Want to win a quick and easy $25,000?

Who wouldn’t want to win a quick and easy $25,000?  I certainly don’t know anyone.

What if someone posed the following game to you with an entry fee of $100 but with the prize of $25,000 if you win the game?  Here’s the basic proposition.

All the winner has to do is move 10 American quarters from one side of the table to the other.  Here are the basic rules of the game.

Divide an ordinary bare kitchen table in half with a strip of  masking tape.  On the left side of the table will be 10 American quarters, the only quarters that can be used in the game.  Across the tape on the right side of the table will be 3 empty small cereal bowls.  The task is to move the 10 quarters from the left side of the table into the 3 cereal bowls on the right side of the table.

You can play as long as you want and you can get others to help figure out how to win the game, but all additional players have to kick in their own $100 to play.

You can move any or all the 10 quarters back and forth across the tape line as often as you like in order to accomplish the final distribution of the quarters as you cruise toward the $25,000 prize.  Also, the quarters can be moved from one cereal bowl to another on the right side of the table in order to achieve the winning distribution.

The winner or winners, if more than one plays, must end up with one bowl on the right side with 5 quarters, one bowl with 2 quarters and another with 4 quarters from the original 10 quarters.   The arrangement of the bowls on the right side doesn’t make any difference as far as winning or loosing the game and, again, there’s no time limit or limit to the number of players.

It seems like a pretty straight forward game to me.  So, does anyone want to play and if not, why not?

There may be a few that are so uninterested in math that they might initially think, hey, count me in, I’ll play for that $25,000 prize if I’m only putting up $100 to play.  But most readers will instantly see that 5 plus 2 plus 4 equals eleven. My silly attempts to momentarily lull some into inattention by throwing in meaningless jargon about moving the quarters back and forth and having additional players probably didn’t work.  Most readers likely saw through my attempted ruse immediately.

The order of adding 5 and 4 and 2 is immaterial. What is important, however, is the mathematical impossibility of ending up with eleven quarters when you start with only ten.  And what does any of this have to do with our banking system and all the national, state and city debt, along with everyone’s own personal debt?  I thought you’d never ask.

Two truisms emerge out of our current banking system that no one can argue with:

1. At any specific time, there is always more money owed back than there is in the existing amount of money (known as the monetary supply).

2. The only procedure for increasing the monetary supply in our current banking system occurs when some entity or person takes out a loan (which is a debt) that generates an interest obligation that has to be paid back as well.

When a loan is “created” by a bank, only the principle is created and not the interest that  must be paid back. No one can prevail within these constraints. Very simply, it is not possible to “borrow” your way out of debt. But this specific issue pertaining to interest turns out to be only the easily-detected surface problem.  There’s a far deeper subterfuge.

Three Fraudulent Banking Activities that Create all our Debt:

I am aware of three basic fraudulent banking activities that are at the root of our economic woes, the ramifications of which result in the relentless lowering of the standard of living of virtually every citizen in every identifiable aspect of our society.

The fraudulent banking activities creating all our debt are:

1. Compound interest rather than simple interest on all loans

2. Fractional Reserve Banking (aka Fractional Reserve Lending) rather than Full Reserve Banking

3. The Federal Reserve Bank (the Fed)/ U.S Treasury scheme to pay for a large portion of government expenditures by “selling” bonds

(A bond is simply a debt contract (an IOU) with a face value, a stated period of time to maturity when it is redeemable, and an interest rate that it earns. All bonds, U.S. Treasury, state, municipal or whatever kind, represent a debt, money that was borrowed by whoever issued the bonds. This money has to be paid back to whoever lent the money in the first place by “buying” the bonds.) 

Let me tackle these frauds in reverse order starting with the Fed/U.S. Treasury bond and “creation of money” scheme.

3.  The Federal Reserve Bank (the Fed)/ U.S Treasury scheme to pay for a large portion of government expenditures by “selling” bonds.

The Treasury prints bonds and “sells” most of them to the Fed for re-sale to whoever wants to buy them.  These bonds are “bought” by the Fed and paid for with Federal Reserve Notes (just like the money in your pocket). The Fed has Treasury print this money and takes delivery of it only to return the same money back to the Treasury as payment for the bonds.

You might be asking yourself, “What did the Fed exchange for the money it got from Treasury in order to buy those bonds?”

The Fed gave nothing. Very simply, the money the Fed paid back to Treasury for the bonds it received from Treasury appeared magically “out of thin air.” In other words, that money was counterfeited.

In the final step of this scheme, Treasury takes this newly counterfeited money it just got back from the Fed as payment for the bonds, deposits it in accounts Treasury has set up in commercial banks and starts writing checks from these accounts for government expenditures.

In truth, there aren’t actually truck loads of bonds and money driving back and forth between the Fed and Treasury and commercial banks on transactions this large, it’s all handled with accounting entries displayed on computer screens. This storybook illustration, however, is helpful in mapping out and exposing this scheme.

