[posted  1 Apr 2009 12:15 UTC]

[Updated 28 Apr 2009]

Little does the common man know the tales and travails that go on behind the scenes as the world lurches towards another Great Depression and a World War - see Sharp Increase in Global Tension since the G-20.

Half past 6 on the Morning after the Mad Orgy of Funny Money

The Uranus-Saturn clock chimes 6am; and
Pluto doth herald its morning in Capricorn;
Whilst the drunken vision of wealth without creation
Woven by black magic during the orgy of the night
Lingers on in the minds of little men
Who have pushed the snooze button.

The global credit crisis has the attention of the mainstream media which has so far has done its best to not examine the fraudulent roots of the entire monetary system. Even the lads on bubble vision know that something is amiss as does Warren Buffett. What Rick Santenelli needs to discuss on the floor of the exchange are the roots of the global financial crisis - Fraudulent Finance - and how The Law can be upheld once again.

Humanity is at a crossroads, mostly due to its failure to distinguish between a liability for a good and the good itself; as well as its failure to distinguish between what is lawful and what is legal. 

What follows is a chain of deductive reasoning based on observable events in the markets and other information and disinformation that leaks out.

Physics Drives Finance, Finance Drives Politics

Physics is a little tease
who puts his lover finance ill at ease

Deductive reasoning says, that the current chapter in falling asset values began, when some unknown prime banker woke up and discovered (perhaps with a heart attack!) that his minions had moved from the officially sanctioned banking process to unmitigated fraudulent abuse that involves the circulation of bank liabilities created by fraudulent conversion of promissory notes.

Some investigation must have shown Mr. Prime that this would not and does not stand in court and he must have pulled the plug on any further purchase of derived instruments by banks he had influence on. If those contracts were no good for Mr. Prime, then no one would touch them - the snowball turned into an uncontrollable avalanche. We commend Mr. Prime, if there be such a mensch, for he has taken a bold step.

Physics drives finance and finance drives politics. Never has there been a clearer example that illustrates the failure of the American Public Education System by design than 911. It is crystal clear that Americans (and most of the rest of the world "leaders" and common people) do not understand Physics [1 1c 2 2c 3 3c]. How can one expect them to grasp the finer points of finance or The Law? Had these issues been discussed and understood in the 1920's the planet could have been saved from the horrors of WWII that was foisted upon an unsuspecting world to rob it of its gold.

This today is what we face - we believe that the objectives of the fraud perpetrated upon this planet was the theft of the American Treasury Gold - which in the opinion of these experts is mostly gone . What remains as the bone of contention is the Japanese war gold that lies in and around the Philippines.

Practical Physics and Finance

Our first lesson in physics and finance is this thought experiment - consider that "all the gold in the world" was yours, and you landed with it in the middle of a pre-historic tribe - could you buy that nice Japanese car, that Swiss watch or a fine bottle of Scotch or any of the marks of wealth? Answer is no - wealth must be created in order to be enjoyed.

Our second lesson in physics and finance is to consider a cow - What would happen to her if the revenues for the sale of her milk, manure and calves did not cover the costs of her feed and care? She would be dead beef. In other words every being on this planet has to produce more than they consume. Those that do not are parasites.

These are the basic lessons in physics and finance. Clearly those who create wealth must trade it for other wealth, not tokens of fraud, or they are doomed to encounter the perfect storm (or earthquake).

The physics of the world economic system is that it is governed by parasites - for, by definition, a government consumes more than it produces. Bank guarantees from the parasite-in-charge will not work for the long term as the market will inevitably discover.

There is a chorus of cries for more regulation... Regulation can only restrict, hinder growth, prevent production, bar workers from working, prevent goods and men from moving, prohibit trade, forbid sales, destroy, coerce or inhibit. Regulation cannot create or produce wealth nor can it make legions of parasites into productive citizens as the USSR sadly discovered.

