The Wealth of a Nation
publication date: Aug 27, 2010
|
author/source: Brad Hamill
Introduction
Dear Readers,
What I’m about to show you should result in people jumping out of their chairs ready for serious action. It should bring about major governmental intervention. It should be going to every Congressman and Senator in America. It should result in an immediate third-party audit of the Federal Reserve. It should result in many going to prison. Is this just so much rhetoric? I’ll let you decide.
Most of you know that I like to dig pretty deeply to find out how and why things work a certain way. That’s why I teach the economic concepts of “debt” being a “promise of future labor”, while money is simply somebody’s “claim” on that promise of future labor. Those holding the money are masters over the future labor of those promising the debt.
Here’s the scenario. A gang in your town has been luring young people coming here from other countries into slavery. They’re being forced to do free labor for some of the wealthy families in town. Any refusal to work is met with verbal and physical threats against them. The slaves number 100.
Late one night, 80 of the slaves bravely make a run for freedom. They are able to make it to safe houses where they will never be found by their slave masters.
The gang is in a conundrum. They have promised the wealthy families that they would have 100 servants. In fact, the gang has already been paid for this promise of future labor – but they can only deliver on 20% of it. They desperately need to find slave replacements for that lost labor!
The following night it is slightly after dusk. You and your family are walking down an unlit street. All of a sudden two gang members approach from an alleyway. They assure you that they mean you no harm – but that your family is going to be taken into slavery.
What will be your response? Will you:
A) Give up right away, hoping that there might at least be some time in captivity to watch a televised football game or the latest episode of American Idol?
B) Witness to the gang members and then subject your family to the slave masters so that you can display a proper “Christian” attitude of love and peaceful coexistence?
C) Discuss the troubled early years of the gang members and how they have been unfairly shunned by society – and then volunteer your family’s slavery as a small token of repayment to the oppressed in our land?
D) Arm wrestle with one of the gang members – winner take all?
E) Go into outright war mode by your entire family – punching, kicking, scratching, and biting. In the end you are thankful that you were finally able to reach your concealed weapon. You all thank God for His mercy afterwards?
How many chose ‘E’?
Really?
Remember that decision at the end of my presentation.
Conclusion
Why am I putting the conclusion to my article so near the beginning? It’s so that the gravity of the problem can be understood before a dissertation on how it is being accomplished.
Here’s the summary. Major US and international banks held an enormous amount of “mortgage-backed securities” (MBS) prior to the economic downturn that began in 2008. The riskier securities lost as much as 80% of their value.
The Federal Reserve announced a plan in 2009 to buy a large amount of mortgage-backed securities from the banking system - $100’s of billions worth. The total now stands at over $1.1 trillion. It was stated that the Fed would only buy “investment-grade” securities, but this was a lie. Why did they say this?
The Fed paid the banks full value (100 cents on the dollar) for the MBS. Because of this, the public had to be led to believe that the securities were actually worth that. In truth, they were some of the absolute worst – being worth only 1/5 of their original value.
Let me give an example. Suppose the banks held $1,000 of MBS, but only $200 of it was worth anything. Yet the Fed gave the banks the full $1,000.
Now the Fed is sitting with $200 of assets that mean something, and $800 worth of trash.
Here’s what needs to be understood…the Fed has been pretending all along that their $200 of assets are really $1,000 worth of assets! How can the Fed ever hope to get that $800 of “nothing” off of their books?
I’ve been praying for a long time that God would reveal the answer to me and I believe He has.
That $800 (numbers are actually much higher in reality – over $800 billion) is being systematically stolen by the Fed from you! From all of us! That $800+ billion of MBS that is worthless is being replaced with money representing claims on our future labor – all without increasing the nation’s money supply whatsoever. In fact, the money supply goes DOWN in this scheme – making the major and international banks richer through theft from us. They are stealing our future labor as I sit here writing this! This is a case of $800+ billion in fraud being perpetrated on the American people by the bankers. It’s really a brilliant scheme from a logical perspective, and it makes the Fed appear to be doing things that “help” the overall economy.
Remember your answer regarding the gangs from above?
How is this different? The future labor of your family is being stolen right now, by bankers who hold no legal claim to it!
Stay tuned for Part 2 – The Precursor to Economic War
Your comments and questions are welcome…
If you are not currently on the Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
Dear Readers,
What I’m about to show you should result in people jumping out of their chairs ready for serious action. It should bring about major governmental intervention. It should be going to every Congressman and Senator in America. It should result in an immediate third-party audit of the Federal Reserve. It should result in many going to prison. Is this just so much rhetoric? I’ll let you decide.
