NUDAS VERITAS
The real reason the United States Government was compelled to save the Nation, both at home and abroad from a certain financial disaster, by invoking a multi-billion dollar Financial Rescue Plan, was the fact that they did not want the ordinary US citizen to see the very real and illegal financial manipulations of their financial institutions fully exposed when the markets failed by their own contrived devises and programs.
CURRENCY - A HISTORICAL WEAPON
OF MASS DESTRUCTION
Further to the military. police, and political power given to the government by way of democratic elections, is the absolute and unlimited potential of their taxation and spending powers of the nation’s currency. Private citizens have money which they may spend on the things they need and want in daily life, but it is not their money. It is the government’s money - they own it. They have only loaned it to their citizens and to the world through a system of banking organizations created, approved and authorized by them. These banks have the power to inflate its value, deflate its value, flood the markets of the world with it, deprive the markets
of it, all within the jurisdiction of an prearranged Federal Banking System. The paper currency used in today’s world economy is only backed by the faith and goodwill of the government. It has no intrinsic value in itself. Economic and military history have taught the world that the value of this currency can be reduced dramatically in value over night.
THE RED FLAG OF NATIONAL DEFICITS
Today the red flag of national deficit financing flies over the capital cities of Washington, London, Berlin, Paris, Rome, Tokyo, Moscow, and Ottawa. It has replaced the Stars and Stripes, the Union Jack, The Maple Leaf, the Tricolors of Italy,France, Germany, Russia, and the Red Globe of Japan.
These noble patriotic national emblems may become only symbols of the nation’s past history and gallantry of a people. They are all now in danger of being
permanently replaced by the international flag of Internationalists and theirassociated money lenders.
The United States’ Federal Government now carries a federal financial debt load of over seven trillion dollars. Municipal, County, State, and private debt obligations would double or triple the nation’s financial debt. The U.S.A. is not alone in this regard. The countries of Great Britain, Canada, Italy, Germany, Japan, and Russia are each carrying a near bankrupt national balance
sheet. These excessive national debt obligations are seen as being necessary by thepolitical leaders of these nations. Many countries in Africa, South and Central America are burdened with massive and ever mounting financial debt problems which now appear to be insurmountable without facing a dangerous period of civil strife and the ensuing political and economic reorganization requirements.
These huge, unprecedented international financial deficits of enormous amounts of loan obligations, now approaching several trillions of dollars worldwide, are designed to serve two purposes. One, the creation of a false and exaggerated lifestyle standard for those citizens now living in these indebted nations. Two, and possibly what may be the prime purpose of these debts, the creation of vast pools of financial capital debt which their friends and associates can safely and profitably invest their reserves of gold and cash. The interest payment redemption
drafts go out to these international investors on a regular basis. These international creditor groups and individuals may eventually control the economic life, fate, and future of these debtor nations. Left to their own purposes and devices all governments of the western nations will spend their nation’s wealth into another worldwide economic depression. The new world ofinternational security and terrorism now demands it!
In every well-governed state, wealth is a sacred thing: in democracies it is the only
sacred thing (Anatole France)
Most, if not all of the world’s private enterprise nations have adopted the policy of “deficit”
financing ever since the end of the Second World War. The world of capitalism is “floating”
upon a vast sea of international debt. Periodically a financial report of a year or a few years of a
“surplus” budget may be announced, but these are too few and far too lean to make any real
dent in long-term financial obligations. In the past sixty year period interest rates on these
financial notes have varied from today’s historical lows of 3 to 5% to the 20 to 24% of the
Ronald Reagan years of the 1980s. For most of these nations, 30 to 40 cents from every tax
dollar they receive is used to pay down the interest on their national debt. That is a long term
disastrous losing game they are playing with the nation’s wealth. The ultimate end to this
indebtedness is nowhere in sight: they have lost sight of their financial debt horizon. Their only
option is to leave the debt and its potential economic and civil consequences to the next
administration and to another generation of citizens.
In 1944 a United Nations Conference was held at Bretton Woods, New Hampshire, when 45
nations gathered and agreed on a framework for economic and financial cooperation designed
to avoid a repetition of the disastrous economic policies that had either caused or contributed to
the Great Depression of the 1930s. Here the twin organizations of the World Bank and The
international Monetary Fund were born. Since then, these two organizations have become major
international organizations providing the nations of the world with international financial aid
and loan programs along with setting out trade regulations and currency exchange rates.
