The Central Bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until the Children will wake up homeless on the continent their Fathers conquered. - Thomas Jefferson To begin with, it is of prime importance in order for you to truly grasp the nature of this email that you know that the Federal Reserve is a private entity. Next, the brainchild was conceived on Jekyl Island off the coast of Georgia by 7 men that collectively represented JP Morgan, the First National Bank of New York, National City Bank of New York, the Rockerfellers and the European Rothschilds and Warburgs. It became operational in 1913 and its primary stated mission was to smooth out business cycles, eliminate the boom and bust economic cycles that have resulted in a number of recessions and depressions. The government turned to JP Morgan for help after the 1907 banking Crisis and the result was handing over the money supply and economy to the newly formed private entity. Its real mission, however, was twofold. One, for the private financial sector, the Fed allowed for greater risk taking which dramatically increased the amount of money the banks had to lend relative to the amount they had on deposit. The real impact of the Fed on private banking institutions was to socialize losses so that banks were no longer taking any risks. As a result, for example, banks would make enormous loans to developing countries that they knew would never be paid back but they didnt care because tax dollars would fund the losses. The other part of the mission was public policy based and allowed for the government to have indirect control over the nations money supply so that the government could pretty much pay for whatever it wanted without having to confront the public with new taxes. This is the case because they could just print more to cover the programs they wanted to implement. You see, with the formation of the Fed also came government sanctioned fractional banking. For example, fractional banking might allow a bank to lend 30 dollars but only have one dollar of it on deposit. In theory if you have $100 on deposit then you can only lend $100 but that is not the case with fractional banking. This idea allows for a bank to exponentially increase profits because they are lending money they dont have and charging interest on it rather than only the money they have on deposit. But, since the losses are socialized, they have no risk in making those loans and the soaring profits. So lets now get back to our man of the hour, Thomas Jefferson. Jefferson obviously understood the implications of a central banking system and the reason the word Coin is used both in the above quote and in the Constitution as it relates to the governments role in printing money is that Jefferson and most of the other founding fathers recognized that all money should be in the form of actual coins and should be valued based on the weight of the metal itself. Conceptually, only making money out of precious metals would never allow for the government to distort the economy through the money supply nor would it allow for businessmen and government bureaucrats to partner for joint gains. What does this mean as it relates to our investment program and the overarching theme of these emails? Another question might be why do you hear so much these days about investing in gold? The fact is, you DO NOT want to be invested in money because it is highly unstable. There are too many greedy people with their hands on the nations money supply and they are both in the government and in the business world. The nominal value of your asset in terms of dollars may be declining but that doesnt mean that the real value is declining. An ounce of gold is an ounce of gold is an ounce of gold whether thats in the late 1800s or today. This is true with many commodities, a quart of milk is a quart of milk and nothing can change that. What has changed is the nominal or cash value of that ounce of gold or quart of milk. It takes many more hard earned dollars to get an ounce of gold today because so many people have their saliva dripping all over our nations money supply and are pushing down the value of the dollar. All this means is that the more you are invested in cash and the more people screw with our money supply, the harder you will have to work to achieve your dreams. Unless your income keeps pace with or exceeds inflation, this will have an ongoing negative impact on your purchasing power and wealth. If, instead, you are invested in hard assets, the amount you have to work will not be determined by the nations money supply or even the value of the dollar. So, now that weve established that you should be invested in hard assets, the question is which assets. I would be remiss if I didnt say you should probably diversify in various types of assets but I do believe that private mortgage notes or, on the flip side, real estate itself are some of the most solid asset investments there are. The underlying value is based on how many people need a roof over their head and as we know from the rate of new family formation, that is not declining. This is not a specific offering, an offer to sell securities or an invitation for offers to purchase securities. Securities may only be sold by exemption or registration.
Posted on: Sun, 27 Jul 2014 18:15:36 +0000
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