How Capital Really Came to Control the Human Populace in the 21st Century- Part II

The evolution of central banking and currencies to the system of globalized Neoliberal capital is predicated on what came before in terms of eliminating multiple local currencies to induce scarcity (See Pt. I). The worth and fluctuation of the selected central currency could then be determined by assorted manipulations, e.g. such as in the present Federal Reserve era in the U.S. with the Fed’s quantitative easing program that has ‘juiced’ the stock market to unheard of highs – while depriving savers of income. In this way the Fed deliberately super-charged the financial landscape in favor of speculation over safe saving.

 Conversely, the Fed has been able to create scarcity when it wants to – say by implementation of deflationary policies. Much of the Fed’s basis and purpose has been discussed at length by James Livingstone in his monograph 'Origins of the Federal Reserve System- Money, Class and Corporate Capitalism’, 1890-1913. As he observes on, p. 233:

 

"...the creation of the Federal Reserve is an episode in, or evidence for, the emergence of a modern ruling class.. "

 

How so? Because all money created - on average $30-40 billion a year- is *brokered* into the system. That is, made available by escalating debt. This is achieved by the Fed using the money created to purchase government bonds, thereby making this (debt-burdened) product available to private banks at greater cost, so they must charge much higher interest than the bonds to secure what they regard as a 'reasonable return'.   This is also why JFK's injection of "U.S. Notes" (created by the Treasury not the Federal Reserve) couldn't be tolerated, because it introduced a non-debt burdened currency that would gradually move the financial edifice away from scarcity and hoarding  - for more on this, see:
http://brane-space.blogspot.com/2012/07/yes-those-us-notes-were-real.html

 

And so while nascent Americans, in their revolutionary fervor, had thrown off the shackles of one monarchy, within 137 years they came under the boots of another. This one devoted to the business and banking classes, who demanded ever more favored treatment vis-a-vis 'ordinary' citizens.

 As Rushkoff points out (op. cit., p. 171):

“To this day, the bias of centralized currency is toward scarcity and hoarding. This slows down the rate at which money circulates, while concentrating wealth at the top.”

 

This is not difficult to figure out. If only a certain species of coinage or currency is accepted as ‘real’ then there will be a natural tendency to hoard it. If it is hoarded then there will be scarcity, so aggregate demand will seize up and de facto fiat money will have to be printed to compensate. In the case of the past six years or so this fiat money has been engendered by the Fed holding down interest rates to absurd levels while doing monthly bond buying to the tune of $85 billion. The hoarding is now all in terms of Wall Street and Banks (as well as billionaires) who are able to exploit the cheap money environment in assorted nefarious ways. These include: inside information, flash trading, hedge fund gaming, credit default swaps and enticing ordinary investors to unwisely buy into the raging market – then collecting the spoils when it collapses – as all Bull markets do.

 

The game, obviously, is rigged so that the rich can get richer and everyone else gets poorer.  In other words, contrary to Neolib propaganda it is zero sum: each extra dollar the wealthy rats get is one less for you. Worse, the Neoliberal imperative dictates that those on the lower rungs be disallowed any economic security, especially via government social insurance programs. In this way it feeds economic inequality while it rewards the speculator and banker class - namely those who benefit from the rigged Neolib capitalist system. It also helps to corrupt the political class via unregulated campaign contributions – which, instead of being equitably distributed to all contenders – is now hoarded by only a few top candidates. When the majority of candidates lose – as they must -  all the donations contributed are lost.

 

Five years after the New World Order dawned,  Jay Bookman aptly noted('The New World Disorder Evident Here, Abroad', in The Baltimore Sun, December 15, 1997):

"The global economy has been constructed on the premise that government guarantees of security and protection must be avoided at all costs, because they discourage personal initiative. In times of crisis, however, that premise cannot be sustained politically. In times of trouble it is human nature to seek security and protection and to be drawn toward those who promise to provide it. That is how men such as Adolf Hitler, and Vladimir Ilyich Lenin came to power, with disastrous consequences."

 

This aspect also has to do with what economists call “Pareto optimality” – which is another reason the rich keep getting richer and well known even before Piketty’s book arrived. This is based on the Pareto distribution, which confers much greater value (in what are called ‘utils’) to the money of the rich, than the money of the non-rich.  See e,g,


Since this difference exists, Vilfredo Pareto argued more power must be given to those higher util dollars. Today this would mean dispensing with government subsidies like food stamps, unemployment insurance or welfare. It also would also mean cuts to Social Security since by Pareto Optimality it wasn’t right for old codgers to simply collect money for breathing every day – as opposed to investing or working for it.

