Brown Web of Debt The Shocking Truth about our Money System (3rd ed)

Endnotes

Review (Winter 2004), page 25.

14.Lyndon LaRouche, “Economics: The End of a Delusion (Leesburg, Virginia, April 2002), page 88.

15.B. Mandell, op. cit.

16.See Harvey Wasserman, “California’s Deregulation Disaster,” The Nation (February 12, 2001).

17.Catherine Austin Fitts, “How the Money Works,” SRA Quarterly, London (November 2001).

18.See Chapter 29.

Chapter 43

1.Richard Russell, “The Takeover of U.S. Money Creation,” Dow Theory Letter (April 2005).

2.Hans Schicht, “The Death of Banking and Macro Politics,” 321gold.com/ editorials (February 9, 2005).

3.Insurance Information Institute, Financial Services Fact Book (2005), http://financialservicefacts.org/ financial2/banking/commercial/ content.print.

4.William Hummel, “Deposit Insurance and Bank Failures,” in Money: What It Is, How It Works, http:// wfhummel.net (April 15, 2000).

5.G. Edward Griffin, The Creature from Jekyll Island (Westlake Village, California: American Media, 1998), pages 63, 65.

6.Emily Thornton, Mike France, “For Enron’s Bankers, a ‘Get Out of Jail Free’ Card,” businessweek.com (August 11, 2003).

7.Martin Weiss, “Global Vesuvius,” Safe Money Report (November 2006).

8.John Hoefle, “The Federal Reserve Vs. The United States,” Executive Intellligence Review, April 12, 2002.

9.Dean Baker, “Effective Currency

Transaction Taxes: The Need to Tax Derivatives,” Center for Economic and Policy Research, cepr.net (June 19, 2001).

10. Dean Baker, “Taxing Financial Speculation: Shifting the Tax Burden from Wages to Wagers,” cepr.net (February 2000).

Chapter 44

1.“Federal Budget Spending and the National Debt,” federalbudget.com (October 20, 2005).

2.Federal Reserve, “Assets and Liabilities of Commercial Banks in the United States,” federalreserve.gov/releases/h8/ Current/ (December 30, 2005).

3.John Williams, “Monthly Commentary,” Shadow Government Statistics, shadowstats.com/cgi-bin/sgs/ archives (August 2006).

4.See Chapter 38.

5.Bill Fleckenstein, “The Numbers Behind the Lies,” MSN Money, http:/ /moneycentral.msn.com (March 6, 2006).

6.Jan Vandermoortele, Are the MDGs Feasible? (New York: United Development Program Bureau for Development Policy, July 2002).

7.Richard Cook, “Gap Between GDP and Purchasing Power,” Global Research (April 26, 2007).

8.“Economic Democracy,” Wikipedia.

9.“$1 Trillion in Mortgage Losses?”, Calculated Risk (December 28, 2007).

10.Sean Olender, “Mortgage Meltdown,” San Francisco Chronicle (December 9, 2007).

11.“ECB Buys Time, But Doesn’t

516

Web of Debt

Resolve Credit Problems,” Market

Watch (December 18, 2007).

12.Harry Magdoff, et al., “The New Face of Capitalism: Slow Growth, Excess Capital, and a Mountain of Debt,” Monthly Review (April 2002); Michael Hodges, “America’s Total Debt Report,” http:// mwhodges.home.att.net (March 2006).

13.“Sovereignty Loans,” FOMC Alert (June 29-30, 1999); “H.R. 1452 [106th]: State and Local Government Economic Empowerment Act,” govtrack.us/congress.

14.New Zealand Democratic Party for Social Credit, democrats.org.nz; Canadian Action Party, canadianactionparty.ca; Bromsgrove Group, prosperityuk.com; Forum for Stable Currencies, ccmj.org; London Global Table, globaltable.org.uk; American Monetary Institute, monetary.org.

15.Rodney Shakespeare, The Modern Universal Paradigm (2007), pages 95-96.

16.“CAFRs: The Biggest Secret,” rense.com (June 30, 2000); Tom Valentine, “Media Watchdogs Won’t Expose Hidden Slush,” American Free Press, americanfreepress.net.

