THE RED PILL REPORT ©
By
JOSEPH J. VILLADEMOROS, Jr. Ph.D
November 12, 2010
This whole economic mess is caused by one thing. CREDIT. Our economy is based on credit. I have been preaching for years that this was going to happen and everyone kept patting me on the back and saying Joe, you understand that's how our system works. People have faith in the US dollar. Well guess what the rest of the world found out that the dollar is only a piece of paper. Why do think that in 1965 the United States stopped issuing silver certificates and started printing Federal Reserve Notes?
I suggest you read a book, "The Creature From Jekyll Island", by Edward Griffin. It will give you a better insight as to how our banking system really works. Meanwhile read this;
WARNING: You are about to take the RED PILL I am giving you a chance to stop reading in case you have never had the occasion to examine the banking system. Once you have read and understand the information I am about to give you it will never be forgotten. It may cause you to be angry and resentful, not only toward the perpetrators of the banking scheme, but to me for telling you the truth. If you continue reading, it is at your own initiative. I know this is a cruel thing to tell you, especially when I know you will now continue reading just out of curiosity.
First and most important is the fact that no lending institution, bank or otherwise, lends any of its own money. The money provided to bank customers today is “originated” or actually created from the customer’s credit application or promissory note. That’s right, not one penny of a bank’s own assets are ever lent to anyone. The money is created, it never existed before, and if you compare the transaction to the criminal process of counterfeiting, you would see that they are identical. The banks are permitted to counterfeit currency because they have licensing. The government gave them permission.
Second, the bank makes huge profits from fees it charges merchants for accepting credit cards, from insurance claims on unpaid accounts, from interest and fees it collects from customers, from investors that buy things such as bonds or mortgage backed securities and from income tax deductions, just to name a few. An interesting fact is that many people are not aware that the fees charged to merchants by merchant banks (creditors) are included in their prices, so ultimately, the consumer pays them. Additionally, these prices are the same if you use a debit card, credit card or even cash. We are paying for these fees in every situation and the merchant banks are collecting these fees when we use debit and credit cards or checks drawn on credit accounts.
Third, the customer in any bank loan transaction is always the lender, there is no principal. These are facts which are easily verified by the bank’s own accounting records, but not very well known by most consumers.
Fourth, it is this money system that is the only cause of inflation, higher taxes and the national debt and deficit. Have you ever questioned the national debt? The media tells us that we have a national debt, but do they ever tell us who the creditor or creditors are? No. Why not? Isn’t this just as important? Yes, but if they told us that the creditors to the United States are the Federal Reserve and all the bond holders, the Congress would have to deal with millions of protesters and they would be forced to return us to a fair banking system.
Fifth, this analogy will reveal the most important secret of the entire banking system. When you write a check to someone, the seller’s account is credited and your account is debited. When a bank creates a “loan,” your credit account is credited and no other account is debited! The money came from absolutely nowhere, except your promise to pay the bank! In other words, the money for your credit account did not come from the bank, it came from you!
Sixth, when a bank issues credit (creates money), the Federal Reserve authorizes that same bank to create nine times more money and each bank can repeat this same process twenty eight times for each credit account. This is the only cause of inflation. When Congress approves a budget, the money for that budget is created by the Federal Reserve Board and given to the United States in exchange for bonds (same as debts or promissory notes). The bonds are the government’s promise that it will pay for those bonds with interest by collecting a federal income tax. Each Federal Reserve Note (U.S. Dollar) in this system is created from nothing except the government’s promise that the people will pay federal income taxes at some later date, and that consumers will continue to pay higher and higher prices because of the inflation caused by this system. Inflation is the greatest burden of taxation but it literally invisible and incomprehensible to most of us. It is an invisible tax. Each of us must work and produce something to earn each Federal Reserve Note (FRN), even though nothing was produced in exchange for creating the FRN. When each FRN of the federal income tax is finally paid, the money disappears as if it had never existed before. The net effect is that your labor and productivity were obtained from you at no cost. In other words, your labor was stolen, or you gave your labor away for free. It doesn’t appear that way on the small scale, but this is the ultimate effect on our economy.
Seventh, the currency that is created through these mechanisms permits the government and big business to wage many wars around the world using our military. Every war is a function of economics and has nothing to do with patriotism or religion. It is all about money. We’ve all heard that phrase before, now you may understand a little more about it's wisdom.
The latest trend to justify trillion dollar budgets is the war on “terrorism.” The object of the banking system is to create a credible threat to our nation’s (and other nations) safety and security. It will then permit the government to impose new laws without regard to their constitutionality, and the people will give up many rights they would not normally relinquish without the credible threat. This is an ideal situation for the banking system because the “war on terrorism” has no identifiable enemy and no reasonable expectation of an end. It is whatever they want it to be and whatever they can have the media report.
In summary, if you have been using your credit cards and paying your bills fairly consistently, you have paid your debts. In fact, you are owed a return or refund on what you have been paying because it was more than you owed! You have paid your fees and interest and the creditors have profited from those payments. The merchants from whom you bought products and services have also been fairly compensated and they to have paid fees and interest to the merchant banks (your creditors). The only loser in this arrangement is you because the longer you pay those credit card bills, the more you help to perpetuate the rising costs of inflation, taxes, wars, and place more debt on your children and their children. If you don’t believe me, ask your grandparents how much their annual salary used to be and how much they paid in taxes and how much they paid for groceries and compare that dollar amount with what you are now earning and paying.
If you could visit your descendants two hundred years from now, would you be able to tell them that you contributed to the dissolution of the dishonest banking system or that you did nothing and allowed the banking monopolies to continue stealing their labor and productivity?
