Combine and coordinate the
implementation of the UN SDGs and Green New Deal
"By far the largest, most important initiative in the world ever"
DRAFT PROPOSED
UN
SDG Target 17.3 & Target Action Plan #22
Reform
Financial Systems:
·
Congress
appropriate U.S. Notes as needed, along with the other funding sources (e.g.
TAP32 Reform Taxes,
civil forfeitures, etc.) to:
o Fully fund the Government
o Rapidly implement the UN SDGs
and the Green New Deal
to correct all the major crises problems of the world
o Issue zero interest loans and
phase-out investors, stock markets, etc.
o Pay down the bona fide parts
of the national debt
·
Prevent
all Federal Government shutdowns and economic crisis forever
·
Abolish
banks loaning the same money many times using the illegal so-called fractional
banking
·
US
Government cease borrowing
·
Carefully
vacate as null and void the Federal Reserve Act of 1913
·
Nationalize
the Federal Reserve system
·
Recover assets of the
Federal Reserve and large banks by civil forfeitures and fines
·
Convert the Federal Reserve Banks into National District
Banks
·
Nationalize
and convert large private banks into state, city and community public banks and
make them into co-ops
(Updated June 7, 2021)
22. Reform Financial Systems
22.1 Introduction
22.1.1.
The government must immediately obtain funds to
implement urgent UN Sustainable Development Goals (SDGs) and Green New Deal
(GND). Which includes funds to help resolve the coronavirus crises. This can be done by:
22.1.1.1. Recovering the $3,971 trillion of US Treasury Securities
held by the Federal Reserve, described in paragraph 22.4.6.1 below, by civil forfeiture
22.1.1.2. Congress
appropriating United States Notes, as Abraham Lincoln did to help pay for the
Civil War, described in paragraph 22.4.1 below
22.1.2. Until the
urgent SDGs and GND are funded and implemented, the world and its people are in
danger of wars, the use of nuclear weapons excessive global warming, the
possible extinction of all lifeforms, (human and non-human alike), economic
crisis like the one that occurred in 2008, worldwide poverty, inequalities,
poor governance, etc.
22.1.3. The entire
federal government, the SDGs and GND are currently severely underfunded mainly
due to borrowing Federal Reserve notes instead of just printing United States Notes.
22.1.4. All aspects of this extremely important TAP must be
very carefully and quietly planned and implemented. All the people of the
United States and its territories and a dozen small countries use Federal
Reserve Notes as their currencies and the U.S. must honor all its bona fide
debts.
22.1.5. As needed and appropriate foreign governments should
take similar actions, including in particular nationalizing their central banks
that are not state owned.
22.1.6. Implementation of this SDG Target Action Plan-TAP 22 Reform Financial Systems, should be coordinated with TAP31 Budget of estimated costs and sources of funds and TAP-32 Reform Taxes
because they are closely related.
22.1.7. The
Federal Reserve System was largely responsible for the financial
Crisis of 2008 which caused US Households to
lose $16 trillion in net worth
and subsequent bailout of Wall Street which will happen again unless we
nationalize the Federal Reserve System.
22.1.8. If anyone thinks we should not nationalize the Federal
Reserve, please read the information about the fantastic work of Congressman
McFadden at: Congressman McFadden on the
Federal Reserve Corporation Remarks in Congress, 1934 AN ASTOUNDING EXPOSURE (http://home.hiwaay.net/~becraft/mcfadden.html.)
22.1.8.1.
.
22.2 Purpose: Reform financial system to provide funding in particular
to plan and implement the UN SDGs and GND.
22.3 Objectives This
Plan outlines proposed actions to:
22.3.1 Implement Target 17.3 “Mobilize additional financial
resources from multiple sources”
22.3.2 Prevent an economic breakdown or collapse
22.3.3
Vacating as null and
void the laws that deregulated banks and
Wall Street
22.3.4 Vacating as null and void the Federal Reserve Act of 1913
and nationalizing the Fed and the too big to fail banks is covered in a
whistleblower claim
22.3.5 End deficit spending, pay down the national debt
22.3.6 Reform, regulate and revitalize financial systems and eliminate
Wall Street
22.3.7 End foreclosures and trading of mortgages and derivatives
22.3.8 Provide affordable, community based personal and commercial
banking.
22.4
Actions.
Congress, the Administration and NGOs working together (As needed and appropriate foreign
governments should take similar actions, including in particular nationalizing
their central banks that are not state owned).
22.4.1 Congress appropriate United States Notes,
as necessary with other sources, e.g. taxation and civil forfeitures, etc. to
fully fund the Government, issue zero interest loans, rapidly implement the
SDG TAPs and Green New Deal, pay guaranteed living wages to all, pay down the bona
fide parts of the national debt and cease borrowing. This will avoid about
a trillion dollars of interest payments over about the next eight years as the
national debt is paid down and will prevent government shutdowns and economic
crises forever. The value of issuing
zero-interest loan is described in paragraph 22.4.13.
22.4.2 Implement Target Action
Plan - TAP32 Reform Taxes:
• Enact a flat percentage net assets
tax on all individuals, corporations, businesses and other entities with
reasonable taxation thresholds.
• Provide
generous tax deductions based on the worthiness of charitable contributions by
the taxpayer.
• Phase
out income, sales, payroll, estate, corporate and all other taxes and fees
except the net assets tax.