The physics of the world economic crisis is that producers have exchanged their goods produced for fraudulently created tokens. That system of fraudulently inflated tokens is dead. The governing parasites and their symbiotic bankers wish it were not (hence the bailouts and bank guarantees for the lesser banks). Anyone in charge of a sizable sum can honestly declare that the source of their funds comes from their participation in the world casino of fraudulent finance.

No mainstream commentator has cottoned on to the fact that neither the Federal Reserve Banks themselves nor the US Treasury have created the retail bank liabilities that pass for dollars. The retail banks will fail, as that era is over. The dollar itself will perversely get stronger as the banks fail, as masses of tokens that are the retail bank liabilities are wiped out.

The key word, which people in positions of power who wish to return society under their watch to the rule of The Law such as perhaps, the newly inaugurated President Barack Obama, is accountability.

Accountability - A-Count-Ability - arises when the underlying good can be counted - measured, weighed, its purity and uniformity assessed. This kind of accountability is the duty of an accountant. You cannot have accountability in government without a-countable finance.

When society is based on a unit of account that can be thus counted and private property is voluntarily traded, loaned, exchanged and settled according to The Law, then wealth can be generated and passed from one generation to the next.

Life, Liberty and the Pursuit of Happiness

When society is comprised of individuals who are sovereign over their selves, their persons, their property and are free to create without fear, live and move with their property to where creativity blossoms then they can be said to live their lives in peace, enjoy their liberties, and engage in the pursuit of happiness.

The Physics and Finance of the USD Token Systems

In the following discourse, the word "token" will be used to refer to a unit that is on a particular balance sheet (liabilities of the Federal Reserve or your local credit union) or is a physical unit already in token form, such as "cash".

Clearly, the Federal Reserve Account Unit known as the Dollar, is comprised of several token systems. There are the Federal Reserve Notes - the green cash that one is so used to - which forms a token system in its own right. Next, there are Fedwire balances in the Fedwire system - tokens that are distinct from the liabilities of any member banks - which need to be distinguished from each other - for example, the tokens represented by the USD checking account liabilities of say a USA retail bank are clearly distinct from USD checking account liabilities of say a Panama retail bank. Each set of tokens are "backed", as it were, by the "loans" made by that bank. All these retail liabilities are distinct from T-bill dollars which represent the liability of the UNITED STATES OF AMERICA to pay one mystical Federal Reserve "Accounting" Unit known as the Dollar.

How Interest Rates are Really Set - and why a low "interest rate" is a vote of no-confidence by the market

Let us look at interest rates - which, contrary to popular opinion, are set by the market, not at the Federal Reserve board room. The swathes of retail bank tokens chase US T-bill tokens and drive up its price - reducing its yield, and thus the "benchmark interest rate" on such a note - the Federal Reserve meetings merely acknowledge the demand by "setting" the discount rate. The recent surge in demand for short term T-bill tokens has required the Fed to double its availability to prevent the "interest rate" from going negative and to shore up the "reserves" that the member banks hold. This in effect, is a vote of no-confidence by the money markets in the stability of the banks who circulate the retail USD tokens. In other words, the market is betting that the retail banks will fail before the boys with the guns do.

The Strong Dollar Policy

The quantity of retail banking tokens is falling at an unprecedented rate as "loan" writing falls as the BIS has warned - at a rate we estimate of roughly 4 Trillion a year. Thus assets priced in retail bank tokens - such as real estate, have had their "values" fall and the purchasing power of the Federal Reserve "Accounting" Unit known as the Dollar goes up! (the "strong dollar" policy... it now buys more houses, barrels of oil, copper, etc.)

As banks refuse to accept the retail dollar tokens of other banks, world trade came to a standstill with the evidence clearly seen in the Baltic Dry Index... which now shows that hidden stashes of "cash" have begun to move.

Questions we get asked about the Baltic Dry Index and our simple minded FAQ answers:

1. What does the Baltic Dry Index measure?
   The Baltic Dry Index measures the spot rate for international dry bulk shipping - it is a barometer of international trade.
2. Why did the Baltic Dry Index rise to around 12,000?
   The BDI rose as a result of the tide of new USD bank liabilities created by promissory notes falsely fueled the global economy.
   
