sudden constriction of credit to violently contract the economy.
A tactic used by Rothschild's Bank of England to rob its colonies,
this violent contraction catalyzes waves of foreclosures, bankruptcies
and layoffs that force sellers to accept pennies on the dollar
for their assets. Alternatively described as Milton Friedman's
'Shock Treatment' and Henry Kissinger's formula for "making
the economy scream," this psychopathic financial terrorism
is often accompanied by death squads to bring a nation to its
Disintegration would be a blessing
Billionaire George Soros said the world
financial system has disintegrated, adding that there is yet no
prospect of a near-term resolution to the crisis.[xvi] Whether
this is true or another syndicate pretext for consolidating its
pyramid scheme under one Underworld Bank, we would be wise to
seize this moment to make systemic corrections that will generate
long-term stability and restore our financial sovereignty.
Imagine for a moment that worldwide governments
had retained their exclusive authority to create money and issue
credit and had strictly regulated the transparent movement of
capital within their own borders. Had they remained autonomous,
systemic global collapse would not have been possible. Predatory
loans in the US could not have collapsed Iceland's economy or
infected foreign banks with toxic Wall Street derivatives. Small,
autonomous units counteract systemic risk by isolating disease
and preventing it from metastasizing to the whole system. Monolithic
conglomerates are lethal by nature. The greater their scope, the
greater the systemic risk of contagious catastrophic collapse
~ a fact we are now witnessing. The global agribusiness cartel
is bankrupting independent farmers (driving them to suicide),
poisoning every continent with GMOs and destroying the world food
supply.[xvii] The central bank syndicate is strangling every country
with debt. The globalized gambling casino has destroyed productive
economies worldwide. This "disintegration" of the world
financial system is an opportunity to dis - integrate the global
tentacles of every syndicate conglomerate that is destroying human
freedom and the earth's life systems.
Localization of essential systems protects
the overall web of life as nature wisely demonstrates by creating
mini ecosystems and storing the blueprint for survival in every
seed. Localizing public control of money and credit would protect
self-sustaining economies from the contagion of systemic collapse
caused by globalized conglomerates. Autonomous, publicly-owned,
interest-free monetary systems that support small community banks,
small farms and local producers of goods and services would rehabilitate
self-sustaining communities and flush the systemic usury parasite
from the global financial system.
Monetary reform must be accompanied by
effective quarantine of the global gambling casino: Tax every
gambling transaction; Indict regulators who betray the public
trust; Replace the Glass-Steagall firewall between commercial
banks (public savings) and reckless investment banks; Outlaw antisocial
speculation that threatens public welfare; Criminalize currency
speculation; Restrict commodities futures trades to physical purchases
of goods; Ban derivative gambling and over-the-counter transactions
that are not transparent; Prosecute naked short sellers that collapse
healthy businesses; Ban leveraging without sufficient collateral;
Invigorate anti-trust laws that separate investment sectors in
finance, insurance and real estate; Prevent criminal conglomerates
from becoming too big to jail. Collapse Wall Street casinos and
let the gamblers migrate to Las Vegas where cheaters will be effectively
dealt with by the House.
Isolating and strictly regulating Wall
Street and offshore casinos to prevent predators from devastating
the productive economy will heal the global financial system and
deter future crime but its current victims will never be reimbursed
for their losses. Productive workers who lost their life savings
and retirement pensions slowly accumulated over a lifetime of
contributing have been thoroughly robbed by sociopaths who instantly
amassed unearned wealth by gambling that contributes nothing of
value. They will retire, without being prosecuted, in luxury.
(A new monetary system could compensate these productive workers
without incurring any debt to taxpayers by creating pensions with
interest-free constitutional money.[xviii])
The Mechanics of Money
Money is not a commodity. It is a symbol
of value. Any two people can transfer whatever they like as a
medium of exchange. We agree as a group to use one medium of exchange
to simplify transactions. The purpose of inventing a medium of
exchange is to sustain the flow of goods and services circulating
in an economy. If we agreed to use gold or feathers as tokens,
the medium of exchange would be finite and too scarce to meet
everyone's needs ~ and finite physical commodities have historically
been monopolized by individuals who constrict the flow of goods
and services that are needed by everyone in society. Paper is
plentiful. In theory, we agree to the fiction that paper money
and computer credits have value in order to produce and exchange
the commodities we need. But they have no intrinsic value.
