ROL_2009-12-10_16k.timecode
[00:00.000 --> 00:04.800] This news brief brought to you by the International News Net.
[00:04.800 --> 00:11.400] In the UK, the official inquiring to the Iraq War found former Prime Minister Tony Blair
[00:11.400 --> 00:16.560] ignored two intelligence reports saying that Saddam Hussein did not have weapons of mass
[00:16.560 --> 00:21.560] destruction, just days before ordering the invasion of Iraq.
[00:21.560 --> 00:29.300] The President of Pakistan, Asif Ali Zardari, has assets of $1.5 billion, according to the
[00:29.300 --> 00:32.480] country's main anti-corruption body.
[00:32.480 --> 00:38.080] The National Accountability Bureau said the wealth accumulated by Zardari was beyond his
[00:38.080 --> 00:39.080] means.
[00:39.080 --> 00:45.160] Investigators allege the money had come from kickbacks and commissions on government deals.
[00:45.160 --> 00:52.120] 10,000 Israelis gathered in Jerusalem Wednesday to defy a moratorium on new settlements in
[00:52.120 --> 00:53.480] the West Bank.
[00:53.480 --> 00:59.280] Palestinians and their supporters dismissed Prime Minister Benjamin Netanyahu's building
[00:59.280 --> 01:06.280] restrictions as insincere, since they do not include East Jerusalem or 3,000 homes that
[01:06.280 --> 01:12.280] are already under construction.
[01:12.280 --> 01:18.560] For Congressman Dennis Kucinich, Afghan President Hamid Karzai announced Tuesday that his country
[01:18.560 --> 01:24.200] would need the US's military support for another 10 or 15 years with the last straw.
[01:24.200 --> 01:29.320] Kucinich says Karzai's statement prompted him to draft a resolution calling for a House
[01:29.320 --> 01:34.600] vote on the withdrawal of US troops from Afghanistan and Pakistan.
[01:34.600 --> 01:40.920] Kucinich said we shouldn't be there another 15 to 20 months, let alone 15 to 20 years,
[01:40.920 --> 01:47.320] adding we cannot afford to fail to exercise our constitutional right to end the wars.
[01:47.320 --> 01:51.840] Kucinich said he expects his resolution to land at the House International Relations
[01:51.840 --> 01:54.040] Committee early next year.
[01:54.040 --> 01:58.480] If the resolution is voted down, he will ask to have it moved back to the floor of the
[01:58.480 --> 02:04.440] House, a maneuver that earlier this year allowed him to debate Dick Cheney's impeachment on
[02:04.440 --> 02:08.480] the House floor.
[02:08.480 --> 02:15.520] The Obama administration has asked an appeals court to dismiss a lawsuit accusing former
[02:15.520 --> 02:21.480] Bush administration attorney John Yoo of authorizing the torture of a terrorism suspect.
[02:21.480 --> 02:26.760] The administration says federal law does not allow damage claims against lawyers who advise
[02:26.760 --> 02:30.240] the president on national security issues.
[02:30.240 --> 02:35.640] Justice Department lawyers said Thursday in arguments at the 9th US Circuit Court of Appeals
[02:35.640 --> 02:40.680] such lawsuits ask courts to second-guess presidential decisions.
[02:40.680 --> 02:46.920] The Justice Department has been investigating Yoo's advice to George Bush since 2004 and
[02:46.920 --> 02:51.800] has the power to recommend professional discipline or even criminal prosecution.
[02:51.800 --> 02:57.120] However, the San Francisco Chronicle reports the Justice Department will recommend that
[02:57.120 --> 03:00.120] he not be prosecuted.
[03:00.120 --> 03:11.320] You are listening to the Rule of Law Radio Network at RuleOfLawRadio.com, live free
[03:11.320 --> 03:38.720] speech talk radio at its best.
[03:38.720 --> 03:49.740] We'll be right back.
[03:49.740 --> 03:58.600] Shabbat Shalom.
[03:58.600 --> 04:15.520] All right, good friends, welcome back, welcome back to INM World Report Radio, a very, very
[04:15.520 --> 04:19.080] special edition tonight.
[04:19.080 --> 04:24.680] As I alluded earlier, tonight is also a big event going on.
[04:24.680 --> 04:28.240] There's a big event going on in Austin at the AT&T Center.
[04:28.240 --> 04:32.480] I believe arranged by our good friend Harlan Dedrick from Brave New Books, so I can have
[04:32.480 --> 04:40.160] that verified in just a second, and through the marvels of technology and our goddess
[04:40.160 --> 04:45.360] of technology, Deborah Stevens, it's all been put together and we are going to carry his
[04:45.360 --> 04:48.960] speech live for you right here on Rule of Law.
[04:48.960 --> 04:52.360] So right on the Rule of Law Radio Network, stay tuned for the rest of the evening.
[04:52.360 --> 04:59.320] We'll be carrying the words live from G. Edward Griffin at the AT&T Center, and until he begins
[04:59.320 --> 05:03.800] talking, we're going to keep talking here on INM World Report, but we will be joined
[05:03.800 --> 05:10.760] now live from the center by Deborah Stevens, none other than, and Randy Kelton, whose show
[05:10.760 --> 05:12.400] is the namesake of our network.
[05:12.400 --> 05:14.000] Deborah, Randy, can you hear me?
[05:14.000 --> 05:15.000] How's everything tonight?
[05:15.000 --> 05:17.400] Yes, we can hear you, and we're at the center right now.
[05:17.400 --> 05:21.040] I've got to kind of talk quiet because they're about to introduce G. Edward Griffin right
[05:21.040 --> 05:22.040] now.
[05:22.040 --> 05:24.560] He's about to come in the room, and this is a very exciting event.
[05:24.560 --> 05:31.040] We're broadcasting live, and everyone, please get down here to 1900 University Avenue, two
[05:31.040 --> 05:32.880] blocks east of Brave New Books.
[05:32.880 --> 05:35.760] This is a beautiful center.
[05:35.760 --> 05:40.640] Harlan did a great job setting up this event, and there's about 400 people here.
[05:40.640 --> 05:41.920] The room is getting packed out.
[05:41.920 --> 05:43.920] It's going to be standing room only.
[05:43.920 --> 05:49.680] We are broadcasting his lecture live on the air on 90.1, as well as, Harlan, you want
[05:49.680 --> 05:51.680] to say hi to the folks?
[05:51.680 --> 05:52.680] He's got an emcee.
[05:52.680 --> 05:56.760] We've got Harlan standing right here next to us, so this is great.
[05:56.760 --> 05:58.240] Randy, what do you think?
[05:58.240 --> 06:00.240] I think I'm going to enjoy this.
[06:00.240 --> 06:07.160] I've always appreciated Griffin's work, and frankly, I have to struggle to keep up with
[06:07.160 --> 06:14.160] him, so the more times I can hear him go through it, the closer I get to understanding it all.
[06:14.160 --> 06:17.680] What I do understand scares me, frankly.
[06:17.680 --> 06:22.440] Tom, I just wanted to put out a very special thanks to you, also, for allowing us to preempt
[06:22.440 --> 06:23.440] your show.
[06:23.440 --> 06:26.160] We really appreciate it, because this is such great information.
[06:26.160 --> 06:27.160] Oh, please.
[06:27.160 --> 06:28.760] We've got to get it out.
[06:28.760 --> 06:29.760] Thank you.
[06:29.760 --> 06:31.840] Thank you for letting us preempt your show here with G. Edward Griffin.
[06:31.840 --> 06:32.840] This is just fantastic.
[06:32.840 --> 06:35.680] It's very exciting to be down here right now.
[06:35.680 --> 06:43.320] Well, it's a pleasure to happen to be the host on your network for the time when this
[06:43.320 --> 06:44.320] is taking place.
[06:44.320 --> 06:48.840] Of course, any time we have the opportunity to share this kind of information with the
[06:48.840 --> 06:55.800] great rule of law audience, any of your hosts would do the same thing, I'm sure.
[06:55.800 --> 07:01.480] Well yeah, sometimes we usually have events on Monday nights, and we have to ask Frederick
[07:01.480 --> 07:06.480] Graves if we can preempt his show, but this is the first time we've done this on a Thursday
[07:06.480 --> 07:07.480] night.
[07:07.480 --> 07:08.480] Go ahead, Andrew.
[07:08.480 --> 07:12.720] By the way, I was going to say, speaking of events, I am working... I'm laboring with
[07:12.720 --> 07:21.040] Hank Alborelli, the author of the incredible brand new book, A Terrible Mistake, The Murder
[07:21.040 --> 07:26.160] of Frank Olson and the CIA Secret Cold War Experiment.
[07:26.160 --> 07:29.520] We're going to get him to come to Austin, and we're going to work together with Harlan
[07:29.520 --> 07:34.920] to put on another event where he can come down and speak and maybe sign books and stuff.
[07:34.920 --> 07:37.240] So that's something that we're going to try to do in January.
[07:37.240 --> 07:41.640] Yes, and isn't Dr. Colin Ross also going to be joining for that event as well?
[07:41.640 --> 07:43.640] I'm sure we can get Dr. Ross to come down.
[07:43.640 --> 07:44.640] We talk with him.
[07:44.640 --> 07:45.960] I'm in communications with him as well.
[07:45.960 --> 07:50.400] So I think we should have several people speaking about this very important subject.
[07:50.400 --> 07:55.960] You know, it turns out that one of our other great guests, Russ Baker, who wrote this great
[07:55.960 --> 08:00.080] book on the Bush crime family called Family of Secrets, which by the way just came out
[08:00.080 --> 08:08.920] in paperback, 11 years ago, Russ wrote an article about a young American artist named
[08:08.920 --> 08:16.080] Glenn Glickman from New York who was studying art in Paris and who was surreptitiously dosed
[08:16.080 --> 08:23.800] in a cafe with a massive dose of LSD by some CIA guys that were there, and the poor guy,
[08:23.800 --> 08:26.400] it ruined the rest of his life.
[08:26.400 --> 08:30.200] And he wrote about this back in 11 years ago.
[08:30.200 --> 08:31.200] Russ Baker wrote an article.
[08:31.200 --> 08:33.040] Of course, it wasn't in the US press.
[08:33.040 --> 08:35.920] It was in England and in Australia.
[08:35.920 --> 08:41.440] But ironically, that very same episode turns up in this book by Hank Alborelli as well
[08:41.440 --> 08:44.760] about I think Stanley Glickman was his name.
[08:44.760 --> 08:48.680] Poor guy died a few years ago, but his family has a lawsuit or had a lawsuit.
[08:48.680 --> 08:49.680] I'm going to find out.
[08:49.680 --> 08:52.960] Maybe we can get a sister on the show.
[08:52.960 --> 08:53.960] Absolutely.
[08:53.960 --> 08:54.960] Yeah.
[08:54.960 --> 08:58.120] Go ahead, Randy.
[08:58.120 --> 09:07.240] In my time in the theater, we had to deal with the spooks, and they were absolutely
[09:07.240 --> 09:13.240] the most unscrupulous individuals that we ever come across.
[09:13.240 --> 09:23.000] They felt like any kind of atrocity they chose to perpetrate was justified in the name of
[09:23.000 --> 09:26.800] America and peace and freedom.
[09:26.800 --> 09:33.800] It made no difference who they slaughtered, so I'm pleased to see anything coming out
[09:33.800 --> 09:35.880] against them that I can't.
[09:35.880 --> 09:41.200] This kind of thing absolutely needs to stop.
[09:41.200 --> 09:44.520] I'll tell you, Randy, it's worse than that.
[09:44.520 --> 09:52.480] In Alborelli's book, he points out where the CIA dosed a whole village in France with LSD.
[09:52.480 --> 09:54.480] The people didn't even know it.
[09:54.480 --> 10:01.800] Over 350 people got sick from it, and five people died from it that day, and many, many
[10:01.800 --> 10:04.360] people went insane for the rest of their lives as well.
[10:04.360 --> 10:07.840] They wanted to see if they sprayed a battlefield.
[10:07.840 --> 10:11.640] They used the aerosol version, and that's why Dr. Frank Olson was involved.
[10:11.640 --> 10:17.720] He was a CIA doctor who was an expert in aerosols and that sort of thing.
[10:17.720 --> 10:21.400] Apparently they dosed this whole town, I think it was August of 1951.
[10:21.400 --> 10:26.160] Yes, in France, unbelievable how horrific.
[10:26.160 --> 10:31.280] There's no way to frame these people as the enemy.
[10:31.280 --> 10:35.240] This is in violation of the Nuremberg Conventions that came out.
[10:35.240 --> 10:39.040] Because of what the Nazis did, we had to invent laws to prosecute them, and one of the laws
[10:39.040 --> 10:44.520] we invented was that you cannot perform a medical or scientific experiment on someone
[10:44.520 --> 10:46.480] without their knowledge and without their permission.
[10:46.480 --> 10:52.040] And of course, do as I say, not as I do, that's fine when you want to prosecute Nazis.
[10:52.040 --> 10:57.120] But as you point out, when spooks get their freaking egos involved and they want to just
[10:57.120 --> 11:03.480] go ahead and use any kind of pretext that they can come up with to have their barbaric
[11:03.480 --> 11:06.680] side come out, well, that's the way it goes.
[11:06.680 --> 11:17.320] Yes, if you are absolutely a totally out of control psychopath, the CIA needs you.
[11:17.320 --> 11:23.720] Because they need people who are willing to do anything they ask to anyone.
[11:23.720 --> 11:26.320] And that's what we found these people were.
[11:26.320 --> 11:33.960] They were populated with people who had absolutely no empathy for other human beings at all.
[11:33.960 --> 11:38.680] Most of us have this hurting instinct, where we have an instinct to protect the people
[11:38.680 --> 11:40.080] around us.
[11:40.080 --> 11:43.080] The CIA looks for the ones who are aberrations.
[11:43.080 --> 11:46.640] That's sick, that's scary too.
[11:46.640 --> 11:52.160] Well at this point, I must step in and say one thing, however, let's make the distinction
[11:52.160 --> 11:56.680] that our fine guest Ray McGovern always makes when he's on our program.
[11:56.680 --> 11:59.040] There are two sides to the CIA.
[11:59.040 --> 12:03.980] The original intent of the CIA was to provide the President of the United States with the
[12:03.980 --> 12:11.360] world's finest analysis of any problem or situation that they needed to consider.
[12:11.360 --> 12:15.080] And that's how it was originally set up, as an analytical organization.
[12:15.080 --> 12:20.600] And then they slipped in the operational wing at its inception.
[12:20.600 --> 12:24.560] The spooks got back into the picture, back in because they were in the OSS during the
[12:24.560 --> 12:25.560] Second World War.
[12:25.560 --> 12:27.280] So I hear things are getting quiet there.
[12:27.280 --> 12:30.520] Are we going to start the talk soon?
[12:30.520 --> 12:31.520] Not quite yet.
[12:31.520 --> 12:38.560] They're doing an interview right now with John Bush, and I did see G.O. Griffin in the
[12:38.560 --> 12:40.280] back of the room a moment ago.
[12:40.280 --> 12:46.440] So yeah, things will be starting soon, but right now they're still preparing, so go ahead.
[12:46.440 --> 12:49.880] I just want to point that out though, that when we talk about the CIA, there are many,
[12:49.880 --> 12:55.320] many dedicated people, patriotic Americans in fact, that work within that agency.
[12:55.320 --> 13:04.480] But like our friend Ray McGovern, who is very passionate about ending these kinds of abuses
[13:04.480 --> 13:05.800] whenever he comes on the program.
[13:05.800 --> 13:09.720] So let's just make that distinction, I think it's only fair.
[13:09.720 --> 13:16.000] Well in any organization, there are those people who are basically right-minded.
[13:16.000 --> 13:23.080] I went to Vietnam, and I felt as though when I did, I was right-minded, that I was doing
[13:23.080 --> 13:24.080] it for the right reasons.
[13:24.080 --> 13:29.720] And I had all these people around me, these long-haired hippies, telling me that what
[13:29.720 --> 13:33.040] I was doing was wrong.
[13:33.040 --> 13:38.800] But I was too blinded by my pride and arrogance to listen to them.
[13:38.800 --> 13:44.320] I listened to my government, who told me that they were all just a bunch of malcontents
[13:44.320 --> 13:46.680] and reactionaries.
[13:46.680 --> 13:49.840] I owe a debt for that.
[13:49.840 --> 13:56.880] My hands have wrongful blood on them for that, and those in the CIA, regardless of how good
[13:56.880 --> 14:00.760] their intentions are, they carry wrongful blood.
[14:00.760 --> 14:04.640] Yes, and it looks like G. Edward Griffin is approaching the stage right now.
[14:04.640 --> 14:09.640] So hopefully things will be getting going here pretty soon.
[14:09.640 --> 14:13.800] We're going to have to turn the PA back on.
[14:13.800 --> 14:17.200] And guys, I'm going to turn the festivities over to you since you're there.
[14:17.200 --> 14:18.200] I'm going to sit back and listen to you.
[14:18.200 --> 14:19.200] Okay, excellent.
[14:19.200 --> 14:20.200] Thank you, Tom.
[14:20.200 --> 14:21.200] All right.
[14:21.200 --> 14:29.280] Look at all these people, wow.
[14:29.280 --> 14:32.680] I don't think there's been this many thought criminals in one place since the Ron Paul
[14:32.680 --> 14:35.680] campaign.
[14:35.680 --> 14:38.440] Remember that?
[14:38.440 --> 14:44.040] Well, welcome to the presentation tonight.
[14:44.040 --> 14:46.440] I'm so glad everybody made it out.
[14:46.440 --> 14:48.880] Flyers work, apparently.
[14:48.880 --> 14:53.680] So speaking of flyers, there was actually a kid who came up to me and said that he was
[14:53.680 --> 14:57.800] handing out flyers for this event on his college campus.
[14:57.800 --> 15:01.920] And a policeman stopped him and said, you can't do that.
[15:01.920 --> 15:03.360] There's a policy against that.
[15:03.360 --> 15:08.680] We have a free speech zone that you can hand out flyers in.
[15:08.680 --> 15:10.320] And I love what the kid said.
[15:10.320 --> 15:14.520] He said, well, you know, I've heard about these free speech zones.
[15:14.520 --> 15:17.000] I studied them in history class.
[15:17.000 --> 15:27.320] I think they called America and I think he, I think he went on to hand out those flyers
[15:27.320 --> 15:28.320] anyway.
[15:28.320 --> 15:29.320] So good for him.
[15:29.320 --> 15:30.320] And it paid off.
[15:30.320 --> 15:33.520] Um, well, I, I'm Harlan Dietrich.
[15:33.520 --> 15:44.360] I'm the owner of brave new books here in Austin that, that, that little bookstore across the
[15:44.360 --> 15:47.480] street that the FBI apparently wanted to blow up.
[15:47.480 --> 15:53.440] So yeah, if you don't, you don't know what I'm referring to, please just Google what
[15:53.440 --> 15:56.360] I just said and you'll find out all about it.
[15:56.360 --> 16:05.280] But speaking of people that are on fire, that was a really bad segue, but I'm just going
[16:05.280 --> 16:09.880] to, I'm just going to go over that and hope nobody noticed, but I guess they do now.
[16:09.880 --> 16:14.440] But I wanted to introduce somebody who just got back from the continental Congress.
[16:14.440 --> 16:16.800] He, he really is on fire.
[16:16.800 --> 16:22.320] I, I, I met this, this man early on when we opened up the bookstore, he was a, a young
[16:22.320 --> 16:26.360] activist at his college campus of Texas state.
[16:26.360 --> 16:33.440] And he, he really had a lot of energy and it, it showed in, in what he did after he
[16:33.440 --> 16:39.960] graduate, graduated, he basically went on to, to, to found several different organizations.
[16:39.960 --> 16:50.360] One is called TAG Texans for Accountable Government.
[16:50.360 --> 16:55.280] And he's a, and that group is fighting everything from, from fluoride in the city water.
[16:55.280 --> 17:02.440] This is where you're supposed to boo, boo, boo, right to police fusion centers being
[17:02.440 --> 17:04.400] set up in our city.
[17:04.400 --> 17:07.200] There we go.
[17:07.200 --> 17:13.440] He's also, of course, everybody knows about the mandatory blood withdrawal that, that
[17:13.440 --> 17:19.440] is going on and, and they're fighting vigorously to, to prevent the police from doing that.
[17:19.440 --> 17:23.160] So he's, he's really doing a lot for us in this city.
[17:23.160 --> 17:27.720] And this is what I know G Edward Griffin's message is about, is about getting local power
[17:27.720 --> 17:32.760] back and, and empowering our, our communities through action.
[17:32.760 --> 17:38.340] And there's no better representative of that right now than John Bush.
[17:38.340 --> 17:48.120] So please welcome him as I welcome, welcome him to the stage, to John Bush.
[17:48.120 --> 17:51.120] Wow.
[17:51.120 --> 18:17.520] Let me get some water real quick if you don't mind, hopefully it's not fluoridated.
[18:17.520 --> 18:18.520] Okay.
[18:18.520 --> 18:19.520] That was a great introduction.
[18:19.520 --> 18:22.640] And I want to give a great thanks to Harlan Dietrich and everything that the bookstore
[18:22.640 --> 18:28.680] has done for this community because they really have been an invaluable asset to our local
[18:28.680 --> 18:29.680] movement.
[18:29.680 --> 18:33.520] I also want to start by thanking Mr. G Edward Griffin.
[18:33.520 --> 18:38.720] I've had the pleasure of chaperoning him today and last night, and it's been rather humbling
[18:38.720 --> 18:39.720] to share the stage.
[18:39.720 --> 18:41.640] It's going to be rather humbling to share the stage with him.
[18:41.640 --> 18:43.280] It's a great honor.
[18:43.280 --> 18:49.080] This man has had a wonderful, a very major impact in my development as an activist and
[18:49.080 --> 18:50.320] my appreciation for freedom.
[18:50.320 --> 18:58.120] So I thank you.
[18:58.120 --> 19:05.160] Okay today I'm going to be talking about Liberty, what it is and why it should be important
[19:05.160 --> 19:07.740] to us.
[19:07.740 --> 19:10.200] It's my hopes to inspire individuals.
[19:10.200 --> 19:11.840] I see a lot of people in this room.
[19:11.840 --> 19:15.480] I also want to point out what a great honor it has been to be an activist in Austin with
[19:15.480 --> 19:19.160] such a wonderful group of people and it's very, very inspiring to see so many people
[19:19.160 --> 19:20.160] here tonight.
[19:20.160 --> 19:28.680] So just for showing up and being active, go and give yourself a round of applause.
[19:28.680 --> 19:33.240] So I want to talk about how big Liberty is and how important the times that we're facing
[19:33.240 --> 19:36.880] in and everybody should feel blessed to be alive right now.
[19:36.880 --> 19:41.680] The times are getting rather tough and very tumultuous and it's going to get even worse.
[19:41.680 --> 19:46.080] You can guarantee that, but I'm here to let you know you should be proud, you should feel
[19:46.080 --> 19:52.840] lucky to be alive and involved at this point because we really are reaching a turning point.
[19:52.840 --> 19:57.200] There's going to be two paths we can choose to go down and it is our choice to make this
[19:57.200 --> 19:58.200] the future.
[19:58.200 --> 19:59.200] It's our destiny.
[19:59.200 --> 20:00.560] We're the ones that decide.
[20:00.560 --> 20:05.920] One of them can be very dark, very disturbing, basically total slavery and the other one
[20:05.920 --> 20:07.100] can be something beautiful.
[20:07.100 --> 20:10.800] We can finally fulfill the freedom philosophy, the message of freedom.
[20:10.800 --> 20:13.840] We can fulfill that and actually come up with a genuinely free society.
[20:13.840 --> 20:19.440] So I want to start by pointing out while we did fight the American Revolution in 1776,
[20:19.440 --> 20:23.100] in reality it's more than just the American Revolution.
[20:23.100 --> 20:28.840] The way I see it, the big picture of history is ever since the beginning we have been involved
[20:28.840 --> 20:33.920] in a longstanding struggle for the emancipation of the sovereign man, ever since the get go.
[20:33.920 --> 20:39.800] It was accelerated of course with the classical liberal revolutions of the 17th and 18th century.
[20:39.800 --> 20:43.840] It's a beautiful thing and again we have a wonderful opportunity as Americans that we
[20:43.840 --> 20:47.240] are taking part in that process and I can guarantee you ladies and gentlemen the revolution
[20:47.240 --> 20:49.920] never ended, rather it's only just begun.
[20:49.920 --> 20:53.480] We're reaching another phase and again it can go two ways.
[20:53.480 --> 20:57.840] One back towards slavery, back towards the old order which I'm going to speak about or
[20:57.840 --> 21:04.240] we can finally fulfill and embrace our inherent right to be free as free men on this free
[21:04.240 --> 21:05.240] land.
[21:05.240 --> 21:10.200] So I'm going to point out the dichotomy between then and now.
[21:10.200 --> 21:12.800] Back in the day there existed what's called the old order.
[21:12.800 --> 21:17.480] In France, before the French Revolution they called it the ancient regime and basically
[21:17.480 --> 21:22.480] the old order was one of stagnation, desperation and despair.
[21:22.480 --> 21:28.120] The individuals, the subjects at that time, basically there was no inevitability about
[21:28.120 --> 21:29.520] the overthrow of the old order.
[21:29.520 --> 21:31.560] They didn't know what it was to be free.
[21:31.560 --> 21:32.560] There was no freedom.
[21:32.560 --> 21:33.560] There was no liberty.
[21:33.560 --> 21:34.560] There was only tyranny.
[21:34.560 --> 21:37.920] These individuals basically just existed in that state.
[21:37.920 --> 21:42.160] They didn't know anything better than that so they just existed.
[21:42.160 --> 21:46.520] There was very much despair again because there was no inevitability about the overthrow
[21:46.520 --> 21:50.880] of that old order, the overthrow of tyranny and the freedom that we enjoy today.
[21:50.880 --> 21:56.000] Even going before that, a lot of that derived from the divine right of kings in that there
[21:56.000 --> 21:57.320] was no dissent.
[21:57.320 --> 21:59.740] You couldn't speak out against the government.
[21:59.740 --> 22:07.160] Going all the way back to the Egyptian empire, back in those days the state and the emperor,
[22:07.160 --> 22:09.200] the pharaoh was God.
[22:09.200 --> 22:13.080] Osiris was the God of the underworld, the God of the afterlife.
[22:13.080 --> 22:18.360] If you question the state at that point, basically you did it because you'd be doomed to an
[22:18.360 --> 22:21.680] eternity of pain and torture and hell.
[22:21.680 --> 22:23.280] You didn't question the state.
[22:23.280 --> 22:26.680] When you think about it, we've really come a long way since those times.
[22:26.680 --> 22:34.800] Even after the Egyptian empire, for the serfdom, the feudalism, the dark ages and whatnot,
[22:34.800 --> 22:36.440] they still had the divine right of kings.
[22:36.440 --> 22:41.000] The king basically stated that he derived his authority from God and therefore if you
[22:41.000 --> 22:44.320] go against the state, if you speak out against the state, you're basically speaking out against
[22:44.320 --> 22:46.400] God and in many ways nobody would do it.
[22:46.400 --> 22:47.760] It just wouldn't happen.
[22:47.760 --> 22:54.040] These classical liberal ideals of decentralization, equality under the law, self-ownership, property
[22:54.040 --> 22:56.080] ownership, they basically didn't exist.
[22:56.080 --> 23:01.520] We had a feudalist society, a class where basically there was the small privileged class,
[23:01.520 --> 23:04.360] the nobility, the monarchy, and then there was everybody else.
[23:04.360 --> 23:08.000] This nobility and this monarchy was about 2% of the population.
[23:08.000 --> 23:09.440] Again, we've really come a long way.
[23:09.440 --> 23:15.520] I think it's worth noting that the original class structure, opposite of what Marx would
[23:15.520 --> 23:22.800] say is the property owners and the owners of the industry and whatnot and then the workers.
[23:22.800 --> 23:26.960] Before that it was actually the privileged class, those that are privileged by the state
[23:26.960 --> 23:28.400] and then everybody else.
[23:28.400 --> 23:31.440] So it's interesting to see how that's kind of evolved away from that and I think that's
[23:31.440 --> 23:32.880] something that we need to focus on.
[23:32.880 --> 23:36.760] Again, there's individuals in this world that are using the coercive power of the state
[23:36.760 --> 23:41.420] to their own ends and since the state is parasitic in nature, it exists only because it takes
[23:41.420 --> 23:45.240] property from us, it inevitably will hurt each one of us.
[23:45.240 --> 23:49.960] So again, we've come quite a long way and one of those big steps was property ownership.
[23:49.960 --> 23:54.280] Before man couldn't own property, he was stuck in this system, he was stuck in the paradigm
[23:54.280 --> 23:58.240] but as the beauty of property ownership started to come about, it started with the Magna Carta
[23:58.240 --> 24:03.240] actually, people started to actually recognize that the king did not have the divine right
[24:03.240 --> 24:09.680] that they claimed to but again, this recognition of property rights was only delegated to the
[24:09.680 --> 24:11.600] nobility and to the lords.
[24:11.600 --> 24:16.480] So again, there's a whole 98% of the population that still basically existed in a system of
[24:16.480 --> 24:17.480] slavery.
[24:17.480 --> 24:21.560] And everybody's got to realize how far we've come since that point, that was the existence,
[24:21.560 --> 24:25.600] that was the paradigm and there was no inevitability about its overthrow.
[24:25.600 --> 24:29.120] So we have come a very long way.
[24:29.120 --> 24:33.200] Along with the other recognitions of natural rights, it's a slow gradual process along
[24:33.200 --> 24:39.520] with the Magna Carta emerged the ideals of classical liberalism and the ideas of higher
[24:39.520 --> 24:44.760] law, of natural law, law that existed outside of just the king says it so, so it is.
[24:44.760 --> 24:48.320] And a lot of that started, of course, with the Greeks, with the Greek philosophers, with
[24:48.320 --> 24:53.920] Aristotle, this idea of higher law but unfortunately, it got stashed away during the dark ages and
[24:53.920 --> 24:58.840] whatnot and then later was refounded and came out again during the classical liberal days
[24:58.840 --> 25:03.600] and the enlightenment period and one of the individuals that espoused this classical liberal
[25:03.600 --> 25:08.000] philosophy so well and was able to disseminate it and get those ideas out there.
[25:08.000 --> 25:13.880] So these people that lived their life as slaves began being exposed to this idea that, wait
[25:13.880 --> 25:18.640] a second, I'm a man, I'm inherently free based on my free will, based on nature, based
[25:18.640 --> 25:20.080] on God, whatever it be.
[25:20.080 --> 25:24.760] They started to realize these ideas because a gentleman by the name of John Locke in 1690
[25:24.760 --> 25:28.980] put out the second treaties on civil government and in this he wrote, the natural liberty
[25:28.980 --> 25:34.480] of man is to be free from any superior power on earth and not to be under the will or legislative
[25:34.480 --> 25:39.260] authority of man but to have only the law of nature for his rule.
