CURRENT GLOBAL FINANCIAL CRISIS (Guest Post)

“…vast accession of strength from their younger recruits, who having nothing in them of the feelings or principles of ’76 now look to a single and splendid government of an Aristocracy, founded on banking institutions and monied in corporations under the guise and cloak of their favored branches of manufactures commerce and navigation, riding and ruling over the plundered ploughman and beggared yeomanry.” Thomas Jefferson, Letters of Thomas Jefferson

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” Carl Sagan, The Demon-Haunted World: Science as a Candle in the Dark

BIO

Victor H. Fischer was the Principle Investigator of a team of ten Psychiatrists and a Neurologist consultant, USAF Colonel Robert F. Hood, MD, Neurology and Psychiatry, Director of Psychiatry, Wright-Patterson Medical Center, USA. This research was conducted at the Ohio State Hospital that was one of the largest Mental Hospitals in the United States. His team tested and scanned 500 subjects using his US patented Hyper-frequency Electroencephalograph to recognize the specific functions of the human brain and to relate them to the person’s behavior. A description of this research was published as: “Improving Your Thought Process” – US Copyright 2013 – Amazon Kindle Book. Click

http://www.amazon.com/IMPROVING-THOUGHT-PROCESS-VICTOR-FISCHER-ebook/dp/B00AW1RZ00/ref=sr_1_fkmr0_2?s=books&ie=UTF8&qid=1436285221&sr=1-2-fkmr0&keywords=victor+fischer+and+%3A+%E2%80%9CImproving+Your+Thought+Process%E2%80%9D

CURRENT GLOBAL FINANCIAL CRISIS
By: Victor H. Fischer, PhD

Capitalism

The Global Financial Crises has a foundation in capitalism. Capitalism is an economic system in which trade, industry, and the means of production are largely or entirely privately owned and operated for profit. Central characteristics of capitalism include capital accumulation, competitive markets and wage labor. In a capitalist economy, the parties to a transaction typically determine the prices at which assets, goods, and services are exchanged.
In the 13th century, the Chinese emperor Kublai Khan embarked on a bold experiment. China at the time was divided into different regions, many of which issued their own coins, discouraging trade within the empire. So Kublai Khan decreed that henceforth money would take the form of paper.
It was not an entirely original idea. Earlier rulers had sanctioned paper money, but always alongside coins, which had been around for centuries. Kublai’s daring notion was to make paper money (the Chao) the dominant form of currency. And when the Italian merchant Marco Polo visited China not long after, he marveled at the spectacle of people exchanging their labor and goods for mere pieces of paper. It was as if value were being created out of thin air.
Kublai Khan was ahead of his time: He recognized that what matters about money is not what it looks like, or even what it Is backed by, but whether people believe in it enough to use it. Today, that concept is the foundation of all modern monetary systems, which are built on nothing more than governments’ support of and people’s faith in them. Money is, in other words, a complete abstraction—one that we are all intimately familiar with but who’s growing complexity defies our comprehension.

Tally Sticks

A tally (or tally stick) was an ancient memory aid device used to record and document numbers, quantities, or even messages. Tally sticks first appear as animal bones carved with notches, in the Upper Paleolithic; a notable example is the Ishango Bone. Historical reference is made by Pliny the Elder (AD 23–79) about the best wood to use for tallies, and by Marco Polo (1254–1324) who mentions the use of the tally in China. Tallies have been used for numerous purposes such as messaging and scheduling, and especially in financial and legal transactions, to the point of being currency, and the origin of the word “Stock” as used in “Stock Certificate”.

Tally Sticks

The most prominent and best recorded use of the split tally stick being used as a form of currency was when King Henry I initiated the tally stick system in or around 1100 in medieval England. He would only accept the tally stick for taxes, and it was a tool of the Exchequer for the collection of taxes by local sheriffs (tax farmers “farming the shire”) for seven centuries. King Henry’s initiation using the tally stick was due to the high level of illiteracy at that time. The split tally of the Exchequer was in continuous use until 1826. In 1834, the tallies themselves were ordered to be burned in a stove in the Houses of Parliament, but the fire went out of control setting the building afire.

GLOBAL FINANCIAL CRISES BACKGROUND

Before we can understand the current financial crisis, we must critically understand fully the many casual relationships. The reports that have the following headlines never mention any of the actions caused by China or by the current financial Accrual Accounting System used and required in most of the western countries:
• The Great Global Panic Is On But This Is Going To Shock The World
• The Greatest Fairy Tale Is Becoming A Nightmare That Will End In Total Collapse
• The Fate Of The Entire World Is About To Be Decided
• What Is Really Happening In The Gold Market?
China’s current leadership is very actively restoring China from its 150 years of humiliation by the English/ Rothschilds’ banking system as a result of The Treaty of Nanking, which was signed on, 29 August 1842, at the end of the First Opium War (1839–42) between Great Britain and Ireland against the Qing dynasty of China.

