Contributed by: David (Dave Hayes)

How Bo Gritz planned on solving the problem of the national debt. The following text sheds some light on that issue. He explained the plan to hundreds of people at a gathering in San Diego on September 14th, 1992.

"Well there is a solution, and it is a simple solution. It doesn't mean that it's an easy solution. But you need to know what it is. And so very quickly, I'm going to go through it. In the next ten minutes I think you're going to learn more about how to cure the ills of the American deficit and debt than your congressman, than your governor, and that most of your bankers know. But this is the truth. Every word is available to you. There's no copyright on the documents I'm going to quote from. They come right from the United States Treasury. So in a few moments, I'm going to go through this. Just bear with me.

First of all, where does money come from? That's the first question. And here is the answer. And the answer comes from the Chief Counsel of the United States Treasury, Russell L. Monk. He says, "The actual creation of money always" isn't that an interesting word "always involves the extension of credit by private commercial banks." Where does money come from? Private commercial banks. And always, is it in the form of credit? It is. Always. Let me read it one more time. "...actual creation of money always involves the extension of credit by private commercial banks." Where's the interest come from to pay the interest on the loan? Where's that money come from? Well, we asked it, and here's Russell L. Monk's signature. He says, "The money for paying the interest on the borrowed money comes from the same source as the other money comes from."

Let's see if we can do this in pictures. I got a hundred dollar bill. Doesn't mean I can spend it, but my wife let me have it for tonight's presentation. This hundred dollar bill, how did this get into existence? It had to be borrowed. You mean even the US Government has to borrow the money from private commercial banks? What's the answer? [Yes] Yes, it does. Always involves the extension of credit. Now, let's say there's 10% interest. Where did this ten dollars come from? It has to be borrowed also. And if you have compound interest... now are you beginning to see why we're $4 trillion dollars in debt? Are you beginning to see why we are never, under the current system, can we ever, is it mathematically possible? [No] to ever pay off the debt? [No] There's no money created that isn't borrowed money even to pay the interest.

Let's go into it a little deeper. So, who gets this kind of money? And how do they acquire it? Well, here's M. M. Schneider, acting Executive Director of the Department of Treasury, Bureau of Engraving. He says, "The currency notes are placed into circulation by your local financial organizations and can only be obtained from that source." So is there any other source other than the local financial organization, private banks? Is there any other source? [No] No there is not. Nowhere's Donna Pope, Director of the Mint. Here's what she says. "The notes are sold to the Federal Reserve at the cost of manufacture. Not at face value." Ten dollars costs two cents to make. How much does this cost to make? (holding up $100) [two cents] Two cents. And so this is sold to the Federal Reserve. Is the Federal Reserve any more federal than Fred Smith's Federal Express? [No] No it is not. It is a private consortium of banks.

Now they are sold these. And whose notes are these, are these the United States Government's notes? [No] No, it says right there, (pointing to cash) Federal Reserve. They're not federal,and they have no reserves. So, complete misnomer. But it says Federal Reserve note. This is sold to the Federal Reserve bank for two cents a bill. Now, it is loaned into existence at the face value, is it not? [Yes] And there's something else even more insidious than that. Have you heard of a thing called fractionalized banking? Which means every time they get one of these (holding up $100), how much can they loan out? They can loan out eight times, which actually goes to about thirteen times once you get through the different services on the debt. And so a bank ... just because they have let's say $100 loan, does that mean they have $100 in the bank? [No] No. Maybe not even a dime.

So fractionalized banking, and being able to sell money at face value plus interest, when they buy it at the production value, is something wrong with that picture? [YES] We the people, we the people. ... Should we be borrowing our own money from private banks? [No] Right now we might ask it. When you do borrow this, don't you have something called collateral? Now collateral is something real, isn't it? Isn't it your home or the ground upon which the home was built or your crops are planted? Isn't it your work or your ability? Isn't it at least a vehicle, or something? Before you can get this stuff, don't you have to put something of value up? [Yes] And then, you see, somebody's going to go broke in order for you to be able to pay for your own debt, aren't they? Someone's not going to be able to pay theirs because there's no money that is created that isn't loaned into existence. So you see what the problem is? The banks then foreclose. What do they get when they foreclose? They get something real, don't they? Is there anything at all behind this? (holding up cash) Let's check it. We wrote these letters so that we would have the written proof. It says right here, "Federal Reserve notes are not redeemable in gold or silver or any other commodity. They have not been redeemable since 1933 in the sense that they are not redeemable."

Please get this quote,"Federal Reserve notes have not been backed by anything since 1933." What is this backed by? (holding up cash) [nothing] Nothing. Absolutely nothing. Now we thought that a little strange, and so we wrote and we asked whether or not, if money is backed by nothing, does it have any value? And here's what M. M. Schneider, Acting Executive Assistant, says, "Money without backing is worthless." So what is this worth? (holding up cash) Seriously. It's worth nothing, isn't it? Now do you understand how we're $4 trillion in debt? And is it going to get any less at all under the current system? [No]

All right, now, then. I ask you if you were to go to section one, article one, in here (the Constitution), section eight and section ten, of our one page of rules, what does it say is the only thing that can be made legal tender in the United States? Gold and silver. Has there ever been an amendment to this Constitution to change the fact that our legal money, our currency, is supposed to be gold and silver? Has there ever been one? [No] There has not. So something is unconstitutional then,isn't it? [Yes] Has there ever been a change to this one page of rules that says that anyone other than the government can regulate currency and credit of the United States? [No] Is there any rule that's changed in any one of the 26 amendments to the Constitution, does any of them say that private banks have the power to control the currency and credit of the United States? [No] Is there a single one? [No] There is not. So something is unconstitutional, isn't it. [Yes] All right. I'm leading up to something here because we have as a special operations commander, special forces officer, my job is to get my head up out of the ozone, and to be able to see original solutions.