[25:39.260 --> 25:44.280] The liberty of man in society is to be under no other legislative power but that established
[25:44.280 --> 25:49.400] by consent in the commonwealth nor under the dominion of any will or restraint of any law
[25:49.400 --> 25:53.720] but that legislative, that the legislative shall enact according to the trust put in
[25:53.720 --> 25:54.720] it.
[25:54.720 --> 25:58.120] This is where we get the idea of governments deriving their just powers from the consent
[25:58.120 --> 25:59.120] of the governed.
[25:59.120 --> 26:03.160] This is a very radical and revolutionary idea and some may say John Locke originally intended
[26:03.160 --> 26:07.240] again to be the nobility and the elite at the time but as those ideas start to get out
[26:07.240 --> 26:11.880] there the people start to grasp on and say, wait a second, it's not slavery, it's not
[26:11.880 --> 26:13.440] such a good thing.
[26:13.440 --> 26:18.200] So that went on and those ideas started spreading and spreading and spreading to, they reached
[26:18.200 --> 26:23.160] a point where the people were ready to stand up and to fight for that freedom and that's
[26:23.160 --> 26:27.560] where we had the wonderful revolutions of the 17th and 18th century starting with the
[26:27.560 --> 26:32.200] English Civil War, moving on to the American Revolution and the French Revolution as well
[26:32.200 --> 26:36.300] and I think that was a major accelerating point in this grand picture, this grand struggle
[26:36.300 --> 26:40.600] for the emancipation of free man was these classical liberal revolutions and the one
[26:40.600 --> 26:44.160] that we're most familiar with of course is the American Revolution.
[26:44.160 --> 26:49.640] Now what we got from that American Revolution was the Declaration of Independence which
[26:49.640 --> 26:53.840] is a very beautiful document and again that was some very radical and revolutionary stuff,
[26:53.840 --> 26:57.640] the Declaration of Independence, just the very idea that man, that government derives
[26:57.640 --> 27:01.680] its just powers from the consent of the governed, again check the dichotomy, the difference
[27:01.680 --> 27:06.840] whereas before nobody even questioned, nobody even knew what it was to be free in the least
[27:06.840 --> 27:13.360] bit, they basically just lived, eked out their life as slaves, not owning property, living
[27:13.360 --> 27:17.680] in order to appease the king and then all of a sudden we have this Declaration of Independence
[27:17.680 --> 27:21.120] and we put it to paper, you could bet your bottom dollar that our founding fathers struggled
[27:21.120 --> 27:24.960] with it, they knew, many of them except for maybe Sam Adams, they knew what it was that
[27:24.960 --> 27:28.040] they were doing and they saw how difficult it was.
[27:28.040 --> 27:32.000] So I urge you as you're going forward with this activism, a lot of people are putting
[27:32.000 --> 27:36.440] a lot at risk whenever they get out there and basically face the beast head on but I
[27:36.440 --> 27:39.600] urge you to hearken back to our founding fathers because they put it all on the line
[27:39.600 --> 27:43.200] and just about every single one of them lost it after that but they did it because they
[27:43.200 --> 27:48.440] believed in those natural rights, they believed in the philosophy of liberty enough to sacrifice
[27:48.440 --> 27:53.760] their life because like I've recently come to realize, it's much bigger than myself,
[27:53.760 --> 27:57.160] this idea of liberty, it's much bigger than me, it's much bigger than everybody in this
[27:57.160 --> 27:58.160] room.
[27:58.160 --> 28:02.720] So on from the Declaration of Independence which states, I might add, this is my favorite
[28:02.720 --> 28:06.360] part of the Declaration of Independence, that whenever any form of government becomes destructive
[28:06.360 --> 28:09.920] of these ends, the right to life, liberty and the pursuit of happiness, it is the right
[28:09.920 --> 28:15.000] of the people to alter or abolish it and to institute new government, prudence indeed
[28:15.000 --> 28:19.000] will dictate that government long established should not be changed for light and transient
[28:19.000 --> 28:23.720] causes and here's the key part and here's what we have going on exactly right now, they're
[28:23.720 --> 28:28.920] negotiating here in Copenhagen but when a long train of abuses and usurpations pursuing
[28:28.920 --> 28:35.400] invariably the same object invents a design to reduce them under absolute despotism, it
[28:35.400 --> 28:41.360] is their right, it is their duty to throw off such government and to provide new guards
[28:41.360 --> 28:51.920] for their future security, that's beautiful.
[28:51.920 --> 28:55.960] So we see that long train of abuses right now coming through with the United Nations
[28:55.960 --> 29:02.800] with the global government agenda, so it's about time for a little fun here and again
[29:02.800 --> 29:06.600] along with the Declaration of Independence, our founding fathers basically declared independence
[29:06.600 --> 29:11.400] from the British monarchy and then they decided, hey, we need to institute a new government,
[29:11.400 --> 29:15.640] one that will ensure that this tyranny does not set foot because they studied history,
[29:15.640 --> 29:20.360] they knew that revolutions come in cycles and while we may overthrow the tyranny now
[29:20.360 --> 29:24.640] to replace it, what always happens unfortunately is when these individuals get in these positions
[29:24.640 --> 29:29.920] of power like Lord Acton said, power corrupts and absolute power corrupts absolutely, so
[29:29.920 --> 29:34.360] they wanted to set in these guards to where even if individuals had the reins of government,
[29:34.360 --> 29:39.120] they still would not be able to use it for tyranny and in order to exploit the people
[29:39.120 --> 29:43.880] for their own ends, so they basically gave us the United States Constitution which had
[29:43.880 --> 29:49.580] in it Article 1 Section 8, very few specified enumerated powers that the government could
[29:49.580 --> 29:55.200] actually involve itself in and engage itself in and along with that, they came my two favorite
[29:55.200 --> 29:58.920] parts of the United States Constitution, the 10th and 9th Amendment which basically said
[29:58.920 --> 30:03.440] anything, any powers not delegated to the federal government are left to the people
[30:03.440 --> 30:07.480] and to the states, that's some very beautiful things and unfortunately it's kind of gotten
[30:07.480 --> 30:13.080] tossed along the wayside but we do see a resurgence of those 10th Amendment ideals of that idea
[30:13.080 --> 30:16.880] of decentralization and I'm going to get into that here in a little bit.
[30:16.880 --> 30:21.120] Also with the Constitution we had the Supremacy Clause which basically said anything that
[30:21.120 --> 30:28.000] is repugnant to the Constitution is null and void, it's a very, yeah, null and void, ignore
[30:28.000 --> 30:29.000] it.
[30:29.000 --> 30:35.040] Now it's a very crucial aspect of the question and I'll get into it here in a little bit
[30:35.040 --> 30:41.160] but for the United States Constitution obviously it was Ben Franklin that said you have a republic
[30:41.160 --> 30:46.520] if you can keep it, so what it comes down to for me is the question of who is the final
[30:46.520 --> 30:50.380] arbiter when it comes to questions of constitutionality?
[30:50.380 --> 30:54.040] Is the federal government allowed to regulate airwaves within our state?
[30:54.040 --> 30:59.160] Is the federal government allowed to push you to coerce you into buying healthcare?
[30:59.160 --> 31:01.720] That's the question, the constitutional questions.
[31:01.720 --> 31:06.280] Well the state and the establishment would have us believe thanks to Marbury v. Madison
[31:06.280 --> 31:11.120] shortly after our country's founding that the Supreme Court is the final arbiter in
[31:11.120 --> 31:13.080] questions of constitutionality.
[31:13.080 --> 31:19.000] I for one reject that entirely because I think it's counterintuitive to give the state itself
[31:19.000 --> 31:23.520] the ability to check itself because as history has shown they will never voluntarily give
[31:23.520 --> 31:26.400] up any power whatsoever.
[31:26.400 --> 31:36.000] It's like allowing your fourth grade class to grade their own tests, some of them, the
[31:36.000 --> 31:39.460] evil ones, the corrupt ones, the little tyrants, the young little tyrants running around are
[31:39.460 --> 31:42.520] going to take advantage of the system and unfortunately we see that happening over and
[31:42.520 --> 31:44.480] over and over.
[31:44.480 --> 31:47.760] Harlan mentioned earlier we're involved in a battle against police blood withdrawals.
[31:47.760 --> 31:50.640] Well the Supreme Court says that it's okay.
[31:50.640 --> 31:51.640] I don't care.
[31:51.640 --> 31:52.640] They're wrong.
[31:52.640 --> 31:54.480] We also fought sobriety checkpoints recently.
[31:54.480 --> 31:56.800] The Supreme Court says that's okay as long as you have guidelines.
[31:56.800 --> 31:57.800] I don't care.
[31:57.800 --> 31:58.800] They're wrong.
[31:58.800 --> 32:07.600] When I answer the question who's the final arbiter of constitutionality, I am.
[32:07.600 --> 32:12.920] I'm the one that decides constitutionality, myself and every single person in this room
[32:12.920 --> 32:14.400] and we need to be aware of that.
[32:14.400 --> 32:17.840] There's a lot of evil people that have control over the reins of our government right now
[32:17.840 --> 32:20.520] and they would have you believe that they're acting in your best interest.
[32:20.520 --> 32:24.080] They would have you believe they have a system of checks and balances that actually works
[32:24.080 --> 32:29.440] when in reality the checks and balances themselves are just simply a means of justifying their
[32:29.440 --> 32:32.520] tyranny, justifying their intrusion into our lives.
[32:32.520 --> 32:41.480] It's by time that we reject that.
[32:41.480 --> 32:48.480] So I call on everybody to simply make a choice and choose to be free.
[32:48.480 --> 32:52.280] It's up to us as individuals whether we're going to live under this control of the tyrants,
[32:52.280 --> 32:55.480] whether we're going to live as slaves or we're going to live as free men.
[32:55.480 --> 33:00.560] So I call on everybody to make that choice, choose to be free.
[33:00.560 --> 33:05.720] And if it means breaking a few laws here and there, I'm here to tell you that's okay.
[33:05.720 --> 33:09.840] It's going to be all right, folks, because, you know, governments, they would have you
[33:09.840 --> 33:16.720] believe that law and government are synonymous and inseparable when in reality nothing could
[33:16.720 --> 33:18.520] be farther from the truth.
[33:18.520 --> 33:24.880] They would have you believe that because of law we have freedom when in reality it's because
[33:24.880 --> 33:27.700] of freedom that we have law.
[33:27.700 --> 33:32.800] It's because we were free men that we instituted these governments to protect our life, liberty
[33:32.800 --> 33:33.840] and property.
[33:33.840 --> 33:37.720] But now unfortunately we dropped the ball and the government, especially the federal
[33:37.720 --> 33:42.400] government, is doing the exact opposite thing of what we instituted the government to do
[33:42.400 --> 33:49.840] and it's time for some change.
[33:49.840 --> 33:53.800] So while I'm big on electoral politics, and I think that's a very important part, and
[33:53.800 --> 33:57.840] we've got a wonderful candidate running for governor, by the way, of Deborah Medina.
[33:57.840 --> 34:04.080] I hope everybody supports her in here.
[34:04.080 --> 34:08.200] We can't allow ourselves to stop at the ballot box, no.
[34:08.200 --> 34:10.120] We must move further on.
[34:10.120 --> 34:13.600] We got to take it to the streets and confront the system head on.
[34:13.600 --> 34:16.760] Just like Martin Luther King said, one of my favorite quotes from Martin Luther King
[34:16.760 --> 34:21.800] is, man has a responsibility to disobey unjust laws.
[34:21.800 --> 34:23.640] That's how they, yeah, that's right.
[34:23.640 --> 34:29.160] That's how they fought with the civil rights movement, rather than going, and they tried.
[34:29.160 --> 34:33.000] The old left, there's, Murray Rothbard details the old left compared to the new left, the
[34:33.000 --> 34:37.080] radicals of the 1960s that fought for civil rights and also fought against the Vietnam
[34:37.080 --> 34:38.080] War.
[34:38.080 --> 34:42.680] The old left, their status quo, their strategy was to go to the halls of Congress and say,
[34:42.680 --> 34:46.120] hey, Mr. Congressman, we're human beings too.
[34:46.120 --> 34:48.040] Can you respect that please?
[34:48.040 --> 34:50.680] Of course, you know, the status quo, they just turn their backs on them.
[34:50.680 --> 34:52.600] They don't listen to us, especially at the federal level.
[34:52.600 --> 34:56.880] So what Martin Luther King did in his civil rights movement is they went and they faced
[34:56.880 --> 34:58.120] it head on.
[34:58.120 --> 35:03.080] There was laws that said black men could not drink from this water fountain.
[35:03.080 --> 35:05.240] Man has a responsibility to disobey unjust laws.
[35:05.240 --> 35:06.360] They drank from that water fountain.
[35:06.360 --> 35:10.400] There was laws that said man cannot come into this public place and sit with white men.
[35:10.400 --> 35:11.400] Black men can't.
[35:11.400 --> 35:13.240] They went ahead and sat in the sit-ins.
[35:13.240 --> 35:15.920] Rosa Parks was, Rosa Parks is one of my heroes.
[35:15.920 --> 35:19.400] She's a very radical revolutionary woman, and all she did was simply sit at the front
[35:19.400 --> 35:20.400] of the bus.
[35:20.400 --> 35:22.120] She simply chose to be free.
[35:22.120 --> 35:25.720] And what this did was it demonstrated not only to the establishment, but more importantly
[35:25.720 --> 35:29.600] to the people, the absurdity of the segregation laws.
[35:29.600 --> 35:33.080] It illustrated the absurdity because these people were so dedicated to cause that they
[35:33.080 --> 35:37.040] would put their life on the line and they would simply choose to be free and walk out
[35:37.040 --> 35:42.480] there and live life according to the inherent rights to freedom that they do have.
[35:42.480 --> 35:48.320] And by God, it's time that we start bringing back that revolutionary fervor to our particular
[35:48.320 --> 35:49.320] battle.
[35:49.320 --> 35:50.320] So I'm a big fan of civil disobedience.
[35:50.320 --> 35:56.640] The time has come, without a doubt.
[35:56.640 --> 35:58.560] And that can come in any form.
[35:58.560 --> 36:04.080] We have a local micro-broadcast, I'm sure many of y'all are familiar with 90.1 FM.
[36:04.080 --> 36:10.440] So the establishment, the federal government would have you believe that in order to get
[36:10.440 --> 36:13.880] the truth out, in order to get the news out, in order to exercise your First Amendment
[36:13.880 --> 36:18.040] right, you would have to get permission from the federal government in the form of an FCC
[36:18.040 --> 36:19.040] license.
[36:19.040 --> 36:22.120] I'm here to tell you, ladies and gentlemen, that is not so.
[36:22.120 --> 36:26.000] We've been broadcasting 90.1 in the city of Austin for several years now and the FCC time
[36:26.000 --> 36:31.920] and time again has come with their coercive arm trying to compel us to quit broadcasting,
[36:31.920 --> 36:35.120] trying to fine us thousands and thousands of dollars.
[36:35.120 --> 36:37.960] Well, what happened in the past was people would lay down.
[36:37.960 --> 36:41.840] But finally, I'm so proud to say that some very strong, courageous activists are putting
[36:41.840 --> 36:45.560] it on the line and they're simply choosing to be free and they're not shutting down that
[36:45.560 --> 36:46.560] transmission.
[36:46.560 --> 36:54.560] And you can hear my voice right now going all over Austin, they're choosing to be free.
[36:54.560 --> 37:04.360] So again, it's by time that we make that choice, that we look inside ourselves and see that
[37:04.360 --> 37:06.480] it's time for a little bit of personal sacrifice.
[37:06.480 --> 37:10.220] They're putting it all on the line in order to get you that message.
[37:10.220 --> 37:11.720] It's a very strong thing.
[37:11.720 --> 37:14.320] We all owe them a major debt of gratitude.
[37:14.320 --> 37:17.480] And more importantly, I'd like to see that as an inspiration for each and every one of
[37:17.480 --> 37:18.480] us.
[37:18.480 --> 37:19.480] They know that they have a right.
[37:19.480 --> 37:21.800] They know that the federal government, more importantly, doesn't have the authority.
[37:21.800 --> 37:26.200] They try to claim authority under the Commerce Clause, but we all know that the transmission
[37:26.200 --> 37:30.720] barely even reaches the entire city of Austin, let alone cross state lines.
[37:30.720 --> 37:35.600] So rather than lay down once again, like so many people are doing across the country,
[37:35.600 --> 37:38.940] we've decided to take a stand and it's a beautiful thing.
[37:38.940 --> 37:41.680] But again, people are putting their lives at risk.
[37:41.680 --> 37:45.800] Another way to take a stand, and this one's a little more questionable and a little more
[37:45.800 --> 37:49.480] difficult, but it's going to take some time and I'll tell you there's strength in unity,
[37:49.480 --> 37:52.280] there's strength in numbers and there's strength in truth.
[37:52.280 --> 37:58.120] But one of the most coercive aspects of our federal government is the income tax.
[37:58.120 --> 38:02.800] That's a tough one.
[38:02.800 --> 38:08.120] I'm sure many of you are well aware that the 16th Amendment was never properly ratified.
[38:08.120 --> 38:12.560] You can check out a book, it's called The Law That Never Was by a gentleman by the name
[38:12.560 --> 38:14.720] of Benson, I believe.
[38:14.720 --> 38:18.880] The law that never was was never properly ratified, therefore it's repugnant to the
[38:18.880 --> 38:23.360] United States Constitution, therefore it's null and void.
[38:23.360 --> 38:25.760] So here's the problem.
[38:25.760 --> 38:33.880] I can get up here and say you should consider not paying your income taxes, but then there's
[38:33.880 --> 38:37.200] the whole question of the strong arm of the federal government, which is a little bit
[38:37.200 --> 38:42.320] stronger than my personal biceps here, it's a lot stronger actually, but again there's
[38:42.320 --> 38:43.320] strength in numbers.
[38:43.320 --> 38:47.520] One of the things that came out of Continental Congress 2009, I was a delegate and I'm proud
[38:47.520 --> 38:56.320] to have represented the great state of Texas, we came up with something called the Articles
[38:56.320 --> 38:57.320] of Freedom.
[38:57.320 --> 39:02.200] It's a 70 plus page document that basically outlines in detail the abuses and the usurpations
[39:02.200 --> 39:07.720] of power by the federal government, and along with that what it did, it came with a declaration,
[39:07.720 --> 39:11.600] it came with a declaration that we the people, we are sovereign, and what we're doing is
[39:11.600 --> 39:15.720] asking everybody in the country to sign on to this pledge, and basically what the pledge
[39:15.720 --> 39:22.840] says is that whenever a goodly amount of Americans sign on and agree with our cause, we will
[39:22.840 --> 39:25.600] withhold our funding from the federal government.
[39:25.600 --> 39:29.960] So I know it sounds tough as an individual, but if we stand together as a movement and
[39:29.960 --> 39:34.600] decide once we reach a certain point of critical mass that we can do this together, I think
[39:34.600 --> 39:44.400] it will definitely have a strong impact.
[39:44.400 --> 39:49.000] And it's a tough decision to make, but when you consider the murder, the immoral murdering
[39:49.000 --> 39:53.040] that's going on, the slaughtering of millions of people in the Middle East right now, and
[39:53.040 --> 39:57.200] when you consider the fact that we're basically paying for our own enslavement, I think the
[39:57.200 --> 40:00.440] decision becomes a little bit easier, and again, if you're standing with 10 million
[40:00.440 --> 40:03.480] other Americans, it becomes even easier than that.
[40:03.480 --> 40:06.280] But the reason why it's not an easy decision to make right now, I'm sure there's nobody
[40:06.280 --> 40:09.840] in this room that enjoys paying their income taxes and having their labor stolen from them
[40:09.840 --> 40:14.360] at the point of a gun, which is what it really is, is because of the coercion of the government.
[40:14.360 --> 40:19.640] It's because the government threatens us, the government terrorizes us into compelling,
[40:19.640 --> 40:20.640] and we don't want to.
[40:20.640 --> 40:24.440] So to me, it boils down to a question of competing coercion.
[40:24.440 --> 40:30.160] You have the coercive state, and you have we the people.
[40:30.160 --> 40:35.560] Before, when our founding fathers fought the revolution, it was muskets and cannons versus
[40:35.560 --> 40:44.000] muskets and cannons, whereas now we have assault rifles and the occasional grenade launcher.
[40:44.000 --> 40:51.200] Maybe there's a militia that has a Navy or a couple of planes, but the establishment,
[40:51.200 --> 40:57.320] they have microwave weapons, they have predator drones, they have electromagnetic pulses, they
[40:57.320 --> 40:58.320] have tasers.
[40:58.320 --> 41:02.320] It was actually Mr. Griffin that pointed this out last time he was in Austin, when the question
[41:02.320 --> 41:06.480] was brought up about where is this all heading, he said they could park a van outside of this
[41:06.480 --> 41:11.520] building right now, press a button, and emanate a microwave that would boil the liquid that's
[41:11.520 --> 41:13.700] beneath your first layer of skin.
[41:13.700 --> 41:16.160] All of us would instantly be incapacitated.
[41:16.160 --> 41:22.200] So unfortunately, when it comes to the question of competing coercion, we are strongly outnumbered,
[41:22.200 --> 41:27.640] and again, they have a much stronger coercive arm than we do, but there's hope.
[41:27.640 --> 41:28.640] There is answers.
[41:28.640 --> 41:32.840] Not only would I recommend that everybody get prepared and purchase a firearm and learn
[41:32.840 --> 41:37.080] how to defend yourself, your property, and your family most importantly, but I would
[41:37.080 --> 41:43.080] also recommend that we the people, in order to better combat the federal government and
[41:43.080 --> 41:51.000] the coercive arm of the state, that we start to get the government on our side as well,
[41:51.000 --> 41:55.440] that we start to turn the tide and get the states on our side.
[41:55.440 --> 42:00.640] So that way, whenever the competing coercion comes about, now it's not just John Bush and
[42:00.640 --> 42:04.400] his ragtag militia, Austin activists, standing against the federal government, it's not just
[42:04.400 --> 42:09.760] us saying no to the FCC that's coming to kick the door down, but we now have the state government
[42:09.760 --> 42:10.760] on our side.
[42:10.760 --> 42:14.280] This is already beginning to happen at a very increasing rate all across the country.
[42:14.280 --> 42:15.560] The tide is beginning to turn.
[42:15.560 --> 42:20.280] The momentum is beginning to shift away from centralized authority and back towards decentralization.
[42:20.280 --> 42:21.760] It's a beautiful thing.
[42:21.760 --> 42:25.120] We see Montana and Tennessee passing the Firearms Freedom Act.
[42:25.120 --> 42:26.920] That's great.
[42:26.920 --> 42:33.480] It basically states that firearms manufactured entirely within that state are exempt from
[42:33.480 --> 42:34.480] federal regulation.
[42:34.480 --> 42:35.480] Who would have thought?
[42:35.480 --> 42:41.160] And I'm here to tell you, Representative Leo Berman introduced it in the state of Texas,
[42:41.160 --> 42:47.920] and it's my intention, with y'all's help, to get that passed in 2011.
[42:47.920 --> 42:51.560] So here's how those bills work.
[42:51.560 --> 42:56.120] It basically says, if the federal government comes to town and tries to use their coercive
[42:56.120 --> 43:02.840] arm against you, then they're going to have the state itself defend the individual, defend
[43:02.840 --> 43:03.840] that state citizen.
[43:03.840 --> 43:04.840] Who would have thought?
[43:04.840 --> 43:05.840] What a wonderful concept.
[43:05.840 --> 43:06.840] Government protecting our rights.
[43:06.840 --> 43:07.840] Wow.
[43:07.840 --> 43:08.840] That's incredible.
[43:08.840 --> 43:15.680] So there's a whole multitude of... There's a FCC nullification, which I actually just
[43:15.680 --> 43:18.880] drew up for Representative Charles Key in Oklahoma that's going to get introduced.
[43:18.880 --> 43:22.040] Again, we intend to do it in the state of Texas as well in 2011.
[43:22.040 --> 43:24.240] There's healthcare nullification that's starting to come about.
[43:24.240 --> 43:26.800] So ladies and gentlemen, the tide is definitely turning.
[43:26.800 --> 43:27.880] It's a very beautiful thing.
[43:27.880 --> 43:30.760] It's a wonderful thing, and I beg each and every one of you to get involved this next
[43:30.760 --> 43:31.760] legislative session.
[43:31.760 --> 43:34.080] Last session, we had some pretty big victories.
[43:34.080 --> 43:35.320] We had no idea what we're doing.
[43:35.320 --> 43:38.520] We were basically just making it up as we go, but we managed to have some victories.
[43:38.520 --> 43:42.320] So I imagine the establishment's going to be up against a pretty big brick wall come
[43:42.320 --> 43:43.320] 2011.
[43:43.320 --> 43:44.320] We're going to need your help with that.
[43:44.320 --> 43:48.640] But not only do we need to get the state legislatures and the governor on our side and the coercive
[43:48.640 --> 43:52.800] arm of our state to protect us from the intrusive federal government, but we also have Sheriff
[43:52.800 --> 43:56.960] Richard Mack and the Sheriff Project, all the way down to the decentralized county level.
[43:56.960 --> 43:57.960] It's a beautiful thing.
[43:57.960 --> 44:03.000] I urge everybody, I'm still waiting for Sheriff Hamilton's office to give me a call back.
[44:03.000 --> 44:06.360] Fortunately, it's never easy to get in touch with your elected representatives, but I just
[44:06.360 --> 44:07.800] recommend consistency.
[44:07.800 --> 44:09.760] Maybe everybody in here on Monday could call, too.
[44:09.760 --> 44:10.760] That would help.
[44:10.760 --> 44:11.760] Just bug the guys.
[44:11.760 --> 44:14.160] Tell them they're our elected representatives.
[44:14.160 --> 44:15.160] They work for us.
[44:15.160 --> 44:19.680] But yeah, that's basically decentralization all the way down to the county level, and
[44:19.680 --> 44:23.340] we all know that the sheriff is the constitutional authority in the county, so he has the ability
[44:23.340 --> 44:26.520] to say, no, the FCC's not walking down here in Travis County.
[44:26.520 --> 44:27.800] You can get the heck out.
[44:27.800 --> 44:32.000] Show me your authority, and I'll let you on in, but without it, me and my deputies here,
[44:32.000 --> 44:35.160] and if we need be, we can call up the militia to defend ourselves.
[44:35.160 --> 44:38.320] We're not going to let you in, so you can see your way back to DC.
[44:38.320 --> 44:44.600] That's what's going to need to happen, and it is beginning to happen.
[44:44.600 --> 44:47.660] That's right.
[44:47.660 --> 44:48.660] It's a beautiful thing.
[44:48.660 --> 44:50.280] It's a question of competing coercion.
[44:50.280 --> 44:52.200] It's going to be very difficult for us to do it on our own.
[44:52.200 --> 44:56.320] I honestly don't think we can, so the time is now to push this nullification trend, this
[44:56.320 --> 45:00.400] trend back towards decentralization, the Tenth Amendment, the Sheriff Project.
[45:00.400 --> 45:04.280] These are all beautiful things, and I think we should strongly work towards them, and
[45:04.280 --> 45:08.280] we are, as Texans for Accountable Government, and I'd love everybody to join us in that
[45:08.280 --> 45:09.280] battle.
[45:09.280 --> 45:12.800] Another thing that we need to do moving forward is rather than be in reactionary as libertarians
[45:12.800 --> 45:16.880] and as freedom fighters, rather than simply pushing back on the coercive state, rather
[45:16.880 --> 45:22.440] than pushing back on all of their intrusion, we need to be working together, building parallel
[45:22.440 --> 45:28.160] institutions, offering the people an alternative that's based on not coercion like the state,
[45:28.160 --> 45:31.840] not a monopoly on coercion over a certain geographic area where you have to do what
[45:31.840 --> 45:37.240] the state says, regardless of what you believe, no choice for you, unfortunately, but a system
[45:37.240 --> 45:41.660] based on mutually beneficial voluntary associations.
[45:41.660 --> 45:44.520] Some would call it anarchism, but I don't like to use the A word because it has such
[45:44.520 --> 45:48.640] a bad rap, but ladies and gentlemen, it's obvious, obviously we're going to have more
[45:48.640 --> 45:52.440] harmony and a better society if it's based on consent, right?
[45:52.440 --> 45:55.440] That's how our system was supposed to be based on, but unfortunately it's not.
[45:55.440 --> 45:59.580] So moving forward, I strongly recommend that we, the people, especially the patriot community,
[45:59.580 --> 46:02.760] we come together and start to offer the people an alternative.
[46:02.760 --> 46:06.520] For example, when it comes to the question of money, which David Griffin will be speaking
[46:06.520 --> 46:08.800] about, the Federal Reserve, the creature from Jekyll Island.
[46:08.800 --> 46:12.760] We all know that the Federal Reserve is a total farce and they're devaluing our currency
[46:12.760 --> 46:17.880] just about every single day to where it used to only take one bread earner to have sustenance
[46:17.880 --> 46:18.880] for a family.
[46:18.880 --> 46:20.440] Now two people are struggling to make ends meet.
[46:20.440 --> 46:23.200] It's because they're stealing the value of our currency away.
[46:23.200 --> 46:27.640] So I say, let's turn our back on their system, choose not to participate, the legal tender
[46:27.640 --> 46:32.000] laws are unconstitutional anyway, and let's start developing our own competing currency
[46:32.000 --> 46:34.960] based on silver and sound money, right?
[46:34.960 --> 46:36.640] We can do that right here in Austin.
[46:36.640 --> 46:40.480] If every single one of the people in this room chose to invest some of their money in
[46:40.480 --> 46:45.640] silver coins and start trading amongst ourselves, maybe the bookstore can start accepting them,
[46:45.640 --> 46:48.920] I think they might already, then we can have our own little patriot community.
[46:48.920 --> 46:51.320] We can develop our own little counter economy.
[46:51.320 --> 46:53.920] That's what it's called, the agorism, the market, counter economies.
[46:53.920 --> 46:57.880] I think this is something that we need to do in order to offer a better alternative.
[46:57.880 --> 46:59.480] And it's going to work in two ways.
[46:59.480 --> 47:03.840] Not only is it going to demonstrate to the establishment that we don't need to be dependent
[47:03.840 --> 47:07.200] on them, but it's also going to demonstrate to the people and more importantly, the left,
[47:07.200 --> 47:11.960] the democratic socialists, the modern day liberals, the neo-liberals, in many ways we
[47:11.960 --> 47:18.280] seek the same ends, peace, equality under the law, higher standard of living for the
[47:18.280 --> 47:19.280] masses.
[47:19.280 --> 47:23.000] Some people don't, but I would like to see everybody propped up and have a better life.
[47:23.000 --> 47:27.200] But unfortunately for us, they think that the state is the best way to bring about those
[47:27.200 --> 47:28.200] ends.
[47:28.200 --> 47:31.200] But obviously because of the state of our economy and the war on poverty, they're sure
[47:31.200 --> 47:32.520] they're not winning that one.