Is this a shell-game or what? You and I have to pay back this debt (the bonds from Treasury that were “sold” to the Fed, then re-sold by the Fed to whoever) along with accumulated interest from which we receive no benefit whatsoever. So, is there a way out of this enslavement?  Yes, but I can think of only one way out.

Although I’ve never even taken one class in economics, I don’t consider myself to be a dunce.  But most important, I have not  been sufficiently brainwashed to believe that our current banking system is the best one and the only one possible and that it evolved out of the natural order of things, which more than a few in our country would interpret as meaning, “ordained by god herself.”

To start with, we need to follow our own Constitution where at Article I, Section 8, Clause 5, Congress is mandated to “coin (our) money, (and) regulate the Value thereof…”  Having our money supply being created by the Federal Reserve Bank and lesser banks, all of which are private companies unrelated to the Federal Government, was thought not to be a good idea by our founders over 200 years ago. And they were dead right!  I’ll get to the “lesser bank” money creation swindles in a bit.

Our government should print our money, declare it to be “legal tender” and (here’s the beauty of it) spend it directly in the American marketplace to buy from our US private enterprises the necessary goods and services for the welfare of our country.  By doing this, automatically there would be no additional debt that needs to be paid back and no accumulating interest on an amount borrowed.  At least one other country is doing something similar to this with success.

Just think of the benefits and new good paying jobs which could result from such things as: bridge and highway repairs, improving airports, railroad roadbeds, ports and all the supplies needed, and research attempting to eradicate catastrophic illnesses like cancer, diabetes and Parkinson’s. The list could go on for pages.

Best of all, my suggestion has nothing to do with Communism or Socialism.  The government would not end up owning everything, a state of affairs the banks are steadily moving toward.  We would just have a fair and constitutionally authorized method for the creation of our money that incurs no debt in the process.  There is no down side that I can see!

This change, back to sanity and fairness, as our founders envisioned, would not come about without a hitch or in one fell swoop overnight.

For instance, for awhile we could end up with two parallel paper currencies. Let’s call the new one “Americans” (or whatever). These bills would be printed and issued by our government and backed by the “Full Faith and Credit of the United States.” Under President Lincoln the government issued “Greenbacks” that were debt free and were spent directly into the marketplace for necessary goods and services.

The existing “Federal Reserve Notes” (like the money in your pocket) could be exchanged at any bank for the new currency, dollar for dollar with no time limit, but not vice-versa.  By law, these new “Americans” would have to be accepted in the marketplace for all goods and services and as payment for court-ordered judgements, taxes, fines or other debts.

When U.S. Treasury bonds matured and were redeemed, payment would be made with the new currency.  No more Federal Reserve Notes would ever be printed for any reason, particularly not for the purpose of “buying” Treasury Bonds.  The existing  Federal Reserve Notes would wear out physically and disappear eventually.  And for the icing on the cake, by printing our own money and spending it directly into the economy, none of which would be “borrowed,” there wouldn’t be a need for even one new Treasury Bond thrusting us further into debt.

Congress passed the Federal Reserve Act of 1913 and President Wilson signed it into law in December of that year setting the foundation for our current enslaving banking catastrophe.  Congress, and only congress, can present a new bill to our  President that nullifies this Federal Reserve Act. If our congressional delegation is representing you and me (the citizens who own this country) as they claim to, they will do this.

2.  Fractional Reserve Banking (aka Fractional Reserve Lending) rather than Full Reserve Banking 

When a bank makes a loan, they are required to have “on reserve” about 10% of the face value of that loan.  If you take out a $1,000 loan for example, a bank is required to have $100 “on reserve.”  So, where does the remaining $900 come from?  Is it the personal money in the banker’s pocket that he loans out to you or is it from the money others have on deposit at the bank?  No, neither.

The $900 is created by a bookkeeping entry in an account opened for you, then the $900 magically comes into existence at the time the bank hands you the check for the $1,000.  That $900 was “created” out of thin air, on the spot, read, counterfeited.  And you are expected to pay the bank back the $100 that existed in the first place, the $900 the bank counterfeited, which then becomes theirs when you pay the loan off, plus interest on both the $100 and the counterfeited $900 for the time you have the loan.  That’s an illustration of “fractional reserve banking” in a nutshell.

This Fractional Reserve Banking along with the U.S. Treasury/Fed bonding and money creation contrivance increases the supply of money available for purchases in the market place. But these deceptive bank maneuvers do not create an offsetting amount of new goods and services for purchase with this newly “created” money.

The disaster which results from this imbalance is that there is a continually escalating amount of money bidding for the same amount of goods and services and this, other than illegal corporate “price fixing” schemes, is the sole cause of price inflation.  It’s really as simple as that.  You and I end up paying more today for the same thing we bought yesterday.  Put another way, expanding the money supply with counterfeited money this way, causes the money in your pocket to be diluted and worth less today than it was yesterday.

