Banks, Lies, and the Modern Slavery

Jansen: “So I have a few questions that I think we should discuss today, and I think you know which direction I’m heading with these questions, but I don’t believe Mr. Allen does. And for that I am glad that you joined us today, Mr. Allen. The questions that you gave to me over the phone were worthy of being answered in person, like this, on tape.”

            Allen: “You have a nice office, Mr. Jansen. Thanks for having me over. This is fun and interesting, and I hope we can have a solid discussion on what we were talking about before.”

            Davis: “We’ve got an hour of tape here. Let’s start off with something straight forward, please.”

            Jansen: “Not a problem. Let’s begin with the federal income tax in the United States of America. Sound good?”

            Davis: “We’ve been over this one before.”

            Jansen: “Yes, and we’re going to do it again here for the record and because Mr. Allen was adamant at getting an answer. So here it is, the simplest question anybody could ask about this subject. Where is the law that states that American workers must pay federal income tax?”

            Allen: “In our constitution?”

Jansen: “If you were to go out after we finished here and try and find the law which states that you have to pay your federal income tax here in the United States, you won’t find it.”

Allen: “How so?”

Davis: “Because there is no law. There is no law present today that requires the American worker to pay a direct, un-apportioned tax on their income. This includes you, me, Mr. Jansen, our families, friends, and most people that we know.”

            Allen: “So you are telling me that for ninety-five years, the entire American public has been paying an illegal tax on their income?”

            Jansen: “I’m sure there are people who find away around the problem. But in short, the federal income tax here in the U.S.A. is a lie. Anybody who pays it is probably doing it more out of fear of the law than anything else. It certainly isn’t based on the knowledge of the law, since there isn’t one.”

Davis: “Bottom line…they won’t avoid paying their illegal income tax without having to go through some legal process.”

            Allen: “What about other countries?”

            Davis: “We haven’t looked into it that far, but we should. When the government issues a $700 billion bailout package for our financial system, it seems to me that this would be a good time to start asking why, start opening doors to these questions, and not just on the bailout itself, but how things escalated to this point.”

            Jansen: “How is it possible that the entire American population, some three-hundred million people today, have been paying an illegal tax on their income to the interest charged by a private banking corporation, the Federal Reserve, for the last ninety-five years? And how is it possible that this issue has been ignored by the media, ignored by the education system, and never brought to attention in a country that is built on its laws and financial system?”

            Davis:   “On December 23, 1913, Woodrow Wilson, twenty-eighth president of the country, signed into law the Federal Reserve act which handed over our monetary policy to a private bank which is today called the Federal Reserve. Since then, if you look at how our financial system has been shaped over the last several decades, you will see that private banks, such as the Federal Reserve, have created and supported a system which includes this illegal income tax. A sizable percentage or your income is taken before you even see it. It goes to pay the interest on the debt that is lent from the private Federal Reserve to the public United States. All of the money in circulation in our country, from every coin and paper bill to the numbers on screens at the bank down the street, is printed and loaned to us by banks, and the bank making most of the loans to us is the Federal Reserve.”

            Jansen: “Money, in general, is not a subject that is focused on in our education. How can it be that throughout all of our schooling, through primary school and high school, that we were never educated about our money system? To the people listening to this tape, how much do you know about how money works? Money is something that we use every single day of our lives, and yet we have not been fully informed as to its history, how it works, and why we use it today and have the system and the banks that we do today. We pay taxes, buy goods and services, sell ourselves on the marketplace to businesses and corporations, and basically live our lives under the umbrella of a financial system that has reached a global scale, but we don’t know very much about it. How can that be? How can we say that we live in a free society with that on the record?”

            Davis: “You can take courses in economics and finance at the post-secondary level at many institutions today. But obviously not everybody has the inclination, time or the money to do this. Thankfully, we have the Internet, libraries, and of course, each other.”