3. Why did the BDI drop so sharply and so far?
   The inter-bank markets discovered the difference between a USD liability of a bank, and legal tender FRN cash and this caused letters of "credit" to cease to be a means of trade.
   
4. What caused the rebound?
   A return to "cash".
   
5. What is a prognosis for, say the Dow Jones Industrials?
   The DOW will inevitably tend much lower as companies that produce goods sell out of their inventories and then cannot replace them. The DOW and gold shall meet, as we have long predicted. Gold and the DOW at 600 would not be unexpected.

On the street, US Federal Reserve Notes are growing in purchasing power as the effective worth of "one dollar" increases as every successful "loan" payment sends bank USD tokens back into the vacuum they came from. It also reduces the pool of such tokens from which the remaining loan payments must be made. It is thus mathematically guaranteed that tree will be bankrupt people, corporations and states.

In the meantime, as accountants apply arbitrary rules spiced with basil to retail bank liability tokens, banks go bust, need "bailouts" and bankers get their wrists slashed. A set of desperate politicians in Washington DC are silly putty in the hands of the financiers who get them to create approximately the number of tokens that are vanishing - transferring the purchasing power represented by the dollar into US government hands at an unprecedented rate. The physics of this will lead to a centralized command economy, and the inevitable disasters as is evidenced by every such experiment by humans in the past. 

The entire charade of schemes ranging from Social Security and 401K plans for the lower and middle classes to anti-money laundering compliance to exotic bankers ramp ponzi schemes for the Bobos are just ruses to remove USD (or EUR for the European Bobos) retail bank tokens from circulation and/or to lock them up in never ending red tape to prevent these tokens chasing real goods.

So much for Finance, what about Politics and The Law?

I must be laconic for brevity is the soul of wit:

Politicians in their arrogant ignorance believe
that the Acts they pass become Laws
The Law is immutable and flows from Nature or God
No politician can alter the Laws of Nature, thank God!

The Law must be discovered by the Common Man
and this in practice becomes the Common Law
and builds the jurisprudence
that is the bulwark against tyranny.

The tainted jurisprudence of the last 100 years,
must be abandoned by those who wish to restore The Law;
for you cannot have The Law and officially license fraud.

The Law does not allow one to *lend* that which they do not have;
The Law does not forbid one from *issuing a promissory note* in real money;
The Law forbids fraudulent representation of a promissory note as a loan note;
The Law forbids fraudulent inducement and fraudulent conversion.

Recognize, my friend, in English speaking countries The Common Law
is The Law of the Land; and the Constitution and all Acts of Legislatures
can at best be called Statutes that attempt to make The Law crystal clear
Be not misguided by those that cry for you to ask for your rights
for then you will be presented with a BILL! [this is why its called a BILL of rights]

Thou shalt not cause harm or loss to another is the essence of The Law
And defending it is your duty - which may involve the use of non-initiatory force
To protect Life, Liberty and Property acquired by voluntary trade or lawful claim.

Know also that the Sovereign or the State is equal in all respects under The Law
and whoever forces you to fulfill an order is liable for a BILL!

And why are mortgages (lit. bound unto death) suddenly toxic, thou asks?
'Tis better to ask who has funded the loan - in court - and ask for the books of the bank as evidence -
for you will discover that the borrower is the funder of the "loan".
This then, is the root of the global crisis -
The people have been swindled and keep their purchasing power "i.e. money" stored with the criminals. 

The Consequence of Mass Ignorance of Legal Fraud

There are, he says, two consequences in history; an immediate one, which is instantly recognized, and one in the distance, which is not at first perceived. These consequences often contradict each other; the former are the results of our own limited wisdom, the latter, those of that wisdom which endures. The providential event appears after the human event. God rises up behind men. Deny, if you will, the supreme counsel; disown its action; dispute about words; designate, by the term, force of circumstances, or reason, what the vulgar call Providence; but look to the end of an accomplished fact, and you will see that it has always produced the contrary of what was expected from it, if it was not established at first upon morality and justice.

