Constitution Party of Massachusetts

Congressman Ron Paul

These past few weeks have provided an unfortunate opportunity to discuss inflation. The dollar index has reached new all-time lows. The total money supply, M3, as calculated by private sources, is growing at a disturbing 17% rate. The Fed is pumping dollars into the economy at an alarming rate. Just recently the Fed announced new loan auctions totaling $100 billion. That is new money created from thin air. If these money auctions, combined with the bailout of Bear Stearns, continue to be the trend, we are in for some economic stormy weather. The explanation lies in understanding the basics of money, and why it is dangerous to give government and big banks control over it.

First, money is not wealth, in and of itself. You cannot create more wealth simply by creating more money. Wall Street bankers cry out for more liquidity, but what is really needed is more value behind the dollar. But the value, unfortunately, isn’t there.

You see, the Fed creates new money and uses it to purchase securities from banks. Flush with funds, these banks seek to put this money to use. During the Fed’s expansionary period, much of this money went to home loans. Through a combination of federal government inducements to lend to risky borrowers, and the Fed’s supply of easy money, the housing bubble took shape. Fannie Mae and Freddie Mac were encouraged to purchase and securitize mortgages, while investors, buoyed by implicit government backing, rushed to provide funding. Money that could have been invested in more productive, less risky sectors of the economy was thereby malinvested in subprime mortgage loans.

The implicit guarantee from the Fed is quickly becoming explicit, as those institutions deemed “too big to fail” are bailed out at taxpayer expense. Wall Street made a killing during the housing bubble, reaping record profits. Now that the bubble has burst, these same firms are trying to dump their losses on the taxpayers. This approach requires more money creation, and therefore debasement of all dollars in circulation.

The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality.

In free markets, both success and failure are options. If government interventions prevent businesses, like Bear Stearns, from failing, then it is not truly a free market. As painful as it might be for Wall Street, banks, even big ones, must be allowed to fail.

The end game for this policy of monetary inflation is that the money in your bank account loses purchasing power. So, by keeping failing banks afloat, the Fed punishes those who have lived frugally and saved. The power to create money is a power that should never be granted to government. As we can plainly see today, the Fed has abused this power, and taxpayers are paying the price.

Greetings All:

Merriam Webster dictionary defines ‘treason’ as follows, 1: the betrayal of a trust :treachery. It is an understatement to say our government has betrayed our trust.  Their daily usurping of the US Constitution and the Bill of Rights is treasonous and should be a call to action for all Patriotic Americans who love Fredom, and Cherish our National Sovereignty.

As I begin to work on my Federal Income Tax filing. You know, that un-constitutional government extortion of ‘personal property’ i.e. wages (not income) from We the People, I thought it would be a good time to send out my annual re-circulation of a commentary of mine titled, “Money Trail To Socialism” attached below.  Hopefully it helps in getting you in the festive mood of complying with one of the biggest “ponzi schemes” in the history of this once “Great Republic.”

If you happen to be one who believes communism was defeated, think again.  We have American Presidents, Presidential Candidates, Media ‘puppets’, and ignorant Americans refering to our country as a ‘Democracy’, Karl Marx (Mr. Communism himself) said, “Democracy is the road to socialism” ,  Comrade Vladimir Lenin, former dictator of the Communist U.S.S.R. said, “The goal of socialism is communism.”

The dots are being connected folks!  With the current choices in the 2008 Presidential election, we should be on track to make Lenin’s ‘goal’ reality.

Yours In Liberty,
Steve
“Veritas Vos Liberabit”

Money Trail to Socialism

By Steven E. Moran, Jr.