• Phase
out ownership of money, land and all-natural resources by any entity other than
people with reasonable limits on each that any individual may own.
• Remove all tax loopholes.
22.4.2.1
This will provide a
very fair and simple tax system that taxes individuals and companies according
to their ability to pay. This
will result in fewer
United States Notes needed to be appropriated.
22.4.2.2
Implement the relevant laws listed in section 22.1.9 as
appropriate.
22.4.3 Detect
underpayment of taxes and eliminate tax havens by the government exchanging
U.S. Notes for Federal Reserve Notes inside the U.S. by the actual
owners at rates based on how they were
earned and how they were and will be used.
Require that this be done inside the U.S. by the actual owners of the
federal reserve notes to detect underpayments and eliminate overseas tax havens. According to London
Reuters “rich individuals and their families [and other groups such as oligarchs, kleptocrats, drug cartels,
terrorists] have as much as $32 trillion of hidden financial assets in
offshore tax havens, representing up to $280 billion in lost income tax
revenues”
22.4.4 Do not exchange United States Notes for Federal Reserve Notes
that were obtained by fraud. This
will probably recover about $2 billion
22.4.5
Use
civil forfeitures and fines to recoup-seize-recover-disgorge the assets of the
Federal Reserve, the large banks and financial industries
22.4.5.1
Recover assets of the Federal Reserve, in particular U.S.
Treasury securities held by the Federal Reserve totaling $3.971 trillion as of
April 30, 2020 using civil forfeitures, fines, etc., as appropriate. This is
according to the Federal Reserve Bank of St. Louis - https://fred.stlouisfed.org/series/TREAST. These securities
were apparently obtained with Federal Reserve Notes (essentially counterfeit
dollars) not adequately backed up with collateral and not serialized. This $3.971trillion
is part of the national debt which was $23,201trillion as of March 12, 2020
according to the Federal Reserve Bank of St. Louis - https://fred.stlouisfed.org/series/GFDEBTN. Once it is
recovered the national debt will be about $19,230 trillion.
22.4.5.2
The $1.739 trillion of
Mortgage-Backed Securities held by the Federal Reserve - https://fred.stlouisfed.org/series/MBST These securities were apparently obtained
with Federal Reserve Notes provided by the U.S. government and not adequately
backed up with collateral and not serialized.
22.4.5.3
As much as possible of
the of the $22.1 trillion of the assets of financial institutions and banks (including
funds and real property: companies, firms, factories, infrastructure, land,
airports, etc.). Probably up to $20 trillion will be recovered by civil
forfeitures, fines, underpayment of taxes and nationalizing these institutions.
22.4.5.4
These assets were
obtained directly or indirectly with Federal Reserve Notes counterfeited by
loaning the same money multiple times, not adequately backed up with collateral
and not serialized
22.4.5.5
There has been an
underpayment taxes on these assets. Any
taxes paid were probably paid with Federal Reserve Notes counterfeited by
loaning the same money multiple times, not adequately backed up with collateral
and not serialized.
22.4.6 Recover as much as possible of the assets of the owners of
the federal reserve which includes U.S. and foreign banks, bankers and extended wealthy families described in The Federal Reserve Cartel by Dean
Henderson, 2014. Probably $400 Billion.
22.4.7 Use civil forfeitures and fines to convert the Federal
Reserve Board of Governors Building into a Public National Bank and District
Banks into Public National District Banks and large private banks into State,
City and Community Public Banks continuing ongoing business as usual with
limits and disbursing funds appropriated by Congress with detailed, transparent
records. These civil
forfeitures will include all the physical assets of the Fed and large
banks. These new public banks should
employ the personnel buildings, facilities, equipment and other assets of the
Federal Reserve System and the converted large private banks. Please note that
globally about 40 percent of all banks are publicly owned and most survived the
credit crisis of 2007 while most of the large private banks had to be bailed
out by taxpayers. Probably worth $100 billion.
22.4.8 Nationalize the Federal Home Loan Mortgage Corporation
(Freddie Mac) and the Federal National Mortgage Association (FNMA) commonly
known as Fannie Mae, seize their assets by civil forfeitures and fines and
cease paying banks for foreclosures and recover past payments. Nationalizing these
institutions will recover $5.4 trillion.
22.4.8.1
Freddie Mac has $3.4
trillion and Fannie Mae $2 trillion in assets, according to Forbes, and pays
the banks thousands for almost every foreclosure. They are both major
contributors to massive homelessness in the U.S.
22.4.8.2
All government and
independent agencies cease all payments to banks for foreclosures and recoup
all such past payments and return the money to the individuals and /or the U.S.
Treasury.
22.4.9
Other
taxes owed.
22.4.9.1
According to London
Reuters “rich individuals and their families [and other groups such as oligarchs, kleptocrats, drug cartels,
terrorists] have as much as $32 trillion of hidden financial assets in
offshore tax havens, representing up to $280 billion in lost income tax
revenues,”
22.4.10 Pay down the National Debts as it comes due, avoid all
government shutdowns and end deficit spending, the need to raise the debt
ceiling, sequestration and austerity programs.
22.4.11
End foreclosures, evictions and homelessness
22.4.11.1
Require reasonable
down payments on zero interest mortgages and loans to provide a grace period
that allows a buyer to move into a more affordable home in case he/she loses a
job or their economic situation changes.
