Having this week read the interchange between Representative Dr. Ron Paul and Dr. Greenspan and then reviewed Greenspan's latest testimony (lecture & instructions) to congress I can only say I'm speechless.

The FRS was created by congress in 1913 in a counterfeit and un-constitutional act by congress. The issuance of "Coin" was to be (in the constitution) the exclusive privilege of congress (the legislative branch of government) fiat (paper) money is not even mentioned in the constitution. Congress by reason of their creation of the FRS has oversight of the FRS, something they have never exercised. Congress has the right to audit the FRS something that has never taken place. For the un-elected governor (head) of the FRS board to lecture congress on what they should do and how they should run the nation is outrageous. For him to suggest cutting Social Security benefits, and extending age for enactment of benefits is outside his preview. The FRS is a private legislatively granted monopoly of international bankers who control and issue dollar currency, set interest rates, and manipulates the capital markets for personal and corporate profit and greed. The FRS is the recipient of 22.4% of all taxes, because that is the percentage of our taxes paid in interest on the national debt.

In his lecture, and that is exactly what it was, Lord Greenspan told the senate banking committee that the first legislative act in this session should be "to cap discretionary government spending". How should that be done? Was asked. He replied, "It should be taken out of the expenditure side" He then went on to say that the solution was to take it out of the Social Security funds because these had been in crisis since 1983 and the "benefits greatly outweigh the governments ability to pay for them". What should be done is to reduce the deficit, balance the budget, eliminate NAFTA, bring our troops home, pay down the debt, and eliminate the FRS.

Let us examine some of Greenspan and his friends of the FRS interests on this issue. The entire Social Security fund has been raided and trust funds have been dumped into the general fund and replaced by IOU's. This was done for the sole reason to allow elected bums the ability to purchase constituency (votes) by brining home the bacon to their districts. They accomplished this by putting the next generation into hock to the bankers of the FRS that provides the loans to keep things going. I might note that the FRS loans America money, which they received from the treasury in 1913. The FRS heartily endorsed that practice. Why? Because it is very lucrative for these bankers to loan huge amounts to the federal treasury thereby through their collection agency the IRS lay their greedy mitts on your paid taxes. So we see that Greenspan and associates have an ax to grind in this issue.

Greenspan went further, he suggested that in view of the greater longevity of the overall population they should increase the age for SS benefits, and in addition the CPI index used to adjust SS payments to recipients should be reduced. Why? Well the rate of inflation is directly controlled by only one factor, namely the issuance in volume of fiat currency. The FRS is the only organization in the world able to inflate the money. (Reduce it in value) The CPI reflects the rate of inflation. The numbers however reported by the government agencies relating to inflation and the CPI is a sham. Why? Because the CPI reported numbers exclude taxes, fuel costs, and housing, the three most rapidly growing costs of this century. Under Greenspan's tutelage the money supply has been inflated over 280% since he took office. In that same timeframe the reported CPI index has risen less than 20%. VA employees received a 1.4% increase; SS beneficiaries received 2.7% congress on the other hand who is more than aware of the real numbers paid itself $3.400. in 2003 and then $3,400. in 2004. With the money supply so grossly over-expanded we developed the economic bubble that kept Clinton in the white House, and are about to repeat it for Bush. What happens when you inflate the currency by 280%? It looses value! The dollar has lost 30% vs. the Euro, Canadian Dollar, and Swiss Frank.

All things being reasonable, why is SS unable to pay benefits that have been guaranteed? It's Washington smoke and mirrors! You pay a SS tax for on average 35 years, this is the reported by the SS administration's record provided you when you ask for a listing of available benefits. That SS statement is a lie! You pay a social security tax, but that your employer matches the tax, it is not reported. Then there's the little matter of interest. What do you suppose the interest is on 35 years of accumulating deposits? I have no idea what it is for you, but I asked a actuary what benefit I would have gotten had I been allowed to place my and my employers portion of SS taxes with a private insurance carrier. His reply after some number crunching was at age 62 I would be paid almost exactly three times the amount SS pays me. In addition when I died my heirs would get the balance, SS pays a death benefit of $ 255. about enough for two boxes of good cigars to give out to the mourners. Why?

Visit any SS office and you will instantly see the problem. Less than 5% of the people in the office are SS retirement beneficiaries. Unwed mothers, Central and South Americans, loafers, welfare recipients, foreign women who have had children in America, are 95% of the people there. SS was not designed as a social welfare system, and most certainly not one for foreigners, it was to be a retirement benefit paid for by the recipient taxpayer. The bulks of beneficiaries today paid nothing into the system, and are a bunch of moochers sucking the system dry. This is where cuts should be made.

PS> The projected deficit is up to over _ trillion dollars

Read Dr. Krieg's latest book: Our Political Systems at your local bookstore.

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