17.“Debate Continues on Alaska Oil Drilling,” CNNfyi.com (March 23, 2001).

18.Roger Langrick, “A Monetary System for the New Millennium,” worldtrans.org/whole/ monetarysystem.html.

Chapter 45

1. Martin Khor, “IMF: Bailing Out Countries or Foreign Banks?”, Third World Network (February 18, 2005).

2. Abraham McLaughlin, “Debt Forgiveness Gathers Steam,” Christian Science Monitor (September 30, 2004).

3. Michael Rowbotham, “How Third World Debt Is Created and How It Can Be Cancelled,” Sovereignty (May 2002), sovereignty.org.uk, excerpted from M. Rowbotham, “The Invalidity of Third World Debt” (1998), pages 14-17, and M. Rowbotham, Goodbye America! (Charlbury, England: Jon Carpenter Publishing, 2000), pages 135-36 and 140-43.

4.See Chapter 25.

5.Andrew Berg, et al., “The Dollarization Debate,” Finance Development (March 2000); “Mixed Blessing: Can Dollarized Ecuador Avoid the Argentine Trap?”, Financial Times (January 24, 2002); “El Salvador Learns to Love the Greenback,” Economist (September 26, 2002); Marcia Towers, “The Socioeconomic Implications of Dollarization in El Salvador,” Latin American Politics and Society (fall 2004).

6.See Ellen Brown, “Sustainable Energy Development: How Costs Can Be Cut in Half,” webofdebt.com/articles (November 5, 2007).

6.Glen Martin, Ascent to Freedom: The Practical and Philosophical Foundations of Democratic World Law (Sun City, Arizona: Institute for Economic Democracy, 2008).

Chapter 46

1.“Colonial Currency – Massachusetts Treasury Certificates,” Department of Special Collections, Notre Dame, coins.nd.edu.

2.Michael Rowbotham, “An

517

Endnotes

Indispensable Key to a Just World Economy,” Prosperity, prosperityuk.com (October 2001).

3.Thomas Greco, “New Money: A Creative Opportunity for Business,” The Global Development Research Center, www.gdrc.org.

4.Bernard Lietaer, “A ‘Green’ Convertible Currency,” www.transaction.net.

5.Frederick Mann, “Economic Means to Freedom – Part V,” buildfreedom.com (October 2, 1998).

6.Doug Gillespie, “’Core’ Inflation Doesn’t Work in Either Your Stomach or Your Gas Tank!”, PrudentBear.com (May 26, 2005); Tim Iacono, “Home Ownership Costs and Core Inflation,” http:// themessthatgreenspanmade.blogspot.com (October 17, 2005).

7.Lyndon LaRouche Political Action Committee, “A New Bretton Woods Now!”, larouchepac.com (April 29, 2005).

8.Lyndon LaRouche, “Trade Without Currency,” schillerinstitute.org (2000).

9.“Dr. Mahathir Mohamad,” aljazeera.com (August 12, 2004).

10.“Gold Dinar Coins,” taxfreegold.co.uk/golddinar.html.

11.Tarek El Diwany, “Third World Debt,” presentation at Cambridge University’s “One World Week” in February 2002, citing UNDP Human Development Report (1997), page 93.

12.Tarek El Diwany, “A Debate on Money,” islamic-banking.com (July 2001).

Chapter 47

1.George Friedman, “Global Market Brief: China’s Engineered Drop,” worldnewstrust.com (March 1, 2007);

Mike Whitney, “Tuesday’s Market Meltdown,” counterpunch.org (March 1, 2007).

2. See, e.g., “The James Joyce Table,” lemetropolecafe.com (February 28,

2007); and see Chapter 33. 3. M. Whitney, op. cit.

Postscript

1.Mark Gilbert, “Opaque Derivatives, Transparent Fed, ‘Bubblenomics’,” bloomberg.com (June 27, 2007).

2.Alex Gabor, “The Penny King Declares ‘SEC Should Investigate Mr. Mozillo of Countrywide Financial,” americanchronicle.com (August 22, 2007).