January 5, 2007

It’s Income Tax filing season again; the time when we willingly put our signature of approval to the year long extortion of wages that has been perpetrated against us despite the fact the federal government refuses to identify the tax law that authorizes them to confiscate such wages.  Fact is, you can’t identify law that doesn’t exist! Former IRS Commissioner T. Coleman Andrews once said, “The income tax is fulfilling the Marxist prophecy that the surest way to destroy a capitalist society is by steeply graduated taxes on income and heavy levies upon the estates of people when they die. Maybe we ought to see that every person who gets a tax return receives a copy of the Communist Manifesto with it so he can see what’s happening to him.” For those who may not know, the Communist Manifesto is the work of none other than Karl Marx, also known as the Father of Communism.  Marxism believes in the abolition of private property, denial of family inheritance, centralization of the banks by means of a national bank with an exclusive monopoly, and free education for all children in public schools. There is more, but I think you can get the picture.  If some of this sounds familiar, it ‘s because it is happening at varying levels right here in the good ole USA .  Look at the number of eminent domain cases recently.  In most cases, the government is misusing this law to remove Americans from their private property for use by other private enterprise. It doesn’t get much more un-American than denying a person the right to unfettered ownership of private property.  The current inheritance tax is unconstitutional, and just short of the Marxist dogma of denying survivors of the deceased it’s family inheritance.  Today, our free public schools would be more accurately described as government indoctrination centers.  Our public schools denounce prayer in a country founded on Judeo–Christian principles.  Despite what the secularist would like us to believe, our heritage is undeniable.  George Washington once said; “It is impossible to rightly govern the world without God and Bible.” During a speech in 1779 he said; “What students would learn in American schools above all is the religion of Jesus.”  This is certainly not the emphasis of our public schools today.  As a matter of fact it is totally forbidden; instead the Marxist agenda of moral relativism now corrupts the minds of children in public schools throughout the country.  Marx’s call for centralization of the banks as it relates to America is a clear reference to the Federal Reserve; this private banking cartel is indeed a monopoly to say the least.   I talked about this in my previous essay, “Oatmeal, Potatoes, and the Federal Reserve. It is my hope that this essay can serve as Part 2, and continue connecting the dots in tracking the Money Trail To Socialism.

The ingenious part of this insidious plan is the fact that it is being done with our money.  Dr Laurence J. Peter,  Canadian born educator, and best known for his formulation of the “Peter Principle”, once said, “ America is a land of taxation that was founded to avoid taxation.” Americans now surrender approximately 50% of gross earnings to this system of government extortion, and other forms of taxation.  It is estimated that the average American taxpayer must work from January thru May just to meet their alleged tax obligations for the year.  First, the government taxes our wages before we see a dime. The same money is taxed again upon the purchase of most goods and services.   Stop to fill up your car at a gas station… government taxes you.  Drive the interstate…government taxes you.  Buy some tickets for a ball game…government taxes you.  Pop open a cold one…government taxes you.  Book an airline flight for a family vacation…government taxes you.  Reserve a hotel room for that vacation…government taxes you.  Achieve the American dream and buy a home for your family…government taxes you.  Make a home improvement on your private property…government taxes you.  Make a phone call…government taxes you.  Turn on a light in your home…government taxes you.  Adjust your heat thermostat…government taxes you.  Flush the toilet…government taxes you.  Turn on your television…government taxes you.  Exercise your 2^nd Amendment right and purchase a firearm…government taxes you.  Stressed out over all this taxation, take a moment to enjoy a relaxing cigar…oops…government taxes you.  After a fleecing like this, one would think the taxman is content; Wrong! Eventually we succumb to the second necessary evil of life, and pass on. The federal government then has the audacity to extend its condolences to the family of the deceased in the form of the “Death Tax”.

This is Marxism at work folks!  When the government is allowed to invent ways to steal the “fruits of the people’s labor”, economic freedom is sure to suffer, and the inevitable result at best, will lead to Socialism.  Vladimir I.

