Tuesday, March 29, 2011

The Difference Between A Democracy & A Republic

By definition, a republic is a political unit governed by a (charter), while a democracy is a government whose prevailing force is always that of the majority. Perhaps one of the difficulties in defining these two words "democracy and republic" stems from the fact that many people consider them to be synonyms, which they are not; they are no more alike than an apple and a banana, and yet they are often used interchangeably.

The difference between a republic and a democracy lies in the ultimate source of official power. In the case of a republic, it lies with a (charter); in a democracy, power lies with the rule of the majority, so government can change quickly, if enough migrants enter the country, the majority will rule, no matter what the (charter) or Constitution states. For an up to date close up of this, you can get healthcare shoved down your throat that is full of illegal language and against our charter, but the majority of (politicians) rule in a democracy (their decision does not have to be the will of the PEOPLE). You can get a majority of thugs, against the will of the people to ruin life as we know it in America in a democracy. As a Republic, through our charter, we have certain inalienable rights from our Constitution and Bill of Rights that no group should be able to tamper with. Slowly the progressive's are trying to close the chapter of our Republic and to convince the PEOPLE, that we should only focus on democracy.

The names "republican" and "democrat" are names that may be considered to characterize Republic or Democracy. A Republic view of government, as in a Republican, used to be the same as those who founded our Republic. A Republican started out to be for the Republic and got lost in the power and money grabbing, deal making attitude of congress. Then a Democrat’s view, being solely that of democracy, was one who has a centralized view of government (called democracy) with ever changing direction toward the popular ideology, slowly forming a monarch. Adding to the confusion is the fact that there are different types of democracies. In a representative democracy, citizens elect people to represent their interests in the government,( albeit the politicians often change after elected ), and these elected representatives determine how issues are decided, (not the People), (which seems to reflect the Dems in America). Nancy Pelosi is a great example of this: with her famous statement: We must first pass the bill before we read what is in it. Democracy represents absolute power, and with that, the popular statement is, absolute power corrupts absolute.

In a republic, people may vote for their representatives, but the state’s responsibilities are limited, because they are clearly bound by a (charter) that the federal government should not enter into. Freedom is realized by the willingness of the people to live by the dictates of the (charter), which we start out doing from the beginning. The republic’s charter protects the individual’s rights and assures they may not be changed by the elected state or local officials; and certainly not the federal government.

The detailed organization of the government of a republic can vary widely. In most cases, the head of state, as it is in France for example, is referred to as the President however it is a monarchy. In republics, the head of state is always appointed as the result of either a direct or indirect election. In fact, most countries that still have a monarchy ARE democracies! In the case of some republics, such as Switzerland and San Marino, the head of state is actually a committee of several persons in aggregate. Republics can be led by a head of state who retains many characteristics of a monarch, and in some instances, the President may rule for the duration of his life; so the (charter) is the most important document to decide on, in the beginning, to determine individual's rights and long term governance can never be tampered with. Remember these words and ask yourself what happened to the word Republic.

I pledge allegiants to the flag, of the United States of America, and to the “Republic”, for which it stands, (not Democracy) one nation under GOD, indivisible, with liberty, and justice for all.

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posted by David Tippie @ 1:17 PM   0 comments

Saturday, March 19, 2011

The Gold Secret: The Chinese are using up their dollar reserves buying goods and services

The Chinese are using up their dollar reserves buying goods and services with them, knowing that the value of the dollar is falling and wanting to get rid of as many greenbacks as they can. Nations are purchasing gold and silver. The Fed keeps printing money as if it were going out of style. Something is going on that your government does not want you to know about. Very few journalists have written about it and little or nothing has appeared in the mainstream media. The story could be one of major stories of our time.

Western powers have tried to destroy gold as a backing for currencies for many years; Nixon took the US off the gold standard. Few know who the Shanghai Cooperation Organization, known as SCO really is; Few have been listening and few have been interested in what their mission is and what they have been up to. Some of the members are large oil producers and some, like China, are large oil users. Some have very large US dollar surpluses. As well, some are large commodity and gold and silver buyers. In fact, members are in a great part responsible for driving these prices higher. It is debatable, but I believe there is a conscious effort to accumulate gold and silver, dump dollars and to back their foreign currencies with gold, crumbling the dollar.