Well, in trying to attack this, because how can you be a presidential candidate, if you do not have a positive plan for getting us out of debt? As a kid, you see, they told me that anybody could be president. And now I believe it.

Any true presidential candidate should be able to give you not just sweet words that say, 'we've got to get out of debt, we're going to cut off the taxes, we're going to do this, we're going to do that.'

You know what the key word is, HOW. How, candidate, are you going to do that? Got a coin in your pocket? (he asks Gilbert Martinez) My wife let me have a $100 bill, but I got to get a quarter from Martinez. Is there any silver in this quarter? [No] It used to be a nickel was about twice as big as a dime. How come? Cause a nickel had nickel, and silver was in a dime. Well, now is there any copper in a penny? [No] No,you can cut it in two with a pair of scissors. We see it on television all the time. But here's the interesting thing. And here's the key. And it's kind of humorous, but it's very deeply serious. This quarter, we minted 500 million coins this last year, when we gave the 500 million coins to the Federal Reserve, they had to give us credit for 500 million dollars.

Now, did that even make a dent in our debt? No, 4 trillion. How much does the debt go up in interest every day? One billion dollars. Ten thousand $100,000 homes. Every day that's th e interest that's going up. And so we gave them 500 million coins. Now it only cost two cents to make this quarter. But they had to give us 25 cents credit because that's what their own law says. Well, now are you following me?

"As President of the United States, I am going to have on the very first day in office, a pot metal coin, and it is going to be struck, and it will say four trillion dollars, and it will say,"Debt of the United States Paid in Full", and it will also say,"In God We Trust." [applause]

I appreciate your applause in our solution. But we've got to apply the solution, and that's something to applaud. You see, it has to be in pot metal, doesn't it? Because it has to equal what the value is of these things right here (cash). So if we made it out of anything that was either gold or silver, it wouldn't be fair, would it?

Now you doubt? You doubt this? Let me read you, because you see we said, gosh, if they have to give us credit for the coin's face value, no matter what the coin cost to manufacture or is worth, why don't we just pay off the debt? So we wrote this letter, and here comes the answer. By the way, signed by Mr. Monk, who I'm glad did it because he's a lawyer, Assistant General Counsel to the United States Treasury Department, "The former chairman," so this has been thought of before, but you probably never heard of it, "The former chairman of the House Coining Subcommittee correctly points out that we could pay off the national debt with a single four trillion dollar coin." And so we will.

Let's think about it because this is pretty simple, isn't it? But now how easy is this going to be? Well let me take care of how easy it is.

The only reason we're doing this is because of the media. The media kept saying, "Bo, do we need to pay off the debt to a private corporation of banks under the Constitution?" Are they Constitutional? [No] They're not. And so where do we get the authority to do this? Well, come right down here, you'll see under article 2, section 3, it tells the President that you will assure that the laws are faithfully carried out. That means the President has the power to ensure that the laws are faith fully carried our according to what? [The Constitution] The laws in a capital L. It's the Constitution. Does that mean the President, without permission of the Congress, does that mean the President,without the seal of the Supreme Court, can correct this unconstitutional situation? [Yes] It most certainly does. And so we could just route them out like Roto Router. But, the media has said, "Bo, it just doesn't seem right. You mean you just fire them? Do you just run them off?"

The seventh President of the United States was probably my favorite. I had a young lady from the New York Times calling at home. She said, "Bo, if you had to characterize yourself of one of the Presidents we've had in the past, who would you choose?" And I said, Andy Jackson. Andy Jackson, when he was 13 years old, was a Colonial Soldier. He was too young to carry one of the big muskets, and so he did everything he could do in the line. He was captured with his unit. And they put a saber scar on Andy Jackson's head, because he was so hard-headed, he would not polish the British officer's boots.

Now, Andy Jackson was hard, like woodpecker lips. He thought when he came into the Presidency, that he served two terms, that the people could run the government better than the politicians and the bureaucrats. And I agree with him. Andy Jackson said to the ... Federal Banks, "You are a den of vipers and thieves." He said, "By the power of the Almighty God, I will route you out." And he did. He wasn't very popular. But, what was the debt of the United States in 1836? [Zero] Thank you. Zero. It's the easiest number to remember. If the Lord God Almighty calls you tonight, don't go. I want you to argue like Abraham. I want you to argue like Lot. Why? Because if you go tonight, what are you leaving your children a legacy of? [Debt] Thank you. Debt slavery. Blessed are the children, for they inherit our national debt. Shame on us. Don't you drive around in that Winnebago anymore thinking, 'boy I got it made. I'm just going to sit back here and coast.' We've got work ahead of us. If it was good enough for Andy Jackson to make the debt of the United States zero, and he had to go against the Federal Banks, can't we just take that example? It's Constitutional. We follow these simple rules. People say, 'Well, Bo, what about the chaos you would cause? I mean the Emir of Kuwait owns $8 billion dollars of this debt.' You know where the Emir of Kuwait can go to collect? Let him go to the Federal Reserve where he borrowed it from. I'm sure they'd be more than happy to carve him out a little piece of their coin." ..."

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