Lenin, the first Russian dictator of the Soviet Union, a student of Karl Marx, and remembered as the man who put Marx’s ideas to practical use once said; “The way to crush the bourgeoisie (middle class) is to grind them between the millstones of taxation and inflation.”  That grind has certainly taken its toll on Americans.  It’s been ninety-four years of unlawful taxation and still one has to wonder if Americans realize what is happening to them.  Perhaps former IRS Commissioner Andrew’s suggestion, to include a copy of the Communist Manifesto with our tax returns will awaken us from our apathetic state, and allow us to see what is happening to us.  Of course, we’ll probably be taxed for it!
Yours In Liberty ,
Steve
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Mr. Moran resides in New Bedford, MA with his wife and two sons.  He served over 20 years in the U.S. Military, until retiring in 2005.  He is a member of the Constitution Party National Committee, and a staunch advocate for constitutional government, and the preservation of our national sovereignty He can be reached by email at semoran@verizon.net

Oatmeal, Potatoes, and the Federal Reserve
By: Steven E. Moran, Jr.
January 2, 2006

Dr Laurence J. Peter,  Canadian born educator, and best known for his formulation of the “Peter Principle”, once said, “America is a land of taxation that was founded to avoid taxation.” The private banking cartel known as the Federal Reserve has been fiscally raping the American taxpayer since its nefarious inception in 1913.  Thomas Jefferson spoke vehemently against allowing the peoples monetary system to be controlled by private banks, and feared the dangers of doing such.  In his words, ““If the American people ever allow the banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered. The issuing power of money should be taken from banks and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money, are more dangerous to liberty than standing armies.”
 In Article 1, Section 8 of our Constitution, authorization is granted to Congress for “the power to coin money and regulate the value thereof.”  In its failure to meet this constitutional responsibility, Congress has allowed he Federal Reserve (private banking cartel) to impose, control, and manipulate its fiat monetary system on the American taxpayer.  It is no coincidence that this corrupt private banking cartel was formed the same year that the 16^th Amendment was established.  It is important to note the 16th Amendment was not ratified by the required 3/4 of the states.  Despite the lack of required votes, then Secretary of State Philander Knox, who before being appointed Secretary of State, was legal counsel to this cartel in his civilian profession as an attorney, fraudulently proceeded in ratifying the amendment.  The 16^th Amendment reads in part, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” The United States Tax Code distinguishes between ‘income’ and the wage received by most Americans.  This ‘wage’ if you will, is considered ‘personal property’.  That being said, it is clear that the 16^th Amendment authorized no new taxing powers to the working American.  The founding fathers rejected the idea of any direct taxes unless they were apportioned to each state according to the current population.  However, the Global Elitists, who in essence are the Federal Reserve, needed a means of funding their “Ponzi Scheme”.  The 16^th Amendment proved to be the perfect mechanism in making the American taxpayer the “cash cow” of the Federal Reserve. To further validate this point I refer to the words of Congressman Louis T. McFadden, speaking on the floor of the House of Representatives on June 10,1932; “Mr. Chairman, we have, in this country, one of the most corrupt institutions the world has ever known.  I refer to the Federal Reserve Board and the Federal Reserve Banks.  The Federal Reserve Board, a government board, has cheated the government of the United States out of enough money to pay the national debt”.

The Federal Reserve has never had a full and publicly disclosed audit in its history. It is next to impossible to identify who the select elitists shareholders are.  And the same private elitist bankers that control the Federal Reserve both in and outside of the United States are not by coincidence, the same players controlling the IMF, and World Bank.