3 Iain Dey, et al., “Angry Savers Force Northern Rock to Be Sold,” Telegraph.Co.Uk (September 16, 2007).

4.“Fears Over Rock’s Online Accounts,” BBC News (September 16, 2007).

5.Peter Ralter, “News of the Day,” LeMetropoleCafe.com (September 16, 2007).

6.John Hoefle, “The Federal Reserve Vs. The United States,” Executive Intelligence Review, April 12, 2002.

7.Ron Paul, “Reject Taxpayer Bank Bailouts,” LewRockwell.com (May 4, 2005).

8.Chris Powell, “Central Banking Is Easy; The Challenge Is to Stay in Power,” gata.com (August 23, 2007).

9.“Remarks from Hillary Clinton on the Global Economic Crisis,” CNN (January 22, 2008) (video preserved on allamericanpatriots.com).

10.Jim Sinclair, “Could This Be ‘The Mother of All Wakeup Calls’?”, jsmineset.com (January 20, 2008).

11.Carol Matlack, “Societe Generale’s

518

Web of Debt

Fraud: What Now?”, Business Week (January 24, 2008).

12.J. Sinclair, op. cit.

13.Mike Whitney, “Is This the Big One?”, Information Clearing House (January 21, 2008), citing cnbc.com/ id/22706231.

14.“Countrywide CEO Waives Massive Severance Package,” MortgageNewsDaily.com (February 6, 2008).

15.Robert Kuttner, “Testimony Before the Committee on Financial Services,” U.S. House of Representatives (October 2, 2007).

16.“Bond Insurers, Not Fed, Driving Market,” seekingalpha.com (February 4, 2008).

17.U.S. Credit-derivative Use Adds to Ambac, MBIA Volatility,” Reuters (January 23, 2008).

18.Bethany McLean, “The Mystery of the $890 Billion Insurer,” Fortune (May 16, 2005).

19.“Monoline Insurance,” Wikipedia.

20.Jane Wells, “Ambac and MBIA: Bonds, Jane’s Bonds,” CNBC (February 4, 2008).

21.“Mortgage Bond Insurers ‘Need

$200bn Boost,’” TimesOnline (January 25, 2008).

22.Adrian Ash, ”Goldman Sachs Escaped Subprime Collapse by Selling Subprime Bonds Short,” Daily Reckoning (October 19, 2007).

23.Sean Olender, “Mortgage Meltdown,” SFGate.com (December 9, 2007).

24.“Rulings May Hinder Trustees’ Foreclosure Actions,” Securities Law 360 (Portfolio Media, Inc., December 6, 2007).

25. Henry Gomez, Tom Ott, “Cleveland Sues 21 Banks Over Subprime Mess,” The Plain Dealer (Cleveland,

January 11, 2008).

26.Greg Morcroft, “Massachusetts Charges Merrill with Fraud,” MarketWatch (February 1, 2008).

27.Mike Whitney, “The Bush Financial Bust of 2008: ‘It’s All Downhill from Here, Folks,’” Counterpunch (February 8, 2008).

519

Web of Debt

Index

A

Adams, John 47, 343

adjustable rate mortgages (ARMs) 287-290, 455

Aldrich, Nelson 123-124, 129, 134, 138

Ambac 474-75

American Monetary Institute (AMI) American Monetary Act 373, 397

American Revolution 14, 19, 42, 48, 84, 101, 224, 225, 341, 388 “American system” of economics 51, 55, 80, 86, 230, 249, 460

Argentina, hyperinflation in 243, 348

Aristotle 60

Asian crisis of 1997-98 209, 212, 252 Asian Monetary Fund (AMF) 253 Augustin, Chuck 316

Auriti, Giacinto 342

Australia, Commonwealth Bank 414

B

Bacon, Sir Francis 35

Bagley, R. Colt 301

bailout of banks 331, 417, 419, 456, 468-69, 477

Baker, Dean 423 Bamford, James 205

Bank of America 468m 477 Bank of England

36, 40, 65, 68, 69, 71, 72, 73, 394, 468-69

Bank of Japan 251, 385, 386

Bank of the United States. See United States Bank

Bank of the United States, Second 77 Bankers Manifesto of 1892 107 Bankers Manifesto of 1934 149

banking, central 72, 88, 124, 259 banking, commercial 213, 330, 400, 411, 418, 419, 457 banking, community 346 investment 177, 329, 330, 401, 457