Chateaubriand's Posthumous Memoirs.

The era of political parasitism is over, for either the host dies with the burden of the parasite, or the parasites quit being a burden to their conscience and begin to work to earn money. The audacity of some of these pests, is that they believe that theirs is the right to choose who shall live and who shall die, who shall work and who shall starve, but finance their fickle former friend has departed, chasing Physics, the handsome son of The Law.
 
Those that control Force in society are faced with the "use it or lose it" proposition, and compliments and heartfelt adoration must go to those brave ones who have not allowed unlawful provocations to escalate into genocide and have successfully tracked down and thwarted nuclear provocateurs. These men live on a slippery slope as the ability of finance to support their fleets and armies dries up. 

The clock is ticking, and time is running out; Signals and threats are being sent via bumping nuclear submarines and earthquakes or manufactured hurricanes; There are rumors flying about corrupt world stage courts and payments retrieved in the dark of the night on blinking grey screens; There are rumors of battalions guarding empty forts; There are legions waiting for handouts, politely called "refinancing" or "settlements". With or without such refinancing, the era of living on other people's money is over as the world of producers confront a mass of parasites in power who cannot trade value for value as they produce nothing.

The world is capable of supporting 10 times its current population with more than enough for all, with clean and abundant energy, yet the politicians and now the bankers seem to wish to destroy the possibility of a wealthy life for their grandchildren as Malthusian Satanists set public policy. The worst thing for the world and the environment would be a global nuclear war amongst the parasites, some of whom will crawl like cockroaches into their now resplendent underground cities... but any society is faced with the certain fact that physics drives finance and finance drives politics. Lest those who have engineered these underground marvels imagine that they are John Galt's brothers - consider this - any such project is doomed with a great infestation of parasites who are too good to produce and the creators and engineers are but bond slaves to the most masterful of these parasites.

The World We Live In

Geosynchronous views from the proposed SWANsat orbital slots

The view from space... A watery globe with a few little islands on which man lives... these Global Isles.

I, a decent individual declare that I am aware that my Being is grounded in Truth, and that I live, move and Become upon these Global Isles on the third planet from our lovely Sun. I hereby consciously claim my inherent right to exist, create and dispose of my creations without causing harm or loss to any other individual or person and so do hereby proceed to unfold my life, liberties and happiness.

Would it not be wonderful if man can live in accordance with The Law and not steal from his neighbors at the voting booth? Would it not be wonderful to avoid the desperate wars between the parasites that goad their men to kill each other with the latest manufactured ism [Nazi-ism, Commun-ism, Terror-ism] as the motivator and paying them with tokens of plunder to pollute these Global Isles with nuclear fallout, depleted uranium, daisy cutters and mines?

A new era is dawning and a few brave individuals have persevered in their efforts to make their corner of these Global Isles a better place for all of Mankind. We present below the sound plans of a good Christian man, William Welty of SWANsat to bring to this planet the two most important ingredients for wealth generation - easy access to information and communication - and a sound money system that everyone from the legendary Rockefellers and the Rothschilds to the peasants in Africa can embrace.

The SWANsat Super Wide Area Network

SWANsat proposes a global wide area network to bring a satellite based broadband network that can provide the arteries of communication equally for all the people of these Global Isles. The prime contractor, who is likely to be an American aerospace firm, would directly produce the technology that will make us all wealthier, American jobs would become funded by wealth generation instead of government contract parasitism, and communication would revolutionize Africa and the American government would be able to keep its commitments to jobs at home and fund real wealth generation infrastructure for Africa. Read the full details on SWANsat and Africa, how SWANsat can help create bi-partisan co-operation on FERA to re-vitalize America.

