28th Amendment to the Constitution of the United States of America

The 28th Amendment to the Constitution of the United States of America has been ratified
Washington, DC - April 15th, 2018
Finally, on this victorious day for the citizens of the United States of America, the 28th amendment to the constitution has been ratified. This amendment solidifies the original positions of the founding father by uniquely promoting gold and silver as true money and explicitly banishing forever the use of fiat paper money or Legal tender. It also explicitly forbid the practice of Fractional Reserve Banking by any institutions, whether they are banks or credit unions or any other entity.
It still allows individuals to issue IOUs among themselves for payments of debt and services but it explicitly forbids the states and the federal government.
Now, banks will be forced to sell bonds to match precisely, dollar for dollar, the loans they are making to individuals and corporations. If they cannot sell the bonds, they cannot make the loans.
The amendment also explicitly forbid any form of bailouts to banks who made favorable loans to individuals and corporations that would not be able to repay later. The risk is all to the banks and if the banks fails the bond holders will also lose part or all of their investment.
Although this might lead to higher interest rates, it also strongly encourage the United States citizens to save generously more than spending. As the proponent of this amendment are saying, a right balance will eventually be reached and spending and saving will be in harmony, making the economy more stable and much less prone to booms and boost.

It is a great victory by the USA citizens over the banks who until now, enjoyed all the power. Their ability to influence congress to find a way to circumvent this amendment in the future will be much more difficult than what has been done in the past to circumvent the constitution. For example, although Article 1, Section 10 specifically said:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

Although the "Hepburn v. Griswold" supreme court decision in 1870 declared Legal tender unconstitutional, somehow this decision was reversed a year later in the case Knox v. Lee and Parker v. Davis. That is what this amendment is trying to do, to make it so explicit that no future supreme court could be able to interpret this decision in any other way.

Great victory to all.

All or nothing

Obviously, President Barack Obama didn't read the book I sent him: The Creature from Jekyll Island - or didn't had time yet :-)

OK, I was thinking about this stimulus package plan. Obviously, the least the government do, the best it is. But since they already did a lot, if they don't go ahead with their plan, when we go into disaster later in 2009, they will assume it was because there wasn't a stimulus plan.
If the stimulus plan is moderate, they will assume it wasn't enough.
So, this leads me to conclude that the best scenario is actually if they create a monstrous stimulus plan so big that for centuries, no one could claim they hadn't done enough (isn't what they say about FDR and the great depression - not enough?)
It will be a bigger disaster but if they realize they have to stop this printing press ASAP then we have a good ending to this awful story.
Note that, a big plan might lead to a revolution or something equivalent (We might be heading for that no matter what). But such revolution might bring the end to the Central Bank and the fractional reserve banking.

What did President Obama meant by "Change we can believe in?" What was the Change he was talking about? Perhaps the change that is coming that he didn't foresee but helping realize.

-Phil

Help me "Change Washington" 's view!!

Like I've reported in a previous entry on Jan 19, 2009 - ie:

http://planetgold.blogspot.com/2009/01/on-behalf-of-president-andrew-jackson-i.html

I've sent via amazon.com (well another vendor linked to amazon), a copy of this book:



To President Barack Obama, hoping he will read it and agree that to get true change will require to
1 - abolish the federal reserve,
2 - go back to the gold standard
3 - abolish fractional reserve banking: ie: forcing bank to sell bonds of same value corresponding to each loans they make, or something along those lines.

I was thinking last night that if several people (say 200 or more) would be doing the same, the chances that this gets escalated to his attention will increase drastically.
So, to help this country and the world, please do the same and send a copy to:
President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Click here to order from amazon.com: A Creature from Jekyll Island

Now, I want you to know, I am not affiliated with Amazon nor with any other vendor of this book or the author, Mr. Griffin. I'm sure he would be please to see this but that's beyond the point.

The point is to "Change Washington" - we heard that, let's act and pray we will truely see this in action.

Avoiding fractional reserve banking

The trouble with Fractional Reserve banking, what all central banks of the entire world are based upon, is that it leads to booms and bust. The bigger the pyramid, the bigger the booms and bust.
The US dollar is at the bottom of this pyramid, since it is the world reserve (at least for now).

Fractional Reserve Banking is the case where, say a bank is allowed to lend up to 90% of their customers deposit. Since, with credit cards today, most of the money stays in banks, this means this inverse pyramid can grow the money supply by a factor of 10.
To illustrate:

• You deposit $1000
• The bank can lend $900 to someone else, which will end up in another bank or your bank (but lets look at all the banks as an aggregate).
• So, your bank can lend $810 of that $900 to a 2ND borrower which spends it and gets back into the bank.
• Again, this $810 can be lend again .... (90% of it which is $729)

If you add up $900+$810+$729... you end up at a max theoretical value of $10,000

This inverse pyramid leads to all sorts of problems, including why we got the FDIC in the USA to protect depositors. But this FDIC is flawed as all banks pay the same fee to get the insurance, regardless if they make dangerous silly loans or not. To be competitive, better make silly loans :-)

So, under planet gold, what would be an ideal system is something modeled from the Danish. When you get a loan or a mortgage, the bank has to sell a bond for the same amount. The bank is responsible for this bond. Your loan might be at a higher interest rate than this bond.