Most of you know that I like to dig pretty deeply to find out how and why things work a certain way. That’s why I teach the economic concepts of “debt” being a “promise of future labor”, while money is simply somebody’s “claim” on that promise of future labor. Those holding the money are masters over the future labor of those promising the debt.
Here’s the scenario. A gang in your town has been luring young people coming here from other countries into slavery. They’re being forced to do free labor for some of the wealthy families in town. Any refusal to work is met with verbal and physical threats against them. The slaves number 100.
Late one night, 80 of the slaves bravely make a run for freedom. They are able to make it to safe houses where they will never be found by their slave masters.
The gang is in a conundrum. They have promised the wealthy families that they would have 100 servants. In fact, the gang has already been paid for this promise of future labor – but they can only deliver on 20% of it. They desperately need to find slave replacements for that lost labor!
The following night it is slightly after dusk. You and your family are walking down an unlit street. All of a sudden two gang members approach from an alleyway. They assure you that they mean you no harm – but that your family is going to be taken into slavery.
What will be your response? Will you:
A) Give up right away, hoping that there might at least be some time in captivity to watch a televised football game or the latest episode of American Idol?
B) Witness to the gang members and then subject your family to the slave masters so that you can display a proper “Christian” attitude of love and peaceful coexistence?
C) Discuss the troubled early years of the gang members and how they have been unfairly shunned by society – and then volunteer your family’s slavery as a small token of repayment to the oppressed in our land?
D) Arm wrestle with one of the gang members – winner take all?
E) Go into outright war mode by your entire family – punching, kicking, scratching, and biting. In the end you are thankful that you were finally able to reach your concealed weapon. You all thank God for His mercy afterwards?
How many chose ‘E’?
Really?
Remember that decision at the end of my presentation.
Conclusion
Why am I putting the conclusion to my article so near the beginning? It’s so that the gravity of the problem can be understood before a dissertation on how it is being accomplished.
Here’s the summary. Major US and international banks held an enormous amount of “mortgage-backed securities” (MBS) prior to the economic downturn that began in 2008. The riskier securities lost as much as 80% of their value.
The Federal Reserve announced a plan in 2009 to buy a large amount of mortgage-backed securities from the banking system - $100’s of billions worth. The total now stands at over $1.1 trillion. It was stated that the Fed would only buy “investment-grade” securities, but this was a lie. Why did they say this?
The Fed paid the banks full value (100 cents on the dollar) for the MBS. Because of this, the public had to be led to believe that the securities were actually worth that. In truth, they were some of the absolute worst – being worth only 1/5 of their original value.
Let me give an example. Suppose the banks held $1,000 of MBS, but only $200 of it was worth anything. Yet the Fed gave the banks the full $1,000.
Now the Fed is sitting with $200 of assets that mean something, and $800 worth of trash.
Here’s what needs to be understood…the Fed has been pretending all along that their $200 of assets are really $1,000 worth of assets! How can the Fed ever hope to get that $800 of “nothing” off of their books?
I’ve been praying for a long time that God would reveal the answer to me and I believe He has.
That $800 (numbers are actually much higher in reality – over $800 billion) is being systematically stolen by the Fed from you! From all of us! That $800+ billion of MBS that is worthless is being replaced with money representing claims on our future labor – all without increasing the nation’s money supply whatsoever. In fact, the money supply goes DOWN in this scheme – making the major and international banks richer through theft from us. They are stealing our future labor as I sit here writing this! This is a case of $800+ billion in fraud being perpetrated on the American people by the bankers. It’s really a brilliant scheme from a logical perspective, and it makes the Fed appear to be doing things that “help” the overall economy.
Remember your answer regarding the gangs from above?
How is this different? The future labor of your family is being stolen right now, by bankers who hold no legal claim to it!
Stay tuned for Part 2 – The Precursor to Economic War
Your comments and questions are welcome…
If you are not currently on the Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
Christian Economics, Christian Finances, Christian Money, Christian Wealth, Christian Mortgage, Christian Mortgage Advice, Christian Mortgage Counsel, Christian Mortgage Consulting, Christian Investing, Biblical Economics, Biblical Finances, Biblical Money, Biblical Wealth, Biblical Mortgage, Biblical Mortgage Advice, Biblical Mortgage Counsel, Biblical Mortgage Consulting, Biblical Investing, Creating Wealth, Mortgages For Christians