Many countries are also currently engaged in an active currency war, because the confidence level of the US Dollar is being lost. There is a long history of many currencies that had lost their confidence levels.

All of these currencies that lost their reign were caused by political actions resulting in debasing their own currencies. Peter F. Drucker stated: “Politicians should never have control of their currencies”.

ACCOUNTING SYSTEM CHANGE TO ACCRUAL SYSTEM IN 1900

In England, the owners of large estates would engage Estate Appraisers to appraise their estates, on a yearly basis. If the total appraised value of the estate was greater than the previous year, they would conclude that the estate made a profit. But if the total appraised value of the estate was less than the previous year, they would conclude that the estate had a loss. The financial recording system, which was used at that time, was the 400 or more years old Double-Entry Bookkeeping System.
There was a small group of Scottish Estate Appraisers that came to New York City on/or about 1900 to introduce their new Accrual Accounting System. They had noticed that they had experienced every profitable estate had a larger total appraised value than the total sum of their bookkeeping system. There seemed to be a synergistic action, where the total was great than the sum of its parts.
Armed with this observation, they proceeded to go to the major banks in New York City, and introduced their new Accrual Accounting System. They stated that if the major corporate clients of the bank would use their new accounting system that the client could increase the size of its borrowing. This would be possible, because the new Accrual Accounting System incorporates the same synergism that they had observed and it would increase the value of the bank’s client. This increase was accomplished by classifying the increase as “Goodwill”, and further to classify Goodwill as an Asset and/or Income. This new income was generated out of thin air. Every Asset must be counter recorded as a Liability or a Debt. All current Financial Audit Reports that use the Accrual Accounting System are required to certify the audit met the requirements of the Generally Accepted Accounting Principles (GAAP), which generates fraudulent audit reports because Goodwill is a misrepresentation. Goodwill is not the only a fraudulent, but within GAAP there are many other accounting entries that can misrepresented.
Needless to say, the banks loved this new Accrual Accounting System and incorporated it within their own banks. Shortly, the newly formed (1887) American Association of Public Accountants (AAPA) became aware of this new accounting system, and assisted in its promulgation. Both the banks and the AAPA members were getting very rich.
The banks were getting so rich that they transformed themselves into becoming “casinos”. If their clients used a bank’s loan for an investment and the investment fails, then the client must repay the loan plus interest. If the client used a bank’s loan for an investment and the investment is profitable; the client must still repay the loan plus interest. The bank always wins like a casino. If the client invested from his own savings the bank lost both the loan and its interest. Within banking accounting, all loans are recorded as Assets, and its Asset size is posted.

ROTHSCHILDS AND JEKYLL ISLAND

Most of the major banks in New York City have their roots in UK and Europe. This made them aware of Rothschilds’ government controlling business plan. In 1913, a group of major American banks gathered to form the Federal Reserve Bank in New York City. They were able to convince a small group of Congress to pass the Federal Reserve Act of 1913, which was signed into law by President Woodrow Wilson on December 23, 1913. This law established a private Federal Reserve Bank to become the United States Central Bank.
The Internal Revenue Service (IRS) was also established in 1913 by President Woodrow Wilson. The IRS accepted the Accrual Accounting System to report taxable income in 1916.
CAPITALISM VS. PSEUDO-CAPITALISM
The primary financial core principle of Capitalism is that all investments must be paid from savings, which are Asset-Based. Asset-Based investments are both expandable and sustainable. The primary financial core principle of Pseudo-Capitalism is that all investments are paid by loans, which are Debt-Based. All Debt-Based investments include costly interest payments and are not long-term sustainable; as we illustrated concerning the limits applied to the reigns of currencies. Debt-Based economies can only be supported by the application of the Accrual Accounting System. The Double-Entry Bookkeeping Accounting System requires that all debts are to be classified as liabilities, and can never be recorded as an Asset and/or income. The United States Economy is a perfect example of an unsustainable Debt-Based Pseudo-Capitalism Economy. A Pseudo-Capitalism Economy only benefits banks and other financial enterprises. It also promotes a Fascist form of governments.

CONCLUSION

All of the chaotic effects observed within the current world’s financial crisis are just symptoms and not the primary cause. A corrupt Federal Reserve System could not exist without the Accrual Accounting System. The primary cause of the current financial crisis is the universal application of the Accrual Accounting System, for the generation of fictional financial recording and fraudulent reporting. The Double-Entry Bookkeeping System has been successfully applied for 500 or many more years. Fra Luca Bartolomeo de Pacioli stated that since the Double-Entry Booking System is self-checking, which makes it pure, and that it must have been revealed by God. Converting from the Accrual Accounting System to the low cost Double-Entry Bookkeeping System is very simple. The reverse is very difficult and very expensive