22.4.12 Phase-out the need for investors, interests,
stock markets, hedge funds, Wall Street, etc., by government issuing zero
interest loans to banks, as called
for in paragraph 22.4.1. This will save the public at least $5 trillion a year.
22.4.12.1
Originally the purpose
of investors was to provide startup funds for companies until they were
productive enough to pay back the investors with adequate interest for taking
the risk. Stock markets now have become gambling casinos and means to transfer
wealth from the 99% to the 1%.
22.4.12.2
Corporation executives
and investors commit fraud against their own companies and its workers by
illegally using inside information to time the corporation’s stock buy backs
and their own stock sales to maximize their own and investors unjust
enrichment.
22.4.12.3
Investors do not
invest in companies they actually take money out of companies with no risk. So,
there is less money for growth and workers profits.
22.4.12.3.1.
For example,
Coca-Cola, United States, has been in business for over 100 years, has $93.3
billion in assets and very large profits, does not need investors or
investments, is a major cause of childhood obesity and tooth decay but sells millions
of shares of stocks and pays massive dividends to their stockholders and executives.
Warren Buffet apparently has 400 million shares of Coca-Cola and has made many
of his billions on stock.
22.4.12.4
Scalpers, financial
predators use advanced technology to cheat the rest of us. For huge sums, they
buy the privilege of locating their computer servers as close as possible to
market exchanges. This allows them to get trading information a split-second
faster than traditional investors.
22.4.12.4.1.
So, when a mutual or
pension fund makes a trade, the stock scalpers see that trade on its way to the
market. "They hop in front of it, buy it, and bid up what we want to buy
and sell it back to us at a higher price," explains Cliggott, a former
JPMorgan Chase managing director.
22.4.12.4.2.
The scalpers do this
thousands of times a day, using computers programmed with algorithms that have
no connection to the real economy. This "high frequency" trading
makes up the majority of today's market activity.
22.4.12.4.3.
Financial experts,
including a former CFTC chief economist, have warned that high speed trading
siphons profits from traditional investors and investments like retirement
funds.
22.4.12.4.4.
“Even more disturbing
is the risk the high-speed traders pose for the global financial system” says
John Fullerton, another former JPMorgan Managing Director, who points out that
“high frequency traders vanish from the market in a flash in times of crisis.
"This can trigger a cascading effect as real money investors pull back in
self-defense and at times flee in panic," explains Fullerton, who
currently leads the Capital Institute.
22.4.12.5
The article: ”Six reasons why our
stock markets are no longer fit for purpose,” The Guardian, 21
Oct. 2013 provides additional reasons why all stock markets should be shut
down.
22.4.13 Vacate as null and void the Depository Institutions
Deregulation and Monetary Control Act (P. L. No. 96-221; 94 Stat. 132) (1980),
which removed all controls over interests’ rates. Enact legislation
that will set limits on all mortgages, home equity, government guaranteed and
other secured loans, credits cards and unsecured (signature) loans and limit
late fees.
22.4.13.1
Makes these zero
interest rates and lower fees retroactive to the origination of the mortgage,
credit card or loan. This requires
financial institutions to calculate amounts due and balances due on all
mortgages and loans based on these lower rates and fees with extra interest and
excess fees paid to reduce the principal as payments were made.
22.4.14 Enforce the fact that under our constitution people are
sovereign as described in the below
Supreme Court rulings:
22.4.14.1
Julliard v Greenman,
110 U.S. 421 (1884) "There is no such thing as a power of inherent
sovereignty in the government of the United States... In this country,
sovereignty resides in the people, and Congress can exercise no power which
they have not, by their Constitution entrusted to it. All else is
withheld."
22.4.14.2
Perry v. U.S., 294
U.S. 330 (1935): "In the United States, sovereignty resides in the
people... the Congress cannot invoke sovereign power of the People to override
their will as thus declared."
22.4.14.3
Yick Wo v. Hopkins,
118 U.S. 356 (1886): "Sovereignty itself is, of course, not subject to
law, for it is the author and source of law... While sovereign powers are
delegated to... the government, sovereignty itself remains with the
people."
22.4.15
Cancel government programs
that funnel money to the banks and not the people and apply
funds remaining in these programs for actual Mortgage Relief including:
22.4.15.1
The so-called term
asset-backed securities loan facility (TALF), the Consumer and Business Lending
Initiatives, Public-Private Investment Program (PPIP)[i]
22.4.15.2
The TARP/bank bailout
and stimulus legislation and similar programs.
22.4.15.3
The Homeowner
Affordability and Stability Plan and redirect all related funding ($75 billion)
intended for it to state governments. (Old information)
22.4.16 Review the so called $26 billion settlement between the
federal government and 49 state attorney generals with major banks for fraud. This agreement was supposed to address the criminal fraud,
robo-signing and changing income and job history on mortgage applications
without the applicant’s knowledge. Most of this so-called settlement provides a
bailout of the large banks that committed fraud. Some government and
independent agencies are separately paying banks for each foreclosure.
Foreclosure are once again increasing.
