Thread: Thomas Jefferson's Warning

Thomas Jefferson's Warning

From Jaeger Research Institutue
3-22-9

Why are the stocks of so many corporations taking plunges? Because many of them are over-leveraged, meaning simply: they have too much debt. Why do they have too much debt? Jefferson answered this very question over a hundred years ago. To wit:

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation,
the banks and corporations that will
grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

The Jefferson quote means this: When you allow a private banking cartel (the Federal Reserve) to wander from the Constitution, which states that the Congress shall coin money and this money is to be no THING but gold and silver (see Article I), this private banking cartel will put out endless amounts of fiat money (money NOT backed by gold and silver as stipulated in the Constitution) and lend it to their buddies (the corporations that surround them) at ridiculously low interest rates (i.e., rates below free-market rates), thus causing inflation (it now takes 100 pennies to buy what 5 pennies used to buy) and this will allow, if not provoke, these corporations to over-extend themselves with debt (i.e. become over-leveraged). This excessive debt on the balance sheets of these corporations (and bank corporations) will then make these publicly-traded entities less attractive to investors.

These entities will also be less attractive to investors because of assets no one can easily evaluate (toxic assets) due to their overly complex derivative nature (CDSs and CDOs). Thus investors will withdraw their money (sell their stock) in these corporations (the corporations that have grown up around the banks) and this massive sell-off will depress the entire stock market causing a depression (deflation). Many of these corporations will also go out of business or lay-off workers. Since many people have their retirement funds invested in the stocks of these corporations, they will lose this money as well as collateral and dividend income (be deprived of their property).

Since many of these people will (also) lose their jobs, they will not be able to pay their bills (and debt service on a mortgage is usually the largest bill), thus they will lose their homes (and thus they will wake up homeless on the continent their fathers conquered, as Jefferson stated). The conquered continent Jefferson refers to is America, then under British rule. Great Brittan is the very country that practically INVENTED fiat money and the very country Paul Warburg, prime architect of the Federal Reserve System. So who has really conquered who?
See FIAT EMPIRE at http://www.FiatEmpire

http://www.rense.com/general85/jeffer.htm

I'm no expert on the Federal Reserve System, but I know we've not had the right people in charge of the Federal Reserve Board for a long long time.

I also know that you can't put the wrong people in charge of the Federal Reserve System in a Free Trade Open Borders Economy.

I also know that you can't have a solid banking or currency system with Free Trade sucking out the incomes, jobs and money supply while pouring illegal aliens and legal immigrants into the population to be sustained by a nation's shrinking wealth. It's a formula for disaster because it's a guaranteed road map to bankruptcy and poverty on an enormous scale.

Jobs Out (free trade treason) + People In (illegal immigration) = Bankrupt Nation

What causes inflation? When supplies are lower than demand.

What causes deflation? When supplies are higher than demand.

Why do you have hyper-inflation during a depression? Because the depression shut down your producers, leaving too few to meet the demand. So as each factory closes, that is one less competitor producing those products and without the competition, the remaining producers have the ability to raise their prices to whatever they want. Did the factories close because of debt? No, not really. They closed because their sales dropped and without the income from those sales they couldn't meet either their operating costs or their debt obligations than they could comfortably meet when demand was higher. Were their debt to equity ratio too high? Some were, some weren't.