[47:32.520 --> 47:34.360] The state definitely isn't the best way to do that.
[47:34.360 --> 47:37.840] So what we can do is not only demonstrate to the establishment that we don't need them,
[47:37.840 --> 47:41.880] but also demonstrate to the masses that there's a better way to bring about our goals and
[47:41.880 --> 47:46.080] to work together to fulfill and to solve our common problems.
[47:46.080 --> 47:50.720] So again, I strongly recommend people not only break unconstitutional laws and just
[47:50.720 --> 47:54.960] disobey them like Martin Luther King would have us do, but also to work together as a
[47:54.960 --> 47:59.160] community to develop these alternatives, these parallel institutions.
[47:59.160 --> 48:02.280] And I think that would definitely help us in a long way towards reaching a genuinely
[48:02.280 --> 48:08.360] free society and fulfilling the philosophy of liberty.
[48:08.360 --> 48:09.360] Liberty does work.
[48:09.360 --> 48:10.640] It works best.
[48:10.640 --> 48:18.960] So to finish up, I just want to point out on a serious note the propensity of the times
[48:18.960 --> 48:20.960] in which we are living.
[48:20.960 --> 48:26.760] And again, how important it is that each and every one of you participate in this battle
[48:26.760 --> 48:33.280] and participate in this struggle because again, we've reached a point where there's a crossroads.
[48:33.280 --> 48:38.660] Murray Rothbard used to speak about the inevitability of a free society coming about, the inevitability
[48:38.660 --> 48:44.400] of liberty, and why he said that was because before, again, there was no inevitability
[48:44.400 --> 48:47.260] of the old order and tyranny's overthrow.
[48:47.260 --> 48:52.480] But once human beings got a taste for what it is to be free, he said they would never
[48:52.480 --> 48:53.480] give it up.
[48:53.480 --> 48:55.520] They would never voluntarily give it up.
[48:55.520 --> 48:59.360] And eventually, we would reach this point where we do have a genuinely free society.
[48:59.360 --> 49:04.640] He wrote that back in like 1972, I believe, well, unfortunately, since 1972, fortunately
[49:04.640 --> 49:12.640] for most instances, but unfortunately for liberty, technology has rapidly increased
[49:12.640 --> 49:15.600] at a very, very, very alarming rate.
[49:15.600 --> 49:19.480] And while that has brought a higher standard of living for a lot of people and it's made
[49:19.480 --> 49:23.520] our lives a little more easier and manageable, unfortunately, those that would seek to do
[49:23.520 --> 49:28.440] harm to us and those that would seek to set up their own personal tyrannies for their
[49:28.440 --> 49:31.280] own ends, they have a hold of this technology as well.
[49:31.280 --> 49:37.200] As I said before, they have microwave weapons, they have fusion centers, which is something
[49:37.200 --> 49:38.200] we're also battling.
[49:38.200 --> 49:41.760] Check out OperationDefuse.com if you want to see an endeavor that we're going to be
[49:41.760 --> 49:43.600] joining on and barking on.
[49:43.600 --> 49:45.640] They have the universal health care program.
[49:45.640 --> 49:48.680] They want to track every single disease, they want to get the blood of every single one
[49:48.680 --> 49:49.680] of our children.
[49:49.680 --> 49:50.680] They already are doing that.
[49:50.680 --> 49:53.120] And they're not doing it for good reasons, ladies and gentlemen, they're not doing it
[49:53.120 --> 49:54.120] to keep us alive.
[49:54.120 --> 49:55.120] I can guarantee you that.
[49:55.120 --> 49:56.120] Many of you are...
[49:56.120 --> 49:57.120] Codex Alimentarius.
[49:57.120 --> 49:58.120] That's right.
[49:58.120 --> 49:59.200] Codex Alimentarius, Agenda 21.
[49:59.200 --> 50:03.920] Many of you all are well aware that the establishment, the elite that currently holds the power centers
[50:03.920 --> 50:09.480] of our society right now, they want to eliminate a large portion of the population.
[50:09.480 --> 50:10.480] And that's a fact.
[50:10.480 --> 50:11.480] There's no conspiracy theory in that.
[50:11.480 --> 50:14.480] I know this audience is probably well aware of that.
[50:14.480 --> 50:20.280] So we've reached a turning point where it's basically freedom's last stand.
[50:20.280 --> 50:26.360] If we don't step it up, if we don't rededicate ourselves, if we don't realize that this battle
[50:26.360 --> 50:31.480] is much bigger than John Bush, it's much bigger than G. Edward Griffin, it's much bigger than
[50:31.480 --> 50:35.320] each and every one of us in this room this battle is, if we don't realize that and maybe
[50:35.320 --> 50:40.760] start making a little personal sacrifice if need be, then there could be no more liberty
[50:40.760 --> 50:41.920] ever.
[50:41.920 --> 50:46.280] We could reach a point where they have a technocratic dictatorship.
[50:46.280 --> 50:50.480] They've disarmed the people and there's no hope for any other rebellion or any other
[50:50.480 --> 50:52.480] popular revolt.
[50:52.480 --> 50:55.400] We're on the precipice of that right now, ladies and gentlemen.
[50:55.400 --> 50:59.760] But I do have hope and that hope is demonstrated by the amount of people that are in this room
[50:59.760 --> 51:00.760] right here.
[51:00.760 --> 51:04.120] The amount of people that would take time out of their day to come listen to myself
[51:04.120 --> 51:07.720] speak, listen to G. Edward Griffin speak and espouse the views of liberty.
[51:07.720 --> 51:11.000] The tide is beginning to turn, you have the tea parties, millions of people are taking
[51:11.000 --> 51:12.000] to the streets.
[51:12.000 --> 51:15.560] The sovereignty movement's starting to take on, Sheriff Mac's ideas are beginning to take
[51:15.560 --> 51:16.560] foot.
[51:16.560 --> 51:19.720] Unfortunately for the Obama administration and the elite in general, they're pressing
[51:19.720 --> 51:20.720] their luck.
[51:20.720 --> 51:23.540] They're pushing a little bit too hard and they're starting to get the masses angry.
[51:23.540 --> 51:26.720] So I do have hope, ladies and gentlemen, but it's not gonna happen unless each and every
[51:26.720 --> 51:30.420] one of us, again, each and every person in this room, think about it.
[51:30.420 --> 51:36.880] Think about how far we've traveled since the days when the government was God, when you
[51:36.880 --> 51:41.440] couldn't question the state, when there was no inevitability about the overthrow of the
[51:41.440 --> 51:42.440] old order.
[51:42.440 --> 51:43.640] Think about how far we've gone.
[51:43.640 --> 51:47.560] Think about the sacrifice that our founding fathers made to give us the United States
[51:47.560 --> 51:52.280] Constitution, which is the closest in the history of civilization that man has come
[51:52.280 --> 51:53.960] to a free society.
[51:53.960 --> 51:59.240] And now they're trying to take that away from us, but we're not gonna let them, are we?
[51:59.240 --> 52:02.040] That's right, ladies and gentlemen, again, it's crunch time.
[52:02.040 --> 52:08.360] I urge you, I beg of you, rededicate yourselves to the cause of liberty and simply choose
[52:08.360 --> 52:09.960] to be free.
[52:09.960 --> 52:15.720] And by making that choice in many ways, we've already won the war.
[52:15.720 --> 52:29.920] Thank you.
[52:29.920 --> 52:41.920] Thank you.
[52:41.920 --> 52:48.480] Look at him, he's a star, the next mayor of Austin, the governor of Texas, president
[52:48.480 --> 52:55.680] of the United States, John Bush.
[52:55.680 --> 52:57.760] I just wanna mention a few things now.
[52:57.760 --> 53:02.160] I wanna mention that after we're having a lot of fun here, and this is great, but afterwards
[53:02.160 --> 53:08.040] we have a book signing at the bookstore just two blocks east of here.
[53:08.040 --> 53:12.640] You literally will go downstairs and walk out the front door and see the front door
[53:12.640 --> 53:17.320] of the bookstore, or west, sorry, just west.
[53:17.320 --> 53:21.600] I've been describing east all day for everybody calling me for this place, but now I have
[53:21.600 --> 53:22.840] to reverse that.
[53:22.840 --> 53:30.360] So west, and I always think of all the sort of conferences that go on here and the speeches
[53:30.360 --> 53:31.360] given here.
[53:31.360 --> 53:39.000] There's a pharmaceutical industry convention going on here when we're not here, and I always
[53:39.000 --> 53:43.520] think it's funny that they walk out those doors and they see my bookstore, so it's pretty
[53:43.520 --> 53:44.520] good.
[53:44.520 --> 53:50.200] But I wanna mention also all the people that helped get the word out about this, and that's
[53:50.200 --> 53:57.480] We Are Change, Austin for one, that's a great group that started.
[53:57.480 --> 54:02.320] They meet at the bookstore at 11.30 every Saturday, so please join them.
[54:02.320 --> 54:07.240] The Deborah Medina campaign, they're doing great work, and we all need to support them
[54:07.240 --> 54:11.480] and get out the vote for Deborah Medina March 4th.
[54:11.480 --> 54:16.880] And lastly, I'd like to thank the University of Texas.
[54:16.880 --> 54:23.920] Check this place out, I think we've arrived, Patriot Movement, they've been very accommodating
[54:23.920 --> 54:30.400] and very lovely people, and they couldn't be nicer.
[54:30.400 --> 54:36.320] But what you've been waiting for, not listening to the boring bookstore owner, but actually
[54:36.320 --> 54:43.960] listening to the very exciting book writer, Mr. Griffin, I just wanted to say I graduated
[54:43.960 --> 54:51.200] from this university, so this is literally me coming home in some way, and I graduated
[54:51.200 --> 54:54.800] with a degree in history and American studies.
[54:54.800 --> 55:02.320] And on the first day of every history class, you have a discussion on a term, it's called
[55:02.320 --> 55:08.920] qui bono, it's Latin for who benefits, and that seems reasonable, right?
[55:08.920 --> 55:13.680] That seems instinctual, that's how we should construct history, that's how we should look
[55:13.680 --> 55:15.280] at history.
[55:15.280 --> 55:23.240] Who benefits, but every first day of class ends, and you have a long semester where you
[55:23.240 --> 55:31.920] ignore that term, and you don't look at who benefits, and you ignore everything in Mr.
[55:31.920 --> 55:37.840] Griffin's book, Creature from Jekyll Island, and so you graduate like I did, thinking that
[55:37.840 --> 55:43.160] you know history, and that you know what the Federal Reserve is, I have a degree from the
[55:43.160 --> 55:49.200] University of Texas, I have to know what the Federal Reserve is, of course I do.
[55:49.200 --> 55:54.840] But then you read Mr. Griffin's book, The Creature from Jekyll Island, and you realize
[55:54.840 --> 56:12.800] you know nothing, like I did, and so G. Edward Griffin had a profound effect on me, he gave
[56:12.800 --> 56:19.800] me an education for $25 that I didn't get with a $30,000 degree.
[56:19.800 --> 56:29.800] So I'm tempted to ask UT for my money back, but I guess giving us this place to hold this
[56:29.800 --> 56:37.040] is a start, so we'll take it on a layaway.
[56:37.040 --> 56:44.560] But I just wanted to express my thanks to Mr. Griffin for writing that book, and I think
[56:44.560 --> 56:46.840] everybody needs to read that book.
[56:46.840 --> 56:51.640] If you're studying history, if you're not really into history, it doesn't matter, it's
[56:51.640 --> 56:58.840] a very rich lesson in civics, in understanding where we came from and where we are in history,
[56:58.840 --> 57:04.720] and I think everybody needs to understand it, it's a very, very important topic of
[57:04.720 --> 57:11.560] how money works, where it comes from, who makes it, more importantly, and what that
[57:11.560 --> 57:13.120] means for us.
[57:13.120 --> 57:19.060] But I'll let him have a profound effect on you guys tonight, and afterwards you can go
[57:19.060 --> 57:24.680] purchase the book at Brave New Books if you feel so inclined, and Mr. Griffin will sign
[57:24.680 --> 57:25.680] it for you.
[57:25.680 --> 57:30.620] But without further ado, I'd like to introduce the legend, even though he doesn't like me
[57:30.620 --> 57:55.640] to say that, the legend, Mr. G. Edward Griffin, please give it up.
[57:55.640 --> 57:59.320] Thank you so much, I love being a legend.
[57:59.320 --> 58:05.120] Well, I'm really disoriented tonight, I came expecting that, well, I'll walk in the room,
[58:05.120 --> 58:09.680] we'll be, you know, maybe 60 or 100 people, and I'll get up on the stage and then talk
[58:09.680 --> 58:12.240] for about an hour, and then that'll be it.
[58:12.240 --> 58:16.920] But I'm so fired up listening to what's happened already, and by seeing the size of this audience,
[58:16.920 --> 58:21.000] I'm thinking I should just throw out my speech and do something else.
[58:21.000 --> 58:24.280] Two things I decided I definitely wanted to do.
[58:24.280 --> 58:34.320] One is I want to move to this town.
[58:34.320 --> 58:37.800] And the other thing, as I noticed after John took a drink of that water, he gave such a
[58:37.800 --> 58:42.120] fiery talk, I want to drink that whole bottle over here.
[58:42.120 --> 58:43.120] That was wonderful, John.
[58:43.120 --> 58:51.600] I really appreciate your depth of the problem and your solutions, thank you.
[58:51.600 --> 58:56.520] I came with my money hat on to talk about the Federal Reserve System and money, but
[58:56.520 --> 58:59.760] I'm going to take it off just for a few minutes because of you, John, and I'm going to put
[58:59.760 --> 59:04.840] my ideology hat on and my Constitution hat, because you triggered a couple of thoughts
[59:04.840 --> 59:06.960] that I thought were so important.
[59:06.960 --> 59:14.240] You were talking about the Constitution and how wonderful it was and how many unusual
[59:14.240 --> 59:18.360] concepts were put into it for the first time in history.
[59:18.360 --> 59:20.420] This was quite a rare document.
[59:20.420 --> 59:28.560] It was the first time in history that a revolution had been fought and the victorious side declined
[59:28.560 --> 59:32.040] to simply declare themselves to be the new monarchy.
[59:32.040 --> 59:34.080] I mean, that's the old style, right?
[59:34.080 --> 59:37.440] You overthrow the king because you didn't like the king, because he didn't do what you
[59:37.440 --> 59:41.100] liked and he wasn't fair to your group and so forth.
[59:41.100 --> 59:43.840] You overthrew the king and then you became the king.
[59:43.840 --> 59:48.840] And it didn't take long because of the adage that we know that power corrupts, so if you're
[59:48.840 --> 59:51.560] the king, now you've got the power, you become corrupted.
[59:51.560 --> 59:56.100] And if you don't, by the way, the guy that comes along after you surely as heck will.
[59:56.100 --> 01:00:01.640] So people have always focused on replacing people, replacing kings, monarchs, the bad
[01:00:01.640 --> 01:00:04.640] guys, and they've never looked at the system.
[01:00:04.640 --> 01:00:06.840] They always thought the system was okay.
[01:00:06.840 --> 01:00:10.720] When reality has always been the system, that was the problem and not the people.
[01:00:10.720 --> 01:00:18.120] Because as long as the system has the ability to give human beings the power over other
[01:00:18.120 --> 01:00:21.320] human beings, then that is going to corrupt human beings.
[01:00:21.320 --> 01:00:22.800] It's as simple as that.
[01:00:22.800 --> 01:00:27.200] And so our founding fathers came along and they got a hold of that concept and they decided
[01:00:27.200 --> 01:00:28.480] to change the system.
[01:00:28.480 --> 01:00:29.880] Wow, what a thought.
[01:00:29.880 --> 01:00:35.720] And so they wrote this thing we call the Constitution, which is on one view, you can look at it and
[01:00:35.720 --> 01:00:40.960] say it's a bunch of rules and regulations and directions of how to run a state.
[01:00:40.960 --> 01:00:46.720] But if you really analyze it, it's a system of checks and balances and as Jefferson called
[01:00:46.720 --> 01:00:52.520] it chains, you remember after the Constitution had been written, Jefferson was engaged in
[01:00:52.520 --> 01:00:57.600] correspondence with one of his friends and his friend said, Mr. Jefferson, now that we
[01:00:57.600 --> 01:01:04.200] have this new system in place, how can we be sure that only just men are elected to
[01:01:04.200 --> 01:01:05.560] office?
[01:01:05.560 --> 01:01:09.560] And those of you who remember this quote, remember Jefferson responded almost irate
[01:01:09.560 --> 01:01:19.440] lately, he said, speak to me not of just men, rather let us bind men down with the chains
[01:01:19.440 --> 01:01:21.400] of the Constitution.
[01:01:21.400 --> 01:01:27.560] And in that simple statement, there was a fabulous political philosophy, which really
[01:01:27.560 --> 01:01:30.640] was the essence of our whole Republic to bind men down.
[01:01:30.640 --> 01:01:36.880] He was saying, of course, we're not going to have just men, duh.
[01:01:36.880 --> 01:01:42.680] Of course, scoundrels are going to be attracted into bureaucratic positions because as long
[01:01:42.680 --> 01:01:49.160] as we give them the power to abuse other human beings under the protection of government,
[01:01:49.160 --> 01:01:52.600] they're going to take advantage of that, of course.
[01:01:52.600 --> 01:01:58.040] So we should not design a system that will ensure that only just men are elected to office.
[01:01:58.040 --> 01:02:03.360] We must design a system that will assume that scoundrels will be elected to office and design
[01:02:03.360 --> 01:02:07.000] the system so that even the scoundrels cannot take away our liberty.
[01:02:07.000 --> 01:02:10.880] It's as simple as that.
[01:02:10.880 --> 01:02:18.920] Well, as John pointed out so eloquently, this was kind of a radical departure in history
[01:02:18.920 --> 01:02:25.480] and it was a wonderful departure and it worked for about a hundred years.
[01:02:25.480 --> 01:02:28.640] But now the reality creeps in.
[01:02:28.640 --> 01:02:31.120] It didn't last, did it?
[01:02:31.120 --> 01:02:33.320] It wasn't perfect.
[01:02:33.320 --> 01:02:38.720] If it had been perfect in some way or in all ways, why we would still have the chains of
[01:02:38.720 --> 01:02:39.720] the Constitution.
[01:02:39.720 --> 01:02:45.120] But now we know with this experience that, well, actually the process started almost
[01:02:45.120 --> 01:02:49.840] from the very first administration, the Washington administration.
[01:02:49.840 --> 01:02:54.760] There were pressures and opinions and movements within the newly formed government to begin
[01:02:54.760 --> 01:02:58.200] to break those chains of the Constitution.
[01:02:58.200 --> 01:03:03.040] And although it was very small in the beginning with the passage of time and especially with
[01:03:03.040 --> 01:03:08.440] the passage of the generation that died off and forgot all of these concepts, had forgotten
[01:03:08.440 --> 01:03:14.680] the spirit of the American Revolution, had forgotten the heavy weight of the rule from
[01:03:14.680 --> 01:03:19.360] England, forgotten all those things with new generations coming up and new prosperity.
[01:03:19.360 --> 01:03:23.960] All of these things faded into history and people forgot to take a look at those chains
[01:03:23.960 --> 01:03:27.480] and one by one they were broken, one link by another.
[01:03:27.480 --> 01:03:31.600] So today we have practically no links left in the Constitution.
[01:03:31.600 --> 01:03:39.440] And so it's our job, it's our privilege, it is our duty to repair the chain.
[01:03:39.440 --> 01:03:44.360] And I think that if we look at it that way, it becomes a very exhilarating challenge for
[01:03:44.360 --> 01:03:49.360] us because we can look at the Constitution, which in my view was a beta model.
[01:03:49.360 --> 01:03:53.720] In history, I think maybe 100 years from now or 200 years from now, people will look back
[01:03:53.720 --> 01:03:58.720] and say the American Constitution was a magnificent beta model.
[01:03:58.720 --> 01:04:06.520] Now with the experience of our era and the energy and the brain power and the consciousness
[01:04:06.520 --> 01:04:13.440] of people like us, we will now design the second model and we will build upon that experience
[01:04:13.440 --> 01:04:19.240] and make it even better instead of lasting 100 years, maybe it'll last 500 years.
[01:04:19.240 --> 01:04:22.840] And then it will probably fail too because we won't see everything.
[01:04:22.840 --> 01:04:27.320] But then at the end of the 500 years, there'll be a new group of people say, aha, the model
[01:04:27.320 --> 01:04:30.680] number two was better than model number one, but it had some problems with it.
[01:04:30.680 --> 01:04:35.160] So now we'll build model number three and that'll last for 5,000 years.
[01:04:35.160 --> 01:04:39.360] And this is how the revolution continues.
[01:04:39.360 --> 01:04:47.360] And that was John's thing.
[01:04:47.360 --> 01:04:54.920] I'd like to add just one little specific contribution to what I think will be an important addition
[01:04:54.920 --> 01:04:56.880] to the second model.
[01:04:56.880 --> 01:05:02.760] I think perhaps the greatest mistake that was made at the creation of our wonderful
[01:05:02.760 --> 01:05:11.760] republic was because the founding fathers understandably but accidentally adopted the
[01:05:11.760 --> 01:05:16.680] wrong word to describe the system they were creating.
[01:05:16.680 --> 01:05:20.120] They used the word government.
[01:05:20.120 --> 01:05:24.000] They said, what kind of government are we going to build here?
[01:05:24.000 --> 01:05:28.880] And in the founding documents, you say it's government does this, government does that.
[01:05:28.880 --> 01:05:30.720] Well, think about it.
[01:05:30.720 --> 01:05:33.840] What is the proper function of government?
[01:05:33.840 --> 01:05:37.840] By definition, it is to govern.
[01:05:37.840 --> 01:05:43.760] Uh-oh, uh-oh, that's a mistake.
[01:05:43.760 --> 01:05:49.440] The founding fathers used the word government because that was the word that was in use
[01:05:49.440 --> 01:05:50.440] at the time.
[01:05:50.440 --> 01:05:51.440] That's what they always had.
[01:05:51.440 --> 01:05:52.760] The world had governments.
[01:05:52.760 --> 01:05:56.280] People were always governed by the state.
[01:05:56.280 --> 01:05:58.880] And so they just adopted the word because that was it.
[01:05:58.880 --> 01:06:01.120] But what they created was not a government at all.
[01:06:01.120 --> 01:06:06.280] They created what I would suggest should have been called a protectorate.
[01:06:06.280 --> 01:06:11.240] They created a state that was designed not to govern the people, but to protect the people,
[01:06:11.240 --> 01:06:15.260] to protect their lives, liberty, and property, nothing more.
[01:06:15.260 --> 01:06:22.120] And that's what they created.
[01:06:22.120 --> 01:06:26.080] And I believe that if they had the foresight to have used the word protectorate in all
[01:06:26.080 --> 01:06:30.400] of their writings, then all of the school children for generations thereafter would
[01:06:30.400 --> 01:06:33.700] be talking about this thing called a protectorate.
[01:06:33.700 --> 01:06:38.080] And the very use of the word would trigger off the definition of what is the proper function
[01:06:38.080 --> 01:06:39.080] of the state.
[01:06:39.080 --> 01:06:41.700] And you see what an assist that would be.
[01:06:41.700 --> 01:06:45.200] So I suggest that when we all get together and do this second model, we're going to use
[01:06:45.200 --> 01:06:46.400] a different word.
[01:06:46.400 --> 01:06:54.720] Let's use the word protectorate.
[01:06:54.720 --> 01:06:59.080] Now take my Constitution hat off and put my money hat back on.
[01:06:59.080 --> 01:07:04.520] And I know that money is a topic that's very much in the minds of many people.
[01:07:04.520 --> 01:07:08.800] And as you folks know, I'm here in Austin primarily to do a one-day seminar called The
[01:07:08.800 --> 01:07:10.700] Crash Course on Money.
[01:07:10.700 --> 01:07:13.360] And I hope that many of you will be able to attend it.
[01:07:13.360 --> 01:07:18.560] I'll be talking about things in that seminar entirely different from my topic here this
[01:07:18.560 --> 01:07:19.800] evening.
[01:07:19.800 --> 01:07:25.880] The motivation for most people coming to the seminar is that they want to have an idea,
[01:07:25.880 --> 01:07:33.160] a better idea of what they can do to protect themselves in this economic perfect storm
[01:07:33.160 --> 01:07:34.160] that is approaching.
[01:07:34.160 --> 01:07:37.120] In fact, it's not really approaching anymore.
[01:07:37.120 --> 01:07:41.520] We used to talk about, see those clouds over there on the horizon, those big black clouds?
[01:07:41.520 --> 01:07:43.520] You know, one of these days we're going to have a real problem.
[01:07:43.520 --> 01:07:47.280] Well, now the darn things are right overhead and it's not really approaching.
[01:07:47.280 --> 01:07:51.440] It's here and we're beginning to feel the winds and the rain and the snow and all of
[01:07:51.440 --> 01:07:52.440] that right now.
[01:07:52.440 --> 01:07:55.880] And people want to know how can they protect themselves in the short run?
[01:07:55.880 --> 01:07:57.940] How can they protect their assets?
[01:07:57.940 --> 01:08:01.680] Because you know there's going to be a lot of inflation ahead.
[01:08:01.680 --> 01:08:07.840] We've talked about inflation versus deflation and what sectors will be affected, in my opinion
[01:08:07.840 --> 01:08:12.240] at least, which will be affected by deflation for a while and which ones will be subject
[01:08:12.240 --> 01:08:13.640] to massive inflation.
[01:08:13.640 --> 01:08:20.440] We'll talk about what you can do about it and what investments there may be that are
[01:08:20.440 --> 01:08:24.320] still viable in this crisis period.
[01:08:24.320 --> 01:08:28.400] Most importantly, we'll be talking about how to repair the system so it won't be just a
[01:08:28.400 --> 01:08:36.680] question of survival but how to make a system that will benefit our children and our grandchildren
[01:08:36.680 --> 01:08:37.680] as well.
[01:08:37.680 --> 01:08:44.760] I think any discussion of these issues that doesn't have the long view of history is very,
[01:08:44.760 --> 01:08:46.920] very deficient.
[01:08:46.920 --> 01:08:51.880] And if we don't look at the system, you know, we have all the money in the world but we
[01:08:51.880 --> 01:08:53.880] lose the freedom to enjoy it.
[01:08:53.880 --> 01:08:55.480] We've made a huge mistake.
[01:08:55.480 --> 01:09:00.960] To me it's like counting your money on the sinking Titanic, you know, you don't get the
[01:09:00.960 --> 01:09:01.960] whole picture.
[01:09:01.960 --> 01:09:08.040] But anyway, tonight I realized that there are a lot of people who may not have been familiar
[01:09:08.040 --> 01:09:15.200] with my work on the Federal Reserve System and so what I'm going to do is take a condensation
[01:09:15.200 --> 01:09:20.080] of my original talk that I've given so many times over the years on the Federal Reserve
[01:09:20.080 --> 01:09:26.240] System called The Creature from Jekyll Island and condense it down into a much smaller manageable
[01:09:26.240 --> 01:09:33.000] segment and then follow it with a short overview of what I think the situation looks like today,
[01:09:33.000 --> 01:09:37.720] what's happened since the book was published and kind of a brief view of where I think
[01:09:37.720 --> 01:09:42.220] we're headed and then I think we'll probably be out of time.
[01:09:42.220 --> 01:09:49.720] And you may remember that those of you who've heard what I call my original recipe talk,
[01:09:49.720 --> 01:09:54.560] I generally was called The Creature from Jekyll Island just like the book but in reality it
[01:09:54.560 --> 01:09:59.400] had a different title that at least I intended it to be known as under a different title
[01:09:59.400 --> 01:10:05.360] which was An Appearance of the Fourth Kind.
[01:10:05.360 --> 01:10:08.720] Somebody giggled or hummed on that so you know where I'm going with this now.
[01:10:08.720 --> 01:10:15.380] And that statement is based on a quotation taken from an obscure philosopher by the name
[01:10:15.380 --> 01:10:21.960] of Epictetus who lived in the, I think it was the third century B.C. in an obscure kingdom
[01:10:21.960 --> 01:10:28.400] called Phrygia and he was a philosopher and some of his writings survived and had been
[01:10:28.400 --> 01:10:33.160] translated and I ran across one of the most amazing quotations I've ever read attributed
[01:10:33.160 --> 01:10:40.840] to Epictetus and this is it, Epictetus said, appearances are of four kinds, things either
[01:10:40.840 --> 01:10:46.520] are as they appear to be or they neither are nor appear to be or they are but do not appear
[01:10:46.520 --> 01:10:52.800] to be or they are not and yet appear to be.
[01:10:52.800 --> 01:10:56.100] I know everybody's got that.
[01:10:56.100 --> 01:11:01.880] It's amazing how confusing that sounds when in reality it's just a simple concept and
[01:11:01.880 --> 01:11:06.440] I figured that if Epictetus were alive today he'd probably be the chairman of the Federal
[01:11:06.440 --> 01:11:13.200] Reserve System or Harvard Professor of Money Theory or something like that.
[01:11:13.200 --> 01:11:19.200] What he said was pretty simple but he made it confusing with his explanation.
[01:11:19.200 --> 01:11:24.940] What he said was appearances are of four kinds, things either are or they aren't.
[01:11:24.940 --> 01:11:29.800] There's two and then regardless of which they are they can appear to be the opposite so
[01:11:29.800 --> 01:11:30.800] there's four.
[01:11:30.800 --> 01:11:33.120] Why did he just say so?
[01:11:33.120 --> 01:11:40.480] No, well because he is practicing for a career in banking.
[01:11:40.480 --> 01:11:44.880] So anyway the appearance of the fourth kind was as you remember is those things which
[01:11:44.880 --> 01:11:51.160] are not and yet appear to be and that's the best explanation I could think of at the time
[01:11:51.160 --> 01:11:57.520] for the Federal Reserve System because we all expect it to be a government agency.
[01:11:57.520 --> 01:11:58.520] It's not.
[01:11:58.520 --> 01:12:00.240] We expect it to be in the interest of the American people.
[01:12:00.240 --> 01:12:01.680] It's not.
[01:12:01.680 --> 01:12:06.120] All of these things that people think about the Federal Reserve System is a complete reversal
[01:12:06.120 --> 01:12:08.200] of its reality.
[01:12:08.200 --> 01:12:13.000] So that'll be half of my presentation today but I must tell you that the most important
[01:12:13.000 --> 01:12:19.160] part of this talk, I must not forget, it's the joke section and I'm going to tell you
[01:12:19.160 --> 01:12:20.360] two genie jokes.
[01:12:20.360 --> 01:12:24.440] I like genie jokes and the first one is the story of this young fellow that was going
[01:12:24.440 --> 01:12:29.800] through the alley and he came across a bottle which was all dirty but he rubbed it off and
[01:12:29.800 --> 01:12:33.840] found these fancy decorations on it and pulled the cork out and you know what happened.