Funding SWANsat

Today, we do not have real stock markets where one can raise risk capital denominated in real money. SWANsat can and will fund itself by a promissory note backed by real wealth generation. SWANsat is in negotiations for pre-sales of its accounts receivable ledger. SWANsat is in the advanced stages of obtaining a guarantee from the Ex-Im bank of the USA. Even if SWANsat captures only 2% of the world telecommunication market, it will easily be able to repay its obligations. SWANsat is in the process of reaching out to major developed and developing countries that can see the benefit of nationwide broadband and telephone system to boost economic activity to avert the impending disaster.

Liberty is the empowerment to do what one ought, not the license to do what one wants. On a national level, it is the harvest yielded from the lives of individuals who plant the seed of self-government within as the foundation of the thoughts, intents, words, and deeds of life. On a national level, the fruit of liberty is national prosperity in all its multi-colored forms. Its price is eternal vigilance, because it is within the nature of those who are enslaved to their own desires and fears to yearn to enslave others. By the providence of God, it is the nature of free people that they cannot be enslaved to a politics of guilt, envy, or pity. Accordingly, SWANsat shall extend no safe harbor to those who would foster tyranny.

SWANsat Founder Dr. William P. Welty, on why SWANsat ICT services shall be liberty-based.

From SWANsat to AUric™

The proposed pan-African gold currency called the AUric™ with a Global™ outlook - which is certainly an idea that Barack Obama could embrace - would provide a mathematically guaranteed accountable money - money that behaves as money does - i.e. without those who control it being able to steal or block payments at a whim - no "checks in the mail, deliveries tomorrow".

The AUric™ would also address the problems of those who have won a significant sum of real deliverable metal from the casino that has been the world markets of the last century [and lost by those who have through greed, ignorance of The Law or worse] - being able to put it to use in a true stock market that chases productivity and yield - allowing them the privacy and power they seek while affording the common man protection of his savings from legal plunder by unseen third parties - so that the common man can learn the lessons of history and be able to access risk capital in a mathematically fair market. The AUric™ would be based on technology from the Global Settlement Foundation.

While the world endarkenment gathers apace, at least one man has lit a candle and can show us the way to avert the disaster that is fast approaching. 

The Global Settlement Foundation

The financial technology of the AUric™ currency will be provided by the Global Settlement Foundation (GSF™) under an open source license. The Global Settlement Foundation was established to provide finality of settlement for global trade and the establishment of an accountable (a countable, measurable and deliverable) unit called the Global™ that shall be defined as 0.1 gram of 0.999 fine gold. The prefix for the Global™ shall be G, the symbol GLO™.

The GSF system will be implemented in harmony with the Natural Laws of  physics that finance true wealth generation:

Gold is not wealth, neither is a huge concentration of fiat tokens. A society is wealthy and prosperous when true bearer share stock markets create interdependent private property ownership, and self motivation to create more goods and services spurred by competition creates a virtuous cycle. The cross ownership of private property via a true stock market results in peace, since there is no urge to destroy the property of "others" since everyone owns a little bit of everything and no one knows who owns what.

True stock markets are far more efficient than money markets, because failed projects do not result in further wasted time chasing impossible to recover debts and parasites have to work for a living. True stock markets chase yield, not just price.

The two objectives of the GSF go hand in hand with a commitment to neutrality, a return to The Law, the re-building of Trust and providing a venue for those who stand at the precipice to back away to safety and build wealth for themselves and their grand children.

The time has come to Act - Russia has declared its support for a return to gold.  Central American leaders look to implement a common currency, Argentina's Redrado calls for a Latin American currency and Redrado's comments follow suggestions by Brazilian leaders, including President Luiz Inacio Lula Da Silva, that there be a regional currency.

The GSF as a neutral party can provide the settlement system that can allow nation states, sovereign wealth funds and commodity producers to become issuers - of accountable currencies or fungible commodities such a barrels of oil.

If the leaders of these countries act to allow the people their inherent and lawful power to live, travel, create and trace; weed out the egregious "laws" that exceed their authority to enact; the existence of which initiates force against the common people for these inherent  capacities, then truly we shall witness a heaven on these Global Isles rather than tense borders drawn by parasites, patrolled by men who produce nothing ready to kill at the goading of those above them who produce nothing either.