Islamic 399, 401

money center 185, 329, 330 national 93, 225, 259, 393, 426

BankOne 128, 326 bankruptcy 280, 348

Code, revision of 280 corporate 281

of banks 325, 333, 419, 455 Barings Bank 470

Barnard, Harvey 365

Basic Income Guarantee 428 Baum, L. Frank 11, 109, 337 Bear Stearns 323, 465-66

Berkshire Farm Preserve Notes 350 Bernanke, Ben 382-384, 421 Biddle, Nicholas 80, 81 Bilderbergers 129, 130, 309 Bismarck, Otto von 91, 93 Bohnsack, Ken 432

Bolser, Michael 313, 315, 321 Bonus Bill 111

Boyko, Christopher 299, 476, 478 Bretton Woods

Accords 438, 443, 445

Conference 129, 207 gold standard 207

British East India Company 66 “British system” of Economics 51, 80,

223, 225 Bromsgrove Group 432 Brouillet, Carol 353

Bryan, William Jennings 7, 11, 13, 15, 16, 17, 18, 19, 20, 112, 393

Buffett, Warren 189, 281, 331

521

Index

Bureau of Engraving and Printing 73 Burien, Walter 433

Burr, Aaron 54

Bush, George H. W. 468 business cycle 288, 451, 454 Butler, Smedley 160

Byrne, Partick 188, 330

C

CAFRs (Comprehensive Annual

Financial Reports) 433 Cahn, Edgar 350 Caldicott, Helen 268 Canadian Action Party 432 “capital flight” 211 carbon credits 351

Carey, Henry 85, 223, 225, 230, 249 263, 389

Carey, Matthew 51, 85 Caribbean pirates 369 Carlyle Group 104 Carmack, Patrick 60, 398

Carnegie, Andrew 118, 137, 338 Carribean pirates 388

carry trade 413

Cayman Islands 192, 322 CDO. See collateralized debt

obligations

central banking 72, 259

Channel Islands, money system 100 Chase Manhattan Bank 54, 120, 127 Chase, Salmon P. 94, 95, 120 Chicago Federal Reserve 171-176 China 99, 257-265, 270, 411

Chinese renminbi 258, 264 Chossudovsky, Michel 5, 220, 253 Citibank 24, 196, 302, 331, 421 Citigroup 128, 305, 326, 475, 477 Civil War , U. S. 19, 91, 95, 120, 121,

123

Clay, Henry 51, 57, 79, 80, 83, 85, 86 Cleveland, President Grover 15, 16 Clinton, Hillary 470

Coinage Act of 1792 365

Cold War 228

collateralized debt obligations (CDOs) 397, 465-66, 478

commercial banking. See banking, commercial

Commodities Futures Trading Commission 193

Communist Party 227

community currencies 347-356, 390 compound interest 32, 410

chart 32 Confederacy 89

Congress 8, 12, 45, 48, 75-84, 93, 96, 371, 378, 388, 457-460

Constitution, U.S. 48, 50, 55, 78, 95 309, 393, 451

Constitutional Convention 48 Consumer Price Index 444, 445, 448 Continental Congress 43 Continental currency 43, 44, 45, 48 Continental Illinois, bankruptcy of

420, 421

Countrywide Financial 466, 468-69, 472

Cook, Chris 400 Cook, Richard 428 corporations 102 Corrigan, Sean 199

Council on Foreign Relations 129 Counterparty Risk Management

Policy Group (CRMPG) 318, 453 Countrywide Financial 466

Coxey’s Army 12, 14, 108, 110, 155, 234, 279, 446

Cramer, Jim 472

credit card 277, 282, 283, 284, 412 credit card debt 282, 422

credit clearing exchange 443 credit default swap 471, 474 Crime of ’73 18, 95, 112 CRMPG report 320 Cromwell, James 63, 67, 70 Crudele, John 312, 313 Currency Act of 1764 41