[01:12:33.840 --> 01:12:37.800] The smoke came out of the bottle and there was the genie that appeared right in front
[01:12:37.800 --> 01:12:44.480] of him and he said, the genie said, you have released me from my prison of the ages and
[01:12:44.480 --> 01:12:50.360] now I will grant you three wishes and the kid said, gosh, a real genie, going to give
[01:12:50.360 --> 01:12:51.360] me three wishes?
[01:12:51.360 --> 01:12:55.160] And the genie said, yes, whatever you wish is my command.
[01:12:55.160 --> 01:12:59.720] So the kid said, let's see, genie, I've always wanted a basketball.
[01:12:59.720 --> 01:13:01.480] I want a basketball.
[01:13:01.480 --> 01:13:05.520] The genie said, vroom and there was this basketball in the kid's hands.
[01:13:05.520 --> 01:13:07.880] The kid said, oh, this is wonderful, genie.
[01:13:07.880 --> 01:13:09.760] I want a bicycle.
[01:13:09.760 --> 01:13:13.560] Vroom said the genie and there was a brand new bicycle.
[01:13:13.560 --> 01:13:15.080] The kid said, oh, this is wonderful.
[01:13:15.080 --> 01:13:16.600] You know, genie, I'm thirsty.
[01:13:16.600 --> 01:13:17.600] Make me a malted.
[01:13:17.600 --> 01:13:21.520] Vroom he said, you're a malted.
[01:13:21.520 --> 01:13:29.200] Okay, second one is even worse.
[01:13:29.200 --> 01:13:33.320] Fellow walks into a bar and he has an ostrich with him.
[01:13:33.320 --> 01:13:35.760] They go up to the bar and the ostrich right along with them.
[01:13:35.760 --> 01:13:39.920] They both sit on bar stools and the bartender, of course, is amazed.
[01:13:39.920 --> 01:13:42.720] He's never seen an ostrich in his bar before.
[01:13:42.720 --> 01:13:45.920] So he walked up to the fellow in the ostrich and says, well, what can I do for you?
[01:13:45.920 --> 01:13:47.760] Would you like a drink?
[01:13:47.760 --> 01:13:50.320] And the guy said, yeah, I'd like a drink.
[01:13:50.320 --> 01:13:53.020] He said, I'd like a vodka martini, please.
[01:13:53.020 --> 01:13:57.280] And the bartender started to leave, but the guy turned to the ostrich and he said, would
[01:13:57.280 --> 01:13:58.660] you like something to drink?
[01:13:58.660 --> 01:14:00.680] What would you like?
[01:14:00.680 --> 01:14:06.280] And to the bartender's amazement, the ostrich turned to the guy and said, spoke and said,
[01:14:06.280 --> 01:14:09.240] oh, whatever you like is fine with me.
[01:14:09.240 --> 01:14:10.800] Whatever you do is I like it.
[01:14:10.800 --> 01:14:13.200] So a vodka martini would be fine.
[01:14:13.200 --> 01:14:18.400] Well, the bartender was really amazed at this, an ostrich and a talking ostrich at that.
[01:14:18.400 --> 01:14:22.360] So he went and got the two vodka martinis and a few minutes later came back when the
[01:14:22.360 --> 01:14:25.240] drinks were getting toward the bottom and he said, would you like another?
[01:14:25.240 --> 01:14:27.560] And the fellow said, no, no, one is enough.
[01:14:27.560 --> 01:14:28.560] How much do I owe you?
[01:14:28.560 --> 01:14:35.400] And the bartender pulled out the receipt and including the tax, it was $14.44 and he said,
[01:14:35.400 --> 01:14:36.400] that's the bill.
[01:14:36.400 --> 01:14:39.240] Well, the guy reached in this pocket and pulled out all of the money he had, laid it out on
[01:14:39.240 --> 01:14:43.920] the bar, counted it out, it was $14.44, right to the penny.
[01:14:43.920 --> 01:14:44.920] Amazing.
[01:14:44.920 --> 01:14:45.920] Then they left.
[01:14:45.920 --> 01:14:50.560] Well, the next day the guy comes back with the same ostrich into the same bar and the
[01:14:50.560 --> 01:14:52.880] bartender said, well, would you like your vodka martini today?
[01:14:52.880 --> 01:14:55.120] And he said, no, no, today I'd like a different drink.
[01:14:55.120 --> 01:14:57.000] I think I'll have a whiskey sour.
[01:14:57.000 --> 01:15:00.040] He turned to the ostrich and said, would you like a drink?
[01:15:00.040 --> 01:15:01.760] The ostrich said, oh, yes, I would.
[01:15:01.760 --> 01:15:03.520] I think a whiskey sour would be fine.
[01:15:03.520 --> 01:15:05.360] You know, I like whatever you drink.
[01:15:05.360 --> 01:15:06.800] Whatever you do is fine with me.
[01:15:06.800 --> 01:15:08.560] I always like that.
[01:15:08.560 --> 01:15:12.960] So they had a whiskey sour, the same thing a little bit later, the bartender came back
[01:15:12.960 --> 01:15:13.960] and said, would you like another?
[01:15:13.960 --> 01:15:15.240] No, was the answer.
[01:15:15.240 --> 01:15:16.840] How much do I owe you?
[01:15:16.840 --> 01:15:23.600] The bartender looked at the tat and said, well, this one is $12.22 including tax.
[01:15:23.600 --> 01:15:26.920] And so the fellow reached in his pocket and pulled out everything he had, laid it on the
[01:15:26.920 --> 01:15:30.520] bar, and there it was $12.22, right to the penny.
[01:15:30.520 --> 01:15:31.520] Amazing again.
[01:15:31.520 --> 01:15:33.960] Well, this went on every day for the whole week.
[01:15:33.960 --> 01:15:35.880] Each day the fellow and the ostrich came in.
[01:15:35.880 --> 01:15:37.800] Each day they had a different drink.
[01:15:37.800 --> 01:15:39.600] Each day it was a different tab.
[01:15:39.600 --> 01:15:43.600] And each day, no matter what it was, the fellow reached in his pocket and he always had the
[01:15:43.600 --> 01:15:46.840] exact right amount of money.
[01:15:46.840 --> 01:15:50.840] So finally at the end of the week, the bartender turned to the fellow and he said, you know,
[01:15:50.840 --> 01:15:52.200] I've got to ask you a question.
[01:15:52.200 --> 01:15:56.560] He said, I'm totally amazed by what I see here, a talking ostrich in my bar and all
[01:15:56.560 --> 01:16:00.800] that, but the thing that really amazes me, how is it, no matter what the bill is, you
[01:16:00.800 --> 01:16:04.680] reach in your pocket and you pull out everything you have, you spread it out and you've got
[01:16:04.680 --> 01:16:06.520] the exact amount of money to the penny.
[01:16:06.520 --> 01:16:08.360] How do you do that?
[01:16:08.360 --> 01:16:10.360] The guy said, well, let me tell you a little story.
[01:16:10.360 --> 01:16:14.280] He said, I was walking through an alley one day and I came across a bottle and it was
[01:16:14.280 --> 01:16:18.360] all dirty and I wiped it off and I saw these fancy decorations, pulled the cork out and
[01:16:18.360 --> 01:16:20.020] out came the smoke.
[01:16:20.020 --> 01:16:25.400] And there was a genie and the genie said, you have released me from my prison of the
[01:16:25.400 --> 01:16:26.400] ages.
[01:16:26.400 --> 01:16:32.200] And now I will grant you two wishes, well, two this time, it's not as good as three,
[01:16:32.200 --> 01:16:33.760] but anyway, two is pretty good.
[01:16:33.760 --> 01:16:36.720] And so the fellow says, I get two wishes, no matter what I want.
[01:16:36.720 --> 01:16:40.220] The genie says, yes, your wish is my command.
[01:16:40.220 --> 01:16:46.640] So he said, all right, genie, my first wish is, let's see, I think, yes, I know what it's
[01:16:46.640 --> 01:16:47.640] going to be.
[01:16:47.640 --> 01:16:52.640] I would like to be able to afford, no matter what it is I want in life, I want to be able
[01:16:52.640 --> 01:16:58.600] to have enough money to buy it, whether it's a drink or a trip around the world or a yacht,
[01:16:58.600 --> 01:17:03.160] no matter what it is, I want to be able to afford it.
[01:17:03.160 --> 01:17:07.240] And he said the genie went, vroom, I grant you your wish.
[01:17:07.240 --> 01:17:11.080] And he said to the bartender, ever since that day, no matter what I've ordered, no matter
[01:17:11.080 --> 01:17:15.800] how expensive or inexpensive it is, I reach in my pocket and it's a miracle.
[01:17:15.800 --> 01:17:18.040] I always have the right amount of money.
[01:17:18.040 --> 01:17:21.280] And he said, the other wish I gave to the genie was this.
[01:17:21.280 --> 01:17:31.560] He said, genie, I've always wanted a chick with long eyelashes and long legs, who always
[01:17:31.560 --> 01:17:36.840] agreed with everything I wanted to do.
[01:17:36.840 --> 01:17:50.120] Now, I bet you'd never believe it, but those jokes have a connection with what I want to
[01:17:50.120 --> 01:17:53.520] talk about tonight.
[01:17:53.520 --> 01:18:00.400] And the moral to those stories is that you ought to be very, very careful what you wish
[01:18:00.400 --> 01:18:07.760] for, because if you get it, it may not be what you thought it was going to be.
[01:18:07.760 --> 01:18:10.080] And that's my theme tonight.
[01:18:10.080 --> 01:18:14.320] And I'm going to take this presentation, as I said, a little condensation of the old original
[01:18:14.320 --> 01:18:18.200] recipe talk on the Federal Reserve, plus a little update at the end.
[01:18:18.200 --> 01:18:23.800] And I've decided to condense a summary of it down into two sound bites.
[01:18:23.800 --> 01:18:27.000] You know, when you're traveling around and every once in a while you get a chance to
[01:18:27.000 --> 01:18:32.200] go on the radio and even more rarely somebody from a television station would say, well,
[01:18:32.200 --> 01:18:35.120] we hear you're going to be in town tonight, would you like to be on the local news?
[01:18:35.120 --> 01:18:37.080] And you say, yeah, of course.
[01:18:37.080 --> 01:18:42.240] And they say, well, we'll give you about 10 seconds to summarize your 90-minute speech.
[01:18:42.240 --> 01:18:45.680] So you get to be pretty good on condensing things down, you know?
[01:18:45.680 --> 01:18:52.200] So I decided to pretend like I was being given about 10 or 15 seconds to describe each of
[01:18:52.200 --> 01:18:58.320] these two parts of my presentation, and I concocted these sound bites.
[01:18:58.320 --> 01:19:00.960] So you better listen carefully to this.
[01:19:00.960 --> 01:19:08.440] Part number one, in 1913, the Federal Reserve system was created because Americans made
[01:19:08.440 --> 01:19:14.840] a wish to the government genie to control the banks on behalf of the people.
[01:19:14.840 --> 01:19:24.240] But what they got was a banking cartel that now controls the government.
[01:19:24.240 --> 01:19:26.120] That's statement number one.
[01:19:26.120 --> 01:19:31.760] Statement number two, today Americans are making another wish to the government genie,
[01:19:31.760 --> 01:19:36.920] this time to create unlimited quantities of money to protect them from hardship.
[01:19:36.920 --> 01:19:44.520] But what they are getting is unlimited quantities of money being used to deprive them of their
[01:19:44.520 --> 01:19:45.520] freedom.
[01:19:45.520 --> 01:19:52.000] Now, I just summarized it all so we can all go home now.
[01:19:52.000 --> 01:19:55.600] That's everything I want to say, and so the rest of the time will be spent primarily just
[01:19:55.600 --> 01:19:58.680] to filling in some of the details.
[01:19:58.680 --> 01:20:05.400] So I think a good place to begin is take a look at the book title, The Creature from
[01:20:05.400 --> 01:20:06.400] Jekyll Island.
[01:20:06.400 --> 01:20:10.280] I know this is common ground for many of you, but I hope there are many here that don't
[01:20:10.280 --> 01:20:11.440] know what that's all about.
[01:20:11.440 --> 01:20:14.840] What's The Creature from Jekyll Island all about?
[01:20:14.840 --> 01:20:19.600] And I must admit that I had some fun with that title because it has kind of a mysterious
[01:20:19.600 --> 01:20:20.600] sound to it.
[01:20:20.600 --> 01:20:26.040] It sounds like Dr. Jekyll and Mr. Hyde, or it may sound like The Creature from the Black
[01:20:26.040 --> 01:20:28.360] Lagoon.
[01:20:28.360 --> 01:20:34.120] And I thought if anybody saw the book in a window of a bookstore, they might get curious
[01:20:34.120 --> 01:20:39.640] thinking it was a sequel to Jurassic Park or something like that.
[01:20:39.640 --> 01:20:45.480] But all kidding aside, the title really does have a great deal of significance because
[01:20:45.480 --> 01:20:48.440] Jekyll Island is a real island.
[01:20:48.440 --> 01:20:54.800] It's off the coast of Georgia, and it was on that island back in 1910, three years before
[01:20:54.800 --> 01:20:58.600] the passage of the Federal Reserve Act, which was 1913.
[01:20:58.600 --> 01:21:05.000] But back in 1910, the Federal Reserve System was created in all of its important features.
[01:21:05.000 --> 01:21:11.480] It was designed and created on Jekyll Island in 1910.
[01:21:11.480 --> 01:21:15.920] And when I began to research this subject, I realized that Jekyll Island in those days
[01:21:15.920 --> 01:21:18.080] was privately owned.
[01:21:18.080 --> 01:21:24.440] It was owned by a small group of billionaires from New York, people like John D. Rockefeller,
[01:21:24.440 --> 01:21:29.940] people like J.P. Morgan, their business associates and their friends.
[01:21:29.940 --> 01:21:31.240] This was a privately owned island.
[01:21:31.240 --> 01:21:37.640] It was a resort island, and it's where their families went to spend the cold winter months.
[01:21:37.640 --> 01:21:40.000] And they had beautiful mansions there.
[01:21:40.000 --> 01:21:42.880] They called them cottages, but you can visit the island today.
[01:21:42.880 --> 01:21:48.880] I hope you will when you're in the area, because those cottages, so-called, are beautiful examples
[01:21:48.880 --> 01:21:52.680] of architecture from that period of history.
[01:21:52.680 --> 01:21:57.800] And they've been all, most of them anyway, have been restored and maintained by the state
[01:21:57.800 --> 01:21:59.400] of Georgia now.
[01:21:59.400 --> 01:22:02.880] So it's almost like a shrine to these people.
[01:22:02.880 --> 01:22:06.200] But the key structure on the island is the clubhouse, as they called it.
[01:22:06.200 --> 01:22:10.960] In fact, the name of that island and this association which they owned was called the
[01:22:10.960 --> 01:22:13.320] Jekyll Island Club.
[01:22:13.320 --> 01:22:17.400] And they have a beautiful clubhouse, which is now run by the Marriott Hotels.
[01:22:17.400 --> 01:22:18.720] And you can go in there and have a nice lunch.
[01:22:18.720 --> 01:22:24.800] In fact, I was there just a few months ago for a meeting and checked into the hotel and
[01:22:24.800 --> 01:22:27.520] got to stay in one of the rooms, nice little room.
[01:22:27.520 --> 01:22:33.920] It's quite eloquent for the time, but remember, the really big families had their own mansions
[01:22:33.920 --> 01:22:34.920] on the island.
[01:22:34.920 --> 01:22:37.560] But this is a place where visitors could have come.
[01:22:37.560 --> 01:22:40.960] So you can visit the island today.
[01:22:40.960 --> 01:22:44.640] And if you do that and you're leaving the clubhouse and you go out the, it's kind of
[01:22:44.640 --> 01:22:48.880] the back door, just before you go out the back door, turn to your left and you'll see
[01:22:48.880 --> 01:22:51.760] another door goes to a side room.
[01:22:51.760 --> 01:22:54.040] And on the door, there's a plaque.
[01:22:54.040 --> 01:22:56.320] And it says the Federal Reserve Room.
[01:22:56.320 --> 01:23:02.680] And if you go in that room, you'll see pictures on the wall of the men, the seven men who
[01:23:02.680 --> 01:23:09.720] actually created the Federal Reserve System in that room, in that building back in 1910.
[01:23:09.720 --> 01:23:14.720] And I found that very curious to discover that the Federal Reserve System, which I was
[01:23:14.720 --> 01:23:17.680] given the impression when I was in school, was a government agency.
[01:23:17.680 --> 01:23:20.240] I thought that should be created in Washington, D.C.
[01:23:20.240 --> 01:23:25.600] I thought it was strange that here it was on a private island created in this room.
[01:23:25.600 --> 01:23:29.960] And then I discovered what was even more amazing is that the conditions of this meeting were
[01:23:29.960 --> 01:23:30.960] secret.
[01:23:30.960 --> 01:23:33.920] A great deal of secrecy prevailed.
[01:23:33.920 --> 01:23:42.400] The men were told to arrive, back up a little bit, the story begins in November of 1910
[01:23:42.400 --> 01:23:49.800] when Senator Nelson Aldridge took his private railroad car, private railroad car, you can
[01:23:49.800 --> 01:23:56.880] imagine, like having your private Boeing jet today, to the New Jersey railroad station.
[01:23:56.880 --> 01:24:02.160] And there it was in readiness for the arrival of himself and six other men who were instructed
[01:24:02.160 --> 01:24:09.400] to come to the station, the train station, separately, not to be seen together that night,
[01:24:09.400 --> 01:24:15.160] not to dine together that night, to avoid newspaper reporters at all costs.
[01:24:15.160 --> 01:24:21.600] See, in those days, the reporters used to hang out at the train station because before
[01:24:21.600 --> 01:24:27.720] the era of aircraft, all the dignitaries, all the political figures, all the superstars
[01:24:27.720 --> 01:24:31.640] had to travel by train in and out of New York, and that's where they went.
[01:24:31.640 --> 01:24:35.880] And so they had their version of the paparazzi hanging out in the train station to get a
[01:24:35.880 --> 01:24:39.520] picture and an interview and a statement from all of these dignitaries.
[01:24:39.520 --> 01:24:44.040] And so they were instructed to avoid newspaper reporters at all costs.
[01:24:44.040 --> 01:24:49.760] One of the men carried a shotgun in a big black case just in case he had been stopped
[01:24:49.760 --> 01:24:51.560] by a reporter and asked where he was going.
[01:24:51.560 --> 01:24:56.520] He was prepared to say that he was going on a duck hunting trip.
[01:24:56.520 --> 01:25:02.600] And we find out from his biographer later years, they wrote about this event, and from
[01:25:02.600 --> 01:25:09.720] his children who also wrote about it, that this man never fired a gun in his life.
[01:25:09.720 --> 01:25:13.920] That was not his shotgun, he had borrowed it from a friend just so he could carry it
[01:25:13.920 --> 01:25:19.800] and use it as a kind of a deception in case he had been asked where he's going.
[01:25:19.800 --> 01:25:20.800] So that was amazing.
[01:25:20.800 --> 01:25:27.920] Once on board the train, the men were told to address each other when talking in the
[01:25:27.920 --> 01:25:36.880] privacy of this railroad car, to address each other with first names only, to avoid using
[01:25:36.880 --> 01:25:39.120] their last names.
[01:25:39.120 --> 01:25:45.000] And in the case of two of these men, they dropped their first names completely and adopted
[01:25:45.000 --> 01:25:47.680] code names in the privacy of the car.
[01:25:47.680 --> 01:25:49.680] And I thought that was most strange.
[01:25:49.680 --> 01:25:54.440] And then we find in an article that was published in the Saturday Evening Post, written by one
[01:25:54.440 --> 01:25:58.160] of those participants, he explained why that was.
[01:25:58.160 --> 01:26:03.720] He said they were concerned that the servants on board the train would find out who all
[01:26:03.720 --> 01:26:08.280] of these people were together, and that they were spending some time together and going
[01:26:08.280 --> 01:26:09.960] to Jekyll Island.
[01:26:09.960 --> 01:26:15.480] And although the servants knew the identity of their employer, Senator Aldrich, of course,
[01:26:15.480 --> 01:26:20.380] and might have known the identities of possibly one of the others, they didn't know them all,
[01:26:20.380 --> 01:26:25.040] and it was the leaking of information about all of these people being together that they
[01:26:25.040 --> 01:26:29.320] were concerned about because they thought that once that information got into the real
[01:26:29.320 --> 01:26:34.280] world out there and possibly be picked up in the press, then the whole purpose of this
[01:26:34.280 --> 01:26:36.240] meeting would be subverted.
[01:26:36.240 --> 01:26:40.800] So that's the kind of secrecy that was brought about this meeting.
[01:26:40.800 --> 01:26:45.480] Even when they got to Jekyll Island, that was two nights and a day journey, a thousand
[01:26:45.480 --> 01:26:47.320] miles to the south.
[01:26:47.320 --> 01:26:51.960] They get off the train, they took a ferry boat across the inland straits to the island
[01:26:51.960 --> 01:26:52.960] and then to this clubhouse.
[01:26:52.960 --> 01:26:58.120] And when they got there, the normal group of employees who worked at the clubhouse had
[01:26:58.120 --> 01:27:03.720] all been dismissed and replaced by temporary employees for exactly the same reason.
[01:27:03.720 --> 01:27:09.960] They didn't want any of the employees leaking information about all of these important people
[01:27:09.960 --> 01:27:11.400] coming together.
[01:27:11.400 --> 01:27:17.920] So there's more to it than that, but when I discovered the secrecy, I couldn't put it
[01:27:17.920 --> 01:27:18.920] down.
[01:27:18.920 --> 01:27:25.440] I thought, you know, when things are done in secret, it's usually something to hide.
[01:27:25.440 --> 01:27:29.400] And I was curious about what it was, and that's what really got me going on my research.
[01:27:29.400 --> 01:27:35.280] I wanted to find out what it was that they were trying to hide.
[01:27:35.280 --> 01:27:36.880] And I did find out.
[01:27:36.880 --> 01:27:38.480] And I wrote about it.
[01:27:38.480 --> 01:27:41.120] And I'll tell you in just a minute what it was.
[01:27:41.120 --> 01:27:44.620] It's not that hard to figure out, mainly because it's right in your face.
[01:27:44.620 --> 01:27:48.480] It's like the purloined letter, it's easy to overlook because it's right there in plain
[01:27:48.480 --> 01:27:49.480] view.
[01:27:49.480 --> 01:27:50.480] All right.
[01:27:50.480 --> 01:27:55.040] First, we need to take a look at who these men were.
[01:27:55.040 --> 01:27:58.240] I've already mentioned one of them, and he was Senator Nelson Aldrich.
[01:27:58.240 --> 01:28:02.720] He was the guy with the railroad car, a very wealthy person in his own right.
[01:28:02.720 --> 01:28:07.680] He was probably the most important and powerful political figure of the time next to the president
[01:28:07.680 --> 01:28:09.200] of the United States.
[01:28:09.200 --> 01:28:11.760] He was the Republican whip in the Senate.
[01:28:11.760 --> 01:28:16.220] But more important for our discussion this evening, he was the chairman of what they
[01:28:16.220 --> 01:28:19.900] called the National Monetary Commission.
[01:28:19.900 --> 01:28:23.880] The National Monetary Commission was a special committee of Congress which was given the
[01:28:23.880 --> 01:28:33.920] task of drafting legislation to be considered by Congress to break the grip of the money
[01:28:33.920 --> 01:28:34.920] trust.
[01:28:34.920 --> 01:28:38.960] Now, that's a phrase that's taken right from the newspapers of the period.
[01:28:38.960 --> 01:28:43.820] I remember when doing all this research back in those days, this was before the internet.
[01:28:43.820 --> 01:28:46.880] Can you imagine a period like that?
[01:28:46.880 --> 01:28:52.600] And to get these news references, it was necessary to go down to some big library.
[01:28:52.600 --> 01:28:58.080] I spent days and days, if not months, and possibly years of them added all together
[01:28:58.080 --> 01:29:00.880] at the Los Angeles Library in their microfilm department.
[01:29:00.880 --> 01:29:02.640] You know, there's big machines.
[01:29:02.640 --> 01:29:03.640] You sit there all day long.
[01:29:03.640 --> 01:29:08.400] You turn the crank, and the microfilm goes through the machine and is projected onto
[01:29:08.400 --> 01:29:12.040] a big table, and you can just whiz.
[01:29:12.040 --> 01:29:15.900] You see the whizzing before your eyes, all the history of the United States is whizzing
[01:29:15.900 --> 01:29:17.640] by day by day by day.
[01:29:17.640 --> 01:29:24.080] You feel like you're God looking down from heaven, watching history go rushing by.
[01:29:24.080 --> 01:29:25.560] But you get pretty good after a while.
[01:29:25.560 --> 01:29:30.320] You start looking for phrases and topics, and all of a sudden, I see something go back
[01:29:30.320 --> 01:29:31.320] up.
[01:29:31.320 --> 01:29:32.320] What was that?
[01:29:32.320 --> 01:29:36.080] Oh yeah, break the grip of the money trust is a phrase that came up over and over and
[01:29:36.080 --> 01:29:39.640] over again, especially on the editorial pages of the New York Times.
[01:29:39.640 --> 01:29:44.680] And it turns out that in that period, the American people were very concerned about
[01:29:44.680 --> 01:29:50.480] the concentration of financial power into the hands of a small group of very powerful
[01:29:50.480 --> 01:29:54.160] investment firms and banks in Wall Street.
[01:29:54.160 --> 01:29:56.780] And they called that in those days the money trust.
[01:29:56.780 --> 01:30:02.800] And so there was this populist demand to have some legislation that's going to take control
[01:30:02.800 --> 01:30:09.000] of this financial industry and put it in the hands of Congress so that Congress, which
[01:30:09.000 --> 01:30:14.160] theoretically represented the will of the people, therefore the people indirectly could
[01:30:14.160 --> 01:30:16.720] control the banking system.
[01:30:16.720 --> 01:30:22.560] So the idea was that you couldn't trust those big bad bankers, but you certainly could trust
[01:30:22.560 --> 01:30:25.360] those nice trustworthy politicians.
[01:30:25.360 --> 01:30:28.980] That was kind of the built-in theory behind that.
[01:30:28.980 --> 01:30:31.600] But that was the pressure of the time.
[01:30:31.600 --> 01:30:37.360] And the whole purpose, or I should say the main purpose, of the Federal Reserve Act was
[01:30:37.360 --> 01:30:43.880] to break the grip of the money trust and to prevent all kinds of bad things happening
[01:30:43.880 --> 01:30:49.600] in the economy that had been going on previously, like bank failures.
[01:30:49.600 --> 01:30:52.080] The banks weren't being bailed out in those days.
[01:30:52.080 --> 01:30:53.880] They just failed.
[01:30:53.880 --> 01:30:59.280] And the people did lose their money, the depositors that had money in those fraudulent banks.
[01:30:59.280 --> 01:31:00.600] But the banks went out of business.
[01:31:00.600 --> 01:31:04.360] They weren't propped up and left intact to do the same thing over and over and over and
[01:31:04.360 --> 01:31:06.400] over again.
[01:31:06.400 --> 01:31:10.120] And so that was very disconcerting that banks were going out of business because there were
[01:31:10.120 --> 01:31:14.840] runs on the bank and people were discovering that the promises the banks had made about
[01:31:14.840 --> 01:31:17.720] the deposits they held were lies.
[01:31:17.720 --> 01:31:22.280] And so when depositors find out that their bank doesn't have all the money they deposited
[01:31:22.280 --> 01:31:25.200] in the bank, they get very nervous about that.
[01:31:25.200 --> 01:31:28.120] And so they line up outside and say, I want my money.
[01:31:28.120 --> 01:31:32.560] And when the banks see that line up, they say, uh-oh, we don't have enough money to
[01:31:32.560 --> 01:31:33.560] pay all these people.
[01:31:33.560 --> 01:31:36.000] We've spent it or loaned it or something.
[01:31:36.000 --> 01:31:39.240] And so they declare a bank holiday and they close their doors.
[01:31:39.240 --> 01:31:41.360] So that sort of thing was going on.
[01:31:41.360 --> 01:31:46.860] And the American people said, well, we've got to have our Congress put a stop to this.
[01:31:46.860 --> 01:31:52.000] And so the purpose of the National Monetary Commission was to explore legislation which
[01:31:52.000 --> 01:31:58.360] was going to put an end to all of that kind of economic catastrophe in the system and
[01:31:58.360 --> 01:32:04.560] to defend the American consumer and stabilize the purchasing power of the dollar and all
[01:32:04.560 --> 01:32:09.120] of those things that the Federal Reserve system has never done.
[01:32:09.120 --> 01:32:10.880] But that's what the whole idea was.
[01:32:10.880 --> 01:32:18.640] And so back to Aldrich, he was chairman of that committee and he was an associate, a
[01:32:18.640 --> 01:32:22.040] business associate of JP Morgan.
[01:32:22.040 --> 01:32:26.720] He was the father-in-law to John D. Rockefeller, Jr.
[01:32:26.720 --> 01:32:30.120] So sort of in the family, as you can see.
[01:32:30.120 --> 01:32:36.960] Being the father-in-law to John D. Rockefeller, Jr., that means he was the grandfather of
[01:32:36.960 --> 01:32:38.320] our former vice president.
[01:32:38.320 --> 01:32:41.520] You may remember Nelson Rockefeller.
[01:32:41.520 --> 01:32:46.760] If you remember his middle name, it was Aldrich, Nelson Aldrich Rockefeller.
[01:32:46.760 --> 01:32:50.400] And so he was named after his famous grandfather.
[01:32:50.400 --> 01:32:55.760] So with those connections, he was just the kind of a guy to break the grip of the money
[01:32:55.760 --> 01:32:59.680] trust.
[01:32:59.680 --> 01:33:03.080] The next person on board was Abraham Piat Andrew.
[01:33:03.080 --> 01:33:06.000] He was assistant secretary of the treasury at that time.
[01:33:06.000 --> 01:33:10.600] It doesn't tell you too much about him because it makes him sound like he's a political appointee,
[01:33:10.600 --> 01:33:12.680] which he was, but it makes him sound like he's a bureaucrat.
[01:33:12.680 --> 01:33:14.160] Actually, he's a banker.
[01:33:14.160 --> 01:33:18.960] He comes from a family of banking and he has strong banking connections, which is the reason
[01:33:18.960 --> 01:33:22.760] he had been appointed as the assistant secretary of the treasury.
[01:33:22.760 --> 01:33:24.200] The same thing that's going on today.
[01:33:24.200 --> 01:33:29.120] You notice the treasury secretaries all come from banking circles, so do the assistant
[01:33:29.120 --> 01:33:30.760] secretaries and so forth.
[01:33:30.760 --> 01:33:36.120] So although you get the feeling that they represent the political side of the picture,
[01:33:36.120 --> 01:33:37.120] they don't.
[01:33:37.120 --> 01:33:38.120] They're all bankers.