 

One hidden, ugly side of the Neoliberal imperative is that when nations come under its yolk – as at least one part (western) of the Ukraine is likely to do – then all its government  economic and social supports must also be cut. The people are then tossed into the über market just like all others haplessly trapped in the Neolib matrix. This means the same thing that happened to the Russians in the 1990s must befall them: all pensions cut, no more government food or energy subsidies, and wage cuts of 40 to 50 percent (as recently happened with Greece). Oh, and rents increased by 50-70 percent too!

 

An even more ugly side, as noted by Rushkoff  (Ch. 7, ‘From Ecology to Economy’) is that all remaining wealth on the planet must be hoarded and rendered scarce. This means millions of hectares of forest must be removed each year to make palm oil for assorted commercial products, even as millions of acre-feet of water must be wasted and despoiled each year to reap fracking profits. Whether ordinary people have any trees, or clean water left is not an issue that concerns the Neoliberal, only ensuring that they are faced with water scarcity, as well as that of other resources (clean air).

 

If you need some insight into what the Neoliberal global order will look like in the year 2050, check out the first five minutes of the scifi film ‘Elysium’.  Look carefully at the landscape of wasted, rotted out buildings, scruffy people in rags eking out an existence and then look around now – and see the emergence of a similar landscape if the global frackers get their way.

 

Again, Pareto optimality and its perverted economics dictate this: to amass and hoard ever more wealth (in money) so that natural wealth must be destroyed. If ordinary people die by the millions because of the effects of climate change or polluted water, e.g. from cholera or amoebic dysentery, it matters not because those people control less wealth anyway – so in terms of Pareto optimality – aren’t worth that much. This is also why the Neoliberal sees more sense in dispensing massive tons of toxic garbage to the less developed world: the inhabitants of those locales already are facing serious health issues so more toxic waste doesn’t matter in the scheme of things. For the time  being it’s more economically useful than letting it pile up here in the U.S., where it might generate ten times more cancers, and having millions consume Medicare funds to get them treated.

Of course, once the Neolibs can get rid of all “entitlements” that all might be changed.  These so-called entitlements are the main bulwark now standing between a barely surviving Middle Class in the U.S. (which has already been overtaken by Canada's Middle Class, not surprisingly) and one that goes under. In that future all seniors will only receive a "welfare" pittance, and will have to work in some manner if they want to live at a decent level.

 The bottom line is that the Neoliberal imperative as I’ve described it is what’s responsible for generating massive income inequality. While Thomas Piketty’s factors (i.e. inherited wealth)  do enter, they are not as historically cogent as the ones Douglas Rushkoff points out that preceded them – especially the original move to centralized currencies and banking.

See also:

http://www.smirkingchimp.com/thread/gaius-publius/54836/neoliberalism-just-deserts-and-the-post-climate-crisis-economy

 

Mail Brane Blog: Readers Seeking Answers To Questions

Once more a selection of some of the best readers' questions to do with posts on Brane Space:

Q. I was keenly interested in what happened in Colorado with the recent floods. What will happen there if the government shuts down on October 1st? - Veronica L., Toronto

A. Basically, a disaster would ensue, with FEMA funds then held up and the 40-odd miles of roads, highways and bridges that were destroyed unable to be completed. More than $2b of FEMA funds had been allocated to repair key highways such as 36, which connects many for example, to jobs in Denver. Until the key highways are repaired workers have to drive north to get 60 or more miles south to Denver - adding hours to their transport each day.  With bridges in disrepair, as well as key highways, whole towns such as Lyons and Jamestown will remain islands with no one able to live there because there is no way to get supplies in, or even basic services. All in all a shutdown would be much worse for citizens of Colorado than most other states - exactly because of the destruction wrought in the flood disaster.