The pieces of paper and computer entries
that are fabricated by private corporations, what we call money,
can and should be created and regulated by a legitimate government
agency. It is irrational to transfer this vital social function
to private corporations that thrive on usury and destabilize economies
by expanding and contracting their fabricated credit. Usury is
not a fact of life, an inherent condition one finds throughout
the natural world. It is a parasitic human contrivance that eventually
kills the host.
Money and credit can and should be used
to keep the economy flowing, facilitating the exchange of real
goods and productive services that meet the needs of society ~
without fabricating debilitating and fictitious debt. This, in
fact, was the intention of Article 1, Section 8 of the United
States Constitution that authorized only Congress to coin money
and regulate its value. The founders of our nation understood
that a government does not need to borrow its money from a private
corporation. It has the power to create its own money. We are
that government and that power belongs to us.
Our government was designed with the constitutional
authority to create money and issue credit without ever charging
interest or creating debt. It can directly spend interest-free
money into circulation and extinguish excess currency to prevent
inflation. Moderate interest rates on government loans could be
used to finance the operations of city, state and federal government
in lieu of taxes. Publicly-owned community banks could charge
a moderate interest rate that is returned to depositors as dividends,
or it could be used to generate revenue for implementing worthwhile
social projects. Monetary science comes equipped with mathematical
formulas to achieve permanent monetary equilibrium through a set
of principles that balance the money supply and maintain currency
stability, eliminating recessions, depressions, inflation and
deflation forever. Debt-free monetary systems that function as
a public service are described by Stephen Zarlenga in "The
Science of Money." The mechanics of maintaining monetary
equilibrium have been understood for centuries. All that is required
is social consensus.
Geraldine Perry has suggested that if
banks are to remain privately owned they must be required to operate
as independent businesses with 100% reserves and use their own
(legitimate) capital for loans, not fictitious accounting entries
and not other people's money. A public Monetary Authority would
issue the national money supply. Attorney Ellen Brown's brilliant
book, "The Web of Debt," proposes sound mechanics for
a new monetary system, using interest-free constitutional money
and credit issued by the government. Richard C. Cook explores
creative possibilities that truly liberate the mind and demonstrate
the possibilities of a compassionate monetary system. These three
visionaries all endorse the Monetary Reform Act conceived by Stephen
Zarlenga. All that remains is public demand for this reform.
Existing debt to the central bank crime
syndicate disappears in an instant when it is recognized that
fictitious accounting entries do not constitute lawful "consideration".
Nothing of value has been borrowed. What a bank "lends"
is the borrower's own promise to invent money for the bank, an
Completely abolishing the privatization
of national money and credit would end world poverty and liberate
human energy to create worldwide abundance in which every human
community could produce and exchange the goods and services it
needs without ever being enslaved by fictitious debt. What is
most essential to liberating humankind from centuries of covert
suppression is financial sovereignty. Political freedom without
economic freedom is meaningless. The self-induced implosion of
a corrupt financial system provides our generation with a precious
(and brief) opportunity to secure the blessings of liberty envisioned
by our ancestors and to finish the Americ
[i] World Research Library, "Global
Banking: The Bank for International Settlements", August
Review; diplomatic immunity for persons and what they carry with
them (i.e. diplomatic pouches) no taxation on any transactions,
including salaries paid to employees embassy-type immunity for
all buildings and/or offices operated by the BIS no oversight
or knowledge of operations by any government authority freedom
from immigration restrictions _freedom to encrypt any and all
communications of any sort freedom from any legal jurisdiction
immunity from arrest or imprisonment inviolability of all papers
[ii] BBC Time Watch documentary, "Banking
With Hitler" (YouTube)
[iii] Geraldine Perry, "The World
According to Derivatives Parts 1-7," (http://thetwofacesofmoney.com)
[iv] Nomi Prins, "Credit Where Credit
is Due: A Timeline of the Mortgage Crisis"
[v] Michael Hudson, "Super Imperialism:
The Origin and Fundamentals of US World Dominance"
[vi] Michael Chossudovsky, "Who
are the Architects of Economic Collapse?"
