The Fiction of Government Debt‏

The FED's Cancellation of the M3 Money Supply
by Catherine Austin Fitts Former US Housing and Urban Development Director
Nov 26, 2005 (excerpt)

http://www.solariac tionnetwork.com/phpBB2/ viewtopic. php?p=9796

Quote from: http://www.federalr eserve.gov/releases/ h6/discm3. htm :

" Discontinuance of M3 On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release."

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Catherine Austin Fitts on M3 and the FED:

The twelve federal reserve banks -- that together run the bank clearing and currency system -- are privately owned. If you call them up and write to them -- as I once did-- and ask who owns them, who manages their data and whether or not their owners have access to their data, you will be told that this is private information. Fed bank data is arguably the most valuable databank in the world. The flagship Federal Reserve bank is the NY Fed. The NY Fed is the depository for the US government and manager of a powerful slush fund -- the Exchange Stabilization Fund.

Significant efforts have been made to ensure that citizens do not have easy access to data about how all the government revenues and expenditures, credit and regulations work within the areas from which they vote for political representation. This means you have no basis for assessing performance or providing for citizen based accountability.

Corporate profits and stock, mortgage and bond markets (and other capital markets) can be invisibly rigged using taxpayer funded and backed resources in the form of government contracts, subsidies, asset sales and transers, tax benefits, credit guarantees and market intervention and manipulation -- all in a manner that perpetually increases the wealth of a few insiders and drains the many outsiders.

There is over $4 trillion missing from US government agencies that we know about, who knows how much is missing in total. The way to keep the game going is for the Federal Reserve system to simply buy increasing amounts of debt issued by the US government and for the US Treasury and Congress to use the proceeds to protect "insiders" from the resulting inflation while squeezing everyone else while the NY Fed manages market interventions that help do the same. The cancellation of M3 helps accomplish #6 by cancelling some of the statistics (particularly on "repos") that would help market analysts see what is going on. The Federal Reserve's explanation that this is a cost cutting move does not compute given the nature of the Federal Reserves rich resources and the importance of transparency to the functioning of markets.

In short, a small group of people continue to use US government debt to finance a war machine to build and consolidate global empire and to use inside information along with the US government budget and credit machines to ensure that this war machine is richly profitable for them and their global allies while draining and depopulating everyone and everything else.

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The Fiction of Government Debt May 16, 2006

http://openingmind. blogspot. com/2006_ 05_01_openingmin d_archive. html

The government ought to have sovereignty which includes the right to print a currency. Yet in America we have had three Presidents who supported the right of the government to issue Treasury Notes instead of Federal Reserve Notes. Unfortunately, all three were killed by "lone assassins." ....(Lincoln, McKinley and Kennedy)

Let's look at how the Treasury Department "borrows" money. Suppose the Secretary of the Treasury is short 100 billion dollars over the next three months. Under the Treasury Note System, (as advocated by Lincoln, McKinley and Kennedy), the central bank would be owned by the government. It would create 100 billion dollars in checking account money and cash. The Treasurer would then use this money to pay for government wages and programs.
Under the Federal Reserve system, (which was copied by Max and Felix Warburg from the German Central bank), the Secretary of the Treasury calls up the Federal Reserve and begs them to create one hundred billion dollars. The Fed calls the Bureau of Engraving and Printing and asks them to print ten billion dollars. The Fed then writes out a check for 3 1/2% of the ten billion dollars which is what the Bureau charges on average. The Bureau delivers ten billion dollars in Federal Reserve Notes to the Fed. That check for 350 million dollars the Fed used to buy ten billion dollars was created out of nothing as an accounting entry. The Fed then creates 90 billion dollars in checking account money which they deliver to the Treasury along with the ten billion dollars in cash in exchange for 100 billion dollars in Treasury Notes. Those obligate you to work and pay taxes to pay a debt and an interest on the debt which are fictions. Last year I calculated that the total amount of money we pay as taxpayers to pay the interest on our "fictitious debt" and the the money we could have spent into circulation as being 759 billion dollars A YEAR!

But 759 billion dollars a year is not the total cost of the subsidy you pay each year to the bankers. The banks launder 2.5 trillion dollars in drug money each year. That amount of money can only result in the unleashing of a tremendous wave of crime for addicts to buy drugs. That is another subsidy to the banks. And the spread of fatal sexually transmitted diseases is another by-product. The banks also launder 500 billion dollars in bribes each year and another 200 billion plus dollars in illegal weapons sales. Both of these do great harm to the average person. And then there is the matter of the theft of billions of dollars each week from unaudited government contracts. The total cost of the banking class is over a trillion dollars a year even if you assume that the bankers had nothing to do with all of our wars which is a rather dubious proposition!

Of course a system such as the Federal Reserve was never intended to work if you mean by that you could work all your life, save money and rely upon a company pension to provide for yourself when you were too old to labor. What it was intended to do was transfer all wealth from those who work to those who do not. In the Great Depression of 1929-1939 the monetary contraction forced tens of millions into bankruptcy which transferred wealth as the system was designed to do. We are approaching a period of great inflation that will transfer all wealth to the banking class.

On November 10th of last year the Federal Reserve bank said it would no longer tell us what the total money supply (M3)of the United States is. I believe they will be creating tens of trillions of dollars in M3 credits to cover the sale of an equal amount of assets held by the bankers and their friends so they can get out of soon to be bankrupt stocks and bonds. They will take this money overseas and invest it in hedge funds, foreign currency gold, silver and other commodities. When the dollar has collapsed, they will be able to buy America for pennies on the dollar and cut our wages to nothing. Our homes and our businesses will have all been confiscated by foreclosure. Fifty companies will own America..... I would expect all of this to happen before the end of 2009 if we do nothing.

You might ask yourself which congressman or Senator, Democrat or Republican, has denounced the Federal Reserve's declaration that would no longer tell us what the money supply is? None have so far. How many congressmen and Senators have denounced the theft of billions of dollars each week in unaudited federal government contracts? None so far.

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