Q.  Can you give me one reason not to go to Florida and teach your fat cracker racist brother some manners? I accidentally came across his website hate blog:  http://mytalkandthoughts.blogspot.com/
and it made me so angry I had to get a beer to cool off. He calls black people every stinking name in the books, like 'jungle jooks', 'black fucks' and even says he can 'smell a nigger in a woodpile' while denying it's racist. All you have to do is see the shit on his site to see this cracker is racist to the bone. As one of my homeys put it, 'the boy is inbred Southern white trash', What say you about learnin' his fat cracker ass some manners? - Davantae Hoyte, (location withheld)

Q. I can actually give you several reasons. First, what you consider "teaching manners" may not be considered so by any cops down there.  Second, he has " high powered weapons all with high capacity magazine clips" if you believe his bilge (he claims he needs them, as opposed to a .38 special because he "lives near Miami Gardens which is full of gangs", sic)  Third, Mike is no where near as tough as he portrays, as I have it from a sound source, the same one that exposed he never really traveled out of the country while in service, other than on a ship (USS Coronado).  The guy,  just out of the Marines- actually fled from a looming bar fight (where another jar head wanted to start something in Miami) leaving my source behind to fend for himself. According to the source: "He ran his ass out of there so fast he left a cloud of dust behind."  Fourth, he is not really "Southern" (born in Milwaukee)  nor "inbred" (which would mean I am too) but he is rather ersatz or pretend Southern.  This was probably from living in Mississippi a number of years, where he actually went broke from gambling in Biloxi casinos. So why he has such a hard on for that place and the Stars n Bars is beyond me.

My basic theory is the guy somehow became or always was a necrophilous personality. See more at:
http://brane-space.blogspot.com/2013/09/more-on-necrophilous-personality.html

My best advice, is "let thy heart not be troubled" and simply avoid his website, just as you might stay clear of any toxic waste dump full of potassium perchlorate, benzene, atrazine, lead and dioxin.  While the latter chemical waste dumps can be injurious to one's physical health, there are blog sites that can be injurious to one's psychological health. Mike's so-called 'straight talk' is among them, and it's more hate talk.

Q. I am somewhat confused. In your last post on Honoring JFK's accomplishments you included Kennedy challenging the Federal Reserve control of the money supply. But when I google "JFK and Federal Reserve" or "U.S. Notes" I pull up page after page claiming its a "myth" especially from one MacAdams website and from some South Carolina professor of economics, Edward Flaherty. Flaherty claims JFK actually wanted to increase the Federal Reserve notes not reduce them. What gives? - Terrence J., Roanoke, VA


What gives is that what I call  obfuscation from the "ambiguation brigade", which wants to sow ambiguity to keep people confused. (John MacAdams site is one of the known disinfo sites, btw).  But ask yourself this: If Flaherty and his contingent are really correct, why the need to have U.S. Notes printed in the year 1963 at all, some 50 years after the Federal Reserve Act was passed in 1913?  Surely, if Federal Reserve silver certificates were intended to dominate JFK would not have printed some $4,292,893,815  (e.g. about $4.2 b)  in such notes in 1963.

The full statement of his Executive Order 11,110 (which is still in effect to the extent any president could re-enact it if he or she wanted- but not one ever will after the Nov. 22 lesson)  is:

AMENDMENT OF EXECUTIVE ORDER NO. 10289 AS AMENDED, RELATING TO THE PERFORMANCE OF CERTAIN FUNCTIONS AFFECTING THE DEPARTMENT OF THE TREASURY. By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:

 

SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended - (a) By adding at the end of paragraph 1 thereof the following subparagraph (j): "(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption," and (b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof. SECTION 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.

 

JOHN F. KENNEDY THE WHITE HOUSE, June 4, 1963

Now, like Kennedy's National Security Action Memoranda the wording is deliberately obscure and generic.  Kennedy was obviously wary and the cautious wording reflects that. But read between the lines and you see - in concert with Kennedy's actions - he is giving himself permission to issue silver -based notes outside the Federal Reserve system. Why do this at all? Because the Federal Reserve brokers notes into the money supply upon their creation. This means they emerge with interest on them which is passed onto the distributing banks - which in turn pass it on to borrowers (or savers) via the 'spread' - the difference between what banks earn in interest, say for a saver, and what they will actually give him. Or the interest they earn, and the interest they charge a borrower for a loan. In this way, mammoth debt is generated. Most of the debt that exists in the private sphere is based on interest - whether from home mortgages, car loans or whatnot. Kennedy knew all this which is why he had U.S. notes created interest free.

The Executive order meant effectively that, for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation based on the silver bullion physically held there.