China and Russia are both large gold producers and for a number of years have been buying up domestic gold and silver production, so that it never reaches the market and does not affect prices. If anything the absence of sales tends to push the markets higher. As a matter of fact Russia and India are visible buyers. Even Iran with its oil surplus recently announced that they had purchased 340 tons of gold. Their recent gold purchases are very significant as affiliate members, which have access to the present and ultimate direction of the group. You might say buying gold has been a protective effort to shield members and close observers from the problems generated by dollar policies. They are accumulating gold, as many have been worldwide, for the past ten years, but particularly over the past few years.

This buying, for protection, has served to thwart the efforts of US policymakers, the Treasury, other central banks in Europe and the Fed, from being able to continue the blatant suppression of both gold and silver prices. The malefactors, except for forays into derivatives and futures, which are transitory, have lost control and suppression of gold and silver prices, and it is only a matter of time before all visages of any control will be visible. Since 1988, in August when Present Reagan signed the Executive Order creating, “the President’s Group on Financial Markets” and the subsidiaries that have grown out of that policy, that the Treasury won many if not most of the battles.

The SCO in part changed that and now they and the public are winning the war for a fair and free gold and silver market. The current class action lawsuits, including RICO, are a testament to the market manipulation in silver, which is finally coming to an end. HSBC and JPMorgan Chase, the latter that is the major owner of the Fed, are going to be finally prohibited from rigging these markets. Their officers all belong in jail, but elitists never go to jail; they pay fines, and keep right on robbing the public.

Other SCO members and observers are accumulating gold as well, be it in smaller amounts. We might add that other nations observing Russia and China and their gold purchases are buying as well. These participants must believe that there could be a return to sound money; otherwise they wouldn’t be gold buyers. Buying gold is certainly preferable to holding US dollars, which have consistently fallen in value versus other currencies over the past ten years. If I am elected president, we are going to stop the huge federal spending, reduce the size of government, return power to the states to govern private business and people and, take our US dollar off the GOLD standard and back it by our STRONG free economy and if you want to import to our country you will be subject to the same taxes and guidelines as US business and never again have wild irresponsible spending that has come very close to destroying our country. Progressives are working toward the destruction of our county to force a New World Order that does not have the United States of America on top. Vote for me in 2012, I will not rest until I right these terrible wrongs.

There is no question more and higher inflation is on the way, as the Fed gets into QE 2. You can also bet that QE2 will not be $600 billion as they lie to you about, but more than $2 trillion. Inflation is already showing up in food, petroleum products, and airline fares and in many other items that we use every day. As usual the government says there is little or no inflation. Even competent economists are still using government’s bogus figures. What can they be thinking of? They know what is going on. That means we are embarking on the highest inflation rates in US history. Thus far the undertow of deflation has been superseded by government banking and Fed aggregate creation. The Fed, in order to subdue deflation and such spending has to always overshoot the inflation they create, so that they can be sure that deflation cannot take hold. This money and credit is in the process of working its way through the economy, spreading inflation as it winds its way through.

The only investors who are being afforded protection are those who have invested in gold and silver and commodities. That is less than 2% of the American population.

The Fed’s promises are not worth the paper they are written on. Ben Bernanke will print money until he cannot anymore and we have hyperinflation. That is because he has no other choice. He has no way out and he knows it won’t work. Tragically, this is where we are headed and there is no way to stop what the elitists have put deliberately in motion without a true leader who is not afraid to take on every issue; just give the opportunity by voting for David Tippie.

The same errors committed during the Great Depression of the 1930s are being repeated and economists, including Mr. Bernanake, know they do not work. Yes, the Fed contracted money supply and when they let it loose again, it was too late for it to be in anyway effective.

Next come tariffs as an outgrowth of: currency wars; interest and dividend penalties on the inflow of hot, inflationary dollars and retaliatory tariffs as a result of losing 8.7 million jobs and 430,000 businesses over ten years to free trade, globalization, off shoring and outsourcing.

At the root of all this is that the Fed is supposed to be saving the US economic and financial structure. They are not doing that, they are saving the banking system and Wall Street instead and these are the miscreants that caused the problem in the first place. The result of this policy of zero interest rates and easy money is that few are saving.

