Time: Thu Feb 27 06:30:50 1997
	by primenet.com (8.8.5/8.8.5) with SMTP id FAA22055;
	Thu, 27 Feb 1997 05:46:50 -0700 (MST)
Date: Thu, 27 Feb 1997 06:18:14 -0800
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: The federal debt

Dear Clients:

Much of the federal debt is bogus.
In any given year, when a deficit arises,
Congress "balances" the budget by borrowing
the deficit amount from the Federal Reserve.
Congress prints bonds, and the Fed prints
Federal Reserve Notes (for about 3 cents
per bill, regardless of denomination).  

Then, they trade.  In this trade, the FRB gets a
lien on collateral equal to the face value
of the FRN's printed, PLUS interest.  The key
here is to understand that the FRB buys bonds
with money which they print into existence;
there is nothing backing those FRN's, so they
are effectively created out of thin air, on 
demand.  

If this mechanism continued, there would
be skyrocketing inflation, as Congress flooded
the marketplace with excessive amounts of cash.
Enter the IRS.  The IRS is there to remove FRN's
out of circulation, approximately as fast as they
are put into circulation, thereby "stabilizing"
the value of these counterfeit "dollars".  

For many reasons like these, the federal "debt" is
just a big soap bubble, ready to burst any day now.
All branches of the federal government have a 
vested interest in keeping this scam going, because
it pays their salaries, and it motivates a widespread
property conversion racket, as the FRB tries to
foreclose on its collateral (read "you and me
and the apple tree out back").

The final facet to remember is that money ONLY gets
created when the debt is increased, because of the
mechanism I have described above.  Congress could,
if it wanted, print U.S. Notes without creating any
more debt, but they are so cowardly beholden to the
FRB, they turn the other way every chance they get.
Besides, the FRB is lining their pockets with bribes,
making it that much easier to keep the scam in place.

/s/ Paul Mitchell


========================================================================
Paul Andrew, Mitchell, B.A., M.S.    : Counselor at Law, federal witness
email:       [address in tool bar]   : Eudora Pro 3.0.1 on Intel 586 CPU
web site:  http://www.supremelaw.com : library & law school registration
ship to: c/o 2509 N. Campbell, #1776 : this is free speech,  at its best
             Tucson, Arizona state   : state zone,  not the federal zone
             Postal Zone 85719/tdc   : USPS delays first class  w/o this
========================================================================


      

Return to Table of Contents for

Supreme Law School:   E-mail