[p2p-research] debt free, interest free, issued by US treasury till 1971 + Fed, Bonds, and M0 creation

Sun Jul 18 12:47:37 CEST 2010

Although I just noticed Patrick's reply on July 9, mentionning Greenbaks,
Silverbacks, ...
http://listcultures.org/pipermail/p2presearch_listcultures.org/2010-July/009364.html

I feel like sharing some more references,
and open the question as to how M0 is issued by the central ( private, "fed"
) bank.

------

<http://listcultures.org/pipermail/p2presearch_listcultures.org/2010-July/009364.html>Other
then colonial script,
there is to my knowledge another debt free, interest free issuance of money
- called green backs / united states note , issued by the Treasury ( not by
the private "Central Bank / "the fed" ) till 1971 in the US :

http://en.wikipedia.org/wiki/United_States_Note

*excerpts :*
*
*
*http://en.wikipedia.org/wiki/United_States_Note#The_Legal_Tender_Acts*
*
*
*"Legal tender status guaranteed that creditors would have to accept the
notes despite the fact that they were not backed by gold, bank deposits, or
government reserves, and bore no interest."*
*
*
*
http://en.wikipedia.org/wiki/United_States_Note#Comparison_to_Federal_Reserve_Notes
*

*"The difference between a United States Note and a Federal Reserve Note is
that a United States Note represented a "bill of credit" and was inserted by
the Treasury directly into circulation free of interest. Federal Reserve
Notes are backed by debt purchased by the Federal Reserve, and thus
generate seigniorage </wiki/Seigniorage> for the Federal Reserve
System</wiki/Federal_Reserve_System>,
which serves as a lending intermediary between the Treasury and the public."
*

----

*After the intervention of President Jackson to a non-renewal of the charter
of the second central bank ( h*
ttp://en.wikipedia.org/wiki/Second_Bank_of_the_United_States#Bank.27s_decline<http://en.wikipedia.org/wiki/Second_Bank_of_the_United_States#Bank.27s_decline>
 ) *, there has been no central bank for around 70 years.*

*----*
*
*
*Also note that the current private central bank / Federal Reserve , to my
current understanding, buy's Treasury Bonds ( with money it creates out of
thin air ) to guarantee the M0 ( base money ) on which it sets its interest
rate,*
*and which banks need to use to enable fractional banking.*

note : I m trying to find back documents that support this explanation.
Easiest for the moment is to refer to the documentary , "The Money Masters"

@ 1 hour 57 minutes and 45 seconds

http://video.google.com/videoplay?docid=-515319560256183936#
*
*
*
*
*also of interest :*
*
*
*http://en.wikipedia.org/wiki/Monetary_base*

http://en.wikipedia.org/wiki/Fractional-reserve_banking

http://en.wikipedia.org/wiki/Federal_Reserve_System#Central_bank

excerpt :
*
*
*"In its role as the **central bank* </wiki/Central_bank>* of the United
States, the Fed serves as a banker's bank and as the government's bank." ...
"**the Fed sells and redeems **U.S. government
securities*</wiki/Treasury_security>
* such as savings bonds and Treasury bills, notes and bonds."*
*
*
*http://en.wikipedia.org/wiki/Criticism_of_fractional-reserve_banking
*
On Sun, Jul 18, 2010 at 10:58 AM, Dante-Gabryell Monson <
dante.monson at gmail.com> wrote:

> there have been some presidents of the united states that have been
> fighting against central bankers - see :
>
> President Jefferson :
>
> http://en.wikipedia.org/wiki/Thomas_Jefferson#Banks_and_bankers
> *
> *
> *excerpt : *
> *
> *
> * <http://en.wikipedia.org/wiki/Thomas_Jefferson#Banks_and_bankers>" **His
> opposition to the **Bank of the United States*<http://wiki/Second_Bank_of_the_United_States>
> * was fierce: "I sincerely believe, with you, that banking establishments
> are more dangerous than standing armies; and that the principle of spending
> money to be paid by posterity, under the name of funding, is but swindling
> futurity on a large scale."**[**55**]* <#129e4c6940a2312e_cite_note-54>* Nevertheless
> Madison and Congress, seeing the financial chaos caused by the War of 1812,
> disregarded his advice and created the **Second Bank of the United States*<http://wiki/Second_Bank_of_the_United_States>
> * in 1816. "*
>
> President Jackson :
>
> http://en.wikipedia.org/wiki/Andrew_Jackson#Opposition_to_the_National_Bank
>
> also see around 1hour09 on *" **The Money Masters - How International
> Bankers Gained Control of America "*
>
> http://video.google.com/videoplay?docid=-515319560256183936#
>
>
> and, before the revolution leading to the birth of the united states, and
> before the first and second ( private ) central bank,
>
> there has been "colonial script" , which was ( although I m searching for
> specific references ), apparently not debt based, but issued by forms of
> colonial governance related to the colonies :
>
> http://p2pfoundation.net/Colonial_Script
> ( also see : http://en.wikipedia.org/wiki/Early_American_currency )
>
> excerpt :
>
> http://en.wikipedia.org/wiki/Colonial_Script
> *
> *
> *"Bills of credit were usually issued by colonial governments to pay
> debts. The governments would then retire the currency by accepting the bills
> for payment of taxes. When colonial governments issued too many bills of
> credit, or failed to tax them out of circulation,** **inflation*<http://wiki/Inflation>
> * **resulted."*
>
> also note that Colonial Script made illegal ( by the British ) may have
> contributed greatly to leading to the American Revolution ,
> see :
>
> http://en.wikipedia.org/wiki/Currency_Act
>
> On Sat, Jul 17, 2010 at 5:45 PM, Patrick Anderson <agnucius at gmail.com>wrote:
>
>> Michel Bauwens wrote:
>> > you make it sound like it is an objective matter,
>> > that governments choose rationally,
>> > instead of a matter of social and political power,
>>
>> Sounds like we need to get a president into office who is willing to
>> use military force against these foes.
>>
>>
>> Ellen Woods wrote:
>> > We have a government run by and for Big Business,
>> > and Big Business has gotten control because its
>> > affiliated banks have monopolized the business of
>> > issuing the national money supply, a function the
>> > Constitution delegated solely to Congress.
>>
>> Let's Roll the Tanks against the Banks!
>>
>> If words do not work, then we should send an air-strike to level the
>> buildings housing these villains just as the (possibly mythical) Jesus
>> did against the money-changers.
>>
>> Why do we cower in fear when we have the firepower to eliminate these
>> parasites from our governing bodies?
>>
>> Let us bring down these institutions of usury in the same way the WTC
>> towers were demolished and the center support structures melted by
>> powers within our country.
>>
>> _______________________________________________
>> p2presearch mailing list
>> p2presearch at listcultures.org
>> http://listcultures.org/mailman/listinfo/p2presearch_listcultures.org
>>
>
>
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