Who benefits from this?  Certainly not you or me.  Well then who?  How about those who are doing the counterfeiting?  Well, duh!  Of course, that’s who benefits while my standard of living as well as yours is lowered as a consequence.

For example, money you set aside and planned to use to take the family on that vacation, promised for four years now, has to be used to pay for the heating oil because of price inflation on the heating oil and everything else.  You were running out of money and it was not an accident or because you were a spendthrift. Your standard of living was diminished and it was 100% predictable, as well as mathematically inescapable, and particularly distressing if you didn’t get a raise in the last three years and have little prospect of getting one in the next three years.

Those causing this by doing the counterfeiting don’t give a hoot whether you take your family on vacation or your family freezes to death. That’s an incontrovertible conclusion considering the millions of recent foreclosures that put families out on the street, a reprehensible, cruel, yet totally elective unconstitutional punishment which continues at an obscene rate today.

With “full reserve banking” rather than “fractional reserve banking,” this procedure of inflating the monetary supply (that is, lowering the value of the money in everyone’s pocket) is eliminated.  Why should any company and only one type of company (a bank) be allowed to purportedly “loan” out money that it doesn’t have when all that really amounts to is creating money out of thin air, that is, counterfeiting it, especially since this activity is contrary to our own U.S. Constitution?  What would happen to you if you were counterfeiting money and got caught?

For example, what “due process” were you given as your property (money) was relegated to losing its value on a daily basis by a deliberate swindle beyond your control?  As a citizen who is one of the owners of this country and guaranteed this 5th amendment protection in the Bill of Rights, you got no due process!  You just got your standard of living lowered and it’s already scheduled to continue tomorrow!

1. Compound interest rather than simple interest on all loans 

The final issue involves an examination of compound interest as opposed to simple interest. This is a “sleeper” issue that seems rather harmless because the devastation caused by this mathematical process starts out so slowly.

Consider the following situations.  Let’s take a $100,000 home loan for 30 years and figure how much you’d pay back in total using both 5% simple interest compared with 5% compound interest.  And let’s say the interest is accumulated yearly and you pay the debt off in one payment at the end of the 30 years.

At simple interest, 5% of $100,000 is $5,000 which times 30 years is $150,000.  This amount of interest plus the principle of $100,000 would result in a payoff of $250,000.

Changing from simple interest to compound interest illustrates egregious gouging.  A $100,000 loan at 5% compound interest accumulating yearly for 30 years and paid off  in one payment at the end, would require a payment of  about $432,000.****

That’s a far cry from the $250,000 needed for the same principle loan at simple interest.  That’s a difference in just 30 years of $182,000 in interest alone you’d have to pay back.  Just that interest difference is almost twice the amount of the principle of the loan you started with.

Those requiring compound interest on any loan – home, car, credit card, school loan or whatever kind, deserve public scorn and this practice needs to be made illegal immediately and nationwide.

I am confident that I have identified the main banking frauds that are enslaving all of us and ruining our country. The solutions proposed represent a basic framework and the details for an equitable implementation can easily be added.  All the nation needs to escape this oppression is sufficient courage, a little education about these banking frauds, and a sense of patriotism from a 2/3 majority in both the U.S. House of Representatives and Senate to get veto-proof legislation going to make the necessary changes.  All that’s needed is about 370 total incorruptible legislators – I’d say 300 in the House and 70 in the Senate.

Do those currently in the House of Representatives and Senate think they have something more important to fight for, more critical, more urgent to save their energies for than to introduce and vote for legislation to rid us of the pestilence of these banking frauds that are bringing America to its knees?  They already have the Constitution of the United States on their side!  How much advantage and validation do they need?

Out of the more than 300 million of us in the country, can’t we find those 370 righteous people who are willing to stand up and do the right thing?  At 71, do I have to throw my hat into the political arena hoping to get elected and save my country?

Or should I just crack a beer and pretend I don’t know of the fighting and sacrifices for tens of thousands of years by those before us, whose struggles eventually culminated in the crescendo of ethical/metaphysical enlightenment, summarized in our Declaration of Independence and our Constitution? Is it too late, and is America as we envision it with pride, already beyond recovery?

Think it over and give me your views.

****You can find a compound interest calculator at:


3 thoughts on “Want to win a quick and easy $25,000?

  1. This would work in a country of good and honorable people, but greed and power rule the day. Outstanding analysis that should be required reading for all.

  2. Wow. I really didn’t understand fully how (and to what extent) the Federal Reserve bank and other banks were messing up our economy until reading this blog entry. Thank you .

  3. If you want to go further in depth on these issues, let me suggest “Web of Debt” by Ellen Brown. Not the sort of book the bankers want widely distributed. It’s availability is “print on demand” now as far as I know. It’s about the most informative book I’ve ever read on any subject, and just for a benchmark reference, I finished a Master’s in Philosophy and Psychology in 1972 and have continued reading at every opportunity since.

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