            Allen: “What about our debt? All of what you’ve told me so far is a lot to take in. You’re telling me pieces of history I am not familiar with and I’m going to have to spend some time doing research on that. Today, the apparent problem seems to be debt, a ‘credit crisis’, we’re told. I assume that this is tied into what you’ve been talking about.”

            Jansen: “Debt comes to us in so many forms that it seems complex. Credit cards, mortgages, government debt – all promises to repay. That’s all debt really is. It’s a promise. The big problem we face today is that our money is now backed by debt.”

            Allen: “Could you explain that?”

            Jansen: “Money today is created from debt. If you go to a bank for a mortgage, they will give you the money you need for the mortgage so you can live in your new house. The mortgage is not backed by gold. It’s not backed by anything but your promise to repay. Meanwhile, the person that sold you the house is out buying burgers and going to Hawaii. They are spending money that is backed by the bank’s piece of paper that says you owe them half a million dollars. It’s not backed by gold. It’s not backed by anything that you gave them except a promise. Your mortgage is a promise that is legally enforceable. In a nutshell, all money today is created, one way or another, by individuals signing on the dotted line a pledge to repay. Money is debt today. If there is no debt, there is no money. If there are no promises to repay, there are no pieces of paper or numbers in bank accounts that indicate the existence of money.”

            Davis: “The bank has legal authorization to administer this entire process. They collect interest on your debt, and the money that the seller got will eventually be placed into another bank who will then loan that money out again, creating more debt and more money at the same time.”

            Jansen: “A ten dollar bill that claims to hold value must, somehow, actually hold that value. In the past, the value was in gold. The bill could be holding the value of just about anything. We could back our money with carrots, if it was agreed that carrots held enough value to issue money from them. Today, the value is in promises. Debt. And debt is limitless. We can make as many promises as we like because banks will accept this and issue as much currency as they want, since they get to charge interest and be the profit-maximizers they are seeking to be. What’s with the look on your face? Don’t believe it? Go on the Internet. Go to your library. Go find it. Look for it, Mr. Allen. Ask questions. Ask lots of questions for yourself and ask your bank. Go ahead and ask your bank or your teachers or your professors or colleagues, and see what they have to say about this. Ask the people you voted for in government about your federal income tax and see what they tell you. You have to find your answers yourself, Mr. Allen, they will not be given to you. You came asking questions tonight. You can only educate yourself, nobody can do it for you.”

            Allen: “Fine, I will go ahead and do that when I have time. I want to ask you one more question and then I’m heading out. If what you’re telling me is true, and money is created from debt, and our federal income tax is a lie, and the media won’t touch this, and even our government won’t touch this, what can we possibly do to solve this problem?”

            Davis: “Ask questions, just as Mr. Jansen said. Look, to put it bluntly, Mr. Allen, I’d say that our money creation system is a prime and obvious example which shows that our society has to lie to itself to continue the way it is going now. What other solution is there? From the top-down, it’s a lie. The banking system and the legal process backing it is a crapshoot. I’m sorry to say that, and I know you and many of your colleagues have interests in various enterprises which rely on the credit system that’s operating, but the basic conclusion is that we live in a zero-sum game. No money, no debt, and really, the only institutions that can make, truly make, money, are banks. We like to say we make money when we go to work. We take money for our services. We don’t make money. We make whatever we were making, whether it’s farming, business, product, or service. We’re compensated, one way or another, by money, which could not be there if it weren’t for debt that belonged to somebody, or some company or city or country, somewhere else, and who owed it to some bank.”

Jansen: “Talk to people. Make more tapes. Record your conversations, spread the word.”

Davis: “It’s going to be difficult to solve the problems that face us in our day-to-day lives when bullshit like this is being handed down from levels well beyond our individual control. Point your aim to the source of the problem. Today, there are pieces of history that affect us lightly that are overemphasized in our education, and there are pieces of history that affect us heavily that are underemphasized in our education. Trying to understand the things that affect us greatly is not the least bit a simple task. But as Mr. Jansen often says, lies like these can only be unraveled when there are enough people shouting out.”