[vii] Jeff Gates, "All Too Familiar"
[viii] Paul Volcker's policies as Chairman
of the Federal Reserve contributed to the significant recession
in the US economy in the early 1980s, which included the highest
unemployment levels since the Great Depression. Volcker's Fed
elicited the strongest political attacks and most wide-spread
protests in the history of the Federal Reserve (unlike any protests
experienced since 1922), due to the effects of the high interest
rates on the construction and farming sectors, culminating in
indebted farmers driving their tractors onto C Street and blockading
the Eccles Building. After leaving the Federal Reserve in 1987,
he became chairman of the prominent New York investment banking
firm, J. Rothschild, Wolfensohn & Co, a corporate advisory
and investment firm in New York, run by James D.Wolfensohn, who
later to became president of the World Bank. [Since 2006, Wolfensohn
has also been the chairman of the International Advisory Board
of Citigroup.] As of October 2006, Volcker is the current Chairman
of the Board of Trustees of the Group of Thirty. He was a founding
member of the Trilateral Commission and has had a long association
with the Rockefeller family, rotating, since 1952, between the
Chase Manhattan Bank, the US Treasury and the Federal Reserve
Bank. He played an important role in the decision to suspend gold
convertibility in 1971, which resulted in the collapse of the
Bretton Woods gold standard. (http://en.wikipedia.org/wiki/Paul_Volker)
[ix] Geithner is a Board Director at
the Center for Global Development, a member of the Group of Thirty
and Council on Foreign Relations, a trustee at the Economic Club
of New York and chairman of the
Committee on payment and settlement systems at the Bank for International
Settlements. As Treasury
Secretary, Geithner has the authority to spend the TARP "bailout"
funds without Congressional approval. He proposes to create one
or more "bad banks" to buy and hold toxic assets, using
a mix of taxpayer and private money. He also proposes to expand
a lending program that would spend as much as $1 trillion to cover
the decline in the issuance of securities backed by consumer loans
and to give banks new infusions of capital with which to lend.
Geithner arranged the bailouts of Bear Stearns and AIG and played
a pivotal role in the decision not to save Lehman Brothers from
bankruptcy. Tim Geithner's father, Peter Geithner, oversaw the
Ford Foundation's microfinance programs in Indonesia being developed
by Ann Dunham-Soetoro, Barack Obama's mother. (http://en.wikipedia.org/wiki/Timothy_Geithner)
[x] Linda Minor, "Follow the Yellow
Brick Road: From Enron to Harvard"
[xi] Antony Sutton, "Wall Street
and the Bolshevik Revolution"
[xii] World Research Library, "Global
Banking: The Bank for International Settlements", August
Review; Joan Veon, Afghan Voice, "Controlling the World's
Monetary System: The Bank for Int'l Settlements;" Alfred
Mendez, "The Network," http://www.bilderberg.org/bis.htm#visit;
[xiii] Antony Sutton, "Wall Street
and the Rise of Hitler"
Charles Higham, "Trading With the Enemy: An Expose of the
Nazi-American Money Plot, 1933-1949" Jerry Fresia, "Toward
an American Revolution: Exposing the Constitution and Other Illusions"
[xiv] Smedley Butler, (http://home.iprimus.com.au/korob/fdtcards/Butler.htm)
[xv] Russ Winter, "The US: The World's
Biggest Blue Light Special"
[xvi] Reuters, (owned by Rothschild),
Feb.21, 2009, "Soros Sees No Bottom for World Financial Collapse"
[xvii] F. William Engdahl, "Doomsday
Seed Vault in the Arctic" and "Seeds of Destruction"
[xviii] "The Cook Plan" would
provide everyone in society with a tax-free Basic Income Guarantee.