Madison Forum member Louis Hunter spoke to members and guests at the breakfast meeting Saturday, April 26, 2008. His topic was The Federal Reserve – Part Two.

All money is debt based money. Government issues a treasury security to the Fed and they hypothecate it into Federal Reserve Notes. The hypothecation is a multiple of 94%.

Each time this new money is created and spent, it is re-hypothecated another 94%. (Each Deposit becomes another basis for the creation of new money. This occurs millions of times each day. The money supply grows each time, and in the process, devalues the money already in the system and in your wallet, savings account, and overall wealth).

About two years ago, the Fed quit publishing the M3 figure which is the amount of money flowing in the system. When they stopped reporting this figure, the total amount in circulation was estimated to be $10.3 trillion. Private companies and individuals have been watching and counting, and the figure is now estimated to be $13.5 trillion, a 30% increase.

By the way, the International Monetary Fund (IMF) announced two weeks ago that they were going to ask Congress to sell abut 400 tons of their gold reserves. The excuse is to balance their books. Why? Because the world has figured out that they don’t have to play this game anymore, and they can use the Euro or their own sovereign currency and will completely destabilize our markets, costs of living, and money supply. If the IMF is allowed to sell this gold, which was taken by nationalizing our private gold back in 1933 and carried on their books at $42 an ounce, they will use the paper currency to balance their books with about half, and they then plan on investing in major multi-national corporations with the rest. By the way, the sale of the gold will increase the supply so that the price will go down, and they will then use newly created Federal Reserve Notes (FRNs) to repurchase the gold, and the process starts all over again.

Moving to the IMF – IMF and World Bank were created at the Bretton Woods meeting that is basically where the U S admitted that we had more redeemable FRNs in circulation than we had gold to redeem them with. WE WERE BANKRUPT! And, the world wanted to be paid.

Let’s look at the relationship of the Fed to the IMF. Basically, the Fed is the local branch of the IMF and the IRS is the collection agent for both.

We have a Fed Chairman and a Treasury Secretary. The Fed Chairman is the alternate to the IMF Board, and the Secretary of the Treasury is councilor to the IMF. He takes no oath of office and is not paid by the U S Government. These two positions are the connection to the international banking system that is responsible to no government, is a private corporation, and when a nation enters this type of arrangement, the nation has no sovereignty (The Law of Nations). The World Bank is not a branch of government.

The loss of sovereignty has been upheld in court in the case of Dunhill of London vs. the Republic of Cuba, which states that “it is a sound principle that when a government joins a corporation – it takes on the character of its association.” This has also been upheld in the case of Novak vs. World Bank.

Again, the U S is a voting shareholder and has waived its sovereignty!!!

WHAT DOES THE IMF DO?

The IMF basically sets the exchange rate of currencies around the world. They monitor the float. The dollar went to the float in 1976. The Fed prints and the IMF sets its value.

Their job is to maintain balance of values so that the world monetary system can be used to exchange capital over here for capital over there. The IMF sets the exchange rate by using a “Special Drawing Right”. The SDR is a formula that the IMF has for “weighted average of major accepted currencies”. This formula has no real value and is currently being revamped. They will fail, as they have in the past, because the currency has no real value.

Think of the SDR as a credit card which is basically a bill of exchange. Understand that a credit card has no value. You cannot say it is worth a dollar value in coin or currency. But, you can exchange it for something of value. That is the way all fiat currency works. It is worth an agreed upon value, but the paper itself has no worth or value.

Don’t be fooled by the paper in your wallet that says it is a dollar. A dollar is specifically, per the Constitution, 371¼ grains of pure Troy silver. Try to exchange an FRN for a silver dollar. It won’t happen.

Again, the IMF regulates the values of the different but accepted currencies.

The IMF uses FRNs in its loans, and countries which accept them accept it as part of their base.

Loaning to foreign countries was allowed under the Edge Act of 1917. This allowed the National Banks to loan to a sovereign nation. The receiving country had to accept the terms of the bank and make the FRN part of its monetary basis.

The IMF is an international debt system. Not hard to figure this one out, it’s the Fed on an international basis.

In 1968, the SDR replaced gold. The debts of the U S went from being debts of pure gold to an SDR, which is basically a bank entry. Imagine the other nations of the world and how ripped off they must have felt.

The gold that the IMF had was gold that was nationalized by FDR in 1933. It was illegal to own gold. There was not enough to cover the outstanding FRNs, the stock markets, or securities. The gold was collected by the U S government and was then turned over to the IMF for pennies on the dollar.

At this time, all gold contracts were repudiated. A contract that specifies repayment by our government in gold was declared null and void and from that point on ignored.

The international community went nuts and forced the gold to be used to settle international commitments to avoid wars. Due to the lack of complete reimbursement, countries were thrown slowly into economic crisis. Who was the first to fail, and what was the outcome? Germany and the rise of Hitler. The country had hyperinflation and was a total shambles economically. Hitler seized on the moment of weakness and quickly took over with the help of financiers from the U S and the international banking communities. Remember Warburg of Germany, and Prescott Bush. Ford continued to supply trucks and parts to Germany and Hitler long after we entered the war. This means that our soldiers fought longer than necessary, since Hitler could keep the necessary machines to fight with. This is treason for the sake of profit.

Keep in mind that all money is debt based. The creation comes from a debt instrument, and any so called “economic growth” is actually an increase in the volume of debt in circulation.

The debt is never designed to be paid off. Unfortunately, the consumer and business bear the risk of currency fluctuation. Not governments.

Governments that try to withdraw from the IMF must pay off their debt, and they find out this is impossible. Mexico has collapsed several times under the strain of this debt-based monetary system.

THERE IS NO SOLUTION TO THE EQUATION!!!

You ask how is this legal? Because Article 9 of the IMF Charter says that “the IMF is not subject to judicial process in the U S.” The Fed is private, and the IMF is autonomous. The U S is a shareholder in a corporation and has no sovereign rights, including the right to oversee, and there is no resolution to the equation for extracting ourselves from it, but possibly war.

In Mendaro vs. the World Bank: Page 619 - the judge ruled “that the member owes a duty entirely to the bank and no other authority”.

The Secretary of the Treasury is an officer of the bank. He is a corporate governor. Check your money. The contract exists with two signatures.