And so, over time, U.S. notes would gradually increase in number (like an organism conferred genetic advantage in a biological environment)  and gradually make the Federal Reserve paper redundant. At that point, interest-bearing currency would be a thing of the past. Thus, the demand for Federal Reserve notes would disappear. Again, IF the skeptics are correct, why were so many non-interest bearing U.S. notes floating around in 1963 and being made in 1963? Yes, the U.S. Notes did originate earlier, in the Lincoln era, and this was because the printing of money at that time was done according to the Constitution - the U.S. Treasury as the only legal creator - and no Federal Reserve existed. When the FR came into being in 1913, then logically-  if the skeptics are correct- the printing of U.S. notes would recede into the background owing to the paramountcy of the FR notes. So if one plotted a graph of notes and value printed, it ought to be something like at least a linearly decreasing function with time. But what one finds is suddenly increased gradient in 1963!

Here's another thing the skeptics don't consider: The power of perception to override reality.  Author Donald Gibson, in his monograph: Battling Wall Street - The Kennedy Presidency, notes that overriding all central banks (say like the Federal Reserve in the U.S.) is the Bank of International Settlements in Switzerland. Also, as Gibson puts it,  this über-Bank would (p. 72): "have little tolerance for a president who interfered with their decisions or made their interests secondary to the needs of nations or of people in general."

  More critically, is how Gibson shows the internal linkage of the central banking monolith to the intelligence community (ibid.).  Since these interests already had it in for Kennedy, after firing Allen Dulles (after the Bay of Pigs), and rapprochement with Castro, a putative kill order from that über-Bank is not beyond consideration. Why would such an order arise?  It could have if the Bank of International Settlements, not fully understanding the intricacies of the U.S. system, really DID believe JFK was undermining its Federal Reserve link in the U.S. via issuance of U.S. Notes. This theory, while not widely held, jibes with Michael Parenti's take ('The Gangster State' essay) that Kennedy could well have been assassinated even if his affronts to embedded power, i.e. in the military, intelligence, central banking spheres, were only "imagined" or exaggerated.  Thus, so fearful were the powers that be of being one-upped, that the mere misinterpretation of JFK's actions could have warranted Executive Action.  These exaggerated or misinterpreted perceptions would have doubtless been reinforced by Kennedy's already documented real actions, including: his threat to U.S. Steel in the spring of '62 to cut its defense contracts if it raised steel prices, his firing of Allen Dulles after the Bay of Pigs, and his refusal to invade and bomb Cuba during the Cuban Missile Crisis - as well as making a secret deal with Khrushchev to remove U.S. Jupiter missiles in Turkey. And we won't even get into NSAM 263 to withdraw all personnel from Vietnam by 1965.

My point is that - even if the skeptics are right on the surface- it still doesn't mean that banking interests were not complicit in the need to see Kennedy eliminated, or to have provided the funding - including for the cover up. Is this subject complex? Yes, but that's exactly why so many of the elites don't wish Americans to examine it too carefully!

Q. In your blog post with the answers to the Caribbean algebra 2 questions, there was one, 8(b) with a simultaneous equation, but you didn't really show how to solve it. Could you provide some details? - Maurice V., Speightstown, Barbados, W. Indies

A. Yes. Recall that the two equations were set up as:

7x + 5y = 11.60

5x + 3y = 7.60

Now, we need to eliminate at least one variable, say 'y' and solve for the other one. To do this, we examine the equation set and see we can get rid of the y variable by multiplying through the top equation by 3 and the bottom by 5. This will yield:

21x + 15y = 34.80

25 x + 15y =  38
-----------------------

Now, subtract the bottom from the top and obtain:

- 4x  =   - 3.20

then: x =  -3.20/ -4  =   0.80  or 80 cents.

We merely need to substitute this back into one of the equations to get y, i.e.

 5x + 3y = 7.60

5 (0.80) + 3y = 7.60

or:

4 + 3y = 7.60

and: 3y =  7.60 - 4  =  3. 60

y = 3.60/ 3   =  1.20

Or:  y = $1.20

HONORING JOHN FITZGERALD KENNEDY’S ACCOMPLISHMENTS (PART TWO)

We now continue to elaborate on JFK’s major accomplishments:

PEACE CORPS:

Contrary to the misbegotten trope that Peace Corps was started as a legion for do- gooders, the actual basis was as part of geopolitical strategy during the Cold War. Even before the program was inaugurated on March 1, 1961, Kennedy had pointed out that the Soviet Union "had hundreds of men and women, scientists, physicists, teachers, engineers, doctors, and nurses . . . prepared to spend their lives abroad in the service of world communism."