522

Web of Debt

currency board 244

currency exchange rates 209, 212, 220, 239, 453

basket of commodities standard 442

Bretton Woods gold standard 207

Consumer Price Index standard 444, 448

floating currencies 209 pegged to dollar 211, 216 renminbi 260

301, 304, 305, 306, 459 Deutsche Bank, 299, 476-77 devaluation of currency 210,

239, 243, 244, 246, 247 of Argentine peso 243 of Mexican peso 216

of Zimbabwe currency. 247 DiLorenzo, Thomas 85

Dinar, Gold 446

Dow Jones Industrial Average 181, 308, 451, 466

chart 381

D

Daly, Jerome 28-30

Damon, Frank 258

Dann, Marc 478 Daughty, Richard 307 Day of Jubilee 435

de Fremery, Robert 396 debt, Federal. See federal debt debt, household, chart 286 debt, state and local 432

debt-free money 12, 14, 20, 88, 95, 96, 148, 153, 371, 382, 426, 428, 431,

Declaration of Independence 334, 338

deflation 384, 419, 430 Del Mar, Alexander 42, 66 Democratic Party 86 Democratic Republicans 54 Denmark 411

depository 402, 404 Depository Trust and Clearing

Corporation (DTCC) 186, 187 Depression, Great 13, 42, 85, 127, 141,

144, 146, 147, 151, 153, 180, 181, 187, 197, 203, 229, 347, 360, 385, 405

derivatives 3, 191-197, 209, 301306, 309, 327, 421-24, 438, 446, 470, 475

derivatives crisis

E

Eccles, Marriner 32, 372 Ecuador 439

Edison 88, 224

El Salvador 439

Embry, John 316 Emergency Powers Act 309 Emry, Sheldon 47, 237, 347

Engdahl , William 206, 215, 241,242, 251,266

equity market 178

Exchange Stabilization Fund (ESF) 317

F

Fannie Mae (Federal National Mortgate Association) 295-299, 326

farm parity pricing 460

FDIC (Federal Deposit Insurance Corporation) 144, 145, 199, 328, 333, 404, 416, 419, 420, 421, 426, 432, 453, 459, 460, 468

FDIC receivership

144, 333, 404, 420, 456, 458 Feder, Gottfried 235

“Feder money” 234, 238

federal debt 4, 6, 23, 33, 100, 139, 154, 155, 164, 199, 262, 286, 307, 366382, 394, 399, 405, 406, 411, 426,

523

Index

428, 452, 453, 457, 458, 460 chart 368

debt per person, chart 369 Federal income tax

133, 135, 136, 138, 426, 452 Federal Reserve, U.S. 23, 26, 29, 32

123-129, 141-146, 148, 155-176, 394

ownership of 129-131 Federal Reserve Act of 1913 8, 25,

134, 332, 458

Federal Reserve Bank of New York 24, 127, 142, 163, 166, 174

Federal Reserve Notes 3, 26, 73, 94, 162, 169, 365

Federalist Debates 133

Federalist Papers 50 Federalists 54 Fekete, Antal 208

FEMA (Federal Emergency Management Agency) 309

fiat 60

fiat money 60, 61, 85, 89, 165, 208, 233, 234, 235, 250, 390, 426, 440, 453

First National Bank of Montgomery vs. Daly 28

Fitts, Catherine Austin 278, 308, 434 floating exchange rates. See currency

exchange rates

Ford Motor Corporation 304 foreclosures, home 28, 29, 107, 148,

151, 288, 290, 294, 311, 412, 429, 455

Foreclose, standing to 299 Forum for Stable Currencies 432 fractional reserve 30

Fractional Reserve Banking 332 fractional reserve banking

26, 27, 28, 69, 166, 174, 208, 332, 358, 396, 398, 431, 452

fractional reserve lending 451 Franklin, Benjamin 36, 37, 40,

260, 403, 407, 414

Freddie Mac (Federal National Mortgage Association) 295, 298

Free Coinage Act of 1666 67 free market 453

free trade 51, 86, 223, 230, 454 Freeman, Richard 295, 322 French Revolution 73 Friedman, Milton 208, 384, 426 Friendly Favors 352