[01:33:38.120 --> 01:33:41.400] No matter which side you look, and it certainly was true in those days.
[01:33:41.400 --> 01:33:43.640] The third man on board was Frank Vanderlip.
[01:33:43.640 --> 01:33:47.920] Now, he's the guy that was a prolific writer and wrote the article that appeared in the
[01:33:47.920 --> 01:33:52.000] Saturday Evening Post, also wrote a book in later years.
[01:33:52.000 --> 01:33:57.560] And he was president of the National City Bank of New York, which is the most powerful
[01:33:57.560 --> 01:33:59.880] of all the banks at that time.
[01:33:59.880 --> 01:34:06.600] And as such, he represented the financial interests of William Rockefeller and the international
[01:34:06.600 --> 01:34:14.600] investment firm of Kuhn, Loeb and Company, very powerful, very large investment firm.
[01:34:14.600 --> 01:34:16.960] The next person on board was Henry Davison.
[01:34:16.960 --> 01:34:21.160] He was senior partner of the J.P. Morgan Company.
[01:34:21.160 --> 01:34:26.240] Next was Charles Norton, president of the First National Bank of New York, another one
[01:34:26.240 --> 01:34:28.240] of the giants.
[01:34:28.240 --> 01:34:30.320] Benjamin Strong was on board.
[01:34:30.320 --> 01:34:34.360] He was the head of J.P. Morgan's Bankers Trust Company.
[01:34:34.360 --> 01:34:40.760] And he later became the first actual acting head of the Federal Reserve System when it
[01:34:40.760 --> 01:34:43.880] was formed three years later.
[01:34:43.880 --> 01:34:49.080] And finally, there was Paul Warburg, probably, at least in my view, he was probably the most
[01:34:49.080 --> 01:34:55.440] important person there from a technical point of view because he was born in Europe, came
[01:34:55.440 --> 01:34:56.960] from a banking family there.
[01:34:56.960 --> 01:34:59.760] He's a naturalized American citizen.
[01:34:59.760 --> 01:35:03.080] And he understood European banking very well.
[01:35:03.080 --> 01:35:07.280] That was his origin, his family, business.
[01:35:07.280 --> 01:35:10.880] And although he was an American citizen now, he was the only one that really understood
[01:35:10.880 --> 01:35:16.520] the intricacies of what they call central banking as it developed in Europe and as it
[01:35:16.520 --> 01:35:20.360] became exemplified in the Bank of England.
[01:35:20.360 --> 01:35:24.880] And he was really the technical expert, but he was a full partner in this country.
[01:35:24.880 --> 01:35:28.120] But he was a full partner in Kuhn, Loeb & Company.
[01:35:28.120 --> 01:35:33.960] He represented the wealth of the Rothschild banking dynasty in England and France.
[01:35:33.960 --> 01:35:39.480] He was the brother to Max Warburg, who was the head of the Warburg Banking Consortium
[01:35:39.480 --> 01:35:43.560] in Germany and the Netherlands.
[01:35:43.560 --> 01:35:46.760] And of course, he was the real Daddy Warbucks.
[01:35:46.760 --> 01:35:51.560] Those of you who are familiar with Little Orphan Annie, remember the cartoon caricature
[01:35:51.560 --> 01:35:52.980] of Daddy Warbucks?
[01:35:52.980 --> 01:35:57.840] That was modeled after Paul Warburg, Paul Warburg, Daddy Warbucks.
[01:35:57.840 --> 01:36:04.740] If you look at a photograph of Paul Warburg, you'll see the dead resemblance, the dead
[01:36:04.740 --> 01:36:07.960] ringer for the caricature figure of Daddy Warbucks.
[01:36:07.960 --> 01:36:14.720] And everybody at the time, I am told, knew that the caricature was of Paul Warburg.
[01:36:14.720 --> 01:36:19.080] Now those are the men that traveled on board that private railroad car and went to Jekyll
[01:36:19.080 --> 01:36:27.440] Island and created the Federal Reserve System to break the grip of the money trust.
[01:36:27.440 --> 01:36:36.000] Now according to the estimates at the time, published in papers like the New York Times,
[01:36:36.000 --> 01:36:43.240] these people represented through the wealth that they held themselves directly and also
[01:36:43.240 --> 01:36:49.400] from the wealth they controlled indirectly through the investment firms, which they represented
[01:36:49.400 --> 01:36:57.440] here and in Europe, approximately one-fourth of the wealth of the entire world.
[01:36:57.440 --> 01:37:04.400] Now that's not my estimate that comes from observers of the time writing about these
[01:37:04.400 --> 01:37:07.560] men and the groups which they represented.
[01:37:07.560 --> 01:37:14.320] Now the question that should come to the mind of any healthy skeptic is did it really happen
[01:37:14.320 --> 01:37:15.760] that way?
[01:37:15.760 --> 01:37:21.840] You might suspect that maybe I've distorted some of these facts just to make a story good,
[01:37:21.840 --> 01:37:26.640] but unfortunately it did happen exactly that way, if not even more so.
[01:37:26.640 --> 01:37:32.720] And although if this were my original presentation, I would take some time to read to you somewhat
[01:37:32.720 --> 01:37:38.440] lengthy quotations from the participants of this meeting themselves who confirmed all
[01:37:38.440 --> 01:37:40.640] of the details.
[01:37:40.640 --> 01:37:46.000] I just have to ask you if you have any skepticism about this at all, please take a little time
[01:37:46.000 --> 01:37:50.400] and check out the references in The Creature from Jekyll Island, you'll see these quotations
[01:37:50.400 --> 01:37:55.860] there and you'll see the references and you'll realize that they do come from the original
[01:37:55.860 --> 01:37:57.160] sources themselves.
[01:37:57.160 --> 01:38:01.060] These are not observers talking, these are participants.
[01:38:01.060 --> 01:38:07.200] And in particular you'll find Van der Lippe talking about the elements of secrecy and
[01:38:07.200 --> 01:38:11.900] why they had to keep this secret and the fact that they were worried about the servants
[01:38:11.900 --> 01:38:13.480] on board the train.
[01:38:13.480 --> 01:38:17.980] And all of those things are spelled out by Van der Lippe in great detail, almost word
[01:38:17.980 --> 01:38:22.920] for word in what I mentioned just a moment ago.
[01:38:22.920 --> 01:38:27.540] But we come finally and most importantly to the question of why the secrecy.
[01:38:27.540 --> 01:38:32.960] And by now I think you probably have figured it out and Van der Lippe himself answers that
[01:38:32.960 --> 01:38:37.620] question in this famous article that I've been referring to, which by the way later
[01:38:37.620 --> 01:38:41.080] was expanded and was published in the form of a book.
[01:38:41.080 --> 01:38:45.720] You can go to any well stocked library today and get Van der Lippe's book and you'll read
[01:38:45.720 --> 01:38:47.280] this quotation.
[01:38:47.280 --> 01:38:53.080] He said, if it were to be exposed publicly that our particular group had got together
[01:38:53.080 --> 01:38:58.320] and written a banking bill, that bill would have had no chance, whatever, of passage by
[01:38:58.320 --> 01:38:59.320] Congress.
[01:38:59.320 --> 01:39:02.120] Of course, the scam would have been out in the open.
[01:39:02.120 --> 01:39:06.960] Here was a bill to be supposedly to break the grip of the money trust and have the American
[01:39:06.960 --> 01:39:12.680] people realize that it was drafted by the money trust itself, they might have been asked
[01:39:12.680 --> 01:39:14.360] a few questions.
[01:39:14.360 --> 01:39:17.980] So that's why they did it on Jekyll Island and that's why they lied about going to this
[01:39:17.980 --> 01:39:18.980] meeting.
[01:39:18.980 --> 01:39:23.300] After years afterwards, if they had been asked, did you go to a meeting on Jekyll Island?
[01:39:23.300 --> 01:39:24.480] Did you write the banking bill?
[01:39:24.480 --> 01:39:26.780] They all said, no, of course not.
[01:39:26.780 --> 01:39:30.360] Had the phrase been popular in those days, they would have said, what's kind of a conspiracy
[01:39:30.360 --> 01:39:32.360] theory is that?
[01:39:32.360 --> 01:39:34.800] Then they denied it.
[01:39:34.800 --> 01:39:40.360] It wasn't until after the Federal Reserve System had been passed into law and then a
[01:39:40.360 --> 01:39:44.820] period of some time after that, and finally the American public began to consider it as
[01:39:44.820 --> 01:39:50.560] a great American institution, then they began to talk openly about their role.
[01:39:50.560 --> 01:39:54.920] In fact, it became almost humorous because it seemed like they were competing with each
[01:39:54.920 --> 01:40:01.240] other for the title of being the most influential person at the meeting.
[01:40:01.240 --> 01:40:05.680] It was interesting for me to follow this over a period of about a 10 or 12 year period and
[01:40:05.680 --> 01:40:10.640] see how their attitudes changed from total denial to finally claiming that they were
[01:40:10.640 --> 01:40:16.280] not only there, but they were probably the most important person there.
[01:40:16.280 --> 01:40:21.280] As I said a moment ago, you can go to any Wellstock library and learn all of this, but
[01:40:21.280 --> 01:40:22.360] you will not find it.
[01:40:22.360 --> 01:40:28.400] I guarantee you, you will not find it in the textbooks of America, and you certainly will
[01:40:28.400 --> 01:40:36.200] not find it mentioned in any form in the major media of this country.
[01:40:36.200 --> 01:40:39.880] Something else can be learned by looking at that meeting on Jekyll Island.
[01:40:39.880 --> 01:40:46.020] I think everything we need to know of importance today in understanding what is happening in
[01:40:46.020 --> 01:40:51.960] Washington with all of these bailout programs and all these stimulus packages and the creation
[01:40:51.960 --> 01:40:58.520] of unfathomable amounts of money, everything that we need to know about why that is happening
[01:40:58.520 --> 01:41:06.640] and who is doing it can be understood better if we really just pause for a moment and study
[01:41:06.640 --> 01:41:11.960] what happened on Jekyll Island, because that is the genesis of it.
[01:41:11.960 --> 01:41:14.080] Everything was put in motion there.
[01:41:14.080 --> 01:41:18.440] That is where the clock was wound up and the ticking started.
[01:41:18.440 --> 01:41:23.100] One of the things you will notice, and it took me quite a while by the way, I was looking
[01:41:23.100 --> 01:41:28.640] at this for quite a while during my research until finally it just dawned on me, my gosh,
[01:41:28.640 --> 01:41:32.540] I said look at these people, these names I just mentioned, they are all sitting around
[01:41:32.540 --> 01:41:36.800] the table on Jekyll Island and they are coming to an agreement of some kind.
[01:41:36.800 --> 01:41:39.880] Doesn't that seem strange?
[01:41:39.880 --> 01:41:45.600] Because here we are, the Rothschilds represented, the Rockefellers, Kuhn-Lobin Company, J.P.
[01:41:45.600 --> 01:41:53.280] Morgan, the Warburgs, European, American, and yes it is very strange because you see
[01:41:53.280 --> 01:41:56.960] these were competitors.
[01:41:56.960 --> 01:42:02.520] Prior to this point in history these are the giant financial firms that were fighting against
[01:42:02.520 --> 01:42:06.440] each other for dominance in the world markets.
[01:42:06.440 --> 01:42:11.200] Blood all over the battlefield in Paris and London and New York and now they are sitting
[01:42:11.200 --> 01:42:16.280] around like gentlemen and coming to an agreement of some kind.
[01:42:16.280 --> 01:42:20.680] And finally the bells begin to go off and you realize that this happened precisely at
[01:42:20.680 --> 01:42:29.120] the time of American history that some historians refer to as the dawning of the cartel.
[01:42:29.120 --> 01:42:37.560] And it is true, prior to the turn of the century America had gone from virtually a wilderness,
[01:42:37.560 --> 01:42:44.400] a frontier land, to one of the greatest output industrial societies the world has ever seen
[01:42:44.400 --> 01:42:51.160] in a very short period of time, primarily in my opinion because of free enterprise competition.
[01:42:51.160 --> 01:42:54.700] Competition, freedom is what did it.
[01:42:54.700 --> 01:42:58.680] You had to produce a better product or a better service at a lower price.
[01:42:58.680 --> 01:43:02.080] If you could do that you could make a lot of money and everybody wanted to make money
[01:43:02.080 --> 01:43:06.920] so they competed for product and service.
[01:43:06.920 --> 01:43:14.520] Then after some of these most successful enterprises got to the top, people like the Morgans and
[01:43:14.520 --> 01:43:20.200] the Rockefellers and the Carnegie's, now they are at the top of the mountain.
[01:43:20.200 --> 01:43:25.880] Now they don't want competition anymore because if you allow competition to remain in place
[01:43:25.880 --> 01:43:30.840] who knows there might be somebody coming up that will knock them off the top of the mountain.
[01:43:30.840 --> 01:43:35.560] And it was John D. Rockefeller himself who was quoted by all of his biographers as saying
[01:43:35.560 --> 01:43:39.280] competition is a sin.
[01:43:39.280 --> 01:43:44.560] And he believed it now that he was on top and he had spent most of his later years in
[01:43:44.560 --> 01:43:52.560] preventing competition in one way or another, buy it up, squeeze it out, ruthless tactics
[01:43:52.560 --> 01:43:59.360] but the most effective tactic of all is to join forces with your competition and to create
[01:43:59.360 --> 01:44:02.560] a cartel if it's big enough.
[01:44:02.560 --> 01:44:08.000] And so we saw at about the turn of the century many of these giant corporations beginning
[01:44:08.000 --> 01:44:12.960] to come together to form cartel arrangements where they would no longer compete.
[01:44:12.960 --> 01:44:17.080] They would say to each other basically well all right we're the giants, we're at the top,
[01:44:17.080 --> 01:44:21.920] it's okay to have two or three of us in the field but no more, we'll work together.
[01:44:21.920 --> 01:44:27.200] And so they began to come to agreements where they would fix prices or establish geographical
[01:44:27.200 --> 01:44:32.320] areas so they wouldn't compete there, they would share patents and processes and so forth.
[01:44:32.320 --> 01:44:37.440] And gradually all of these individual companies although they remained separate in ownership
[01:44:37.440 --> 01:44:43.200] and management began to eliminate competition between themselves until finally over a period
[01:44:43.200 --> 01:44:50.360] of time they emerged as essentially one company or at least one industry dominated by a cartel.
[01:44:50.360 --> 01:44:54.000] And there was no longer competition which means that the consumer had to pay a higher
[01:44:54.000 --> 01:44:57.400] price for the same product or service.
[01:44:57.400 --> 01:45:02.540] This was going on everywhere and lo and behold it jumps right off of the history page when
[01:45:02.540 --> 01:45:08.320] you look at that and you realize that the Federal Reserve System is a cartel and that
[01:45:08.320 --> 01:45:16.920] is what was created there.
[01:45:16.920 --> 01:45:22.040] It is no different than a banana cartel or a sugar cartel or an oil cartel, it happens
[01:45:22.040 --> 01:45:28.400] to be a banking cartel and the brilliance of these guys is that they knew that it's
[01:45:28.400 --> 01:45:33.560] always difficult to keep members of the cartel in line.
[01:45:33.560 --> 01:45:39.000] Just think about it for a minute, supposing you're running an oil cartel and you're crossing
[01:45:39.000 --> 01:45:43.520] national boundaries and you've got people in Mexico and people in the Middle East and
[01:45:43.520 --> 01:45:47.000] you've got countries everywhere in the world, they all got their oil wells and you say let's
[01:45:47.000 --> 01:45:52.320] get together guys so we can all fix the price or limit the supply to force the price up
[01:45:52.320 --> 01:45:57.240] whatever your decision is and everybody agrees, great.
[01:45:57.240 --> 01:46:02.240] Now a year down the line one of the members of the cartel, let's say Mexico, says you
[01:46:02.240 --> 01:46:07.360] know we've got a lot of oil here, we're not pumping as much as we could, I think if we
[01:46:07.360 --> 01:46:11.860] lowered our price a little bit and broke the cartel agreement we could make more money
[01:46:11.860 --> 01:46:14.720] than even we are now making it through the cartel.
[01:46:14.720 --> 01:46:18.400] And they may decide to break the cartel agreement, well what are the other cartel members going
[01:46:18.400 --> 01:46:19.400] to do about it?
[01:46:19.400 --> 01:46:22.000] Nothing they can't do about it.
[01:46:22.000 --> 01:46:26.480] Well yes they could hire some jackals and they could you know do that sort of thing,
[01:46:26.480 --> 01:46:32.800] they could get involved in assassination attempts and that kind of thing which happens but basically
[01:46:32.800 --> 01:46:40.400] there's nothing they can do about it legally unless they bring government into it.
[01:46:40.400 --> 01:46:45.440] Now if you bring government into your cartel agreement and you take the cartel agreement
[01:46:45.440 --> 01:46:52.680] and make it law, now the government is your enforcer.
[01:46:52.680 --> 01:46:58.560] First time I ran into that years ago I saw the same thing happen in the Midwest in the
[01:46:58.560 --> 01:47:05.280] dairy cartel, they call it the Dairy Association.
[01:47:05.280 --> 01:47:10.480] The dairy producers in the Midwest, I forgot the year on this but I think it was early
[01:47:10.480 --> 01:47:17.720] 1960s, were concerned because some of the dairies were selling milk too cheaply, they
[01:47:17.720 --> 01:47:22.480] were undercutting the market and the big producers said no we don't like this, how are we going
[01:47:22.480 --> 01:47:26.280] to keep these guys from undercutting us?
[01:47:26.280 --> 01:47:32.520] And so they got the politicians into the picture and they began to promote laws in all the
[01:47:32.520 --> 01:47:38.240] various states called Fair Trade Laws, doesn't that sound nice?
[01:47:38.240 --> 01:47:44.400] The object was to fix the price of milk, to make it illegal to charge any price for milk
[01:47:44.400 --> 01:47:51.040] except what was decided by the group as a cartel agreement, you couldn't raise or lower
[01:47:51.040 --> 01:47:55.560] your price, it was all fixed and they said well we have to do this because we don't want
[01:47:55.560 --> 01:48:02.240] people charging too much for milk, you know babies need milk and we don't want people
[01:48:02.240 --> 01:48:07.640] having malnutrition because they can't get milk and so this is a humanitarian effort,
[01:48:07.640 --> 01:48:12.960] they always couch their decisions in humanitarian purposes and so they got all of the dumb
[01:48:12.960 --> 01:48:18.080] dumbs to pass these so called Fair Trade Laws which in the net effect was to raise the price
[01:48:18.080 --> 01:48:24.720] of milk throughout the Midwest and those undercutting the price were no longer able to do it legally.
[01:48:24.720 --> 01:48:29.400] This is exactly what happens with all cartels and you've noticed all of them tend to want
[01:48:29.400 --> 01:48:34.640] to go into partnership with government for exactly that reason and so the brilliance
[01:48:34.640 --> 01:48:40.000] of this group on Jekyll Island is that they took their cartel agreement and they took
[01:48:40.000 --> 01:48:45.560] it to Washington and they convinced these eggheads in Washington to take an eraser and
[01:48:45.560 --> 01:48:50.600] erase the top of the page which said cartel agreement and then they typed in the words
[01:48:50.600 --> 01:48:59.640] Federal Reserve Act and they passed it into law and now all the banks new and old must
[01:48:59.640 --> 01:49:07.240] obey, you and I must obey, nobody can escape the cartel agreement or we go to prison.
[01:49:07.240 --> 01:49:11.480] Now you understand right with that statement one of the most fundamental facts of the
[01:49:11.480 --> 01:49:16.320] Federal Reserve System and the reason it appears to be a government agency is because it has
[01:49:16.320 --> 01:49:22.480] the force of law behind it and if you violate its terms you can go to prison and so everybody
[01:49:22.480 --> 01:49:27.400] said well nobody can put you in prison except the government right so it must be government
[01:49:27.400 --> 01:49:32.920] when in fact it's a private cartel ladies and gentlemen which has simply gotten the
[01:49:32.920 --> 01:49:38.020] Congress of the United States to put its seal of approval on it and to pass the cartel agreement
[01:49:38.020 --> 01:49:39.880] into law.
[01:49:39.880 --> 01:49:44.320] Now you understand the Federal Reserve System far better than any graduate from Harvard
[01:49:44.320 --> 01:49:49.800] because they do not teach this at Harvard at all so we learn that by studying what happened
[01:49:49.800 --> 01:49:55.040] on Jekyll Island and now well we'll come to that in a minute and you can see what's
[01:49:55.040 --> 01:49:59.960] happening in Washington today and all of a sudden it makes more sense because we realize
[01:49:59.960 --> 01:50:04.440] we're dealing with the cartel and what is the purpose of the cartel?
[01:50:04.440 --> 01:50:10.480] It's not to protect the employment rate in the country, purpose of all cartels is the
[01:50:10.480 --> 01:50:15.960] same and that's to further the objective of the members of the cartel period.
[01:50:15.960 --> 01:50:20.920] If Greenspan or Bernanke were to come before some Congressional hearing and they were to
[01:50:20.920 --> 01:50:26.320] ask him well Mr. Bernanke why did you raise interest rates this week?
[01:50:26.320 --> 01:50:32.400] It wouldn't go over too well if he said well we figured we could get away with it.
[01:50:32.400 --> 01:50:34.040] That wouldn't go over too good.
[01:50:34.040 --> 01:50:40.280] No he said well we're trying to cool inflation because we want to stimulate the economy we
[01:50:40.280 --> 01:50:43.280] don't want the economy to go out of whack.
[01:50:43.280 --> 01:50:45.680] We did it for you folks in other words.
[01:50:45.680 --> 01:50:47.960] We're good citizens and that's why we did it.
[01:50:47.960 --> 01:50:53.520] So you have to be aware of the trickery and the sophistry of their explanations and it's
[01:50:53.520 --> 01:51:00.160] much easier if you always remember that the Chairman of the Federal Reserve System is
[01:51:00.160 --> 01:51:08.080] not the key man, he's an employee, he gets a paycheck and he takes orders and his bosses
[01:51:08.080 --> 01:51:13.160] are the heads of the largest banks in New York.
[01:51:13.160 --> 01:51:19.120] When Bernanke speaks he speaks for the banks period and then once you understand that then
[01:51:19.120 --> 01:51:22.720] it all becomes a lot simpler to unravel.
[01:51:22.720 --> 01:51:28.160] Alright the last thing I want to do is talk about the Mandrake Mechanism because this
[01:51:28.160 --> 01:51:31.560] is something that if you don't know about it you need to know about it.
[01:51:31.560 --> 01:51:37.920] I call it the Mandrake Mechanism because it's named after that comic book character of the
[01:51:37.920 --> 01:51:43.520] 1940s that I used to read all the time, Mandrake the Magician.
[01:51:43.520 --> 01:51:49.000] He was a guy that had this big black cape and he could wave the cape and all kinds of
[01:51:49.000 --> 01:51:54.040] things would materialize out of nothing in his cape and boom it would be there and then
[01:51:54.040 --> 01:51:57.540] he could wave it over here and it would all disappear so he could bring things into existence
[01:51:57.540 --> 01:52:02.200] and out of existence magically and I thought this is how they do it at the Federal Reserve
[01:52:02.200 --> 01:52:03.200] System.
[01:52:03.200 --> 01:52:08.840] This is how they create money and we're talking now about how money is created in the United
[01:52:08.840 --> 01:52:14.540] States and now throughout most of the world, the Mandrake Mechanism.
[01:52:14.540 --> 01:52:19.320] It starts with Congress, remember this is a partnership now, we have Congress involved,
[01:52:19.320 --> 01:52:23.920] we have the politicians involved and the bankers involved each for their mutual benefit so
[01:52:23.920 --> 01:52:28.280] let's take a brief look at what is the benefit to each of these groups and we'll start with
[01:52:28.280 --> 01:52:32.080] the politicians side, the Congress.
[01:52:32.080 --> 01:52:38.840] The politicians need more money always than they are willing to take in taxes.
[01:52:38.840 --> 01:52:45.320] Spending money gets them elected but taxing their taxpayers and their voters gets them
[01:52:45.320 --> 01:52:53.100] unelected and so the trick for most politicians has always been how do you provide benefits
[01:52:53.100 --> 01:52:59.320] without increasing taxes and the answer is very simple if you're a politician, you just
[01:52:59.320 --> 01:53:06.120] borrow it, it's just sort of like with an individual breadwinner having to make the
[01:53:06.120 --> 01:53:10.720] same decision, if you want to spend more than you earn, how do you do it?
[01:53:10.720 --> 01:53:16.680] Well, you can, if you want to you can borrow it and live pretty high for a little while
[01:53:16.680 --> 01:53:23.560] and then of course the day of reckoning arrives and then you lose a lot, maybe everything
[01:53:23.560 --> 01:53:29.200] but with Congress the day of reckoning doesn't really arrive because these guys know, because
[01:53:29.200 --> 01:53:34.640] they have the power of government behind them, they never have to repay that loan, it's not
[01:53:34.640 --> 01:53:40.800] a genuine loan at all, it has the appearance of a loan, they promise to pay you back but
[01:53:40.800 --> 01:53:47.880] as we'll see in a moment, they have no intention of ever paying back these loans, not one of
[01:53:47.880 --> 01:53:52.800] those guys ever thought about paying back a loan, here's how it works, they need another
[01:53:52.800 --> 01:53:58.960] million dollars today for some welfare program or some vote buying scheme, some medical program
[01:53:58.960 --> 01:54:03.280] that they're working on and they need lots of money and so they borrow money from the
[01:54:03.280 --> 01:54:09.200] private sector and they said well we'll borrow it for one year and we'll pay it back a year
[01:54:09.200 --> 01:54:15.320] from now plus interest, so far so good but a year from now arrives, now these guys in
[01:54:15.320 --> 01:54:19.840] Congress still don't have enough money to pay their current bills much less pay back
[01:54:19.840 --> 01:54:24.800] the old loans they made a year ago plus interest, so how do they handle that?
[01:54:24.800 --> 01:54:29.240] Well it's easy, they just borrow some more, this time enough to cover the old loan plus
[01:54:29.240 --> 01:54:34.520] interest plus to cover the new spending projects that are underfunded and so the phenomena
[01:54:34.520 --> 01:54:39.520] we see of the national debt going up each year is well known to everybody, these guys
[01:54:39.520 --> 01:54:43.160] as I say have no intention of ever paying that back, they just keep borrowing more and
[01:54:43.160 --> 01:54:49.360] more and more but notice that through, I don't know if you've already followed this, where
[01:54:49.360 --> 01:54:52.180] does this money come from that the government is borrowing?
[01:54:52.180 --> 01:54:56.880] We know that individuals will go and buy government bonds right, we know that corporations buy
[01:54:56.880 --> 01:55:02.240] government bonds, we know that investment funds buy government bonds, we know that foreign
[01:55:02.240 --> 01:55:07.640] countries buy government bonds all because they figure it's a good investment that's
[01:55:07.640 --> 01:55:13.380] going to be paid back plus interest no matter what because it's backed by what they call
[01:55:13.380 --> 01:55:18.500] the full faith and credit of the United States government and that makes everybody feel kind
[01:55:18.500 --> 01:55:22.700] of warm inside.
[01:55:22.700 --> 01:55:26.720] What is better than the full faith and credit of the United States government?
[01:55:26.720 --> 01:55:30.280] Well until you think about it, what does that mean?
[01:55:30.280 --> 01:55:35.160] That means the politicians are saying we promise to pay you back everything we borrow from
[01:55:35.160 --> 01:55:41.020] you plus interest, by golly we will do it, if we have to tax from you everything you
[01:55:41.020 --> 01:55:44.920] have to do it, we will do it.
[01:55:44.920 --> 01:55:48.960] In other words you're the backing yourself, the American people is the full faith and
[01:55:48.960 --> 01:55:54.600] credit not of the government but the full faith of the people of the United States and
[01:55:54.600 --> 01:55:58.320] they're going to pay all of that back but not the government, not the politicians at
[01:55:58.320 --> 01:55:59.320] all.
[01:55:59.320 --> 01:56:04.760] Anyway so they borrow it from people or institutions that's my main point here and that money already
[01:56:04.760 --> 01:56:07.080] exists does it not?
[01:56:07.080 --> 01:56:10.540] People have saved it and they buy bonds with it.
[01:56:10.540 --> 01:56:14.520] So consider that for a moment, this is money that's already out there so where's this
[01:56:14.520 --> 01:56:16.480] inflation come from?
[01:56:16.480 --> 01:56:21.280] It doesn't come from that at all because no new money is created, it's just being turned
[01:56:21.280 --> 01:56:24.080] over as loans and interest and so forth.
[01:56:24.080 --> 01:56:30.380] But now the truth of the matter is that they never can borrow enough in that fashion, there's
[01:56:30.380 --> 01:56:35.840] always a shortfall and it's the shortfall that gets interesting.
[01:56:35.840 --> 01:56:41.840] When I started to do this research the shortfall was about seven percent, in other words seven
[01:56:41.840 --> 01:56:47.520] percent of the money that the government needed back in 1994, 1993, when I was looking at
[01:56:47.520 --> 01:56:53.160] the statistics, they could not borrow from the private sector at all, it wasn't there,
[01:56:53.160 --> 01:56:57.800] they would have had to raise interest rates considerably to attract that additional seven
[01:56:57.800 --> 01:57:01.000] percent, they did not want to raise interest rates.
[01:57:01.000 --> 01:57:02.680] And so what do they do?
[01:57:02.680 --> 01:57:06.400] Well they just walk down the street to the Federal Reserve System.
[01:57:06.400 --> 01:57:11.720] Now put a pause on that for a second, today I don't know what the shortfall is because
[01:57:11.720 --> 01:57:15.920] I have not seen the statistics, they're not publishing the statistics, can you imagine
[01:57:15.920 --> 01:57:16.920] that?
[01:57:16.920 --> 01:57:24.520] And but my guess is that the shortfall today is running about 30 to 40 percent and I'm
[01:57:24.520 --> 01:57:29.680] thinking that the way things are currently going that probably by this time next year
[01:57:29.680 --> 01:57:34.200] could be 50, 60, maybe 70 percent shortfall.
[01:57:34.200 --> 01:57:36.680] So where does that shortfall come from?
[01:57:36.680 --> 01:57:41.000] Back to our little scenario, let's say that the Treasury official walks down the street
[01:57:41.000 --> 01:57:47.840] to the Federal Reserve building and he walks in there and the president of the Federal
[01:57:47.840 --> 01:57:52.240] Reserve branch says good evening sir, good morning sir, why don't you come in, we've
[01:57:52.240 --> 01:57:57.000] been expecting you, because they arrive there every day, they want money, he says come into
[01:57:57.000 --> 01:58:02.600] my office, mind you this is all fictional, it doesn't really happen this way, these loans
[01:58:02.600 --> 01:58:07.640] are made quickly with a phone call or maybe an email or some kind of a protected internet
[01:58:07.640 --> 01:58:11.520] exchange and it's all done with keystrokes on a computer today.
