Sid: Now if you have been reading a newspaper, watching TV, listening to the radio, or just plain talking to people you know that our economy in the United States of America is a colossal mess. It seems that before our very eyes it’s getting even messier. That’s why I have my good friend on the telephone, he’s actually I caught up with him in Washington, DC. His name is Dr. Larry Bates, he’s Publisher and Editor of the “Monetary and Economic Review”, his formally a bank CEO, he’s formally a member of the Tennessee House of Representatives where he chaired the powerful committee on banking and commerce. He’s an internationally recognized speaker on political systems, the Federal Reserve and how they affect the economy and your assets. Now Larry, one of the things you’re able to do is to make things that are complex, simple. What is the cause of the mess?
Larry: Well, I was raised on a farm in middle Tennessee. My dad always said, “Get the hay down where the cows can eat it.” And God has given me a gift to take complex subjects of economics, banking and finance and to make it simple. And to answer your question, what has caused the current predicament we find ourselves in its real simple we have left God’s laws! In other words, when you leave God’s plans in the scriptures you get in trouble every time. You know back in Amos chapter 8 verses 4 & 5 it says “And they made the shekel or dollar larger, they were inflated back in Amos’s day and the epoch, or bushel, smaller where it bossed less grain and cheated with dishonest scales.” You see there is nothing new under the sun; this is exactly what we’re doing our entire system was designed to fleece people who didn’t know how the system was working. How do I know that? Well John Maynard Keynes, who is the architect of our current economic system, and he was a British professor. He said in his book written in 1920 entitled “The Economic Consequences of Peace.” And think about that title, the economic consequences of having peace. He said, “By continuing process of inflation governments can confiscate secretly and unobserved an important part of the wealth of its citizens. He said, “There is no more sure, no more subtle way to overturn the existing bases of society than to take a vow to destroy the currency.” And listen to this, he closes out and he say “And it engages all the processes of economic law that come down on the side of destruction and does it in a manner that not one person in a million can diagnosis.” We’ve diagnosed this in a DVD set that we’re offering your listeners out here and it’s kind of very simple. John 8:32 says “And you shall know the truth and the truth will make you free.” It’s not the truth that makes us free it’s our knowledge of the truth that makes us free. Hosea 4:6 says “My people are destroyed for they lack knowledge.” And this is what we have to do is understand the system and the system is a debt based economy and a debt based monetary system and that’s what’s caused our problems.
Sid: Okay, basics “What do you mean by a debt based economy and debt based monetary system?”
Larry: Okay, back in 1913 we gave the Federal Reserve, which is neither Federal and has doubtful reserves, but a private bank owed by a number of banks. If you pull out any bill out of your wallet you’ll see at the top Federal Reserve Note. What’s a note? It’s an I.O.U. look on that bill and see what it promises to pay you. It just says this note is legal tender for all debts public and private. Now I have a series 1950 Federal Reserve Note that says this Note is legal tender for all debts public and private, and is redeemable in lawful currency at the United States Treasury or any Federal Reserve Bank. So what’s lawful currency? According to Article I, Section 10 of the U.S. constitution, it is gold and silver coin. So what we have done we have divorced the currency from the currency of the Bible gold and silver, and we got into trouble. And this is exactly why we have a problem; right now we have roughly 40 Trillion dollars with a “T” of domestic debt. Now that is the Federal debt of some 9 Trillion dollars, State, County, Municipal debt, corporation debt, mortgage debt and consumer debt all put in one big pile. Now this debt is like a herd of cows, it’s eating and drinking every day, it has to be serviced. So how do you service debt? Well, you have to pay money on your debt; first dollar of your payment goes for what? Interest to pay back the bankers for use of the money, and when you look at the money supply available to pay the debt we find that the MZM, Money Zero Maturity. That is a term that is used to measure the broad based money supply is roughly 8 trillion dollars. Let’s do the math. Subtract 8 trillion of money from 40 trillion of debt we have a 32 trillion dollar problem. As they say in NASA, “Houston, we have a problem.”