There is much debate in the world as to whether these “twin organizations” are the answer to
many of the world’s needs for financial support and organization or whether they are simply
international “tools” of the foreign policy of the United States Government. The recent
announcement of the nomination of Paul Wolfowitz as the President of the World Bank, to
replace the retiring president James Wolfensohn, who was appoint by President Bill Clinton in
1995, is being challenged by international voices of opposition as Mr. Wolfowitz is known to be
an important architect of the recent U.S. military invasion and occupation of Iraq. He is
currently the U.S. Deputy Defense Secretary. Robert McNamara, a former Secretary of
Defense, was nominated by President Lyndon B. Johnson as the president of the World Bank
from 1968 to 1981.
PERSONAL HOUSEHOLD DEBT IN AMERICA
THE ASCENDANCY OF THE CREDIT CARD INDUSTRY
Not only are their nations, their state, and their cities and towns in debt but they themselves as
individuals and as family units also find themselves going deeper and deeper in debt to finance
their present lifestyle. Most now have and use a credit card from their bank which allows them
to purchase their nations goods and services without using cash or the money in their bank
account at the time of purchase. The Credit Card Industry is now the most profitable sector in
American banking. In 2004 it generated nearly 30 billion dollars in net revenue. The standard
industry interest rate on any outstanding unpaid balance is 18%.
The average household credit card debt has tripled since 1990 - from $2,500 to $7,500. Last
year, penalty fees alone generated $12 billion in revenue.
THE LAWS OF USURY
Four Urgent Telephone Calls From New York
In 1980 Usury Laws were still on the majority of State Law Books. These State Usury Laws
held 12% as the maximum interest limit a bank could charge for consumer loans - any thing
more than 12% was subject to these usury laws and the penalties that attended the law.
In 1980 one of America’s largest banks, based in New York, was being squeezed between New
York State’s Usury Laws and national double-digit inflation rates. The bank employed 3,000
people in its Long Island credit card unit, a fact that the bank used to entice New York State to
offer relief from their Usury Laws. The state’s answer to this proposal was negative.
These N.Y. bankers were aware that The Marquette Bank Opinion permitted national banks to
export interest rates on consumer loans from the state where the credit decisions were made to
borrowers nationwide.
At that time South Dakota’s economy was in financial distress - “we are in the poor house” said
the Governor. The price of wheat had fallen sharply and greatly impacted the states economy.
The president of the New York Bank, hearing of South Dakota’s dire economic needs and
mindful of his own bank’s interest rate predicament with the several million cards they had
distributed, thought of a proposal he would make to the Governor who needed money and
people to save his economy. That day the Banker called the Governor four times and in effect
told him that if South Dakota would amend their State Usury Laws the bank would move its
credit card business unit to South Dakota, bringing hundreds of high-paying jobs to the State.
The Governor agreed to the proposal and South Dakota changed their Usury Laws to suit the
needs of the bank. Those four 1980 telephone calls were a pivotal moment in the ascendancy of
the American credit card industry. Other states soon followed suit allowing bank to operate in
their states without any Usury Laws to worry about.
The inflationary period of the 1980s propelled the credit card industry into a decade of
enormous growth and enormous profits. The elimination of Usury Laws restrictions paved the
way for double-digit growth. Card holders were willing to pay 18% interest long after the
inflation spiral subsided and the Federal Reserve Bank lowered the interest rates it charged
chartered banks. Today that rate has reached historical lows 1-2% without any relief from the
18% interest charge on credit card loans. Several legislative attempts have been made
suggesting lower interest rates for card holders but each reform proposal has met with strong
opposition from both banking and governmental
administrations and as such all were defeated.
“Cash is the poor man’s credit card”
Marshall McLuhan
The Laws of Usury go back to biblical and pre-biblical times in world history
“Usury is the cancer of the world, which only the surgeon’s knife of Fascism can cut out
of the life of nations.”
Benito Mussolini 1936Excerpts from The Last Centurion Volume II