[01:58:11.520 --> 01:58:15.080] But anyways just to keep it clear in our minds, imagine the Treasury official walks into the
[01:58:15.080 --> 01:58:19.560] Federal Reserve building and he says sit down sir, how much money do you want today?
[01:58:19.560 --> 01:58:23.760] And the Treasury official would say well another trillion today would be just about right,
[01:58:23.760 --> 01:58:26.300] that is going until noon tomorrow.
[01:58:26.300 --> 01:58:31.960] And so Federal Reserve's guy says all right, no problem sir, he opens up this big desk
[01:58:31.960 --> 01:58:36.160] drawer, pulls out the big black checkbook and he writes a check to the United States
[01:58:36.160 --> 01:58:41.760] government for one trillion dollars, signs it, hands it to the Treasury official, thank
[01:58:41.760 --> 01:58:46.680] you very much, out he goes, down the street deposits the trillion dollar check into the
[01:58:46.680 --> 01:58:51.960] bank account of the government and now the government has a trillion dollars.
[01:58:51.960 --> 01:58:56.160] Didn't have to come from the private sector at all, came from the Federal Reserve system.
[01:58:56.160 --> 01:58:59.400] Now the question is where did that money come from?
[01:58:59.400 --> 01:59:01.640] What account did the Federal Reserve have?
[01:59:01.640 --> 01:59:03.600] Who put the money in there?
[01:59:03.600 --> 01:59:07.880] The amazing answer is that there is no account, there's no money, there's nothing.
[01:59:07.880 --> 01:59:14.760] That money is just created out of thin air, this comes from heaven.
[01:59:14.760 --> 01:59:19.480] And you know if you and I were to do this, we would go to jail very fast, but they can
[01:59:19.480 --> 01:59:25.160] do it because Congress wants them to do it.
[01:59:25.160 --> 01:59:27.060] Think about that.
[01:59:27.060 --> 01:59:32.660] The politicians really don't ever have to worry about what anything costs.
[01:59:32.660 --> 01:59:39.000] They can vote trillions and trillions of dollars for health care, social security benefits,
[01:59:39.000 --> 01:59:46.080] for stimulus packages, they can conduct wars, 97 wars all at once, whatever it costs, do
[01:59:46.080 --> 01:59:47.080] they care?
[01:59:47.080 --> 01:59:50.160] Why should they care?
[01:59:50.160 --> 01:59:53.680] Whatever the shortfall is, they can go to the Federal Reserve system and by agreement,
[01:59:53.680 --> 01:59:59.440] this is a partnership, by a partnership agreement the Fed will create that money out of thin
[01:59:59.440 --> 02:00:07.520] air and give it to the government in the pretext of loaning it to them.
[02:00:07.520 --> 02:00:10.800] But they didn't really loan it, they just created it for the government, it's the same
[02:00:10.800 --> 02:00:17.240] mechanism that in the old days would be done by turning on the printing presses, just printing
[02:00:17.240 --> 02:00:18.240] the money.
[02:00:18.240 --> 02:00:21.640] Well there's too much of it now to work that way, people are used to checkbook money now
[02:00:21.640 --> 02:00:26.200] and computer money so hauling all of that paper money around would be very inconvenient
[02:00:26.200 --> 02:00:30.120] so it never sees the light of paper money.
[02:00:30.120 --> 02:00:36.240] Less than 3% of all the money in circulation is in coin and currency, all the rest is digital
[02:00:36.240 --> 02:00:42.240] but it's money nevertheless and so that's just created out of thin air and it goes into
[02:00:42.240 --> 02:00:47.200] the economy and the politicians don't have to worry about it at all.
[02:00:47.200 --> 02:00:48.920] So that's why they're in it.
[02:00:48.920 --> 02:00:52.920] Now let's take it to the next step, see why the banks are in it.
[02:00:52.920 --> 02:01:00.880] Let's take $10,000, no let's make it simpler, let's take $1,000 of that huge amount of money
[02:01:00.880 --> 02:01:04.520] that was created for the Fed and trace it.
[02:01:04.520 --> 02:01:07.560] Let's say it's given to a fellow that delivers our mail.
[02:01:07.560 --> 02:01:12.440] The postal worker gets a $1,000 check from the federal government and now he's got it
[02:01:12.440 --> 02:01:15.700] in his hand, nothing better than a government check, it's good money.
[02:01:15.700 --> 02:01:22.160] So he takes it down the street to his bank, the private bank where his account is and
[02:01:22.160 --> 02:01:26.080] he makes a deposit into his checking account.
[02:01:26.080 --> 02:01:31.800] Now that money is out of the Federal Reserve government side of the partnership and into
[02:01:31.800 --> 02:01:38.320] the private banking side of the partnership as a deposit into the banking system.
[02:01:38.320 --> 02:01:44.400] Here's what happens, if I were the president of that bank I could stand up in front of
[02:01:44.400 --> 02:01:49.080] the room there where all the people are lined up at the windows and I could say, attention
[02:01:49.080 --> 02:01:54.640] everybody, excuse me, I'm the president of the bank and I want to tell you, we have some
[02:01:54.640 --> 02:02:00.640] good news, this gentleman over here just deposited $1,000 into our venerable bank and we now
[02:02:00.640 --> 02:02:06.520] have money to loan and that's good news because a lot of people are in the banks to borrow
[02:02:06.520 --> 02:02:10.880] money and they know that the more money that the banks have to loan usually the lower the
[02:02:10.880 --> 02:02:16.360] interest rate so that's all good news but perhaps this lady over here would say, did
[02:02:16.360 --> 02:02:19.360] you say $1,000?
[02:02:19.360 --> 02:02:23.680] Well I guess you can't help me because I'm looking, I want to buy a used car to take
[02:02:23.680 --> 02:02:30.120] the kids to school and I need $9,000, I need to borrow $9,000 and I guess you can't help
[02:02:30.120 --> 02:02:36.000] me, I'll go somewhere else and if I were a really good bank president I would say, excuse
[02:02:36.000 --> 02:02:40.480] me madam, don't worry about that, just take a seat at my desk, I'll be with you in a minute
[02:02:40.480 --> 02:02:45.840] and if she would say, but you said $1,000 and I want nine, you can't loan me nine on
[02:02:45.840 --> 02:02:50.260] the basis of nine, I mean nine on the basis of one and I would say, do you want the money
[02:02:50.260 --> 02:02:53.000] or not?
[02:02:53.000 --> 02:02:57.080] And the truth of the matter is that after you consider all the bells and whistles and
[02:02:57.080 --> 02:03:02.480] all the complicated accounting and all the delaying actions, you get it all condensed
[02:03:02.480 --> 02:03:10.720] down to one formula, the answer is yes, I can loan $9,000 to her on the basis of the
[02:03:10.720 --> 02:03:18.760] $1,000 from him and when I'm all done I still got his $1,000 in the vault.
[02:03:18.760 --> 02:03:23.760] That's called fractional reserve banking and it's the way banks have been operated for
[02:03:23.760 --> 02:03:25.440] hundreds of years.
[02:03:25.440 --> 02:03:29.760] They don't have to have anything in the vault to loan you money, they just create it out
[02:03:29.760 --> 02:03:32.880] of nothing in terms of a ratio.
[02:03:32.880 --> 02:03:37.000] Fractional reserve means they only have to have a fraction of the amount that they loan.
[02:03:37.000 --> 02:03:42.200] The Federal Reserve System has had for many years a fraction formula, says that the banks
[02:03:42.200 --> 02:03:48.240] can loan any amount of money provided they have 10% of that amount in reserve in their
[02:03:48.240 --> 02:03:53.800] vault or on their accounting records as a reserve of some kind.
[02:03:53.800 --> 02:03:58.280] So as a bank president all I have to do is take his $1,000 and put it under a column
[02:03:58.280 --> 02:04:03.480] on a piece of paper and I write at the top, it says reserve, okay $1,000 reserve, that's
[02:04:03.480 --> 02:04:04.480] good.
[02:04:04.480 --> 02:04:10.720] Now let's see, I can loan $10,000 and still have 10% reserve so I can now create the other
[02:04:10.720 --> 02:04:12.320] $9,000 out of thin air.
[02:04:12.320 --> 02:04:17.480] That's basically how it works when you boil all the mechanisms down to a simple formula.
[02:04:17.480 --> 02:04:22.840] That means that for every trillion dollars created out of nothing for the federal government,
[02:04:22.840 --> 02:04:28.040] by the time it gets into the private sector, into commercial banking, up to an additional
[02:04:28.040 --> 02:04:34.120] $9 trillion can be created out of nothing and pushed into the economy in the form of
[02:04:34.120 --> 02:04:40.160] private loans and this is where the real action is in the American economy.
[02:04:40.160 --> 02:04:44.480] It's not in what they loan to the federal government but it's in what that triggers
[02:04:44.480 --> 02:04:50.960] and makes possible to loan to private investors and corporate investors and institutions.
[02:04:50.960 --> 02:04:54.560] So you can see now how money comes into existence.
[02:04:54.560 --> 02:04:55.560] It's not a bad deal.
[02:04:55.560 --> 02:05:01.760] I often thought to myself, why didn't I think of that?
[02:05:01.760 --> 02:05:04.760] So notice though there's a difference here.
[02:05:04.760 --> 02:05:11.080] When the money is created out of nothing for the federal government, they use that money
[02:05:11.080 --> 02:05:15.080] for their own expenditures.
[02:05:15.080 --> 02:05:21.200] When the money is created out of nothing for the banking side of this partnership, the
[02:05:21.200 --> 02:05:23.640] banks don't use it for their purposes.
[02:05:23.640 --> 02:05:30.200] They lend it to people like us and we pay interest on it.
[02:05:30.200 --> 02:05:33.760] So why do they do this?
[02:05:33.760 --> 02:05:36.280] Interest on nothing.
[02:05:36.280 --> 02:05:37.720] Think about that.
[02:05:37.720 --> 02:05:40.960] The banks are always saying, well, we've got these reserves and they say, we only charge
[02:05:40.960 --> 02:05:47.240] 3% on our reserves but they don't tell you about the other nine times that.
[02:05:47.240 --> 02:05:51.240] Whatever interest rates the banks tell you they're collecting on their reserves, mentally
[02:05:51.240 --> 02:05:56.000] multiply it by eight or nine and now you're looking at the true rate of return on what
[02:05:56.000 --> 02:06:02.120] they actually got because they charge interest on the things that they don't have as well
[02:06:02.120 --> 02:06:05.180] and you can't tell the difference between the two.
[02:06:05.180 --> 02:06:08.240] So what's the net effect of all of this?
[02:06:08.240 --> 02:06:11.880] You know, you might say jokingly as I do, I said, why didn't I think of that?
[02:06:11.880 --> 02:06:13.080] I think I should have been a banker.
[02:06:13.080 --> 02:06:16.420] I should have got my kids to go into banking and all of that sort of thing.
[02:06:16.420 --> 02:06:20.600] But you know, there's a consequence to this.
[02:06:20.600 --> 02:06:25.840] When this money is created out of nothing, the money supply expands.
[02:06:25.840 --> 02:06:27.920] Now we don't have time to go into the other side of it.
[02:06:27.920 --> 02:06:29.440] The money supply does contract too.
[02:06:29.440 --> 02:06:33.480] I'll be talking about that in my seminar, by the way, but there is a contraction side
[02:06:33.480 --> 02:06:36.480] to this equation, which is important to keep in mind.
[02:06:36.480 --> 02:06:43.320] But the net effect, after the contraction is subtracted out of the expansion, you always
[02:06:43.320 --> 02:06:46.440] historically have more expansion than contraction.
[02:06:46.440 --> 02:06:48.680] So you have this expanding money supply.
[02:06:48.680 --> 02:06:50.840] It's always been that way throughout history.
[02:06:50.840 --> 02:06:54.520] Can you imagine why it shouldn't be?
[02:06:54.520 --> 02:06:57.120] There are people with the ability to create money out of nothing.
[02:06:57.120 --> 02:06:58.120] You know what they're going to do?
[02:06:58.120 --> 02:07:00.400] They're going to create money out of nothing.
[02:07:00.400 --> 02:07:03.160] That's very profitable.
[02:07:03.160 --> 02:07:04.800] And so that's what happens.
[02:07:04.800 --> 02:07:09.400] The money supply expands and expands and expands, and that means that the purchasing power of
[02:07:09.400 --> 02:07:11.560] each of those units goes down.
[02:07:11.560 --> 02:07:16.640] So this phenomenon we call inflation, where it looks like prices are going up, not so.
[02:07:16.640 --> 02:07:19.640] What's really happening is that the value of the dollar is going down.
[02:07:19.640 --> 02:07:27.600] And if you have something of tangible value that took human effort to produce, I don't
[02:07:27.600 --> 02:07:35.800] care whether it is bottles of water or glass or gold or silver or rubber tires or a package
[02:07:35.800 --> 02:07:40.360] of dried milk or whatever it is that takes human effort to produce, and you were able
[02:07:40.360 --> 02:07:46.480] to track the value of that, its purchasing power would remain fairly constant over long
[02:07:46.480 --> 02:07:51.400] periods of time if you used it as barter because it's based on human effort.
[02:07:51.400 --> 02:07:57.000] But in terms of dollars, the price seems to be going up and up and up because the value
[02:07:57.000 --> 02:07:59.760] of the dollar goes down and down and down.
[02:07:59.760 --> 02:08:10.160] Today we're in a situation where if we had lived in 1913 and we had three cents in 1913,
[02:08:10.160 --> 02:08:14.720] what we could have bought with three cents now costs a dollar.
[02:08:14.720 --> 02:08:19.080] That's how much inflation, or I should say destruction, of the purchasing power of the
[02:08:19.080 --> 02:08:22.200] American dollar we've seen since 1913.
[02:08:22.200 --> 02:08:24.280] So that's the net effect of this.
[02:08:24.280 --> 02:08:31.480] And this is how the politicians intend to pay off the national debt, not by taking it
[02:08:31.480 --> 02:08:37.880] from you in direct taxes, not through your income taxes, but through your loss of purchasing
[02:08:37.880 --> 02:08:38.880] power.
[02:08:38.880 --> 02:08:45.680] The time will come in the lifetime of most people in this room when the American dollar
[02:08:45.680 --> 02:08:47.520] will be practically worthless.
[02:08:47.520 --> 02:08:53.440] They'll either convert it into some kind of a new monetary unit, a new dollar, a devalued
[02:08:53.440 --> 02:08:58.880] dollar will still give you one for every three or five of the old, or they'll convert it
[02:08:58.880 --> 02:09:04.320] to a new system like an amaro, which is a new currency they've been talking about, to
[02:09:04.320 --> 02:09:08.680] be shared by Mexico, Canada, and the United States.
[02:09:08.680 --> 02:09:13.120] Or it will be converted into a true international currency, which they're talking about right
[02:09:13.120 --> 02:09:19.000] now at the G20 level, which who knows what it will be called, let's for the sake of discussion
[02:09:19.000 --> 02:09:24.980] call it the UNO.
[02:09:24.980 --> 02:09:29.760] But in any event, something will happen because the value of the American dollar will just
[02:09:29.760 --> 02:09:33.640] go down, down, and down, and become worthless.
[02:09:33.640 --> 02:09:37.640] And as I say, one of the things we'll be talking about at the seminar is you better be aware
[02:09:37.640 --> 02:09:43.720] of that because if you don't get your assets out of dollars, if you have money in dollars,
[02:09:43.720 --> 02:09:50.960] dollar denominated investments like savings accounts, or insurance policies, or retirement
[02:09:50.960 --> 02:09:56.680] funds, or cash in the mattress, or whatever it is, you're just like standing on the railroad
[02:09:56.680 --> 02:10:00.440] tracks and the train is coming right for you.
[02:10:00.440 --> 02:10:04.840] And you better get off those tracks or you're going to lose everything.
[02:10:04.840 --> 02:10:07.960] That's the Mandrake mechanism.
[02:10:07.960 --> 02:10:08.960] So what did we get?
[02:10:08.960 --> 02:10:11.840] Let me wrap up part number one here.
[02:10:11.840 --> 02:10:16.840] We got a corporation, the Federal Reserve System, chartered by Congress, given the exclusive
[02:10:16.840 --> 02:10:19.680] franchise to create the nation's money supply.
[02:10:19.680 --> 02:10:23.200] Wow, what a brilliant stroke of genius that was.
[02:10:23.200 --> 02:10:27.840] We got a cartel that is a partner with the federal government to enforce the cartel agreement
[02:10:27.840 --> 02:10:33.920] and to create the illusion of being a public agency.
[02:10:33.920 --> 02:10:39.680] We got a mechanism whereby Congress can raise unlimited taxes through inflation without
[02:10:39.680 --> 02:10:43.040] the public even knowing that they're paying the tax.
[02:10:43.040 --> 02:10:48.000] They think that inflation has got something entirely unrelated, something to do unrelated
[02:10:48.000 --> 02:10:50.000] to their government.
[02:10:50.000 --> 02:10:54.640] And we got a law that allows the banks to collect interest on nothing.
[02:10:54.640 --> 02:11:02.880] And of late, we can see we got a golden parachute which enables the fraudulent banks to pass
[02:11:02.880 --> 02:11:09.320] on the inevitable losses of their operation to the taxpayers in the name of rescuing the
[02:11:09.320 --> 02:11:10.320] economy.
[02:11:10.320 --> 02:11:15.320] Ladies and gentlemen, these rescue packages that they talk about that are being rushed
[02:11:15.320 --> 02:11:20.560] through Congress almost every day now, these so-called stimulus packages are none of the
[02:11:20.560 --> 02:11:21.560] above.
[02:11:21.560 --> 02:11:33.040] They are nothing less than legalized plunder of the American taxpayers.
[02:11:33.040 --> 02:11:39.680] Well, I'm droning on here.
[02:11:39.680 --> 02:11:44.320] We finally get to part two, which won't be too long, won't be as long as part one.
[02:11:44.320 --> 02:11:50.240] But to just repeat that sound bite, today, Americans are making another wish to the government
[02:11:50.240 --> 02:11:56.320] or genie, this time to create unlimited quantities of money to protect them from hardship.
[02:11:56.320 --> 02:12:02.280] But what they are getting is unlimited quantities of money being used to deprive them of their
[02:12:02.280 --> 02:12:05.000] freedom.
[02:12:05.000 --> 02:12:12.600] The first question that comes to many people's minds is why do the American people tolerate
[02:12:12.600 --> 02:12:13.600] this?
[02:12:13.600 --> 02:12:17.500] How do we tolerate this?
[02:12:17.500 --> 02:12:26.880] And the unpleasant fact is that many Americans think it's just wonderful.
[02:12:26.880 --> 02:12:28.360] They're not tolerating it at all.
[02:12:28.360 --> 02:12:31.400] The folks like you in this room are very savvy.
[02:12:31.400 --> 02:12:33.680] You know what's going on.
[02:12:33.680 --> 02:12:39.960] But the American people have been put through a public education system that does not teach
[02:12:39.960 --> 02:12:41.800] basic economic principles.
[02:12:41.800 --> 02:12:45.080] They do not know what's really going on.
[02:12:45.080 --> 02:12:50.120] There are easy marks for these con artists.
[02:12:50.120 --> 02:12:55.040] They think that government money is free.
[02:12:55.040 --> 02:12:56.040] They really do.
[02:12:56.040 --> 02:13:00.480] I saw a Donahue program some months ago when the debate just started.
[02:13:00.480 --> 02:13:04.480] I think it was about government health care, you know?
[02:13:04.480 --> 02:13:08.160] And the issue was what should the government do?
[02:13:08.160 --> 02:13:10.040] How far should the government go?
[02:13:10.040 --> 02:13:11.040] How much should it pay?
[02:13:11.040 --> 02:13:13.680] Who should get what in all of these discussions?
[02:13:13.680 --> 02:13:17.560] And some lady raised her hand and Donahue went over and gave her the microphone and
[02:13:17.560 --> 02:13:22.040] she says, I don't understand why the government just doesn't pay for it all.
[02:13:22.040 --> 02:13:23.040] They've got the money.
[02:13:23.040 --> 02:13:28.320] Why don't they just pay for it and get off of our backs?
[02:13:28.320 --> 02:13:35.600] And I swear everybody in that auditorium cheered and applauded wildly at this statement.
[02:13:35.600 --> 02:13:50.320] I mean, these people are dumber than dirt.
[02:13:50.320 --> 02:13:52.720] They really think that this money comes from someone else.
[02:13:52.720 --> 02:13:57.560] So that's part of our problem is that we have a tremendous re-educational problem.
[02:13:57.560 --> 02:14:00.280] Not even re-educational because there's no re part of it.
[02:14:00.280 --> 02:14:05.880] It's just a pure educational problem as to basic economics, which is one of the things
[02:14:05.880 --> 02:14:09.600] that I'm hoping to do after we get through this crash course on money.
[02:14:09.600 --> 02:14:14.160] I'd like to start something on the internet and form what we are planning to call the
[02:14:14.160 --> 02:14:19.960] Freedom Academy with an important division, which will be half jokingly called a high
[02:14:19.960 --> 02:14:25.680] school course on money for those of us who missed it in high school.
[02:14:25.680 --> 02:14:29.620] Basic fundamentals of what money is and how interest works and so forth.
[02:14:29.620 --> 02:14:32.920] So people need to be educated.
[02:14:32.920 --> 02:14:33.920] Others are desperate.
[02:14:33.920 --> 02:14:40.440] Of course, many Americans are desperate and they're not too particular about ethics when
[02:14:40.440 --> 02:14:43.320] it comes to family survival.
[02:14:43.320 --> 02:14:44.600] They're in a hole.
[02:14:44.600 --> 02:14:49.440] Maybe they've been enticed into debt by creditor lending practices of the banks and now they're
[02:14:49.440 --> 02:14:50.880] desperate.
[02:14:50.880 --> 02:14:53.200] They're losing their homes or maybe they've lost their homes.
[02:14:53.200 --> 02:14:54.200] They've lost their job.
[02:14:54.200 --> 02:14:58.680] And you know, it's easy to see why a person under those conditions is not asking too many
[02:14:58.680 --> 02:14:59.680] questions.
[02:14:59.680 --> 02:15:02.200] They just want help and they need it badly.
[02:15:02.200 --> 02:15:05.880] I can feel very sympathetic toward those people.
[02:15:05.880 --> 02:15:09.320] Also, no one talks about the free market alternative.
[02:15:09.320 --> 02:15:15.400] You see, the media always frames the debate in terms of what I just mentioned a moment
[02:15:15.400 --> 02:15:18.120] ago, who gets what and how much and when.
[02:15:18.120 --> 02:15:23.720] They never allow anyone to discuss the option that nobody gets anything.
[02:15:23.720 --> 02:15:26.020] That's just not allowed in the debate.
[02:15:26.020 --> 02:15:27.680] It's how much and who.
[02:15:27.680 --> 02:15:29.600] And who's going to control?
[02:15:29.600 --> 02:15:31.960] And what government agency is going to have the power?
[02:15:31.960 --> 02:15:34.360] And how is it going to be divided up, you know?
[02:15:34.360 --> 02:15:39.080] And will it be transparent or not and all these issues?
[02:15:39.080 --> 02:15:45.240] Nobody's allowed to say, let the fraudulent banks fail, you know?
[02:15:45.240 --> 02:15:54.480] Of course, with that comes the argument, if the fraudulent banks fail, then a lot of people
[02:15:54.480 --> 02:15:58.520] will lose their money who have entrusted them that money to the fraudulent banks.
[02:15:58.520 --> 02:16:01.160] And that is unfortunately true.
[02:16:01.160 --> 02:16:05.000] But it's also true that if you don't let the fraudulent banks fail, they will continue
[02:16:05.000 --> 02:16:07.600] to be fraudulent forevermore.
[02:16:07.600 --> 02:16:10.200] And people will lose their money anyway.
[02:16:10.200 --> 02:16:11.200] And they'll lose it all.
[02:16:11.200 --> 02:16:15.280] Not just a few people losing some money, but everybody will lose everything because that
[02:16:15.280 --> 02:16:21.000] system is inevitably going to grind down into total government control over the economy.
[02:16:21.000 --> 02:16:22.640] And then it doesn't make any difference.
[02:16:22.640 --> 02:16:24.640] Everybody loses everything.
[02:16:24.640 --> 02:16:28.840] So those are some of the reasons that people put up with it.
[02:16:28.840 --> 02:16:33.280] This whole issue of executive salaries and bonuses, as far as I'm concerned, although
[02:16:33.280 --> 02:16:37.480] they're very dramatic issues, is totally a distraction.
[02:16:37.480 --> 02:16:42.600] The amount of money involved in these bonuses, although they're huge amounts to our ear,
[02:16:42.600 --> 02:16:49.760] they represent as such a tiny part of the total money being pushed through the system.
[02:16:49.760 --> 02:16:51.920] I think it's like a lightning rod.
[02:16:51.920 --> 02:16:57.520] The politician can stand up there and they can say, I'm all against these big bonuses.
[02:16:57.520 --> 02:16:58.520] This is outrageous.
[02:16:58.520 --> 02:17:00.600] And everybody says, oh, there's a good man.
[02:17:00.600 --> 02:17:02.040] I think I'll vote for him.
[02:17:02.040 --> 02:17:06.740] But meanwhile, the same guy turns around and votes for 1,000 times more money to be wasted
[02:17:06.740 --> 02:17:09.380] by giving it to the bank in general.
[02:17:09.380 --> 02:17:13.420] And so it winds up in the pockets of the same people, maybe not as bonuses, but just by
[02:17:13.420 --> 02:17:16.200] higher salaries or whatever.
[02:17:16.200 --> 02:17:18.400] The bonuses are not the issue.
[02:17:18.400 --> 02:17:19.400] That's not the principle.
[02:17:19.400 --> 02:17:23.440] The principle is that the money is going to the banks at all.
[02:17:23.440 --> 02:17:28.440] So let's talk about the transfer of wealth.
[02:17:28.440 --> 02:17:35.040] The question that arises is, why do we not already see a great deal more inflation than
[02:17:35.040 --> 02:17:36.040] you would expect?
[02:17:36.040 --> 02:17:40.800] I mean, for years, the Federal Reserve has been creating money out of nothing and expanding
[02:17:40.800 --> 02:17:41.800] the money supply.
[02:17:41.800 --> 02:17:46.080] And yet, the purchasing power of the dollar, although, yes, it has gone up, and yes, we've
[02:17:46.080 --> 02:17:49.040] lost 97% of it since 1913.
[02:17:49.040 --> 02:17:50.040] That's dramatic.
[02:17:50.040 --> 02:17:54.760] But you would expect in the last 10 years or so, it would be just like a straight vertical
[02:17:54.760 --> 02:17:55.760] climb.
[02:17:55.760 --> 02:17:56.760] And it hasn't been.
[02:17:56.760 --> 02:17:57.760] Why not?
[02:17:57.760 --> 02:17:59.040] Well, there are several reasons.
[02:17:59.040 --> 02:18:04.060] I won't take time for all of them, but let me give you just one that you may have missed.
[02:18:04.060 --> 02:18:10.800] If you consider that the economy is like a big bucket of water, and the amount of water
[02:18:10.800 --> 02:18:17.720] in the bucket represents the total money supply, and therefore, the more water there is compared
[02:18:17.720 --> 02:18:24.160] to the size of the bucket, which would be the supply of goods and services in the economy,
[02:18:24.160 --> 02:18:26.720] the more water there is and the more inflation.
[02:18:26.720 --> 02:18:27.960] Let's just use that analogy.
[02:18:27.960 --> 02:18:33.560] Well, why is it that the water isn't running over the sides with all the money, all the
[02:18:33.560 --> 02:18:37.320] water they're pouring into it by the trillions of gallons?
[02:18:37.320 --> 02:18:39.440] Why isn't it overflowing?
[02:18:39.440 --> 02:18:45.280] And the answer is because if you look at the bottom of the bucket, there are holes.
[02:18:45.280 --> 02:18:50.040] And the water is rushing out of the bottom almost as much as it's going in at the top.
[02:18:50.040 --> 02:18:51.520] Well, what are these holes?
[02:18:51.520 --> 02:18:52.520] Look.
[02:18:52.520 --> 02:18:57.400] You must remember that when the Fed creates money out of nothing like Mandrake, it can
[02:18:57.400 --> 02:18:59.280] wave this cape and create things.
[02:18:59.280 --> 02:19:01.920] It also makes things disappear.
[02:19:01.920 --> 02:19:09.760] And when money is based on debt, as ours is, when the debt goes down, the money supply
[02:19:09.760 --> 02:19:10.760] goes down.
[02:19:10.760 --> 02:19:20.000] It is a fact that if all of the debts in America, public and private, were to be paid off today,
[02:19:20.000 --> 02:19:26.840] fantasy, but if imagine that it were to happen, there wouldn't be one penny of money left
[02:19:26.840 --> 02:19:28.840] in circulation.
[02:19:28.840 --> 02:19:33.400] All of the money out there, the cash, the coins, the checkbook money, the computer money,
[02:19:33.400 --> 02:19:39.120] all of it would disappear back into the bank vaults, back into the ink wells, and back
[02:19:39.120 --> 02:19:41.720] into the computer chips from which they came.
[02:19:41.720 --> 02:19:44.280] There wouldn't be any money out there.
[02:19:44.280 --> 02:19:45.280] This is a fact.
[02:19:45.280 --> 02:19:47.960] It's not going to happen, of course.
[02:19:47.960 --> 02:19:53.640] But that means that when money goes out of existence, oh, I should say it that way, Ron,
[02:19:53.640 --> 02:19:59.000] when debt ceases to be, money does go out of existence.
[02:19:59.000 --> 02:20:06.480] And so when people are losing their houses, and there are foreclosures being made, and
[02:20:06.480 --> 02:20:11.240] the value of that house drops down, and the debt that the bank had on its books, they
[02:20:11.240 --> 02:20:17.480] thought, well, we're going to collect $300,000 from this poor sucker over here on this house,
[02:20:17.480 --> 02:20:20.920] and now the bank has the property back on its own books.
[02:20:20.920 --> 02:20:24.400] They call it REOs, or real estate owned.
[02:20:24.400 --> 02:20:27.120] Now they're lucky to sell it for $50,000.
[02:20:27.120 --> 02:20:30.600] What happened to the $250,000?
[02:20:30.600 --> 02:20:31.960] It disappeared.
[02:20:31.960 --> 02:20:36.160] The bank has to write that off of its books, and that money goes out of existence, right
[02:20:36.160 --> 02:20:38.480] down through the hole of the bucket.
[02:20:38.480 --> 02:20:43.120] When a person has a $30,000 credit card loan, and they finally go into default, I can't
[02:20:43.120 --> 02:20:44.440] pay it.
[02:20:44.440 --> 02:20:51.520] The bank has to write that off of its books, $30,000 just ceases to exist, mandrake at
[02:20:51.520 --> 02:20:54.820] work, and that goes out of the bottom of the bucket.