There you have it, planned destruction. Is it any wonder the SCO members and observers are buying gold on every dip and will not stop doing so until they run out of dollars! To have an impact on this we must have a strong leader, one who is not looking to look good just to get re-elected but a leader who loves this country and is willing give his, including his life if need be to save it from this pending disaster as well as many others; you are reading my platform and you know that we need tough leadership, that we certainly do not have; David Tippie is that leader and I am asking for your vote.

The Federal Reserve System (also known as the Federal Reserve, and informally as The Fed) is the central banking system of the United States. It was created in 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved. Events such as the Great Depression were major factors leading to changes in the system. Its duties today, according to official Federal Reserve documentation, are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.

The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils. The FOMC is the committee responsible for setting monetary policy and consists of all seven members of the Board of Governors and the twelve regional bank presidents, though only five bank presidents vote at any given time. The responsibilities of the central bank are divided into several separate and independent parts, some private and some public. The result is a structure that is considered unique among central banks. It is also unusual in that an entity outside of the central bank, namely the United States Department of the Treasury, creates the currency used.

According to the Board of Governors, the Federal Reserve is independent within government in that "its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government." However, its authority is derived from the U.S. Congress and is subject to congressional oversight. Additionally, the members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by Congress. The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the system's highest-level employees. Thus the Federal Reserve has both private and public aspects. The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained.

Although, under current regulations, all depository institutions are required to maintain reserves against transaction (checking) deposits, the reality is they don't. The purpose of bank reserves is to absorb losses and add stability/liquidity to the financial system in times of crisis. The “vault cash” banks use to satisfy reserve requirements is useless in absorbing losses because they are indispensable for banking operations (think ATM cash).

In summary, today most depository institutions are satisfying their entire reserve requirement with this vault cash, which they hold to meet the liquidity needs of their customers and would hold even in the absence of reserve requirements. For these institutions, reserve requirements are effectively non-existent.

How did we get to the point where US banks are satisfying their “reserve requirements” with ATM cash?

First, the Federal Reserve has cut reserve requirements to the bone over the last thirty years.

In 1990, the reserve requirement on all non-transaction accounts (savings, CDs, money markets, etc…) was reduced to zero. Removing all reserve requirements on non-checking accounts has never happened before in over a hundred years. Meanwhile, the requirement on transaction deposits (checking accounts) is 10 percent, which is near the legal minimum.

However, the lowering of reserve requirements by the fed doesn’t explain how reserve requirement fell below “vault cash” (less than 3% of a banks assets). Something more was needed.

Deposit reclassification is an accounting trick, used by virtually the entire financial sector, which allows banks to eliminate nearly all their reserve requirements. Deposit Reclassification splits a checking account into two separate subaccounts, a transaction (checking) subaccount and a non-transaction (savings) subaccount. This distinction only exists on the bank’s books: you will never see these subaccounts on your bank statements.

Deposit reclassification means that, at any point in time, most of the money in American checking accounts sits in invisible savings subaccounts. These savings subaccounts pay no interest, but allow banks to avoid reserve requirements. The public is completely unaware of this financial engineering.

By using deposit reclassification, the entire financial sector is already operating without any reserve requirements; this is going to come to a halt in David Tippie’s administration.

There is only one restriction on deposit reclassification: banks must disclose it to their customers. These disclosures could be in the form of a statement stuffer or buried in the terms and conditions when opening a checking account. As an example of a disclosure about deposit reclassification, Citibank explains how its checking accounts are maintained; For accounting purposes, all Citibank consumer checking accounts (Regular Checking, Citigold Interest Checking, Interest Checking and Basic Banking Account) consist of two sub-accounts; a transaction sub-account to which all financial transactions are posted; and a holding sub-account into which available balances above a pre-set level are transferred daily. Funds will be transferred to your transaction sub-account to meet your transactional needs. For Regular Checking and Basic Banking Account, both sub-accounts are non-interest bearing. For Citigold Interest Checking and Interest Checking, both sub-accounts pay the same interest rate.

Transfers can occur on any business day. Transfers to the holding sub-account will be made whenever available balances in the transaction sub-account exceed a preset level. Transfers from the holding sub-account to the transaction sub-account will be made whenever transaction sub-account balances fall below a predetermined level. Because banking regulations limit the number of transfers between these types of sub-accounts, all balances in the holding sub-account will be transferred to the transaction sub-account in the sixth transfer in any calendar month.

Both sub-accounts are treated as a single account for purposes of the client’s deposits and withdrawals, access and information (ie: your statements), tax reporting, fees, etc.