22.4.17 Vacate as null and void laws that fraudulently and/or
unconstitutionally deregulated financial firms and enact replacement legislation as necessary as outlined
in The Plan to Set Aside, Repeal, Replace or Amend Injurious, Unjust Laws and
Court Rulings. Once these injurious, unjust laws are repealed and declared by
Congress to be null and void, regulations such as the Glass-Steagall Act (which
prohibits banks from speculating with depositors' money and engaging in
investment activities, speculative trading and mergers or collaborating with
brokerage firms, selling insurance, etc.) will be effective retroactive to the
time it was passed in 1933
22.4.18 Outlaw the trading of mortgage backed securities and
derivatives including, credit default swaps, structured investment
vehicles, collateralized debt obligations, repo (repossession) agreements, and
other toxic paper, which contribute nothing to the economy or humankind. A
mortgage backed security is a derivative that derives its value from the
mortgages it is backed by.
22.4.19 Carefully cancel the approximately $230 Trillion in
Derivative Bets. The Fed has
endangered the banking system by allowing the banks to wager in derivatives. “The government should simply cancel the
$230 trillion in derivative bets declaring them null and void. As no real
assets are involved, merely gambling on notional values, the only major effect
of closing out or netting all the swaps (mostly over-the-counter contracts
between counter-parties) would be to take $230 trillion of leveraged risk out
of the financial system. Recommended by Paul Craig Roberts, Institute for
Political Economy, in his June 5, 2012 article, Collapse at Hand. Webster Tarpley (tarpley.net) author, historian,
economist, journalist, lecturer, and expert on derivatives, US foreign,
domestic and economic policy, has been recommending this for years.
22.4.19.1
Derivatives which do
not derive their value from real property are simply used for wagering and do
not in any way contribute to the economy or mankind
22.4.19.2
Article: “Financial
Weapons of Mass Destruction: Top 25 US Banks Have 222 Trillion Dollars
Derivatives Exposure by Tyler Durden,05/17/2017. (https://www.zerohedge.com/news/2017-05-16/financial-weapons-mass-destruction-top-25-us-banks-have-222-trillion-dollars-derivatives
22.4.19.3
Separate out
investment activities Sell off those parts of the banks that have nothing to do
with banking.
22.4.19.4
As soon as practicable
turn over branches within a state and allow states to operate them as
publicly-owned banks that issue low-interest credit similar to the Bank of
North Dakota (BND)
22.4.20 Additional Actions to Reform, Regulate and Revitalize
Financial Systems mostly by James Crotty and Gerald Epstein. Please note that
many of these items may not be necessary once large banks are nationalized
22.4.20.1
Stop the corruption of members of the Congress and the
Administration by the financial, insurance, real estate and other industries
through campaign contributions and lobbying.
22.4.20.2
Reject the theory that financial institution and markets self-regulate
and replace it with serious financial regulatory reform with realistic financial market
theories
22.4.20.3
Extend regulations and oversight to the "shadow
banking system,"
22.4.20.4
Reform/establish new regulatory institutions empowered by
law to control financial markets and force them to act in the public interest
and populate them with well-trained officials who believe in serious
regulation.
22.4.20.5
Move all risky investments back on bank balance sheets and
require adequate capital to support them.
22.4.20.6
Require due diligence by creators of complex structured
financial products.
22.4.20.7
Prohibit the sale of financial securities that are too
complex to be sold on exchanges.
22.4.20.8
Transform financial firm incentive structures that induce
excessive risk-taking.
22.4.20.9
Extend regulatory over-sight to the “shadow banking
system.”
22.4.20.10 Implement a financial pre-cautionary
principle. Crotty and Epstein suggested: careful consideration of the
"anything not specifically permitted is prohibited" principle.
22.4.21 Prohibit commercial and retail banks engaging in investment
activities, speculative trading and mergers or collaborating with brokerage firms as was required by Glass-Steagall.
22.4.22 Outlaw shadowy banks, private equity accounts, hedge funds,
adjustable rate mortgages and loans, stock options, off-balance sheet
accounting, more than one set of books, and off-balance sheet accountings.
22.5
Background:
22.5.1
Banknotes including Federal
Reserve Notes are negotiable promissory notes which were supposed to be backed
up by collateral, originally gold, and payable to the bearer
on demand. This means that the bank must have collateral equal to the value for
every banknote they sell, loan or issue.
22.5.1.1
Many banks sold more banknotes than the gold
that they had and when the owners of the gold demanded it, the Banks did not
have it and went bankrupt or simply disappeared
22.5.1.2
It is important to note that bankers charging
interests on banknotes hurts doesn’t help society or the economy.
22.5.1.3
If President Lincoln had borrowed from the
bankers the war would have cost three to four times as much as it finally did,
the Union could have lost the war, the South could be a separate country and
slavery could have lasted for years.
22.5.1.4
Our Constitution states that “The Congress shall
have the power ... To coin [print] Money” and requires that “No Money shall be
drawn from the Treasury, but in Consequence of Appropriations made by Law.” The
Constitution is the Supreme Law of the Land and takes precedence over all U.S.
Federal and State Laws and Court Rulings. Congress cannot delegate any of their
power to produce (“coin”) money and no U.S. Money can be spent, loaned or
otherwise withdrawn from the Treasury unless it is appropriated.
22.5.1.5
Instead of borrowing from
the Banks, President Lincoln and his Congress, in accordance with the
Constitution, authorized, printed and appropriated approximately $447 million
of United States Notes, called greenbacks, to finance much of the Civil War.