[02:20:54.820 --> 02:20:59.360] And so the fact of the matter is that while new money is coming in at the top, a lot of
[02:20:59.360 --> 02:21:04.120] it, huge loss of debt is going out of the bottom of the bucket.
[02:21:04.120 --> 02:21:09.300] So we get this strange phenomenon, and in spite of this quantity of new money coming
[02:21:09.300 --> 02:21:14.520] in, still inflation isn't as bad as we would expect it to be.
[02:21:14.520 --> 02:21:18.880] But there's one other aspect of this phenomenon that you should not miss, and that is the
[02:21:18.880 --> 02:21:25.040] difference between who is involved at the top of the bucket and who is involved at the
[02:21:25.040 --> 02:21:26.040] bottom.
[02:21:26.040 --> 02:21:32.600] At the bottom of the bucket, the people losing the money are in the middle class.
[02:21:32.600 --> 02:21:36.200] They're the ones losing their homes, their cars, their savings accounts, losing their
[02:21:36.200 --> 02:21:43.760] jobs, they're losing their credit because of credit card foreclosures or write-offs
[02:21:43.760 --> 02:21:44.760] and so forth.
[02:21:44.760 --> 02:21:48.400] Those are the people that are suffering, and the value is coming from the middle class
[02:21:48.400 --> 02:21:50.400] out of the bottom of the bucket.
[02:21:50.400 --> 02:21:55.120] But the ones at the top who are getting this huge influx of fresh money are the politically
[02:21:55.120 --> 02:21:57.080] favored class.
[02:21:57.080 --> 02:22:03.920] And so even though the quantity of money is remaining approximately the same in the bucket,
[02:22:03.920 --> 02:22:07.800] there's a transfer of wealth moving from the bottom to the top.
[02:22:07.800 --> 02:22:13.200] The people at the top who are politically favored are getting more and more wealthy,
[02:22:13.200 --> 02:22:18.600] fabulously wealthy, whereas the middle class is being squeezed out of existence at the
[02:22:18.600 --> 02:22:20.160] bottom of the bucket.
[02:22:20.160 --> 02:22:24.600] So you have to keep your eye on several aspects of this formula to really appreciate what's
[02:22:24.600 --> 02:22:28.600] happening in American society today.
[02:22:28.600 --> 02:22:31.280] Are we going to have inflation or deflation?
[02:22:31.280 --> 02:22:37.720] I believe that in the bubble sectors that we have seen, such as the stock market and
[02:22:37.720 --> 02:22:43.920] the real estate market, we will continue to see deflation because the bubbles were so
[02:22:43.920 --> 02:22:44.920] big.
[02:22:44.920 --> 02:22:49.680] In my personal view, they haven't collapsed as far as they will eventually in order to
[02:22:49.680 --> 02:22:54.880] come down to some kind of a reasonable relationship to their underlying value.
[02:22:54.880 --> 02:22:59.480] I think that's particularly true of the stock market, which they keep pumping up and up
[02:22:59.480 --> 02:23:05.060] again to the point where people laugh at how absurd, they say, for anyone to believe that
[02:23:05.060 --> 02:23:10.320] they could have expected the toxic waste real estate market not to crash.
[02:23:10.320 --> 02:23:14.080] I mean, here they had all these subprime loans.
[02:23:14.080 --> 02:23:16.460] Everyone knew that there was no value underneath it.
[02:23:16.460 --> 02:23:21.720] How could you be so silly as to invest in a subprime loan package of investments, they
[02:23:21.720 --> 02:23:22.720] say now?
[02:23:22.720 --> 02:23:26.520] The same people who were pushing it a few years ago are now saying, well, they were
[02:23:26.520 --> 02:23:29.840] so wise that they didn't do it themselves.
[02:23:29.840 --> 02:23:34.520] But the same thing could be said about the real estate market, I mean, the stock market
[02:23:34.520 --> 02:23:35.520] today.
[02:23:35.520 --> 02:23:37.600] Where is the underlying value in the stock markets?
[02:23:37.600 --> 02:23:39.560] Look at the price earnings ratios.
[02:23:39.560 --> 02:23:43.640] Look at the dividends that the corporations are paying or not paying.
[02:23:43.640 --> 02:23:45.920] Look at the loss in value in the assets.
[02:23:45.920 --> 02:23:47.340] Look at the loss in sales.
[02:23:47.340 --> 02:23:52.760] Look at the shrinking of the companies, the layoffs and the abandonment of markets.
[02:23:52.760 --> 02:23:56.880] And you tell me that there's value there to support an expanding stock market?
[02:23:56.880 --> 02:24:02.840] It's exactly the same bubble that we saw with the subprime market in my view.
[02:24:02.840 --> 02:24:07.160] So I think that both of those, the real estate and the stock market, have quite a way to
[02:24:07.160 --> 02:24:11.040] go before they find their true equilibrium.
[02:24:11.040 --> 02:24:17.560] But almost everything else, where prices were based pretty much on human effort, I think
[02:24:17.560 --> 02:24:20.400] we're going to see inflation and a lot of it.
[02:24:20.400 --> 02:24:24.000] Much of the money that has come into the top of the bucket that we talked about is still
[02:24:24.000 --> 02:24:30.760] in the pipeline in a way, is still in the balance sheets of the banks and the corporations.
[02:24:30.760 --> 02:24:35.100] They're just now beginning to spend it, but they've been hanging on to it, you've noticed.
[02:24:35.100 --> 02:24:38.720] So it hasn't, for the most part, reached the economy yet.
[02:24:38.720 --> 02:24:44.120] Once it starts to reach the economy, then I think we're going to see a very rapid expansion
[02:24:44.120 --> 02:24:46.560] of the money supply in circulation.
[02:24:46.560 --> 02:24:49.680] And that's when we'll see the true effect of inflation.
[02:24:49.680 --> 02:24:55.080] So I think we're going to see deflation on the bubble markets and inflation on the markets
[02:24:55.080 --> 02:24:57.040] of just about everything else.
[02:24:57.040 --> 02:25:02.120] Again, I'll be talking about that in more detail in the seminar and give you perhaps
[02:25:02.120 --> 02:25:06.000] some tips as to which markets are the best ones to avoid and which ones are the best
[02:25:06.000 --> 02:25:08.760] ones to stick around.
[02:25:08.760 --> 02:25:14.000] And now I finally come to the main theme of part number two, which is this business about
[02:25:14.000 --> 02:25:21.640] cunning your money on the sinking Lusitania or Titanic.
[02:25:21.640 --> 02:25:29.200] I think any discussion of monetary issues in the Federal Reserve that doesn't include
[02:25:29.200 --> 02:25:38.200] a look at our vanishing liberties is very, very deficient and almost criminal because
[02:25:38.200 --> 02:25:43.400] it doesn't make any difference how much money you have if you lose your freedom.
[02:25:43.400 --> 02:25:50.200] To me, I think that they're the two most valuable things in life above and beyond, of course,
[02:25:50.200 --> 02:25:52.720] your friends and your family.
[02:25:52.720 --> 02:25:56.320] But I would say your freedom and your health.
[02:25:56.320 --> 02:26:03.040] If you don't have health, it doesn't make much difference if you're sickly, if you don't
[02:26:03.040 --> 02:26:07.480] have health, nothing matters, you're going to be gone in a few days anyway.
[02:26:07.480 --> 02:26:11.720] And if you don't have freedom, it just makes you a healthy slave.
[02:26:11.720 --> 02:26:14.920] You can work harder for the Lord and Master.
[02:26:14.920 --> 02:26:19.280] So I've always been an advocate of paying attention to both areas of our lives.
[02:26:19.280 --> 02:26:25.240] And money is an avenue of enjoying your freedom, in my opinion.
[02:26:25.240 --> 02:26:32.880] Money's primary value is based on the assumption that you have the freedom to spend it in the
[02:26:32.880 --> 02:26:34.480] way in which you wish.
[02:26:34.480 --> 02:26:36.400] You don't have freedom to spend it.
[02:26:36.400 --> 02:26:39.480] You probably don't even have it in the first place.
[02:26:39.480 --> 02:26:45.280] In every country in the world that has been taken over by totalitarian systems, especially
[02:26:45.280 --> 02:26:52.160] of the collectivist model, where they like to preach about representing the people, you
[02:26:52.160 --> 02:26:56.080] know, we're doing this for the people, the greatest good of the greatest number.
[02:26:56.080 --> 02:27:02.440] It's one of the tenets of collectivism, and you'll find it beneath all of the totalitarian
[02:27:02.440 --> 02:27:07.880] systems of the modern world, communism, fascism, Nazism.
[02:27:07.880 --> 02:27:12.920] They all are based on the assumption that, you know, they represent the people's interest.
[02:27:12.920 --> 02:27:17.480] There's always some dictator who says, I represent the people, and I can tell you what the people
[02:27:17.480 --> 02:27:20.520] need, but don't forget it's always for the people.
[02:27:20.520 --> 02:27:27.040] And so in those systems, whenever they come to power, anyone from the old order that had
[02:27:27.040 --> 02:27:32.040] a lot of money are usually killed, because they know they'll never go along with the
[02:27:32.040 --> 02:27:37.200] new system, and they're usually paraded before the people as enemies in the state.
[02:27:37.200 --> 02:27:39.640] These are the big, greedy capitalists.
[02:27:39.640 --> 02:27:41.040] These are the landholders.
[02:27:41.040 --> 02:27:44.880] These are the managers who made your life so miserable.
[02:27:44.880 --> 02:27:48.560] These are the people that caused the collapse of the system.
[02:27:48.560 --> 02:27:53.680] And so anybody with a lot of money under those conditions may not be so happy to have a lot
[02:27:53.680 --> 02:27:54.680] of money.
[02:27:54.680 --> 02:28:00.960] The reason I'm saying this is not to be pessimistic or to sound frightening or anything, but it's
[02:28:00.960 --> 02:28:06.560] to emphasize the importance of preserving the system of freedom.
[02:28:06.560 --> 02:28:14.080] And I think that any effort to enhance our economic position and our security must be
[02:28:14.080 --> 02:28:19.960] matched by a serious effort to restore the system of freedom in which we live.
[02:28:19.960 --> 02:28:25.520] And that means, of course, we have to slay the creature, because the creature from Jekyll
[02:28:25.520 --> 02:28:32.120] Island is the mechanism by which the totalitarian system that we now are facing is funded.
[02:28:32.120 --> 02:28:36.600] You take that away, and the system would have no way to pay its way.
[02:28:36.600 --> 02:28:37.600] It couldn't control you.
[02:28:37.600 --> 02:28:39.360] It couldn't pay for the armies, the police.
[02:28:39.360 --> 02:28:42.640] It couldn't do all of these things that we don't like.
[02:28:42.640 --> 02:28:44.840] And so we must get rid of the creature from Jekyll Island.
[02:28:44.840 --> 02:28:47.080] We have to slay that thing.
[02:28:47.080 --> 02:28:48.880] And can it be done?
[02:28:48.880 --> 02:28:49.880] Yes.
[02:28:49.880 --> 02:28:51.360] Of course, it can be done.
[02:28:51.360 --> 02:28:54.300] It can be done exactly the way it was created.
[02:28:54.300 --> 02:28:56.600] It was created by Congress.
[02:28:56.600 --> 02:29:03.000] Congress technically has the right to abolish the Federal Reserve system.
[02:29:03.000 --> 02:29:13.120] And so it points us right in the direction we must recapture control of Congress.
[02:29:13.120 --> 02:29:18.200] Writing letters to your congressmen is okay if you want to do that, but I say the answer
[02:29:18.200 --> 02:29:27.600] is to replace those congressmen.
[02:29:27.600 --> 02:29:32.520] And so I just want to close now by inviting you all to come to the seminar Saturday if
[02:29:32.520 --> 02:29:35.800] you want to hear some more views on this topic.
[02:29:35.800 --> 02:29:38.080] But most of all, I want you to join with me.
[02:29:38.080 --> 02:29:42.640] And together, let's take this creature from Jekyll Island, jam it back into the bottle,
[02:29:42.640 --> 02:29:46.920] put the cork in it, bury it in cement, and take it to the deepest sea and throw it in.
[02:29:46.920 --> 02:29:47.920] Thank you very much.
[02:29:47.920 --> 02:30:13.760] Thank you, thank you.
[02:30:13.760 --> 02:30:15.120] Wasn't that awesome?
[02:30:15.120 --> 02:30:16.120] That was amazing.
[02:30:16.120 --> 02:30:22.440] Well, there is a mic in the center of the room, but we're going to forego Q&A.
[02:30:22.440 --> 02:30:24.840] Mr. Griffin has an engagement at 11.
[02:30:24.840 --> 02:30:30.920] But if you would like to ask him a question, you can go to the bookstore, of course, right
[02:30:30.920 --> 02:30:34.960] now and purchase a book or talk to Mr. Griffin there.
[02:30:34.960 --> 02:30:35.960] He'll be there.
[02:30:35.960 --> 02:30:43.800] I do want to call attention to the radio station, Rule of Law Radio, who helped this engagement
[02:30:43.800 --> 02:30:44.800] out.
[02:30:44.800 --> 02:30:49.200] They're doing a wonderful job, and 90.1 is a big part of it.
[02:30:49.200 --> 02:30:54.360] They're going and protecting the transmitters, the people putting up the transmitters.
[02:30:54.360 --> 02:30:56.560] So let's all sign a letter on the way out.
[02:30:56.560 --> 02:30:59.680] There's letters there for people to sign.
[02:30:59.680 --> 02:31:05.000] And Mr. Griffin, the details on the crash course on money is, of course, Saturday, December
[02:31:05.000 --> 02:31:07.640] 12th at 8.30 a.m.
[02:31:07.640 --> 02:31:13.560] Tickets can be found at realityzone.com, and it's being held at the Courtyard Austin Marriott
[02:31:13.560 --> 02:31:17.080] Downtown, so if you're looking to attend that.
[02:31:17.080 --> 02:31:19.600] But thank you very much.
[02:31:19.600 --> 02:31:22.840] And I think somebody wanted to say something.
[02:31:22.840 --> 02:31:23.840] Thank you.
[02:31:23.840 --> 02:31:30.120] You guys are a great crowd, and it's great to be here as one of your friends and members
[02:31:30.120 --> 02:31:31.120] of the group.
[02:31:31.120 --> 02:31:35.960] And I hope that you all can show Harlan and Bradney Books your love and devotion with
[02:31:35.960 --> 02:31:39.640] a little donation.
[02:31:39.640 --> 02:31:40.640] He funded this.
[02:31:40.640 --> 02:31:44.520] Bradney Books funded this auditorium, so please support Bradney Books.
[02:31:44.520 --> 02:31:48.920] Come out and get your book signed, ask Mr. Griffin questions, and come and socialize
[02:31:48.920 --> 02:31:53.400] and meet people here, and spend your money with your friends here, and let's make a strong
[02:31:53.400 --> 02:31:54.400] community.
[02:31:54.400 --> 02:31:59.240] Oh, and there's also an e-mail sign-up sheet if you all want to get notifications when
[02:31:59.240 --> 02:32:04.160] there's more events like this going on.
[02:32:04.160 --> 02:32:08.120] All right.
[02:32:08.120 --> 02:32:11.080] That was Lecture G. Edward Griffin.
[02:32:11.080 --> 02:32:13.840] Randy, what do you think?
[02:32:13.840 --> 02:32:22.240] Well, I expected to be depressed with all the bad news coming, but frankly, I was not.
[02:32:22.240 --> 02:32:26.080] Actually, I was encouraged.
[02:32:26.080 --> 02:32:33.680] So I'm looking forward to getting the book and reading it in detail if I can get time.
[02:32:33.680 --> 02:32:34.680] Yes, indeed.
[02:32:34.680 --> 02:32:36.680] But it's well worth it.
[02:32:36.680 --> 02:32:44.120] We clearly understand what's really going on, and the more people we get to understand
[02:32:44.120 --> 02:32:48.880] what is actually going on, the more likely we'll wind up slaying the beast.
[02:32:48.880 --> 02:32:49.880] Absolutely.
[02:32:49.880 --> 02:32:51.080] Absolutely.
[02:32:51.080 --> 02:32:57.080] And I just wanted to put that word out there for folks to please support Brave New Books.
[02:32:57.080 --> 02:33:03.640] Folks out there listening on the stream right now or even on 90.1 or in various cities,
[02:33:03.640 --> 02:33:06.120] even if you can't go down, thank you.
[02:33:06.120 --> 02:33:11.720] We've got people, wow, giving us donations for 90.1 as we speak.
[02:33:11.720 --> 02:33:14.240] Throwing money in our faces is a wonderful thing.
[02:33:14.240 --> 02:33:17.600] Yeah, folks out there, please support Brave New Books.
[02:33:17.600 --> 02:33:22.240] Please order Creature from Jekyll Island or order other books.
[02:33:22.240 --> 02:33:27.640] You can order any book through Brave New Books, even if it's a recipe book or something not
[02:33:27.640 --> 02:33:31.300] related to this type of information.
[02:33:31.300 --> 02:33:34.040] But please support the bookstore, and please give them a donation.
[02:33:34.040 --> 02:33:38.760] People out there listening for this event, because Harlan did put out a lot of money
[02:33:38.760 --> 02:33:45.200] for this venue and didn't charge anything for it, so we need to support the bookstore.
[02:33:45.200 --> 02:33:47.080] And I'm pumped, Randy.
[02:33:47.080 --> 02:33:49.400] I'm very excited.
[02:33:49.400 --> 02:33:52.360] And we have a new friend with us here sitting with us.
[02:33:52.360 --> 02:33:53.360] Her name is Katherine.
[02:33:53.360 --> 02:33:54.360] Katherine?
[02:33:54.360 --> 02:33:55.360] Hi, how are you?
[02:33:55.360 --> 02:33:56.360] Thank you for having me.
[02:33:56.360 --> 02:34:01.400] Katherine, so I just met you a few minutes ago, and you said that this is a dream come
[02:34:01.400 --> 02:34:02.400] true for you.
[02:34:02.400 --> 02:34:04.160] Can you please explain?
[02:34:04.160 --> 02:34:08.960] Well, when the whole Tea Party movement started and I was awoken to what was going on in the
[02:34:08.960 --> 02:34:13.480] country, one of the first sources that I came across was Edward Griffin.
[02:34:13.480 --> 02:34:18.640] And I just had such respect for this gentleman who's been doing this for decades and all
[02:34:18.640 --> 02:34:22.360] of the information that he's put together and how relevant it is to what's going on
[02:34:22.360 --> 02:34:23.360] today.
[02:34:23.360 --> 02:34:28.000] And I just introduced him to my friends by saying to them, read the chasm, and the chasm
[02:34:28.000 --> 02:34:32.360] will help you to understand what's going on with education and who is the big money behind
[02:34:32.360 --> 02:34:34.000] what's going on in our country.
[02:34:34.000 --> 02:34:38.120] So I've always wanted to meet him and wanted to have a photo op with him today.
[02:34:38.120 --> 02:34:39.960] So it's like a dream come true.
[02:34:39.960 --> 02:34:41.160] So I'm glad to be here.
[02:34:41.160 --> 02:34:42.160] That's wonderful.
[02:34:42.160 --> 02:34:50.400] Did you see him in the movie, the documentary that Aaron Russo made?
[02:34:50.400 --> 02:34:51.560] Yes, I did.
[02:34:51.560 --> 02:34:52.560] I did.
[02:34:52.560 --> 02:34:57.600] And that documentary was one of the other parts that God gave me to understand what
[02:34:57.600 --> 02:34:58.600] was going on.
[02:34:58.600 --> 02:34:59.600] By freedom to fascism.
[02:34:59.600 --> 02:35:00.600] That's right.
[02:35:00.600 --> 02:35:01.600] Freedom to fascism.
[02:35:01.600 --> 02:35:06.640] And those who are concerned about the direction of our country and the future of our children
[02:35:06.640 --> 02:35:10.920] need to, as I say, and Edward says, we need to take the red pill.
[02:35:10.920 --> 02:35:16.080] We truly are living in the matrix, in a matrix that is virtual.
[02:35:16.080 --> 02:35:21.080] And we're not plugged yet, but I think eventually we will if we don't wake up.
[02:35:21.080 --> 02:35:22.480] Exactly, exactly.
[02:35:22.480 --> 02:35:27.280] So Catherine, can you tell me, how long have you been in this movement?
[02:35:27.280 --> 02:35:28.400] What first woke you up?
[02:35:28.400 --> 02:35:31.640] Well, I can tell you that last year was very exciting for me.
[02:35:31.640 --> 02:35:34.520] All I did was watch the Food Channel and be a mother.
[02:35:34.520 --> 02:35:37.600] Well, being a mother, I'm sure, was a great thing.
[02:35:37.600 --> 02:35:43.000] But then I saw what was happening with the presidential thing that was going on.
[02:35:43.000 --> 02:35:46.720] And my mother always said, tell me who you're with and I'll tell you who you are.
[02:35:46.720 --> 02:35:51.400] And the more I understood that our current president has some real shaky friends, the
[02:35:51.400 --> 02:35:55.160] more I became concerned about the direction of our country.
[02:35:55.160 --> 02:35:58.560] And one thing that really alarmed me was this gentleman's word of the use change without
[02:35:58.560 --> 02:36:02.880] really defining it for anybody and sort of allowing everyone to define their own change
[02:36:02.880 --> 02:36:07.680] that was to come, which was not what he was actually proposing.
[02:36:07.680 --> 02:36:12.680] So I became very concerned and I said, for my daughter's sake, I have to learn, I have
[02:36:12.680 --> 02:36:13.680] to get involved.
[02:36:13.680 --> 02:36:14.680] I've never been in politics.
[02:36:14.680 --> 02:36:17.400] It's sort of a little bit of a frightening kind of thing.
[02:36:17.400 --> 02:36:21.880] But in 20 years, I don't want to sit and tell my daughter, well, no, I just watched TV Victoria
[02:36:21.880 --> 02:36:22.880] and I did nothing.
[02:36:22.880 --> 02:36:25.840] That's why I do it.
[02:36:25.840 --> 02:36:33.000] That's exactly why we're here, is to help people find a tool they can use to become
[02:36:33.000 --> 02:36:40.720] active, to actually feel like there's not impotent, you know, feel like they have some
[02:36:40.720 --> 02:36:42.520] power to affect some change.
[02:36:42.520 --> 02:36:43.520] Exactly.
[02:36:43.520 --> 02:36:44.520] Because they certainly do.
[02:36:44.520 --> 02:36:46.520] Let me tell you what I want to say to Americans.
[02:36:46.520 --> 02:36:50.600] I wasn't born in this country, but I know one thing, this country was put together by
[02:36:50.600 --> 02:36:51.600] God.
[02:36:51.600 --> 02:36:58.760] He gave to us and we are so, we are so devastatingly rude to God when we don't realize that our
[02:36:58.760 --> 02:37:01.760] country is the greatest country in the history of the world.
[02:37:01.760 --> 02:37:03.720] No one has been set up the way that we are.
[02:37:03.720 --> 02:37:05.080] We have the power.
[02:37:05.080 --> 02:37:09.400] We have to wake up and step up to the plate and say, this was given to us and it's not
[02:37:09.400 --> 02:37:10.760] going to be taken away from us.
[02:37:10.760 --> 02:37:14.680] And yeah, there may be a revolt or whatever, but we can't just sit back and say, you know,
[02:37:14.680 --> 02:37:18.200] just let it happen because we are the government.
[02:37:18.200 --> 02:37:19.200] Absolutely.
[02:37:19.200 --> 02:37:25.600] And I would say tonight's event is very encouraging because folks, there were more than 400 people
[02:37:25.600 --> 02:37:26.600] out here tonight.
[02:37:26.600 --> 02:37:28.920] I mean, seriously, it was standing room only.
[02:37:28.920 --> 02:37:33.920] The manager of the center was bringing in more chairs and we were actually, seriously,
[02:37:33.920 --> 02:37:39.600] there were people standing along the backs of the venue and the walls and we were getting
[02:37:39.600 --> 02:37:44.600] concerned that we may even have to, would have had to have turned people away due to
[02:37:44.600 --> 02:37:49.240] a fire code, but we managed to get everyone in and we left the doors open to the back.
[02:37:49.240 --> 02:37:53.320] So people were actually out in the lobby witnessing the event.
[02:37:53.320 --> 02:37:56.240] So I consider this a huge success.
[02:37:56.240 --> 02:38:04.440] I consider it a great encouragement that people are coming together like this to do something
[02:38:04.440 --> 02:38:08.560] about the common problems that we share and not just sitting there apathetic on their
[02:38:08.560 --> 02:38:09.560] couch.
[02:38:09.560 --> 02:38:13.080] When I spoke on April 15th, I was a speaker at the San Antonio Tea Party in front of the
[02:38:13.080 --> 02:38:15.640] Alamo and it was all by the grace of God.
[02:38:15.640 --> 02:38:19.720] And I put a speech together and I look back on my speech and it's so poignant.
[02:38:19.720 --> 02:38:23.880] In my speech, I said, there is a vile feeling in our guts that's telling us something is
[02:38:23.880 --> 02:38:26.120] wrong and that's what's waking the people up.
[02:38:26.120 --> 02:38:31.160] But going back to what he was speaking about, which is the banks, we have to pay attention
[02:38:31.160 --> 02:38:32.320] to what's going on with the banks.
[02:38:32.320 --> 02:38:35.800] I mean, we saw all these things happening and who benefits from everything, the banks
[02:38:35.800 --> 02:38:38.840] are the ones making out like bandits.
[02:38:38.840 --> 02:38:39.840] Absolutely.
[02:38:39.840 --> 02:38:41.160] Absolutely.
[02:38:41.160 --> 02:38:47.360] And we've got to address the real problem, which is the banksters for real.
[02:38:47.360 --> 02:38:49.520] John, do you want to say hi?
[02:38:49.520 --> 02:38:50.520] Yes.
[02:38:50.520 --> 02:38:51.520] Here, here, Catherine.
[02:38:51.520 --> 02:38:52.520] You can stay here.
[02:38:52.520 --> 02:38:55.400] Catherine is going to come back on in just a moment, but we're going to bring John Bush
[02:38:55.400 --> 02:38:56.400] on now.
[02:38:56.400 --> 02:38:57.400] All right, John.
[02:38:57.400 --> 02:38:58.400] What up?
[02:38:58.400 --> 02:38:59.400] Hello.
[02:38:59.400 --> 02:39:00.400] How are you?
[02:39:00.400 --> 02:39:03.400] That was a great speech earlier, John.
[02:39:03.400 --> 02:39:04.400] Thank you.
[02:39:04.400 --> 02:39:05.400] Appreciate that.
[02:39:05.400 --> 02:39:06.400] Yes.
[02:39:06.400 --> 02:39:07.400] Thank you so much for everything.
[02:39:07.400 --> 02:39:08.400] All right.
[02:39:08.400 --> 02:39:12.600] Tell us, how was it spending time with G.O.R. Griffin today?
[02:39:12.600 --> 02:39:15.480] You said that you were escorting him.
[02:39:15.480 --> 02:39:16.480] Yeah.
[02:39:16.480 --> 02:39:18.440] Not in the escort sense.
[02:39:18.440 --> 02:39:20.840] Wait a second.
[02:39:20.840 --> 02:39:21.840] It was incredible.
[02:39:21.840 --> 02:39:23.160] He's really one of my heroes.
[02:39:23.160 --> 02:39:29.680] I think him above anybody else had a very profound effect on my development as a liberty
[02:39:29.680 --> 02:39:30.760] defender.
[02:39:30.760 --> 02:39:33.160] And it was great just hanging out.
[02:39:33.160 --> 02:39:34.160] Quite the inspiration.
[02:39:34.160 --> 02:39:35.160] We got to go by Jones's office.
[02:39:35.160 --> 02:39:39.880] I just met old Alex Jones as well and had a good time just been chatting philosophy
[02:39:39.880 --> 02:39:43.280] and strategy and it's been rather enjoyable.
[02:39:43.280 --> 02:39:45.920] It's going to be sad to see him go.
[02:39:45.920 --> 02:39:46.920] He's great.
[02:39:46.920 --> 02:39:48.920] Well, you just heard him say he wants to move to Austin.
[02:39:48.920 --> 02:39:49.920] No, that'd be great.
[02:39:49.920 --> 02:39:50.920] For sure.
[02:39:50.920 --> 02:39:51.920] Wouldn't that be awesome?
[02:39:51.920 --> 02:39:52.920] That would be very awesome.
[02:39:52.920 --> 02:39:56.800] Well, speaking of being on tour, John, you're about to go on tour.
[02:39:56.800 --> 02:39:57.800] Yes.
[02:39:57.800 --> 02:40:01.200] You're going to tour the Fusion Center, so tell us a little bit about this.
[02:40:01.200 --> 02:40:02.200] Yes.
[02:40:02.200 --> 02:40:06.080] So Ayesha of Missouri, she's the executive director of the Liberty Restoration Project
[02:40:06.080 --> 02:40:09.480] that do a lot of work, very similar to Texas for Accountable Governments.
[02:40:09.480 --> 02:40:14.800] Her and myself will be embarking on an eight-state tour of the southern United States.
[02:40:14.800 --> 02:40:16.600] We're calling it Operation D-Fuse.
[02:40:16.600 --> 02:40:24.200] We're going to visit every Fusion Center in Texas, Oklahoma, Alabama, New Mexico, Missouri,
[02:40:24.200 --> 02:40:27.280] Mississippi, Georgia, and Oklahoma.
[02:40:27.280 --> 02:40:29.680] I might have already said that.
[02:40:29.680 --> 02:40:30.960] Arizona actually was the last one.
[02:40:30.960 --> 02:40:33.840] We're going to visit all the Fusion Centers, we're going to hold public forums, we're going
[02:40:33.840 --> 02:40:36.880] to meet with the local law enforcement, we're going to meet with staff at the Fusion Center,
[02:40:36.880 --> 02:40:40.240] we're going to meet with representatives and candidates, and basically raise awareness
[02:40:40.240 --> 02:40:44.400] on the Fusion Center, which many individuals, especially in the American public, but our
[02:40:44.400 --> 02:40:47.680] movement as well, are not familiar with Fusion Centers.
[02:40:47.680 --> 02:40:54.400] Just real briefly, a Fusion Center is an intelligence gathering, analyzing and disseminating apparatus,
[02:40:54.400 --> 02:41:00.840] which hopes to effectively merge cross-jurisdictional law enforcement agencies, a multitude of alphabet
[02:41:00.840 --> 02:41:06.960] suit organizations like Department of Homeland Security, FBI, CIA, NSA, you name it, FEMA,
[02:41:06.960 --> 02:41:09.840] local law enforcement, local police departments, local highway patrol.
[02:41:09.840 --> 02:41:17.600] It's hoping to create one central apparatus to basically create a system of total information
[02:41:17.600 --> 02:41:22.880] awareness, much like George Orville wrote about in Big Brother, except he didn't anticipate
[02:41:22.880 --> 02:41:26.240] the technology advancement that we have, so I like to say the Fusion Centers make Big
[02:41:26.240 --> 02:41:29.440] Brother look like a little sister, but it's bad news.
