Thursday, October 13, 2011

End banking tyranny: starve the beast

Thomas Jefferson once warned that 

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Now that we find ourselves in the position of being relieved of our wealth by the big banks, what can be done to fight back short of "refreshing the Tree of Liberty?" One strategy may be to starve the banks by withdrawing our money from them. The following strategy of passive resistance could be easily (and safely) implemented by everyone.  

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1) Use Treasury-minted dollar coins as much as possible. 

The Treasury mints coins and does not charge interest to the American taxpayer. When the Federal Reserve (a consortium of private banks) prints paper currency, it charges interest for its "service." Printing paper currency is contrary to the Founding Fathers intent in the Constitution. Art. I sect. 8 of the Constitution gives Congress the power to coin money, not print it. The Founding Fathers experienced the collapse of the  Continental, a paper currency, so they wanted to avoid that from happening again. Art. I sect. 10 states that states may only accept gold and silver in payment of debts  The Constitution grants the government enumerated powers, and printing money is not one. By using coins. one deprives the Federal Reserve of interest payments, cutting into its profit margin.

Coins are preferable to paper currency because they have some intrinsic value based on their metal content. For example, pre-1983 pennies are worth twice as much as their face value based on their copper content. 

Finally, if the currency is ever devalued, coins are usually untouched. A thousand dollar bill could be knocked down to $10 or even $1 over night, but the coins will stay the same and therefore, maintain their purchasing power. 

2) Use credit cards as little as possible.

Banks get 3% in fees from merchants every time a purchase is made with a credit card. In addition, if the cardholder does not stay current on his or payments, he or she is paying additional amounts to banks, keeping them fat and happy. Withdrawing this source of income from the banks will cut into their bottom line.  

Another negative aspect of credit cards is that they inflate the currency supply each time they are used. America is at risk of a hyper-inflationary depression due to the Federal Reserve's policies, including quantitative easing, so inflating the currency even more may accelerate a hyper-inflationary event.  

Finally, using credit cards allows every purchase to be tracked, which some view as an invasion of privacy.

3) Move money out of the corporate banks and into credit unions or out of the banking system completely.

Banks engage in fractional reserve lending based on the amount of currency in their accounts. They charge fees to lend that money. The less money is in their clients' accounts, the less money they can lend, and the fewer fees they can collect.

4) Buy gold and/or silver.  

Gold and silver are hard money and act as a store of value. They are a method to protect oneself from inflation because they maintain their purchasing power. It also eliminates one's counter-party risk. 

Gold and silver are seen as the "enemy" by governments because they constrain spending. (See "Gold and Economic Freedom" by Alan Greenspan. 

JP Morgan and HSBC have large naked short positions in silver. If everyone would buy at least one ounce of physical silver and take it out of the supply, those two banks would be forced to cover their positions. It may be enough to drive them into the ground. (See Max Keiser's "Crash JP Morgan, Buy Silver" campaign).

By withdrawing money from the banks, such as by using coins and credit unions, not using credit cards, and buying gold and silver, the people may peacefully restore balance in the system and free themselves from banking tyranny.

See Den of Vipers: Central Banks & the Fake Economy by Cynthia F. Hodges, JD, LLM, MA


James P. Hodges, Ph.D.

Winner of the Freedoms Foundation at Valley Forge Medal of Honor
Member: National Speakers Association, American Society for Training and Development

1 comment:

  1. am I the only one worried about waking up some morning and not being able to access my money in my ATMs will work... bank doors are closed...? Or that you go to the store to buy food and your money is no longer worth the paper it is printed on? considering investing in silver coins..


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