U.S. Notes were and are legal tender for all debts, public and private and have
the full backing of the Federal Government. They were used to directly pay the
soldiers, doctors for the soldiers, Civil Service, Government employees, etc.
and buy guns and supplies for the war. The Union won the civil war, slavery was
ended, there was no national debt and the country prospered as the greenbacks
circulated throughout the country.
22.5.1.6
If President Lincoln and
his Congress and all future Presidents and Congresses had followed
the Constitution authorized, printed and appropriated United States Notes and issued zero
interest loans for projects, inventions, for
builders, etc., there would be no national debt, no need for domestic or
foreign investments, stock markets or interest on loans and America would be a
debt-free, prosperous country. Starting this now will make America debt free
and prosperous.
22.5.1.6.1.
Bankers did not like this
because they would not make money by simply printing banknotes and loaning them
at interest to people, businesses and the government.
22.5.1.7
After Lincoln was
assassinated, the remaining greenbacks continued to be used as currency but no
new ones were appropriated and they were replaced with banknotes loaned or sold
by bankers. Some experts believe that bankers played a role in Lincoln’s
assassination.
22.6 Proof that the Federal Reserve Act of 1913 which created the
Federal Reserve System is unconstitutional, was obtained by fraud, has been
used to commit the largest fraud ever on the people of the United States and
has been null and void since its inception.
22.6.1 "The
general rule is that an unconstitutional statute, though having the form and
name of law, is in reality no law, but is wholly void, and ineffective for any
purpose; since unconstitutionality dates from the time of its enactment, and
not merely from the date of the decision so branding it... No one is bound to
obey an unconstitutional law, and no courts are bound to enforce it."
Reference: 3.16 Am Jur 2d, Sec 177 late 2d, Sec 256
22.6.2 At a secret meeting on Jekyll Island, Georgia in 1910, a plan
for a central bank was developed by Senator Nelson W. Aldrich, Assistant Secretary of the
U.S. Treasury Department A. Piatt Andrew and the representatives of U.S. and
foreign financiers/bankers.
22.6.3
The central bank plan prepared
at Jekyll Island was called and presented to Congress as the Monetary Reform
Plan to deceive the people and Congress into believing it was a product of the
National Monetary Commission and not a plan for a central bank. The following is paraphrased from the book “The Secrets of
the Federal Reserve” by Eustace Mullins.
“It was imperative that the real authors of the bill remain hidden. So
great was popular resentment against bankers since the Panic of 1907 that no
Congressman would dare to vote for a bill bearing the Wall Street taint, no
matter who had contributed to his campaign expenses. The Jekyll Island plan was
a central bank plan, and in this country, there was a long tradition of
struggle against inflicting a central bank on the American people.”
22.7 Illegal operations of the Federal Reserve System:
22.7.1 The Federal Reserve and Treasury Department Officials violate
our Constitution which requires “The Congress shall have the power ... To coin
[print] Money” and “No Money shall be drawn from the Treasury, but in Consequence
of Appropriations made by Law.” The
Constitution is the Supreme Law of the Land and takes precedence over all U.S.
Federal and State Laws and Court Rulings. Congress cannot delegate any of their
power to produce (“coin”) money and no U.S. Money can be spent, loaned or
otherwise withdrawn from the Treasury unless it is appropriated.
22.7.2 Federal Reserve Notes are
printed by the United States Bureau of Engraving and
Printing but not appropriated by Congress and are provided free to the 12
privately owned Federal Reserve Banks via Federal Reserve Agents who supposedly
have received collateral for the total amount of Federal Reserve Notes provided
to the Federal Reserve Banks, as stipulated by 12 U.S. Code § 412, Application for notes; collateral required,
outlined in Section 7 above.
22.7.2.1
In his July 2009 report to
Congress, Neil Barofsky, the Special Inspector General, reported that “Since
the onset of the financial crisis in 2007 through June 30, 2009, the Federal
Reserve, FDIC and various U. S. Government agencies have provided or committed
$23.7 trillion of Federal Reserve Notes [which were not appropriated by
Congress as required by the Constitution and apparently without $23.7 trillion
of collateral being provided to Federal Reserve Agents] to financial institutions.
22.7.3 The Federal Reserve Banks
sell or lend Federal Reserve notes to very large specific banks in a very
complicated, illegal process. These banks loan these Federal Reserve Notes to
all the governments and public at much higher interest rates than they pay. So,
all money today is issued as debts but no Federal Reserve Notes are issued to
pay off the loans or interest.
22.7.4 The primary way these loans
are paid back is by taxing the workers in the 99%. So, the Revenue Act of 1913,
the first federal income tax of the 20th century, and the Federal Reserve Act
of 1913 were enacted the same year. Over the years many new taxes and fees have
been added in particular the very regressive sales tax.
22.7.5 Since 1913, the U.S. has
illegally given the 12 Federal Reserve Banks trillions of dollars in Federal
Reserve Notes and the FED and its owners have allowed the large banks to create
trillions of dollars more Federal Reserve Notes by illegally loaning the same Federal
Reserve Notes multiple times. The banks and Federal Reserve call
this fractional banking to deceive the public into believing it is a legitimate
banking process.
22.7.6 The Federal Reserve pays no taxes except some taxes on real
estate.