[02:41:29.440 --> 02:41:33.680] They're one in track and trace and basic micromanage every aspect of our life, so we have the opportunity
[02:41:33.680 --> 02:41:37.680] now while they're creating them and while they're coming into fruition to really get
[02:41:37.680 --> 02:41:42.200] up there and throw a kink in their system and hope to limit their ability to control
[02:41:42.200 --> 02:41:43.200] us.
[02:41:43.200 --> 02:41:46.680] And John, if you could also please tell us, you're going to launch your brand new show
[02:41:46.680 --> 02:41:48.880] with Catherine Bleich.
[02:41:48.880 --> 02:41:51.240] You're going to launch that show from the road.
[02:41:51.240 --> 02:41:52.240] We're launching on the road.
[02:41:52.240 --> 02:41:57.600] It's going to be exciting, and you can check out OperationDefuse.com, OperationDefuse.com,
[02:41:57.600 --> 02:42:01.120] and right now we are asking for donations to help assist us with our trip.
[02:42:01.120 --> 02:42:04.320] The gas is going to be quite expensive, but yeah, Catherine Bleich and myself will be
[02:42:04.320 --> 02:42:09.320] doing a radio program on the wonderful Rule of Law Radio Network.
[02:42:09.320 --> 02:42:10.640] It's going to be called Rise Up Radio.
[02:42:10.640 --> 02:42:15.280] It will be every Monday, Wednesday, and Friday from 7 to 10 a.m., and we hope to not only
[02:42:15.280 --> 02:42:21.720] cover the news, but more importantly, cover the practice of activism and take all the
[02:42:21.720 --> 02:42:27.200] listeners on us with our journey as we fight the man, and hopefully we'll be able to use
[02:42:27.200 --> 02:42:32.120] it as a means to share information and to learn from each other with other activists
[02:42:32.120 --> 02:42:37.360] across the country and try to have a little portal for activism strategy and tactics,
[02:42:37.360 --> 02:42:39.360] what works and what doesn't across the country.
[02:42:39.360 --> 02:42:40.360] Well, this is wonderful.
[02:42:40.360 --> 02:42:44.800] I really am honored and excited that you guys are going to be launching your new show from
[02:42:44.800 --> 02:42:47.000] the road, and you're launching it on my network.
[02:42:47.000 --> 02:42:49.400] It's the best network in the nation.
[02:42:49.400 --> 02:42:51.040] Wouldn't do it any other way.
[02:42:51.040 --> 02:42:52.040] Thanks, John.
[02:42:52.040 --> 02:42:53.320] I really appreciate that.
[02:42:53.320 --> 02:42:54.320] Thank you.
[02:42:54.320 --> 02:42:55.320] Thanks for coming on.
[02:42:55.320 --> 02:42:56.320] Right on.
[02:42:56.320 --> 02:42:57.320] Thank you.
[02:42:57.320 --> 02:42:58.320] That was a great speech.
[02:42:58.320 --> 02:42:59.320] I was inspired.
[02:42:59.320 --> 02:43:00.320] Yeah, John.
[02:43:00.320 --> 02:43:01.320] I appreciate that.
[02:43:01.320 --> 02:43:03.000] My hope was to inspire people.
[02:43:03.000 --> 02:43:09.000] You guys don't need to re-dedicate anything, I might need a break a little bit.
[02:43:09.000 --> 02:43:13.440] There's a lot of bodies out here that I don't see very often, and we're doing a lot of moving
[02:43:13.440 --> 02:43:16.120] and shaking in town, so it would be great to see a lot of the people that came out for
[02:43:16.120 --> 02:43:21.200] this wonderful event to get active and to start participating, because we definitely
[02:43:21.200 --> 02:43:22.560] need all the help we can get.
[02:43:22.560 --> 02:43:25.080] We're not going to be able to do it on our own.
[02:43:25.080 --> 02:43:31.200] John spoke to the fact that things are changing, that the perspective is changing and the opportunity
[02:43:31.200 --> 02:43:32.360] is here.
[02:43:32.360 --> 02:43:35.600] This event is clearly an indication.
[02:43:35.600 --> 02:43:42.920] The last time I came to a speech by G. Edward Griffith there at the university, it was about
[02:43:42.920 --> 02:43:48.860] half this size, and the venue wasn't even, was nowhere near full.
[02:43:48.860 --> 02:43:54.760] This time, this is a rather large room, and there were people sitting outside looking
[02:43:54.760 --> 02:43:55.760] in through the doorway.
[02:43:55.760 --> 02:43:56.760] Absolutely.
[02:43:56.760 --> 02:43:57.760] Absolutely.
[02:43:57.760 --> 02:43:58.760] Yeah, it was insane.
[02:43:58.760 --> 02:43:59.760] I was mesmerized.
[02:43:59.760 --> 02:44:04.440] I think this is one of the largest Patriot events that we've had here in the City of
[02:44:04.440 --> 02:44:10.440] Austin period, and it was great, and 90.1 definitely does a great deal to turn people
[02:44:10.440 --> 02:44:11.440] out.
[02:44:11.440 --> 02:44:14.040] I know We Are Change Austin was doing a lot of flyer and whatnot, but I think G. Edward
[02:44:14.040 --> 02:44:17.920] Griffith himself is one of the major pools of people coming out, but the tide's definitely
[02:44:17.920 --> 02:44:20.480] turning without a doubt, and this is indicative of that.
[02:44:20.480 --> 02:44:26.040] Speaking of 90.1, the donations have been flooding in tonight, and so have the letters.
[02:44:26.040 --> 02:44:28.920] Hundreds and hundreds of dollars have come in, maybe even almost a thousand bucks just
[02:44:28.920 --> 02:44:32.760] from tonight, and the letters, hundreds of letters just from tonight.
[02:44:32.760 --> 02:44:35.320] The letters are as important as the donations.
[02:44:35.320 --> 02:44:40.320] Yes, we've got to have the letters for when we build our court case in case we have to
[02:44:40.320 --> 02:44:42.600] go to the merits of the case.
[02:44:42.600 --> 02:44:46.440] We've got them dead bang on jurisdiction every which way from Sunday.
[02:44:46.440 --> 02:44:48.640] These guys don't even have an oath of office.
[02:44:48.640 --> 02:44:50.160] They're not even federal agents.
[02:44:50.160 --> 02:44:54.200] They didn't realize we were called the rule of law radio.
[02:44:54.200 --> 02:44:58.760] Well, I mean, 90.1 isn't rule of law radio network.
[02:44:58.760 --> 02:45:03.800] It's been an affiliate of rule of law radio, but still the point is these people didn't
[02:45:03.800 --> 02:45:08.120] think very much before they started down this path, and we've got them on jurisdiction.
[02:45:08.120 --> 02:45:12.520] They don't have oath of office, nothing, but in case we do have to end up arguing the merits
[02:45:12.520 --> 02:45:16.640] of the case, we need to show that 90.1 serves the public interest, and that's why we need
[02:45:16.640 --> 02:45:22.840] the letters, and we may need those letters for other arguments coming up soon as well.
[02:45:22.840 --> 02:45:26.840] It means a lot because a lot of these radio stations that have licenses, I mean, they
[02:45:26.840 --> 02:45:32.800] may have a couple dozen letters serving the public interest file, and now we have hundreds
[02:45:32.800 --> 02:45:36.120] already in just a matter of a couple weeks, so very encouraging.
[02:45:36.120 --> 02:45:45.000] Our politicians, our state politicians, because essentially our main trust here is to encourage
[02:45:45.000 --> 02:45:55.640] the state legislature to look at the opportunity to drive a wedge under federal encroachment.
[02:45:55.640 --> 02:46:01.040] The firearms bill is a lot more inflationary.
[02:46:01.040 --> 02:46:06.480] You have a lot stronger opinions on both sides.
[02:46:06.480 --> 02:46:13.880] The opinions in support of the FCC in this instance, I can't imagine anybody other than
[02:46:13.880 --> 02:46:21.400] those people who, like Clear Channel, who are one of the six radio and communications
[02:46:21.400 --> 02:46:30.040] cartels, other than them, nobody cares about the feds, so this may be the opportunity to
[02:46:30.040 --> 02:46:32.680] drive the sharp end of the wedge under the feds.
[02:46:32.680 --> 02:46:37.080] Yeah, it's huge, and it goes further than just protecting our local micro-broadcast
[02:46:37.080 --> 02:46:38.160] here and getting the message out.
[02:46:38.160 --> 02:46:42.520] This represents an opportunity to demonstrate to the people and to demonstrate to the federal
[02:46:42.520 --> 02:46:44.840] government that we are paying attention.
[02:46:44.840 --> 02:46:48.080] We do understand the jurisdiction that was laid out in the Constitution.
[02:46:48.080 --> 02:46:52.040] We respect the 10th Amendment, and we understand the limitations of that is the article in
[02:46:52.040 --> 02:46:56.800] Section 8 in the Commerce Clause, and it also presents a wonderful opportunity for activists
[02:46:56.800 --> 02:46:57.800] to get involved.
[02:46:57.800 --> 02:46:59.520] All it takes is simply writing a letter.
[02:46:59.520 --> 02:47:01.560] You don't even have to leave the comfort of your own home.
[02:47:01.560 --> 02:47:02.560] You can mail it.
[02:47:02.560 --> 02:47:06.200] You can go to ruleoflawradio.com to see where to mail it to, and it really will have a strong
[02:47:06.200 --> 02:47:11.360] profound impact, and again, not only on this particular issue of keeping 90.1 blasting,
[02:47:11.360 --> 02:47:16.680] but more importantly, in working to further the momentum that is state sovereignty and
[02:47:16.680 --> 02:47:21.000] that is basically checking the federal government, slapping its hand away.
[02:47:21.000 --> 02:47:22.000] Absolutely.
[02:47:22.000 --> 02:47:23.000] Slap it out.
[02:47:23.000 --> 02:47:30.440] And count your letters times 15, because when your legislator sees that letter, he's going
[02:47:30.440 --> 02:47:32.360] to count 15 votes on it.
[02:47:32.360 --> 02:47:35.280] And so will the courts, because it's for the court case.
[02:47:35.280 --> 02:47:43.920] You look around this room tonight, we have enough here to elect a legislator.
[02:47:43.920 --> 02:47:48.400] You take 400 votes off of one side, put them on the other side.
[02:47:48.400 --> 02:47:50.000] That's 800 vote difference.
[02:47:50.000 --> 02:47:51.260] Yeah, no kidding.
[02:47:51.260 --> 02:47:58.240] And speaking of the legislature, well, John and I wrote a piece of legislation to be introduced
[02:47:58.240 --> 02:48:03.400] in the state of Oklahoma, also soon to be introduced here in Texas' next legislative
[02:48:03.400 --> 02:48:10.400] session, and just got the word a couple days ago, the legislator, who I will announce at
[02:48:10.400 --> 02:48:14.200] a later point in time, just want to get his approval first before mentioning his name.
[02:48:14.200 --> 02:48:15.200] He says he loves it.
[02:48:15.200 --> 02:48:16.960] He says you and I did a great job.
[02:48:16.960 --> 02:48:17.960] He's very happy.
[02:48:17.960 --> 02:48:18.960] He's very pleased.
[02:48:18.960 --> 02:48:21.120] And he's going to add some teeth onto it.
[02:48:21.120 --> 02:48:22.120] Wait a minute.
[02:48:22.120 --> 02:48:23.120] Wait a minute.
[02:48:23.120 --> 02:48:25.880] I put the period at the end.
[02:48:25.880 --> 02:48:29.200] Randy helped with a couple lines, but well, I got to give the credit to John.
[02:48:29.200 --> 02:48:31.240] Me and John did the whole bill, most of it.
[02:48:31.240 --> 02:48:32.240] John did a nice piece of work.
[02:48:32.240 --> 02:48:33.920] You did a great job.
[02:48:33.920 --> 02:48:37.400] John structured the whole bill, and then I basically pulled some other language from
[02:48:37.400 --> 02:48:39.040] the FCC code itself.
[02:48:39.040 --> 02:48:41.880] I mean, it's like, I don't even have to make this stuff up.
[02:48:41.880 --> 02:48:45.280] It's in the federal law already that they don't have jurisdictions.
[02:48:45.280 --> 02:48:49.040] So we put this thing together, and the legislator loves it, and he's going to put some teeth
[02:48:49.040 --> 02:48:54.960] onto it concerning what kind of enforcement action the state of Oklahoma is going to take
[02:48:54.960 --> 02:49:00.080] if the FCC does not abide by their laws, by their state laws.
[02:49:00.080 --> 02:49:01.640] So this is excellent news.
[02:49:01.640 --> 02:49:06.200] He's going to contact some of the legislators here in Texas to get them to introduce this
[02:49:06.200 --> 02:49:07.200] bill here in Texas.
[02:49:07.200 --> 02:49:08.480] So it's very exciting stuff.
[02:49:08.480 --> 02:49:09.480] It's huge.
[02:49:09.480 --> 02:49:10.480] We're on the cutting edge here, people.
[02:49:10.480 --> 02:49:11.480] We are making a difference.
[02:49:11.480 --> 02:49:12.480] It's never.
[02:49:12.480 --> 02:49:13.480] It hasn't been done in the entire country.
[02:49:13.480 --> 02:49:14.480] It's never been done.
[02:49:14.480 --> 02:49:15.480] We're on the tip.
[02:49:15.480 --> 02:49:19.040] The timing is right.
[02:49:19.040 --> 02:49:24.120] The public is getting upset and unhappy with the government, with all of these states passing
[02:49:24.120 --> 02:49:27.560] these 10th Amendment initiatives.
[02:49:27.560 --> 02:49:30.440] If ever there was a time to get this done.
[02:49:30.440 --> 02:49:36.680] We drive this wedge under the feds on FCC, the gun issue will be a lot easier because
[02:49:36.680 --> 02:49:44.000] we've already started down the road, and then we move on toward the federal income tax.
[02:49:44.000 --> 02:49:49.320] And what it starts with is Americans recognizing that the federal government is acting outside
[02:49:49.320 --> 02:49:57.040] of its authority and choosing to basically just be free, choosing to continue that transmission
[02:49:57.040 --> 02:50:00.920] all the while knowing that the federal government, while they may threaten and they do have a
[02:50:00.920 --> 02:50:06.120] coercive arm, we all know that they're entirely illegitimate in their practice of trying
[02:50:06.120 --> 02:50:07.840] to claim jurisdiction.
[02:50:07.840 --> 02:50:12.280] So the important thing is for Americans to start being brave, to start being strong,
[02:50:12.280 --> 02:50:15.960] to harken back to all the sacrifices that our founding fathers made, and to put it on
[02:50:15.960 --> 02:50:18.600] the line and to make some sacrifices themselves.
[02:50:18.600 --> 02:50:25.240] Because it's not until we choose and make that decision, choose to be free, that we
[02:50:25.240 --> 02:50:26.360] generally will be free.
[02:50:26.360 --> 02:50:30.000] It's time to drop the chains because the chains in reality are not real.
[02:50:30.000 --> 02:50:34.000] It's all an illusion that the federal government has us wrapped under, and it's time that we
[02:50:34.000 --> 02:50:35.000] all stand up together.
[02:50:35.000 --> 02:50:37.200] And it's going to be tough, don't get me wrong.
[02:50:37.200 --> 02:50:41.440] A lot of great sacrifices are going to have to be made.
[02:50:41.440 --> 02:50:44.280] People's wealth is going to be taken away, and maybe some people's lives will be taken
[02:50:44.280 --> 02:50:46.400] away, but that's the price of liberty.
[02:50:46.400 --> 02:50:49.640] Yeah, but it's not near as hard as it was.
[02:50:49.640 --> 02:50:54.960] The pendulum is beginning to swing back, and it's gathered momentum.
[02:50:54.960 --> 02:51:00.560] We just need more people to jump on with us and add more weight to it as it comes back.
[02:51:00.560 --> 02:51:05.800] There's strength in numbers, there's strength in unity, and there's strength in truth.
[02:51:05.800 --> 02:51:07.480] And we have all those things on our side.
[02:51:07.480 --> 02:51:10.640] Yes, and the numbers are building.
[02:51:10.640 --> 02:51:13.360] And a lot of it's thanks to John's work.
[02:51:13.360 --> 02:51:14.360] And John's work.
[02:51:14.360 --> 02:51:15.360] Yeah, really.
[02:51:15.360 --> 02:51:19.840] Well, you all allow me to amplify my voice, like, you know, a thousand times to this wonderful
[02:51:19.840 --> 02:51:20.840] radio drink.
[02:51:20.840 --> 02:51:24.920] Well, hey, you know, I mean, strength in numbers, I mean, that is just proven tonight.
[02:51:24.920 --> 02:51:26.240] Look how many people were here.
[02:51:26.240 --> 02:51:27.240] It was amazing.
[02:51:27.240 --> 02:51:28.240] Big time.
[02:51:28.240 --> 02:51:29.240] I was very impressed.
[02:51:29.240 --> 02:51:30.240] I was very excited.
[02:51:30.240 --> 02:51:37.680] You know, and it's like the message has to get out, you know, through the Internet, through
[02:51:37.680 --> 02:51:42.680] the radio stations and everything, so that people can find out about these kinds of events.
[02:51:42.680 --> 02:51:44.520] You know, it's very crucial.
[02:51:44.520 --> 02:51:50.140] Yes, and he remarked about how things are worse than George Orwell anticipated because
[02:51:50.140 --> 02:51:53.400] he didn't anticipate the technology.
[02:51:53.400 --> 02:51:59.440] But then, on the other hand, they're better because George Orwell didn't anticipate the
[02:51:59.440 --> 02:52:00.440] technology.
[02:52:00.440 --> 02:52:02.040] We can use the technology to fight back.
[02:52:02.040 --> 02:52:03.040] Sure.
[02:52:03.040 --> 02:52:04.040] In our hands.
[02:52:04.040 --> 02:52:07.240] The Brotherhood didn't have the Internet in Orwell's 1984.
[02:52:07.240 --> 02:52:08.240] Exactly.
[02:52:08.240 --> 02:52:09.240] But we do.
[02:52:09.240 --> 02:52:10.240] And we do.
[02:52:10.240 --> 02:52:16.080] And the government would very much like to shut it down, but it has so weaved itself
[02:52:16.080 --> 02:52:22.040] into the fabric of the economy, they can't shut it down without shutting down the economy.
[02:52:22.040 --> 02:52:28.000] So they've got this wild animal running around in their system and they just can't control
[02:52:28.000 --> 02:52:29.000] it.
[02:52:29.000 --> 02:52:33.800] And this is the advantage we still have that we can still take it back.
[02:52:33.800 --> 02:52:34.800] Yes.
[02:52:34.800 --> 02:52:37.000] There's no way that they can ever shut down the Internet.
[02:52:37.000 --> 02:52:38.000] It's just not possible.
[02:52:38.000 --> 02:52:39.000] It's too complicated.
[02:52:39.000 --> 02:52:40.000] It's just not possible.
[02:52:40.000 --> 02:52:41.000] It's decentralized.
[02:52:41.000 --> 02:52:45.360] What they will do is they may try to restrict our access to it like what's going on in Canada.
[02:52:45.360 --> 02:52:52.880] The Internet service providers now are actually selling, they're actually selling as if it
[02:52:52.880 --> 02:52:58.680] was a subscription package like to cable TV, like you would get a subscription package
[02:52:58.680 --> 02:53:03.360] to a certain list of websites and you could only go to those websites and if you want
[02:53:03.360 --> 02:53:08.280] to browse the Internet in general or hit any other websites and you have to pay per website
[02:53:08.280 --> 02:53:11.160] or it just wouldn't be accessible at all.
[02:53:11.160 --> 02:53:16.080] But that's just not going to fly because as one of my friends was telling me, America
[02:53:16.080 --> 02:53:19.920] is the land of the hackers.
[02:53:19.920 --> 02:53:23.200] And so it's just they're never going to be able to restrict the Internet from us because
[02:53:23.200 --> 02:53:28.240] there's too many people at too high levels that are not going to let that kind of thing
[02:53:28.240 --> 02:53:29.240] go down.
[02:53:29.240 --> 02:53:30.240] Yeah.
[02:53:30.240 --> 02:53:34.320] Even if they tried to, even if they were able to bring down the Internet, we would just,
[02:53:34.320 --> 02:53:37.520] you know, we're out there, we're not going to stop.
[02:53:37.520 --> 02:53:42.680] We would just set up our own Internet, even if it's a series of, you know, wireless routers
[02:53:42.680 --> 02:53:46.760] throughout that entire city that connects to other cities and whatnot, there's no stopping
[02:53:46.760 --> 02:53:50.560] the people when the will is there and we've gotten that taste of freedom, there's no holding
[02:53:50.560 --> 02:53:51.560] us back.
[02:53:51.560 --> 02:53:52.560] Exactly.
[02:53:52.560 --> 02:53:53.560] It's done.
[02:53:53.560 --> 02:53:54.560] We're free.
[02:53:54.560 --> 02:53:55.560] Period.
[02:53:55.560 --> 02:53:56.560] End of story.
[02:53:56.560 --> 02:53:57.560] The war has been won.
[02:53:57.560 --> 02:53:59.200] But you still got to get out there and help us.
[02:53:59.200 --> 02:54:01.400] We just have to mop up some of the details.
[02:54:01.400 --> 02:54:02.400] Sure.
[02:54:02.400 --> 02:54:03.400] Sure.
[02:54:03.400 --> 02:54:04.400] Absolutely.
[02:54:04.400 --> 02:54:05.400] A little loose ends there to pick up.
[02:54:05.400 --> 02:54:06.400] Absolutely.
[02:54:06.400 --> 02:54:13.480] Do we have anything coming up in the near future of this nature, any more meetings, any more
[02:54:13.480 --> 02:54:14.920] events?
[02:54:14.920 --> 02:54:15.920] Of this nature?
[02:54:15.920 --> 02:54:16.920] Yes.
[02:54:16.920 --> 02:54:18.560] Or tell us about any tag events.
[02:54:18.560 --> 02:54:19.560] Yeah.
[02:54:19.560 --> 02:54:23.200] We're having, on Monday actually, Brave New Books, bravenewbookstore.com, definitely encourage
[02:54:23.200 --> 02:54:26.900] everybody to support them to the fullest.
[02:54:26.900 --> 02:54:33.120] On Monday, this Monday coming up, we're going to be having Tag Talks, which is a loose philosophical
[02:54:33.120 --> 02:54:34.120] discussion.
[02:54:34.120 --> 02:54:39.480] We talk philosophy, we chat strategy, we chat ideology, we chat politics, but it's basically
[02:54:39.480 --> 02:54:42.880] some of the leaders from Texas for Accountable Government inviting the community to come
[02:54:42.880 --> 02:54:45.320] together and for us to grow together and learn together.
[02:54:45.320 --> 02:54:49.520] It's very loose, real informal, Brave New Books, they're in the back room, we just sit
[02:54:49.520 --> 02:54:50.720] around and chat.
[02:54:50.720 --> 02:54:55.680] And then on the last Monday of this month, we meet every last Monday at the Bagpipes
[02:54:55.680 --> 02:55:00.840] Pub and Brewery up in North Austin off of Cameron, just south of 183, we'll be having
[02:55:00.840 --> 02:55:02.320] a Christmas party.
[02:55:02.320 --> 02:55:08.040] So we wish you a Merry Christmas on the 28th at 7 p.m. at Bagpipes Pub and Brewery.
[02:55:08.040 --> 02:55:13.520] We are going to party down, and I tell you us Liberty activists, we fight hard, we party
[02:55:13.520 --> 02:55:14.520] hard too.
[02:55:14.520 --> 02:55:17.680] So we'd love the listeners out there to come and join us.
[02:55:17.680 --> 02:55:21.600] They have Monday happy hour, the beer's cheap, the wings are excellent, some of the best
[02:55:21.600 --> 02:55:25.400] wings in town, and you'll get to hang out with some of your fellow freedom fighters
[02:55:25.400 --> 02:55:27.880] and have a jolly old time.
[02:55:27.880 --> 02:55:34.520] We'll also be launching Operation D-Fuse, the southern leg of that, and again it's OperationD-Fuse.com.
[02:55:34.520 --> 02:55:38.600] Check out the website, Catherine Blache and myself will be here in Austin, so come hang
[02:55:38.600 --> 02:55:41.520] out, party, have a good time, get involved, stay active.
[02:55:41.520 --> 02:55:45.360] Oh great, she's going to be here, I want to meet her, I've never got to meet her yet.
[02:55:45.360 --> 02:55:47.800] She's good, she's strong, she's an inspiration.
[02:55:47.800 --> 02:55:48.960] Never had a chance to meet her.
[02:55:48.960 --> 02:55:54.760] She's great, yeah, she'll be here December 27th through the third, or the fourth, whenever
[02:55:54.760 --> 02:55:55.760] we leave.
[02:55:55.760 --> 02:56:01.120] So go ahead and mark your calendars now, activists, on January 4th, the City of Austin Public
[02:56:01.120 --> 02:56:05.840] Safety Commission will be having their second meeting, and the whole thing is primarily
[02:56:05.840 --> 02:56:09.000] going to be about the Austin Regional Intelligence Center, which is the fusion center that they're
[02:56:09.000 --> 02:56:10.000] setting up here in Austin.
[02:56:10.000 --> 02:56:13.560] We have the wonderful opportunity here in Austin to preemptively get involved in the
[02:56:13.560 --> 02:56:18.560] process of setting up this fusion center, to strengthen the privacy policy, to try to
[02:56:18.560 --> 02:56:23.440] make this the model fusion center for liberty, even though it's kind of an Aussie moron.
[02:56:23.440 --> 02:56:27.040] So don't we not want these fusion centers at all, John?
[02:56:27.040 --> 02:56:32.240] Yeah, unfortunately to be a realist, Murray Rothbard always said that in order to actually
[02:56:32.240 --> 02:56:37.920] achieve our goals, we have to hold our ultimate goal aloft, or else how can we ever hope to
[02:56:37.920 --> 02:56:39.040] attain it.
[02:56:39.040 --> 02:56:43.840] But in the interim, I think the most realistic thing we can do now is limit the ability of
[02:56:43.840 --> 02:56:49.240] the fusion center to act outside of the Constitution, act outside of its jurisdiction, and once
[02:56:49.240 --> 02:56:53.640] we take the reins of government, and once individuals like myself get elected, and Deborah
[02:56:53.640 --> 02:56:57.560] Medina starts getting elected, and Patriots start getting elected to offices all over,
[02:56:57.560 --> 02:57:00.680] once that starts happening, then we can start getting rid of the fusion centers.
[02:57:00.680 --> 02:57:04.640] But in the meantime, I would encourage everybody to do all they can to work to limit the ability
[02:57:04.640 --> 02:57:05.640] of the fusion center.
[02:57:05.640 --> 02:57:09.760] We'll see what law authorizes them to set up these fusion centers to begin with.
[02:57:09.760 --> 02:57:11.200] They can't just do whatever they want.
[02:57:11.200 --> 02:57:16.280] There has to be a law passed that authorizes them to do such things.
[02:57:16.280 --> 02:57:17.280] They've passed the laws.
[02:57:17.280 --> 02:57:18.280] They've passed the laws?
[02:57:18.280 --> 02:57:22.240] Yeah, in the federal level, the wonderful string of, you know, Patriot Act, Department
[02:57:22.240 --> 02:57:25.680] of Homeland Security creation, Military Commissions Act, all that great stuff.
[02:57:25.680 --> 02:57:35.280] So we have to get in and start driving wedges under their ability to act against our interests.
[02:57:35.280 --> 02:57:38.160] At this point, the only thing we can hope to do is soften the impact.
[02:57:38.160 --> 02:57:42.920] A lot of cities and municipalities and regions have fusion centers in the works, so if you're
[02:57:42.920 --> 02:57:47.240] able to get in at the ground floor, you might even be able to turn the tide entirely.
[02:57:47.240 --> 02:57:48.320] We weren't able to do that in Austin.
[02:57:48.320 --> 02:57:51.520] They're already on their way creating the fusion center, but hopefully we'll be able
[02:57:51.520 --> 02:57:52.520] to limit it.
[02:57:52.520 --> 02:57:55.040] But if the talk starts coming up, that's why it's always important to pay attention to
[02:57:55.040 --> 02:57:57.960] your city level, pay attention to the state politics.
[02:57:57.960 --> 02:58:01.400] If the talk starts coming up, then you can work to say, no, we don't need this.
[02:58:01.400 --> 02:58:03.520] Maybe there's another way to do it.
[02:58:03.520 --> 02:58:07.480] But right now, yeah, you can fight to defend it, and you can actually use it as a means
[02:58:07.480 --> 02:58:08.480] to get elected.
[02:58:08.480 --> 02:58:14.440] If you can make yourself, you know, Joe, activist, the privacy and liberty defender, you can
[02:58:14.440 --> 02:58:18.160] make a name for yourself and use that in order to get an office where you can eventually
[02:58:18.160 --> 02:58:19.160] get rid of them all together.
[02:58:19.160 --> 02:58:21.840] Okay, listen, we're coming to the end of the show, and I have an announcement to make.
[02:58:21.840 --> 02:58:27.320] Flyer just handed it to me, December 18th, 2009, 6 to 8 p.m. at the Magic Time Machine
[02:58:27.320 --> 02:58:29.080] in San Antonio, Texas.
[02:58:29.080 --> 02:58:33.720] There's going to be a rally for Deborah Medina, and she will be there.
[02:58:33.720 --> 02:58:40.240] So Deborah Medina for governor, please go to MedinaforTexas.com and in San Antonio Magic
[02:58:40.240 --> 02:58:43.280] Time Machine, 902 East Loop 1604.
[02:58:43.280 --> 02:58:44.280] Go ahead, John.
[02:58:44.280 --> 02:58:48.240] There will be a rule of law exclusive, Texans for Accountable Government just recently officially
[02:58:48.240 --> 02:58:50.720] endorsed Deborah Medina for governor.
[02:58:50.720 --> 02:58:54.840] And the rule of law radio network endorsed Deborah Medina for governor also.
[02:58:54.840 --> 02:58:55.840] Right on.
[02:58:55.840 --> 02:58:56.840] Okay, we'll see y'all tomorrow night, folks.
[02:58:56.840 --> 02:58:57.840] Stay tuned for Endless Fraud Defense.
[02:58:57.840 --> 02:59:16.840] I'm like a stepping razor, don't you watch my side, I'm dangerous, dangerous.
[02:59:16.840 --> 02:59:35.840] I'm like a stepping razor, don't you watch my side, I'm dangerous, dangerous.
[02:59:35.840 --> 02:59:43.840] I'm like a stepping razor, don't you watch my side, I'm dangerous, dangerous.
[02:59:43.840 --> 02:59:51.840] I'm like a stepping razor, don't you watch my side, I'm dangerous, dangerous.
[02:59:51.840 --> 02:59:54.840] I'm like a stepping razor, don't you watch my side, I'm dangerous, dangerous.