Funny Numbers at the G20

When there is no finality of settlement and a countable unit of account, we have the spectacle of failure by design now on display in the world financial markets and the funny numbers being discussed at the G20 - one set for public consumption and one set off the books.

The resulting lack of honor afflicts everyone from the Queen of England to the toiling peasant. The re-establishment of a mechanism for finality of settlement and a deliverable unit of account will allow the return of honor and dignity to all the world leaders and people alike.

After all, when faced with news leaks and reports that circulate about very large numbers, one has to ask the question - and whose book of account is that number drawn on - and where and how did the purported signatory come upon such a large sum. After all, when one looks at the balance sheet of the Federal Reserve System [cache],

with under 900 billion dollars of FRN  currency in circulation, one is forced to the conclusion that if any other entity holds trillions of dollars they must hold inferior USD bank liability tokens, backed only by the "loans" of those banks, to pay a unit of the legal tender currency in circulation in the USA - FRN cash.Thus the Federal Reserve does not really have any liability towards the trillions of "dollars" that other "institutions" are circulating.

For example, if a certain Sovereign has amassed six trillion dollars, one has to also ask the question that any trained financial professional has to ask these days - what is the source of funds? It would be interesting to follow that train of research to certain IMF manuals, but that is not for this blog. Perish the thought of asking the banks and insurance companies declaring losses and requesting bailouts - on which book of the bank do the losses occur - the cash ledger or the checking account ledger?

We would invite everyone from the Queen of England and the Emperor of Japan to Barak Obama to Vladimir Putin, the BIS board members ,  the Pope in Rome to Zhou Xiaochuan in Beijing, from Christine Lagarde in Paris to Shri Palaniappan Chidambaram in India, the heads of state in the Middle East, Africa, Central and South America and all the dignitaries scheduled to meet at the G20, and last but not the least - those unknown Prime Bankers of the World, the World Court , SCOTUS , USDOJ , and others who have the resources to make a difference to consider these essential questions of accountability and finality of settlement, and The Law, and to work with us to restore honor and dignity, generate wealth and create trust.

Notice: We comprehend the risks - we are aware of the potential threats to our very existence. We are also aware that it is our duty as sentient beings who care for themselves, their family and their fellow men to bring light to these subjects and to create an honorable exit for those who stand at the precipice of disaster. We would like to hear from potential benefactors, fellow travellers and those who would wish to drop us an anonymous note.

Contact Information

SWANsat &  AUric™

William P. Welty, Ph.D.

SWANsat Holdings, LLC
13111 Downey Avenue
Paramount, CA  90723-2412  USA
  Phone: +1 562 529 2789
  Mobile: +1 714 519 4040
  Fax: +1 208 567 3898
  Email (remove spaces): william @ swansat.com PGP key 

Global Settlement Foundation
Plaza Obarrio Officina 202
Ave Samuel Lewis
Panama City, Panama 
 Email (remove spaces): trustee @ global-settlement.org PGP key 

Rayservers GmbH
Torre El Cangrejo Suite 980
Via Argentina
Panama City, Panama 

 Swiss Tel: +41 (0)22 533 0820
 UK Tel: +44 (0)20 3002 7472
 USA Toll Free: +1 888 265 5009
 Panama: +507-832-1846 

Email (remove spaces): support @ rayservers.com (for clients) 
                                     contact @ rayservers.com (for initial contact) PGP Keys

PGP Encrypt a message to Rayservers with no PGP installed.

Rayservers GmbH provides advanced technical and financial consulting to those who wish to create wealth amidst the ongoing global cirsis.

Rayservers GmbH serves as the director of Metanet Services, Ltd., a Mauritius company that will bring you SWANsat. Rayservers GmbH also serves as a prime dealer in Globals for the Global Settlement Foundation. Those who wish to endow the GSF to enable it to succeed are welcome to contact Rayservers.

This information is published "as-is" under The Rayservers Licence.