Got Rocks Bank of America

Banks Create Funny Money for Profit - WHY CAN'T YOU?

Reprinted from The Coin Wholesaler October 1983
By the late Richard Kelly Hoskins

I found this in my archives and thought it was interesting enough to send it out…

The reality of how it all works is so bizarre that it doesn’t seem like it can possibly be true. But it IS! C.L.

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Why don't you lend the government $100 billion?

Don't laugh. The Wall Street Journal (November 8th 1982) ran a front page article showing that a number of individuals are trying to lend the government $100 billion. One fellow is trying to lend $250 billion, and another a whopping $250 trillion.

All are offering to lend the government money at rates considerably below present rates. This would be great savings to the government, if the government would accept the offer.

How would you go about lending the government $100 billion and rake off $5 billion a year? Can't you use an extra $5 Billion a year? Sure you can. Everyone who is honest has to admit that they can use the money.

The way you do it is simple. Just do it the same way the Federal Reserve Bank does it right now. The U.S. Government votes $100 billion in bonds into existence. Instead of breaking the money down into 5-dollar, 10 dollar and hundred dollar bills and spending it into circulation of Social Security, defense, and public works as the government is authorized to do by the Constitution, the government does something strange - very strange.

The government takes these bonds and gives them to the privately owned Federal Reserve Banks. The Federal Reserve Banks receive these bonds and then, based on these bonds, they allow the government to write checks for $100 billion. For this check writing privilege, they charge the government $9 billion to $15 billion a year. Nice, huh?

Yes, You Can

You can do it, too. The Journal shows that a lot of other people are trying to do it. What makes the bankers behind the Federal Reserve so special? You can turn your basement into the "Got-Rocks Bank of America," let the government put $100 billion in bonds in your bank, then allow the government to write checks based on their deposits and only charge $5 billion a year.

Fair? Sure, it's fair, if you can save the government between $4 and $10 billion a year in interest, you are doing the taxpayers a real favor.

You have to admit that this sounds like a pretty good deal. You get $5 billion, and your expenses are almost nothing. What expenses you have can be taken off your income taxes.

(I'm sorry, I forgot: The Federal Reserve doesn't pay any income taxes. If you are going into the same business that it is in, I suppose you won't have to pay any income taxes either. This gets better as you go along.)

Now take your time. Don't get confused. Keep it simple. You don't need $100 billion of you own to get in the act. You don't even need $10. All you need to do is to get the government to deposit $100 billion of its bonds in the bank in your basement. Once it does that, you can let it write checks based on its own deposits.

South Sea Bubble

What you are trying to do has been done before. In 1720, the South Sea Company got sick of watching the Bank of England rake off all the interest on the national debt of England. At that time, the debt stood at 51.3 million pounds. ($150 million US).

The South Sea Company offered to take over practically the whole of the national debt at an interested rate of only 5 percent - falling to 4 percent in seven years time. It also offered to pay 3 million pounds for the privilege.

The Bank of England was horrified at the suggestion. This upstart South Sea Company was going to take over the debt of England and get all that interest each year. Nonsense.

The bank promptly bid 5 million pounds. The South Sea Company was not to be denied. It raised its bid to 7.5 million pounds.

When the ruckus died down over who was to rake off the yearly interest on the national debt, it was found that three companies owned most of it: The South Sea Company, the East India Company, and the Bank of England. The interest rates had been substantially lowered by the competition. England was saved a lot of money.

Of course the charge was made that England didn't need a bunch of vampires sucking her blood in the first place. What was wrong about the old system of voting money into existence and spending it for English needs without going through middlemen?

The men who owned these companies also governed England. They ignored the charges of being "vampires" etc. and continued to collect the yearly stipend

So you see, it's all been done before. If the South Sea Company could break in on the Bank Of England, there is no reason that you can't break in on the Federal Reserve. Talk to a few of your friends and get a few Congressmen and Senators on your side, then ask for a cut of the Federal Reserve pie.

There's no reason in the world that you shouldn't be able to lend the government $100 billion and get $5 billion or $10 billion in interest a year. If you work it right, it shouldn't cost you a dime!

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