NEW DVD from themoneymasters.com!

The Money Masters explains the history behind the current world depression and the bankers’ goal of world economic control by a very small coterie of private bankers, above all governments.

The Central bankers’ Bank for International Settlements (BIS) in 1988 in the “Basel I” regulations imposed an 8% capital reserve standard on member central banks. This almost immediately threw Japan into a 15 year economic depression. In 2004 Basel II imposed “mark to the market” capital valuation standards that required international banks to revalue their reserves according to changing market valuations (such as falling home or stock prices). The US implemented those standards in November, 2007. In December 2007 the US stock market collapsed and credit began drying up as banks withheld loans to comply with the 8% capital requirement as collateral valuations began to drop. The snowball effect of tightening credit, which reduces economic activity and values further, which resulted in further tightening of credit, etc., has produced a worldwide depression which is worsening.

Those capital standards have not been relaxed despite the crushing effects on the world economy* the credit contraction it requires has caused. Why? Because:

Bruce Wiseman

“The purpose of this financial crisis is to take down the U.S. dollar as the stable datum of planetary finance and, in the midst of the resulting confusion, put in its place a Global Monetary Authority [GMA - run directly by international bankers freed of any government control] -a planetary financial control organization”- Bruce Wiseman

*The U.S did modify these rules somewhat a year after the devastation had taken place here, but the rules are still fully in place in the rest of the world and the results are appalling.

“The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole… Their secret is that they have annexed from governments, monarchies, and republics the power to create the world’s money…” .- Prof. Carroll Quigley renowned, late Georgetown macro-historian (mentioned by former President Clinton in his first nomination acceptance speech), author of Tragedy and Hope. “He [Carroll Quigley] was one of the last great macro-historians who traced the development of civilization…with an awesome capability.” – Dr. Peter F. Krogh, Dean of the School of Foreign Service (Georgetown)

The Two Step Plan to

National Economic Reform and Recovery

1. Directs the Treasury Department to issue U.S. Notes (like Lincoln’s Greenbacks; can also be in electronic deposit format) to pay off the National debt.

2. Increases the reserve ratio private banks are required to maintain from 10% to 100%, thereby terminating their ability to create money, while simultaneously absorbing the funds created to retire the national debt.

These two relatively simple steps, which Congress has the power to enact, would extinguish the national debt, without inflation or deflation, and end the unjust practice of private banks creating money as loans (i.e., fractional reserve banking). Paying off the national debt would wipe out the $400+ billion annual interest payments and thereby balance the budget. This Act would stabilize the economy and end the boom-bust economic cycles caused by fractional reserve banking.

For the full text of the Act click here to read the MONETARY REFORM ACT.

The Austrian School Got it Right

The monetarist school, of which Dr. Milton Friedman was the acknowledged head, has been rightly criticized by the Austrian school of economics for failing to recognize and deal with the fact that no fiat money system has ever lasted long before the government instituting it succumbed to the temptation to inflate the money supply as an indirect tax on the people, proportionately decreasing the value of their savings and wages, and transferring their wealth into the hands of the government. This is certainly a valid critique. The so-called “Great Recession” beginning in 2007, TARP, QE1, QE2 etc. and the staggering increase in the national debt has proven the validity of that critique – the Austrian school was right.

To be fair to Dr. Friedman, he did write that “we do need a commitment to sound money. The best arrangement currently would be to require the monetary authorities to keep the percentage rate of growth of the monetary base within a fixed range. This is a particularly difficult amendment to draft because it is so closely linked to the particular institutional structure. One version would be: Congress shall have the power to authorize non-interest-bearing obligations of the government in the form of currency or book entries, provided that the total dollar amount outstanding increases by no more than 5 percent per year and no less than 3 percent.”

However, given the near-impossibility of passing such a Constitutional Amendment, it can fairly be argued that Dr. Friedman really had no practical means (only the theoretical one, above) to offer to restraint the government from debasing the currency and inflating away the wealth of the people. That being so, we part company with Dr. Friedman’s conclusion that “It is neither feasible nor desirable to restore a gold-or-silver coin standard.” Again, to be fair to him, Dr. Friedman later softened his stance against gold and stated that it would be preferable to what we have, a fractional reserve banking system. To that shift in thought, we say, Amen. The Money Masters website will be updating information and the Monetary Reform Act to explain the Austrian school’s solution to the current economic crisis in the light of events the last 5 years. One thing both schools of economic thought agree upon, as does Dr. Ron Paul: End the Fed!

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.” – Sir Josiah Stamp, Director of the Bank of England (appointed 1928). Reputed to be the 2nd wealthiest man in England at that time.