Kennedy understood, as few leaders do today, that most true victories aren’t won on battlefields but in the hearts and minds of populations. Support those vulnerable populations in a constructive way – by providing medicines, basic health care, ways to grow new crops to feed themselves, access to clean water and education – and you will win the most critical battles. To say JFK’s program has helped burnish the American image abroad would be an understatement – never mind the common detractors whose only contribution to human advancement to date has been…..well, nothing !

Since 1961, more than 220,000 volunteers- male and female - have served in the Peace Corps, working in such diverse fields as education, health, agricultural development, HIV/AIDS education and prevention, information technology, business development, protecting the environment and developing water resources,. Peace Corps volunteers have to be U.S. citizens and at least 18 years of age. Peace Corps service is now a 27-month commitment.

And no, contrary to the lies of certain n’er do well, ignorant imps (who likely wouldn’t qualify for Peace Corps based on failing the psychological exam) Peace Corps was never a historical haven for “draft dodgers”. As part of the government, how could it have been? To be accepted you had to go through a government screening process and if you had dodged a draft call -up you’d have been exposed in a New York minute. If of draft age, at the time – say late 1960s, early 70s when the Vietnam War was going on – you had to either have a government deferment, or a draft card showing your classification was IY or 4F. There were no exceptions!

The goals of the Peace Corps remain:

1) To help the people of interested countries and areas in meeting their needs for trained workers

2) To help promote a better understanding of Americans on the part of the peoples served

3) To help promote a better understanding of other peoples on the part of Americans.

During my four year stint in the Peace Corps in Barbados, I helped set up the Science departments and fully outfitted biology, chemistry and general science laboratories at two different secondary schools, acted as the Head of Science Dept. in both, assisted in teacher education and curriculum development, helped found the Barbados Philosophical Society, and launched the first ever scientific journal for The Barbados Astronomical Society – as well as helping to organize public lectures, seminars, technical workshops.

The ALLIANCE for PROGRESS:

In March, 1961, Kennedy launched this critical economic assistance program – realizing the strategic importance of Latin America. In his opening speech in recognition of its goals, Kennedy said:

“We propose to complete the revolution of the Americas, to build a hemisphere where all men can hope for a suitable standard of living and all can live out their lives in dignity and in freedom. To achieve this goal political freedom must accompany material progress...Let us once again transform the American Continent into a vast crucible of revolutionary ideas and efforts, a tribute to the power of the creative energies of free men and women, an example to all the world that liberty and progress walk hand in hand. Let us once again awaken our American revolution until it guides the struggles of people everywhere-not with an imperialism of force or fear but the rule of courage and freedom and hope for the future of man

Because of the program, economic assistance to Latin America nearly tripled between fiscal year 1960 and fiscal year 1961. Between 1962 and 1967 the US supplied $1.4 billion per year to Latin America. If new investment is included, the amount of aid rose to $3.3 billion per year during this time span while the total amount of aid was roughly $22.3 billion. Sadly, once LBJ got in, the amount of aid did not equal the net transfer of resources. LBJ was likely worried about the bad press Kennedy had received – as in the reactionary Wall Street Journal – which repeatedly accused him of being a “statist” and using “dirigisme”. (E.g. 8/15/63: 'When Friends Become Foes')

SPACE - THE MOON PROGRAM:

After the ignominy of the Russian satellite Sputnik, launched on Oct. 4, 1957, the U.S. received a wake up call in respect to its science and technology deficiencies. JFK knew that in order to technologically compete, a single program and focus was needed to capture the nation's imagination and to propel it toward a future where it wouldn't be left behind. Thus the manned space program was launched, and Kennedy declared in 1961 that "before this decade is out we will land a man on the Moon". With this single -minded focus the national resources were summoned through NASA, and he was as good as his word, with the Apollo astronauts setting down on July 20, 1969. Look at most of those who became interested in math or science, especially physics - at the time - and they will tell you it was Kennedy's challenge of going to the Moon, and manned space exploration in general. For me, I recall Alan Shepherd's Mercury flight on May 5, 1961 as if it was yesterday.

Many of the devices we take for granted today, especially in computers and electronic miniaturization, are direct spinoffs from the manned space program. Specific examples include: artificial limbs, scratch resistant lenses, ventricular assist devices, and light emitting diodes for medical therapies. In addition, you can thank the space program for having provided the satellites essential to keep your GPS locators functioning in your cars and satellite dishes operating for your satellite TV. You can also thank the space program for all the weather satellites that make it possible to know in advance the approach of hurricanes.