Sid: How long can we keep printing white paper with green ink with no gold and silver behind it?
Larry: Well, it’s a con-game and as long as you can keep people uninformed and believing that the government is always going to take care of you it’s indefinite because of people’s being destroyed for lack of knowledge as we read in Hebrews 4:6. It’s kind of hard to estimate exactly when that will occur. See economics is nothing but human action, and the only glue really holding this whole economy really together Sid is nothing but the reassuring babble coming out of the mouths of Central Bankers, government officials and the Wall Street crowd. And you know it’s one of those things where if that’s pretty weak glue it’s pretty simple misstatement could cause this thing to come unraveled, we could have a terrorist attack, we could have a natural disaster, many things conversing. Having left God’s law and having left God’s plan we get in trouble every time.
Sid: Well, let me ask you this question then. Could you because of your knowledge accurately predict what’s going to happen to our economy?
Larry: Absolutely. In fact given these parameters we know exactly and we point this out in the video series. There is one or two things will happen, either number one just because you have more debt than there is money to pay the debt then you’ll have collapse because of default. And this is why we have people on Wall Street scrambling everyday to keep these big brokerage houses floating.
Sid: I’ve been reading about these various mutual funds that are going under.
Larry: That’s right, mutual funds, hedge funds…
Sid: Especially the hedge funds.
Larry: You bet and we estimate that the hedge fund notional value, note I say notional value is over 400 trillion dollars which leverage upon leverage upon leverage. But one or two things will happen Sid, either we will have default or number two the Federal Reserve will have to print the money and create massive amounts of new credit just to keep the game going. What you do is, this silent pickpocket, the unseen tax of inflation politicians can’t get blamed for it; people don’t understand the Federal Reserve causes it so as a result we end up paying the cost of our own bail out and the bankers continue in business such as we have the bailout of the Fanny Mae and Freddy Mac.
Sid: Well, both choices don’t sound good to me, what’s the time frame that you estimate for this to occur?
Larry: Sid, I believe that we have a minimum of two years maximum of five years to get out house in order. We need to get our house in order economically, politically and most of all spiritually because 1st Corinthians Chapter 2 says that what we’re talking about here today, the natural mind does not understand because it is spiritually discerned. People have got to become men and women of the Book, they got to become men and women of prayer and hewn in on what God is saying. See none of what is happening Sid has caught God by surprise, he’s not having an anxiety attack on what’s happening here on earth. He told us what’s going to happen, when we have left God we ceased to be blessed as a nation. But you know God will always raise up a remnant to be His representatives here on planet earth and exciting times we’re facing. I’m not a doom and gloomer, I’m excited for the future but excited for those who know and understand the times like the men of Issachar.
Sid: Well, I’m reminded of the scripture the wealth of the sinner is stored up for the righteous. Do you see a great wealth transfer occurring to those that know their God?
Larry: Absolutely, and not only know their God, but ask God for wisdom. Ask God for wisdom and understanding and He will give it to us according to the scriptures and He will not upbraid us for asking.
Sid: Now someone said to me recently, “I got money, I’m putting it in the bank, the bank has a limit that they’ll guarantee, but even beyond that I’m going to lose it to inflation, I’m only getting a couple percent interest. Is there something better I can do with my money?
Larry: There really is, and you know the Bible is very clear it says “Be careful to know the state of your flocks.” In fact, in the video series we point out that there are two types of asset holdings, loaner ship and ownership and we show people how you need to be moving and shifting money in this particular periless times because if you sit there and do nothing or if you follow the world’s system of some financial advisor. There are a lot of financial out here who are believers, but that means they’re saved what do they know? Do they understand the system other than what has been taught to them by their Wall Street bosses? So this is what we need to do is understand the times, understand how this system works, it’s not difficult, it’s really, really simple….
Sid: Well, the thing that makes you so unusual is that you do have the knowledge but you also have some inside information that is legal, it’s available in every book store in America. It’s called the Bible and when you put the wisdom God has given you, the Bible and your knowledge of the economy and the political arena together…
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