Historically, this is not the first time our government has turned the monetary system over to private bankers.  As you may recall, Thomas Jefferson was strongly opposed to it during its first inception, and eventually restored it to the government.  Years later, Andrew Jackson amidst much political pressure to capitulate, brought the private bankers to their knees and rightfully restored control of our monetary system to ‘We the people’.  Unfortunately for us today, most current politicians lack the fortitude and moral decency of Jefferson and Jackson.
The Federal Reserve allows its banking partners to lend money they don’t even have, by simply printing up more money with nothing tangible to back it.   The last of the “Gold Standard” was eviscerated in the early 70’s under the Nixon administration, and subsequently replaced with worthless notes to guarantee or promise investors repayment with worthless paper currency.  This fiat money is loaned for re-payment by the private 
banking cartel that also set the interest rates.  The exclusive control over setting interest rates aids the Federal Reserve in it’s fleecing of Americans.  It enables them to manipulate Americans ability to establish financial savings, it impacts the cost of goods and services, affects salaries, mortgage rates, auto financing rates, and most importantly, keeps Americans and our federal government in debt. After all, the higher the national debt the more they earn in interest.  It’s of little wonder that our government sets budgets each year that cost more than projected revenue.  Politicians allocate funds to “pork barrel” programs that add to our debt, and secure their careers with special interest groups, and local constituents.  If we ran a household budget like this, we would be bankrupt before the ink dried on the check.   We have heard Politicians, and most recently President Bush, announce a plan to balance the budget.   It is nothing more than political propaganda designed to fool the American people.  What most Americans need to know is simple, no politician in Washington D.C. has the power to, or the intention of balancing the budget! The Federal Reserve is calling the shots, and it is more profitable to them that we remain indebted to them at the expense of tax paying Americans.  Politicians attempt to further confuse the American people by using the terms ‘Debt’ and ‘Deficit’ interchangeably, as if both are one in the same.  Nothing could be further from the truth; I will make a short and simple attempt to explain.  Assume the government is preparing to pass a budget for the present year; the current balance the federal government owes to the Federal Reserve in past loans and interest is the actual national ‘debt’.  The federal government in preparing its budget assesses projected revenue from taxes and other sources of income.  For the sake of this example, lets assume that is $800 billion dollars.  ”.  Not one dime of the tax revenue extorted from Americans each year funds programs, services or infrastructure maintenance.  The money is paid to the Federal Reserve as re-payment to the existing balance on the previously loaned money (national debt).  With its free wheeling spending and ‘blank check’ mentality of the Federal Reserve, the federal government plans a budget that they know will cost in excess of projected revenue, i.e. $1 trillion dollars.  The shortfall of  $200 Billion dollars is the ‘deficit’.  This $200 Billion dollar ‘deficit’ adds to the existing national ‘debt’;  and on, and on, it goes, year after year.  This type of ‘deficit’ spending by our federal government will never allow for a balanced budget, but inevitably will lead to bankruptcy.
Sadly, the risk of a bankrupt United States has become all too real, and at this destructive pace it is not a matter of “if”, only a matter of “when.   Several economists have already concluded the United States bankrupt minus the formality of the government declaring it.  A recent statistic revealed our federal government is indebted to the (Un) Federal Reserve to the tune of approximately $8 trillion.  Of course that doesn’t take into account the 77 million baby boomers expecting to collect in pension and healthcare benefits.  In 2008 the oldest boomers will be eligible for early Social Security benefits.  In several years the boomers will start collecting Medicare. Our federal government has done nothing to prepare for this prodigious fiscal obligation.  When all this is taken into consideration the long-term fiscal analysis reveals a national debt of approximately $65.9 trillion dollars.  That equates to almost twice the size of our national wealth.
In a letter to Samuel Kercheval in 1816, Thomas Jefferson wrote the following; “To preserve [the] independence [of the people], we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, like them, we must come to labor sixteen hours in the twenty-four, give the earnings of fifteen of these to the government for their debts and daily expenses, and the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers.”

Looking ahead, I see only two options; “We the People” can speak up, hold our elected officials accountable, demand the immediate abolishment of the Federal Reserve, and restore constitutional government, or we can acquire a taste for “oatmeal and potatoes.”

Yours In Liberty,

Steve

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Mr. Moran is a resident of New Bedford.  He served over 20 years in the U.S. Military, until retiring in 2005.  He is a member of the Constitution Party National Committee, and a staunch advocate for constitutional government, and the preservation of our national sovereignty. He can be reached by e-mail at semoran@verizon.net.