THE NUCLEAR TEST BAN TREATY:

Few Americans today appreciate what we had to endure in the 1950s - early 60s, in terms of radioactive fallout (with Strontium 90 and other nuclides contaminating food, air, water etc.) from massive Russian and U.S. nuclear tests in the atmosphere. Often, say each month, 100 megaton or larger test warheads would be detonated – especially in the Soviet Union. The radiation from the blasts traveled across Europe as well as the Pacific. The U.S. had its share of tests too, and before Kennedy’s initiative (signed also by Nikita Khrushchev) few of us knew whether or if it would ever end.

But with the signing and ratification of the Nuclear Test Ban treaty in August, 1963, it did. As author James Douglass aptly has noted (JFK and the Unspeakable):

“The test ban treaty was JFK’s critically important way to initiate, with Khrushchev, the end of the Cold War and their joint leadership in the United Nations for the redemptive process of general and complete disarmament.”

What changed Kennedy? Most observers believe it was the close call with the Cuban Missile crisis. Kennedy then became firmly convinced there needed to be controls in place, and also a path to general nuclear disarmament. In his American University speech on June 10, 1963, for example, JFK noted:

“Our primary long-range interest is general and complete disarmament- designed to take place by stages, permitting parallel political developments to build the new institutions of peace which would take the place of arms”.

Indeed, in his National Security Action Memorandum 239 he explicitly said he was prepared to pursue such a program, noting:

” The events of the last two years have increased my concern for the consequences of an unchecked continuation of the arms race between ourselves and the Soviet bloc.”

CHALLENGING THE FEDERAL RESERVE CONTROL OF THE MONEY SUPPLY

Kennedy, while not a strict constructionist as regards the Constitution, did believe that the creation of money was legally only allotted to the U.S. Treasury and not an outside banking enterprise. (Which the Federal Reserve was, and is – see e.g. James Livingstone Origins of the Federal Reserve System - Money, Class and Corporate Capitalism 1890- 1913, Cornell University Press, 1986, p.233.)

Realizing that if he didn’t make a move to challenge the Federal Reserve no one else would, he signed Executive Order 11,110 on June 4, 1963 - to challenge Fed's control of the money supply. This EO authorized the creation of some $4.2 billion in U.S. Notes ($30b in today's dollars) to replace Federal Reserve Notes. These U.S. Notes were issued by Treasury Secretary Douglas Dillon, and bore his signature. After the assassination nearly all the notes were recalled. I was fortunate in being able to save two: a $2 note with Jefferson on the front, and a $5 with Lincoln. Both display the serial numbers in red ink, not green like Federal Reserve notes. Readers who are interested in seeing the fiver can go to my blog post of July 14, last year, e.g.

http://brane-space.blogspot.com/2012/07/yes-those-us-notes-were-real.html


JFK's U.S. note issuance was clearly an effort to break the Fed stranglehold, and especially its policy whereby new money is brokered into the M1 supply system via interest, passed on to lending, issuing banks, thereby creating a stream of new debt each time.

Had he lived, massive additional infusions of U.S. Notes likely would have occurred, ultimately leading the way to redundancy of the Federal Reserve. But perhaps that’s why he couldn’t be allowed to live.

RAPPROCHEMENT WITH FIDEL CASTRO:

JFK realized also in the wake of the Cuban Missile crisis, that Castro’s Cuba could not be an enemy of the U.S. for life. There was no upside to it, for either nation. National Archives specialist and archivist Peter Kornbluh has already extensively documented the goings on in the Kennedy white house to do with Cuba in the months leading up to his assassination. Much of this was documented in his article, 'Kennedy and Castro: What Might Have Been', in The Baltimore Sun, Aug. 22, 1999, p. 1C. As he notes:

"Unknown to all but Robert Kennedy and a handful of advisors, John Kennedy began pursuing an alternative tact on Cuba in 1963: a secret dialogue toward a rapprochement with Castro. "

(snip) "The first private channel to Castro was James Donovan, a Washington lawyer negotiating the release of the Bay of Pigs prisoners. During the late fall of 1962, Donovan became the first American emissary to gain Castro's ear and his trust. Donovan arranged a trade of $62 million in food and medicines for the imprisoned brigade members. During the spring of 1963 he continued his trips to Havana to secure the release of two dozen American citizens including three CIA operatives, held in Cuban jails. Debriefed by U.S. intelligence officials after each trip, Donovan described his meetings with Castro as 'most cordial and intimate'."