22.7.7
Congressman Louis T. McFadden,
Chairman of the House Banking Committee, in 1932 exposed the corruption and
power of the Fed, in the Congressional Record, House pages 1295 and 1296 on June 10,
1932. Congressman McFadden stated:
22.7.7.1
“We have in this country one of the most corrupt institutions the
world has ever known. … the Fed” ... which has cheated the Government and the
people of the United States out of enough money to pay the national debt
several times over. This evil institution has impoverished and ruined the
people of the United States; has bankrupted itself and has practically
bankrupted our Government.”
22.7.7.2
”Some people think the Federal Reserve Banks are United States
Government institutions. They are not Government institutions, departments, or
agencies. Those 12 private credit monopolies were deceitfully placed upon this
country by bankers who came here from Europe ‘mining our American
institutions.’”. The 12 Federal Reserve Banks are privately owned by U.S. and
foreign banks, bankers and extended wealthy families, much of whose wealth has
come from their ownership.
22.7.7.3
”The FED works like this: They receive money in the form of
Federal Reserve Notes from the US Treasury and loan it to the very large banks
at very low interest rates. The banks then loan it back to the government
charging higher interest rates. The government levies income taxes to pay the
interest on the debt. On this point, it's interesting to note that the Federal
Reserve Act and the sixteenth amendment, which gave Congress the power to
collect income taxes, were both passed in 1913.”
22.7.8
Congressman McFadden filed
formal criminal charges against the Board of Governors of the Federal Reserve
Bank system, the Comptroller of the Currency and the Secretary of United States
Treasury for numerous criminal acts on May 23, 1933. These charges included but
not limited to, CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON, but none
of these charges were ever investigated.”
22.7.9
The information about the fantastic work of Congressman McFadden
in paragraphs 8.8 and 8.9 and much more, are covered in detail in the article
about the Fed at: Congressman McFadden on the Federal Reserve Corporation
Remarks in Congress, 1934 AN ASTOUNDING EXPOSURE located at (http://home.hiwaay.net/~becraft/mcfadden.html.)
22.7.10
Congressman Ron Paul of Texas
stated in his 2009 book, "End the Fed," that the Federal Reserve System
is both corrupt and unconstitutional and advocated its abolition. Paul also argues that
"most people are not aware that the Fed is actually working against their
own personal interests.”
22.7.11 The Federal Reserve and our large banks have continued to commit
by far the worst, most massive fraud in the world ever, including creating
trillions of dollars of Federal Reserve Notes.
22.7.12 Federal Reserve Officials Bankers and Credit Union executives
and their lobbyist bribed Congress into passing legislation which allows banks
and other financial institutions to charge any interest rate and prohibits
States from controlling interest rates, by enacting the Depository Institutions De-Regulatory Act
(also cited as The Monetary Reform Act) (P. L. No. 96-221; 94 Stat. 132) (1980)
they choose and prohibits States from controlling interest rates. For years the
maximum annual interest rates that banks could charge was 6% or less in most
states. Now interest rates of 10% to 29% are common and payday loans annual
interest rates are much higher.
22.7.13 Instead
of just appropriating US Notes, the government borrows federal reserve notes by
buying US Treasuries. This continued
borrowing has resulted in a national debt of over $23 trillion dollars and $360
billion of interest in 2018. According to the Congressional Budget
Office, interest on the debt is now the fastest-growing spending category,
having increased 20 percent in a single year and 31 percent over the last two
years.
22.7.15
Today apparently only 3% of all Federal reserve notes (banknotes)
were issued by the Fed and 97% were counterfeited by the banks by, with no
collateral backing them up and they do not have “distinctive letters and serial
numbers”
22.7.16
During the 2008 recession, for which the Fed, our Congress,
President and Secretary of the Treasurer were responsible, unemployment soared
the banks were given taxpayer’s money and foreclosed on many taxpayers who lost
their homes, farms and businesses to fraudulent bankers and the Fed stood idly
by.
22.7.16.1 In his July
2009 report to Congress, Neil Barofsky, the Special Inspector General over the
Troubled Asset Relief Program (TARP), reported that “Since the onset of the
financial crisis in 2007 through June 30, 2009, the Federal Reserve, FDIC and
various U. S. Government agencies have provided or committed $23.7 trillion of
Federal Reserve Notes to financial institutions. This number has apparently
increased to over $37 trillion, almost twice the total annual gross domestic
product of the U.S.
22.7.17
Most of these funds have gone to selective banks and other
financial institutions under the guise of getting them to increase lending.
Lending has not increased. Most banks are charging exorbitant interest rates on
the money that they are willing to lend. Meanwhile, foreclosures on homes,
unemployment, poverty, hunger, the price of food are increasing and the wealth
divide between the rich and poor/middle class continues to markedly increase
22.7.18
Charles Ferguson, Director of the Oscar winning documentary
“Inside Job” in his book Predator Nation, describes the ingrained criminality
of the financial sector:
22.7.18.1 “It is no
exaggeration to say that since the 1980s, much of the American (and global)
financial sector has become criminalized, creating an industry culture that tolerates
or even encourages systematic fraud. The behavior that caused the mortgage
bubble and financial crisis was a natural outcome and continuation of this
pattern, rather than some kind of economic accident.”
