dear whomever (not about PoF, directly),

it is my good fortune to know someone who actually understands the deepest aspects of the current economic crisis ... his "news" is not particularly good, given that we live so strongly in an economic illusion, but the word is slowly going out and at some point ordinary citizens may be able to act so as to cause a reform of public life, such that the government actually does the right thing ...

for the moment, the government sides with the establishment banking powers far too much, and does all the wrong things ... let me tell the story briefly, but if you want details you can go here: http://www.concordresolution.org/column.htm

the fundamental illusion we all suffer from is that money sits in banks (or other financial institutions), and is then moved from there to other places in order to pay our credit card debts, the checks we write at the grocery store and so forth ...

this is basically not true, and the truth (oddly enough) was well understood when this Nation was founded and even Lincoln understood it as well ...

there is no money until you write your check or use your credit card ... at that point in time it is created by the bank and only then does it go into circulation ... further, it is created as "debt money", which means to put it into circulation after its creation, we end up owing debt on it ...

this is true of our government as well, which when it "borrows" money, the money is newly created at that time, coupled with debt to the banking system, which told a lot of lies over the years in order to acquire and retain this power to create "debt money" ... the so-called National Debt is the accumulation of this "fee" the banking system steals from us every time it creates money ... in a way the banking system for 300 hundred years as been involved in this elaborate "ponzi" scheme, wherein they to create money and charge us this fee, which we will never actually retire and puts us in a relationship to the system something like the "company stores" did earlier in our history, since they were they only place a "worker" (in coal, etc) could purchase food ...

the banks, by "owning" the right to print money, have us by the financial balls ...

unfortunately, like any "ponzi" scheme the ability of the system to continue to find suckers has reached a limit, and while the housing bubble is blamed, if you read between the lines of the lies, you will see that it is really the "money bubble" that is collapsing, because the scheme depends on a psychological fact, namely "confidence" ... as long as people, whether ordinary purchasers of goods and services, or companies and even many banks, believe the money system is working, this "confidence" then keeps money in circulation ...

the "confidence" is a central factor in the illusion, and once people on a practical level understand the system has failed (even without knowing the root cause is the banks control of the right to print money), the "confidence" disappears, and people start taking money out of circulation - we don't buy and lenders don't lend ...

money needs to be in circulation, and what has been going on since last Fall is the Fed and then the Treasury taking the taxpayer's (through their government powers) obligation to the "debt money" creators, to pump more "debt money" into the system - a ponzi scheme trying to pay off a ponzi scheme, ...

but the people receiving this money still lack confidence, so all those billions  (really trillions when you add together what the  Fed and the  Treasury  have "spent" into  circulation) gets spent in ways that don't circulate (nobody is buying anything) ...

What Lincoln and our Founders understood (and one of the real causes of the Revolution) is that if government itself creates the money, instead of the banking system, no "debt" attaches to the money ...

the "debt" element is like a kind of parasite, so that for every $100 loaned (or created) only $10* circulates in the normal way, and the rest gets absorbed into the banking system in such a way that the wealth accumulates in places where it stops (doesn't circulate in the real economy), for example, when land values increase in the just noticed "bubble" in housing, or the bundled mortgages become over valued, or the credit swap instruments get created (all on more borrowed money, i.e. more "debt" money ...

*[these figures are approximate, each transaction is different in terms of what actually enters the real economy and what disappears down (actually up) the rabbit hole of the system and becomes play money used by the Warren Buffets and George Soros of the world, to buy and sell small nations, large corporations and make their bets in the trillions daily spent in the currency arbitrage markets ... these markets don't actually do anything - that is no goods or services are created, its all just a corner of the monopoly game where the cash accumulates in such large amounts as to be downright insane]

I know at this point it is getting complicated, but that's the nature of the situation ...

What the Treasury should be doing is only spending dollars printed by the government itself (just as Lincoln financed the Civil War with his "greenbacks") ... as this gets "spent" into the economy, along with the necessary explanation for why we need to do this, confidence will be restored and a new real economy created ... of course, we need to keep in mind that the people that benefit from this situation will not give away their privileges without a battle ...  right now, because Obama is (as was Clinton) in practice right of Center, the Left is left still begging for its issues, and the economic truth is still known only to a very few (Dennis Kucinich is starting to get it) ...

Remember, the Founders knew this, and one of the background battles leading to the Revolution was the efforts by the colonies to create their own currencies, and the use of the British Army to provide enforcement by the English aristocracy to make us only use Bank of England coin and paper money ... when the colonies used their own currencies, their economies flourished ...

on a practical note, people will be quite morally justified over the next years, as the economic collapse burns itself out, to abandon debt, which was really stolen from us ... better to spend our cash (whatever we have) on real things to real people and keep as much money in circulation as possible ... as time goes on other viable strategies will appear if you keep your ear open to the real opportunities ... all the same, for many,  life as we have known it will not continue ...

Governor Terminator in California, could for example, defy Washington and print money the State of California plans to stand behind (support with taxes).  Yes, I know, but think about it, of course our taxes have to support the currency, but when we take the parasites out of the circulation of money it will go much farther, and the taxes will be a great deal less than those obligations currently being claimed and acquired by the establishment powers in the present through artifice... so we might get, you know: a nation of the people, by the people and for the people - what an idea!?!

joel