full dollarization 439 Fuller, Buckminster 339

G

Galbraith, John Kenneth 32, 266 Galbraith, James 7

Garfield, James 96

GATA (Gold Anti-Trust Action

Committee) 315, 469

General Motors, bankruptcy of 304 George, David Lloyd 66

Germany 91, 233, 235, 236, 237, 263 Gibson, Donald 204

Gilded Age 95, 97, 118, 121, 123 Glass-Steagall Act 159, 177, 193,

329, 472, 475

Global Exchange Network 348 globalization 229, 454 Glover, Paul 349

gold price, chart 346

gold standard 8, 13-15, 17-19, 21, 86, 92, 97, 98, 101, 102, 203, 223, 452

Goldbugs 357-361

Goldman Sachs 104, 197, 218, 305, 308, 315, 316, 318, 475-77

Good Roads Bill 110

Goodwin, Jason 36

Grameen Bank of Bangladesh 345, 413

Grant, Uysses S. 249

Greco, Tom 353, 443

Greenback dollar 85, 87, 88, 89, 9296, 407

Greenback Law of 1878 205

524

Web of Debt

Greenback Party 13, 95, 111 Greenback proposal 20 Greenbackers 13, 15, 96, 235, 357, 358 Greenspan, Alan 23, 295, 318, 319

370, 383

Griffin, Ed 145, 165, 226, 227, 373, 420

Grillot, Greg 260

gross domestic product (GDP) 269 gross national product (GNP) 269 guaranteed basic income 428 Guernsey 100, 101, 247, 380 Guttman, Robert 327, 401

H

Hamilton, Alexander 42, 48, 49-55, 369, 375

Hanna, Marcus 15, 18, 19, 112 Harvey, William Hope 111, 146, 148,

149, 365 Hazard Circular 92

Heavily Indebted Poor Country

Initiative (HIPC) 436

hedge funds 191-193, 196, 197, 323, 465

Hemphill, Robert H. 5, 155, 156, 160 Hepburn v. Griswold 95

Hitler, Adolf 234-36, 238 Hoefle, John 193,

197, 302, 325, 422, 465 Hogan’s Heroes 111

home ownership 107, 285, 286 Homeland Security Act 309 Homestead Act 84

Homestead Laws 144, 288

Hoskins, Richard 61, 63 housing bubble 286, 290, 455

housing crisis, possible solution 295, 306, 429

Hudson, Michael 290

Hummel, William 30, 173, 329, 330, 399, 402, 403, 405

Hurricane Katrina 309, 313 Hylan, John 1, 116

hyperinflation 218, 219, 230, 237-244, 246, 247, 263, 306, 347, 379, 388, 429

I

IMF. See International Monetary Fund.

“IMF riot” 309

income tax 3, 4, 100, 133-139, 295, 344, 366, 382, 416, 426-428, 453, 458, 459

India 265-72

farmer suicides 271 Industrial Revolution 62

inflation 4, 88, 97, 98, 100, 260, 262 425, 454. See hyperinflation. chart 103

Ingraham, Jane 217 interest 31, 354, 406, 407

interest rates 213, 294 interest-free banking 411

International Monetary Fund

129, 207, 210, 213, 217, 219, 229, 240-242, 244-47, 252-254, 267, 269, 277, 348, 436, 453

investment banking. See banking. Iran 370, 410-11

Iranian oil bourse 306 Iraq 58, 368

Islamic banking 354, 410-11, 446 Ithaca HOUR 349, 350

J

J. P. Morgan 119, 120, 122

J.P. Morgan Chase Company 24, 305, 316, 319, 326

J. P. Morgan Chase Bank 197, 302,

421

Jackson, Frank 477

Jackson, Andrew 1, 75, 76, 79, 80-83

Japan 249, 250-253, 385-388

Jefferson , Thomas 50, 52, 54, 75, 76

78, 79

Jekyll Island 422

525