22.7.19
According to Forbes in the
U.S., financial industry companies and banks have more assets than all the
other industries in the U.S. combined including defense, housing, food, cable,
internet, movie, electrical, water, nuclear etc. Banks do not need $ trillion
of assets to provide banking and financial services.
22.7.19.1 According
to Forbes 2018 Global 2000 in
2018
22.7.19.2 The 559 largest public companies in the U.S. had $42.2
billion in assets.
22.7.19.3 The 49 largest financial industries and large banks in the
U.S. had $22.2 trillion in assets in 2018.
22.7.19.4 The 510 other largest companies and corporation in the U.S.
had $20 trillion in assets
22.7.19.5 Most of these 559 companies are paying very little in taxes
due in part to Trump’s “Tax Cuts and Jobs Act of 2017 and some are paying no
taxes.
22.7.19.6 It needs to be determined: how these companies and their
investors and executives earned or produced these billions of dollars in net
assets, the amount of taxes they are paying and the taxes they owe if any.
22.7.20 The Federal Reserve
System was largely responsible for the financial Crisis of 2008 which caused US Households to lose $16 trillion in net worth and subsequent bailout
of Wall Street very well
described in:
22.7.20.1 The book “Bailout: An inside
account of how Washington abandoned main street while rescuing wall street” by
Neil Barofsky, Former Special Inspector General in Charge of Oversight of TARP.
22.7.20.2 Neil Barofsky, the Special Inspector General
over the Troubled Asset Relief Program (TARP), included in his July 2009 report
to Congress, that since the onset of the financial crisis in 2007 through June
30, 2009, the Federal Reserve, FDIC and various U. S. Government agencies have
provided or committed $23.7 trillion of Federal Reserve Notes to financial
institutions. This number has apparently increased to over $37 trillion, almost
twice the total annual gross domestic product of the U.S.
22.7.20.3 The
article: “Vice Media’s pathetic Wall St propaganda about the
2008 crisis”, Walt
D, Dec 27, 2018, which points out four laws that deregulated financial systems:
22.7.20.3.1.
That the political class provided the bailout in
exchange for campaign contributions and the financial capital class that
provided the campaign contributions received the bailout.
22.7.20.3.2.
The crisis was caused [in
part] by the Federal Reserve participating in and allowing decades of financial
deregulation which led to the 2008 financial crisis, which included
enactment of:.
22.7.20.3.3.
The Alternative Mortgage
Transaction Parity Act of
1982 allowed the use of adjustable rate mortgages and balloon payment mortgages
that would drive up the amount of defaults in the mid 2000’s.
22.7.20.3.4.
The Federal Housing
Enterprises Financial Safety and Soundness Act of 1992, while providing mortgage access to
lower income individuals, also created the market for subprime mortgages.
22.7.20.3.5.
The Gramm-Leach-Bliley Act passed in 1999 under the watch of the
Clinton administration repealed the Glass-Steagal that separated trading
activities like derivative trading from regular banking deposits. In the years
preceding the Gramm-Leach-Blilely Act, the bills name sake, Senator Phil
Gramm’s top three campaign contributors were investment banks.
22.7.20.3.6.
The Commodity Futures
Modernization Act of
2000 passed under Clinton deregulated the market for derivatives like the
credit default swaps that acted as a nuclear weapon in the financial meltdown.
Senator Gramm again led the charge on passing this piece of financial
deregulation.
22.7.20.4 The
justification for the massive taxpayer bailout of Wall Street time and again
was that it was required to prevent another Great Depression. While there were
no breadlines like in the 1930’s, the massive wealth destruction and subsequent
upward redistribution in the “recovery” does make one wonder whether another
Great Depression was ever truly averted by the financial-political class. As a
result of the crisis, US households lost $16 trillion in net worth. The
subsequent recovery was distributed unequally, such that the majority of gains
flowed to the top 1% of earners.”
22.7.20.5 “Another
alternative was for the Federal government to assist the home owners whose
defaulting mortgages were the underlying asset of the derivatives that
destroyed liquidity in the financial markets.”
Treasury Secretary Tim Geithner opposed this solution.
22.7.21
The article provides many more examples of why
the Federal Reserve and our political class were responsible for the financial
crisis – link
to article.
22.7.22 This article provides proof that the only way to prevent
another financial crisis or depression is to nationalize the Federal Reserve
System and Wall Street.
22.7.23
The Fed
is not executing its statutory duties to provide full employment, stable
prices, moderate long-term interest rates, consumer protection, etc. The Federal
Reserve Act requires the Federal Reserve to:
22.7.23.1 Provide
full employment, stable prices, moderate long-term interest rates, consumer
protection, community development, community economic development and consumer
laws and regulations.
22.7.23.2 Conduct the nation’s
monetary policy
22.7.23.3 Ensure the stability of the financial system and minimize
and contain systemic risks and the effective operation of the U.S. economy in
the public interest
22.7.23.4
The Fed has failed to
do any of this and is lying to the public about how good the economy is. In
their May 1, 2019 press release they state: “the labor market remains strong
and that economic activity rose at a solid rate. Job gains have been solid, on
average, in recent months, and the unemployment rate has remained low. Growth
of household spending and business fixed investment slowed in the first
quarter. On a 12-month basis, overall inflation and inflation for items other
than food and energy have declined and are running below 2 percent.”