Developments proceeded rapidly, according to the Kornbluh documents, until by November 19, 1963, the stage was set for a preliminary “secret meeting at the United Nations to discuss an agenda for talks with Castro”. Alas, it was not to be, and 3 days later Kennedy was dead. Most deep politics researchers suspect the CIA caught wind of the plan – despite the extraordinary efforts to keep it secret- and this along with Kennedy’s plan to pull out of Vietnam in 1965 sealed his fate. (Also quite plausible, is that the anti-Castro Bay of Pigs Cubans run by George Joannides of the CIA were privy to the Castro rapprochement, and they volunteered to be mechanics in the assassination – to “pay Kennedy back for his treachery".)

Make no mistake the legacy of John F. Kennedy lives on especially in the hearts and minds of those of us who were directly involved in one or more of his programs. We who carry on that legacy seek to make it known, as well as beating back the endless efforts of racist knaves, know-nothings and knuckle draggers to slander his name and besmirch his legacy.

Yes! Those U.S. Notes were REAL!

An issue of contention between JFK conspiracy deniers and deep politics researchers has been the issuance of U.S. Notes by John F. Kennedy under Executive Order 11,110,  issued on June 4, 1963 - to challenge Federal Reserve control of the money supply. In the wake of his Executive Order, JFK issued no less than $4.2 BILLION of such notes, which in today's dollars would amount to well over $30 billion, not an insignificant sum!

Despite that, the Denier Brigade has sought to reduce or nullify the import, namely that of a ballsy president challenging the most ruthless banking edifice (which has as its charter to protect the speculator class) since the Republic was founded. But don't take my word for it!

James Livingstone has noted in his monograph ('Origins of the Federal Reserve System- Money, Class and Corporate Capitalism, 1890-1913), p. 233, Cornell University Press, 1986:


"...the creation of the Federal Reserve is an epsiode in, or evidence for, the emergence of a modern ruling class.. "

How so? Because all money created - on average $30-40 billion a year- is brokered into the system. That is, made available by escalating debt. This is achieved by the Fed using the money created to purchase government bonds, then making this (debt-burdened via attached interest) product available to private banks, who must charge much higher interest than the bonds to secure what they regard as a 'reasonable return'.


And so, while nascent Americans, in their revolutionary fervor, had thrown off the shackles of one monarchy, within 137 years they came under the boots of another. This one devoted to the business and banking classes, who demanded ever more favored treatment vis-a-vis 'ordinary' citizens. (To reinforce that, see how they were all mostly bailed out in the wake of the recent credit crisis while Joe Citizen still sits there exposed, his butt in the breeze....for all manner of financial calamities and insults.)

In effect, JFK's issuance of U.S. Notes was a shot across the Federal Reserve's bow, as well as the banking class. By releasing all those debt-free notes out of the Treasury he not only undermined the Fed's financial hegemony but challenged their national authority and decision -making powers on money matters. Many observers believe that this alone might well have been enough to put JFK in assorted cross-hairs. (And no other president has issued such Notes since. Once JFK was killed all the U.S. Notes were retired and printing presses stopped putting them out. Those of us who saved them figured one day the deniers would assert they never existed or some such rot.)

A U.S. Note I've kept since the Kennedy era is shown above. (Readers can click on the image to obtain an enlarged view). The $5 Note - a 1963 issue with Treasury Secretary Douglas Dillon's signature,  clearly says "United States Note" right at the top. Contrast that with a fiver pulled from your pocket and "Federal Reserve Note" at the top. Note also the RED seal in the front (as opposed to green) says "United States Note" instead of Federal Reserve Note.  Note also the serial number to the left is in red not green. (The back of the note is the same as the normal $5 note).

Was Kennedy killed because of his challenge to the Fed control over our money supply? We don't know, but my bet is that it was only one alarm bell that got certain interests' attention and put JFK in their sights. Much more threatening would have been his National Security Action Memorandum 263, to pull out of Viet Nam by 1965, and his rapprochement with Fidel Castro - which would not have gone over very well with the Joint Chiefs like Lyman Lemnitzer and Gen. Curtis Lemay who practically begged JFK to take out Fidel and Cuba in October, 1962.

In any case, my point is that these U.S. Notes did exist, and JFK was the first president in the last century to issue such a massive volume of them, giving the banksters jitters that they still can't get over!