JPMorgan, Bank of America, and the rest of the banking sector are also big users of deposit reclassification. Check the terms and conditions of your checking account. Odds are 99 percent that you too have one of these "two sub-accounts" or what the industry refers to as: Frankenstein monstrosities.

In a banking system with no reserve requirements, everything becomes a systematic risk because financial institutions do not have any buffer to absorb losses. Even the failure of a small bank becomes enough to bring down the entire financial system. The system is not only broken it is a giant train wreck waiting to happen.

Savings and Loan Crisis 1980’s and 1990’s

Realize that the savings and loan crisis of the 1980s and 1990s was absorbed in a large part by bank reserves. The buffer provided reserves helped limit the cost of bailouts to 105 billion. Today, no such buffer exists, and the entire brunt of the bank losses is being transferred to taxpayer. The lack of any reserve requirements helps explain why current bailouts seem so enormous compared to those of prior banking crisis.

FED-Federal Reserve is aware of the scheme

The Federal Reserve is completely aware and complicit in this scheme. In order for a bank to begin using deposit reclassification, it first has to obtain Federal Reserve’s "no objection." So the Federal Reserve not only knows of the practice, but has also OKed every single deposit reclassification program.

FDIC, Federal Deposit Insurance Corporation is aware of the scheme.

The FDIC is aware of the practice too. They have what they call a Temporary Liquidity Guarantee Program.

Laws requiring banks and other depository institutions to hold a certain fraction of their deposits in reserve, in very safe, secure assets, have been a part of our nation’s banking history for many years. The rationale for these requirements has changed over time, however, as the country’s financial system has evolved and as knowledge about how reserve requirements affect this system has grown. Before the establishment of the Federal Reserve System, reserve requirements were thought to help ensure the liquidity of bank notes and deposits, particularly during times of financial strains. As bank runs and financial panics continued periodically to plague the banking system despite the presence of reserve requirements, it became apparent that these requirements really had limited usefulness as a guarantor of liquidity. Since the creation of the Federal Reserve System as a lender of last resort, capable of meeting the liquidity needs of the entire banking system, the notion of and need for reserve requirements as a source of liquidity has all but vanished. Instead, reserve requirements have evolved into a supplemental tool of monetary policy, a tool that reinforces the effects of open market operations and discount policy on overall monetary and credit conditions and thereby helps the Federal Reserve to achieve its objectives.

According to the fed, “the notion of and need for reserve requirements” has “all but vanished”, because the Federal Reserve stands ready "as a lender of last resort, capable of meeting the liquidity needs of the entire banking system.” Absurdity after absurdity… Did it ever occur to anyone at the fed that having to prop up “the entire banking system” with liquidity (as it is doing today) wasn’t a good idea? They are certainly aware that it puts the Tax Payer on the hook without their knowledge or consent.

Why didn’t the Federal Reserve just lower reserve requirements instead of allowing checking accounts to be turned into an accounting freak show?

Because it couldn’t! The Federal Reserve would have needed an act of congress to lower reserve requirements below 8%.

Why did the Federal Reserve bend the rules so far to allow banks to escape reserve requirements?

June 1993’s Federal Reserve Bulletin explains:

Requiring depositories to hold idle, non-interest-bearing balances is essentially like taxing these institutions in an amount equal to the interest they could have earned on these balances in the absence of reserve requirements. There you go! The fed let reserve requirements become a joke to eliminate the unfair “tax” on depositories (ie: the banks now receiving trillions in taxpayer bailouts). It is SUCH a good thing that the fed was on the ball and had its priorities straight about protecting the American people.

If I am elected president I will use the bully pulpit to pass a bill officially lowering reserve requirements to zero and make it illegal for banks to re-classify checking and savings accounts. This would end the farce of deposit reclassification (and hopefully deal a deathblow to this industry which has profited by weakening our financial system). Furthermore, there would be no adverse impact to eliminating reserve requirements of US banks, as they already don’t exist. Then I would begin the slow process to make the banking system become more accountable again, by slowing increasing their reserve back to the original 10 percent, where they could sustain another crisis as they had done with the Savings and Loan Crisis. Again, I need your support to get me elected in 2012.
, here is my platform: CLICK HERE

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posted by David Tippie @ 3:01 PM   0 comments