22.7.23.5
According to http://www.shadowstats.com Flash Commentary No. 1434 issued May 3, 2020:
22.7.23.5.1.
U.S. Economy Already Was in Trouble Before the
Pandemic, Because of Intensifying Federal Reserve Policy Malfeasance and
Federal Government Fiscal Malpractice
22.7.23.5.2.
The COVID-19 Pandemic
Shutdown Has Overwritten that Developing Recession with an Economic Collapse
and Surging Headline Unemployment That Will Rival the Great Depression in the
Week Ahead and Anything Seen in Modern U.S. Economic History in the Months
Ahead
22.7.23.5.3.
Initial First-Quarter 2020 GDP Quarterly
Contraction of 4.78% (-4.78%) Was the Worst Since the Depths of the Great
Recession; It Likely Will Deepen to About 7% (-7%) in Its Monthly Revisions
22.7.23.5.4.
Second-Quarter 2020 GDP Remains on Track to
Rival or Surpass the Deepest Contraction in the Great Depression
22.7.23.5.5.
Latest New Claims for Unemployment Insurance
Indicate: April 2020 U.3 Unemployment Around 21% - Worst Since Great Depression
Depths May 2020 U.3 Likely to Top 30% - Worst in Modern Economic History
22.7.23.5.6.
Federal Reserve Will Hold Its Current
Expansive Policies in Place, Including Fed Funds at 0.00% to 0.25% and
Unlimited Creation of Money and Liquidity, For the Duration of the Pandemic
Downturn
22.7.23.5.7.
Money Supply Annual
Growth Pushes to Record Highs With Each New Weekly Report
22.7.23.6 The International Monetary Fund (IMF), on April 2019 released
and made public the World Economic Outlook Report titled: World
Economic Outlook, April 2019 Growth Slowdown, Precarious Recovery (source: https://www.imf.org/~/media/Files/Publications/WEO/2019/April/English/text.ashx?la=en).The IMF report includes:
22.7.23.6.1.
"Global economic activity slowed notably in
the second half of last year [2018] … Trade tensions increasingly took a toll
on business confidence … financial market sentiment worsened, with financial
conditions tightening for vulnerable emerging markets and then in advanced
economies, weighing on global demand"
22.7.23.6.2.
It is the opinion of the IMF that investor
sentiment remains on the downside even if trade differences are resolved
quickly so business confidence rebounds.
22.8
Summary of estimated taxes owed, civil
forfeitures, fines, penalties, etc. by item and year is provided in Enclosure 1
22.8.1
Summary of the total in billions by year follows:
|
Tax Year 2020: $9,171 |
Tax Year 2021: $15,540 |
Tax Year 2022: $6,101 |
Tax Year 2023: $1,080 |
22.8.2
As can be seen, $30
trillion of taxes owed, civil forfeitures, fines, penalties, etc. have been
identified. If our government can recover only one-half or one-third of the $30
trillion, we will be able to rapidly initiate the implementation of the UN SDGs
and help resolve the coronavirus crisis and all the other crises we face -
wars, nuclear weapons, poverty, unemployment, homelessness, inadequate
healthcare, inequalities, poor governance, sanctions, global warming, Oligarch
controlling the world, etc.
1. Bibliography
1.1.
Financial Regulation: A Framework for Crafting and Assessing Proposals to Modernize
the Outdated U.S. Financial Regulatory System, GAO-09-314T January 21, 2009. http://www.gao.gov/new.items/d09314t.pdf
1.2.
Troubled Asset Relief
Program (TARP): Additional Actions
Needed to Better Ensure Integrity, Accountability, and Transparency,
GAO-09-161. http://www.gao.gov/new.items/d09161.pd
1.3.
Five articles describing
concerns with mortgage base securities, derivatives, deregulation, lobbying,
campaign contributions, earmarks, and pork barrel spending at: http://www.sanjuanislander.com/columns/brandt/part-1.shtml
1.4.
Economic Crisis: Supplement to Undoing the Bush/Cheney Legacy: A Tool Kit for
Congress. http://mcli.org/Legacy_Add-On_Econ_Crisis.pdf
1.5.
Article in On Capitol Hill,
Money Is the Root of All Hypocrisy, 21 February 2009, by: Michael Winship, t r
u t h o u t | Perspective, http://www.truthout.org/022109Y
1.6. Century of Enslavement: The
History of The Federal Reserve https://www.youtube.com/watch?v=5IJeemTQ7Vk
1.7.Doctorhousingbubble.com Public-Private Investment Program for Dummies, http://www.doctorhousingbubble.com/public-private-investment-program-for-dummies-how-does-the-new-treasury-plan-impact-housing-and-the-market-poorly-planned-investment-program-ppip
The
world was brought to the brink by the American financial system. Thus far, no
one has been held accountable. The Securities and Exchange Commission’s (SEC)
decades-long “sweep it under the carpet attitude” ignored industry
whistleblowers like Harry Markopoulos who identified the Bernie Madoff Ponzi
scheme. Markopoulos spent nine years trying to get the SEC to listen to him.
Nine years is unacceptable.
If the American political structure and justice system persist in refusing to
prosecute the wrongdoers and turn a blind eye to the architects of this
disaster, who is the greater giant? Which is the worse crime? Let’s put forward
an agenda that promotes vision-driven, values-based companies and rid the world
of companies the abuse shareholders, customers, employees and society.