So, this means your gold that is deposited, has never been lent to anybody else. It is always available. Of course, you now have to pay to have it stored. However, if you buy a bond, you make some interest which could pay for the storage of the rest of your gold. But then, this means you have chosen the amount you are willing to lend and the amount you have chosen to keep.

The market will chose the rate. If there is a lack of money, the interest will go up which will then attract savers to jump on the bond market and lend part of their money.

Of course, as in any market, booms and bust will still occur but those will be smaller in comparison with what we experience with central banking.

On top of that, the market decides of everything - interest rates, etc. That is what free market and capitalism should be.

Gift to President Barack Obama from President Andrew Jackson

On behalf of President Andrew Jackson, I have just sent the book "The Creature from Jekyll Island"
http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986212
The idea was to use amazon.com but they didn't offer directly this book so, I have used the service of Powell books
http://www.powells.com/biblio/1-9780912986395-3
It will be shipped to "President Barack Obama" at 1600 Pennsylvania Avenue NW, Washington, DC 20500 with a gift wrap and a short message.

And I've posted this video at youtube
http://www.youtube.com/watch?v=STWFSaUp1Ao



And following is the message:
====================
Hello my fellow citizens. My name is Andrew Jackson, the 7th President of the United States of America. With the recent events in the banking system that occurred in the United States, I could not take it anymore and decided to express my total outrage.

First, I’d like to announce that today, January 19th 2009, I have used the service of this new company called Amazon.com to send a gift to the upcoming 44th President of the United States, Mr. Barack Obama. The gift is a book called “A creature from Jekyll Island” written by Mr. G. Edward Griffin. I hope President Obama processes the information in this book wisely and takes care of abolishing this monstrous central bank. As many of you know, I did not renew the charter of the 2nd bank of the United States of America. This was the 2nd attempt by bankers to establish a central bank and they did fight a great deal to keep it.

I was very shocked to see the successful formation of the Federal Reserve System that was passed on December 23th, 1913 when Congress was almost empty. Its charter, which was supposed to bring stability to the banking system, has obviously failed. After going through the terrible problems of fiat paper money during the American Revolution, the founding fathers, decided to make sure the money used in the United States should always be Gold and Silver. What happened to my country?!

As this European banker, Mr. Rothschild said: “Permit me to issue and control the money of the nation and I care not who makes its laws”. If this statement alone is not sufficient to demonstrate the horror of this current Federal Reserve System or any other Central Banks, what then?

Today, several organizations such as GATA.org have been formed to bring to light the manipulation of the market, making it far from a free market. I urge the 44th President to act responsibly, not for private interests but for his country, its people and for its constitution and abolish this Federal Reserve System. Please read this book, President Obama, and save the United States of America.

Thank you

Andrew Jackson.

Long term capital gain on physical gold is unconstitutional

I'd like to bring up a point where the premises is based on the Constitution stating that the states shall not accept anything other than gold and silver as payment of debt.

So, if I purchased physical gold with my fiat paper dollar say in 2003 at say $300/oz and want to resell them in 2011 and I get $4,502.23/oz for it, the claim I'm making is that capital gain should not apply since I would only convert that gold into paper just so I could purchase a house, food or anything. In fact, I would have not gone through the trouble of converting if it wasn't for this electronic world. So, the fact that this paper money is losing value is not my fault and is not a gain. In fact, it is not my gain but the loss of those who hold dollars.
Those holding dollars should be the one getting a capital loss deduction rather than a capital gain extracted on the gold holder.

They are ready to handle supreme court decision on gun control or a myriad of subject which some are not explicit in the constitution. As for Gold and silver as money, the constitution is clear as crystal. How would the IRS and the government react to a citizen ready to claim the capital gain on gold is not taxable? I wonder...

deflation is not bad! As long as you didn't had a debt driven economy

Under a gold standard where you don't have a fractional reserve lending on steroids like we have with central banks, debt is really a 4 letter word that everyone tries to limit.
This means that a house could lose slightly its value in gold over a 10 year span (depending on neighborhood changes, etc) This means, you better pay off your debt and you better not take a huge mortgage initially. In such case paying either cash or with a minimum of 30% down payment would be the norm.

So, to say it's bad is wrong. It's good for the savers. Because we have built this system of inflation where it is bad to save, the concept of taking debt became dominant which reinforce the believe that deflation is bad. Yes of course deflation doesn't look good in such case.
Another reason to start clean and plan to go on a gold standard.