Welcome to the New Independent Credit Union

NEW INDEPENDENT CREDIT UNION OVERVIEW

July 2015

 

I would like to share an overview of why the New Independent Party is wanting to organize the New Independent Credit Union and why it is so critical to move forward as quickly as possible.

If you have been listening to mass media or government announcements you would think that the United States is in a major economic recovery and that everything is going just fine, after all our unemployment is at 5%, our inflation is at 2% and we have been seeing constant growth in our GNP. The sad truth is that all of this information is terribly misleading.

1. The five percent unemployment figure is only true because the government has changed how they compute it. If you were to use 1980’s model to compute unemployment the figure would be closer to 10 to 12% unemployment today. Our government today is ONLY counting those people who are eligible for unemployment benefits.Of the over ten million people laid off in 2008, millions of these people no longer are eligible for unemployment. Many have moved into social security or social security disability (some counties actually have one in ten adults on social security disability today), or they have been forced to take one, two and some cases even three part time jobs to survive and none of these people show up on unemployment, but many have just given up on finding any job and are now homeless or living with relatives. Less than half of all Americans are even paying taxes today and this is reflected in the number who are really unemployed or under employed in America. We need to find jobs for millions of people and we can not expect government to do it.
2. The 2% inflation rate is very misleading as well, because the government has changed the way it figures this number today. They have taken out, what are called core costs; food, energy and gasoline. The inflation number only includes wages, goods and production of goods. Yet my bread, milk and hamburger have all doubled in price within the last five years. How about yours?If food and energy costs are added in the real inflationary rate is over 6%. The cost of gasoline may be down today because OPEC is suppressing the market price to get rid of American oil companies using fracking technology, and they are causing hundreds of these new companies to go bankrupt, so we can expect the price of gasoline at the pump to again sky rocket to possibly $5 a gallon once they have eliminated these competitors.
3. Even the GNP or gross national product number the government is giving us is misleading. If you have watched every quarter a number will be given out and then it will be ADJUSTED within a few weeks or a month downward. The United States has actually had enough consecutive lowering of GNP to qualify as being in a DEPRESSION today. That fact is depressing.
4. So basically we have been lied to about unemployment, inflation and our GNP. Only half of Americans and companies are paying taxes, with many companies and individuals leaving the USA for lower tax havens, over 70% of wage earners are living paycheck to paycheck, and a recent survey indicated that 72% of those surveyed believed that the US was about to experience another economic shock equal or worse than what we experienced in 2008.Then add to this list of happy facts the reality that the US government is over $18 trillion in debt, we have not had a balanced federal budget in over a decade, plus our nation’s cities and states have over $100 trillion in outstanding bonds and debt, our businesses are floating on over $60 trillion in lines of credit, our students are defaulting on over a trillion in education loans, and we have again trillions of bad mortgage loans and directives since 2008 as well as well as over a trillion in new car loans and many banks are carrying huge EVERGREEN loans on businesses that have failed and gone under years ago. Does this sound like a HOUSE OF CARDS? It is.
5. Local banks have not helped the situation any. Many local banks have found that they can earn a majority of their income from charging excessive fees to those account holders who are going paycheck to paycheck with overdrafts, administrative fees and minimum balance requirements. These same banks are only making business loans to their best traditional customers, with almost no new economic activity in most counties. These same banks are often running with reserves, which need only be 3 to 5%, at often 30 to 70 percent. These banks have often ignored their community charter which requires them to benefit their local community by taking in public money and turning it into loans and services. They are not doing this because they do not want to take on new risk or they can get low interest money from larger banks and the Federal Reserve.
6. It takes four things to move a national economy. (a) Money has to turn. On average money should turn four to five times in a healthy economy as a dollar moves from store to store. Today the dollar is moving at a rate of two or less. The reasons are 70% of wage earners are living paycheck to paycheck which means their wages go to rent, food, energy and very little discretionary money to buy shoes or even eat out. (Now you know why so many main street businesses have closed in America.) The second reason is the 72% worried about our economy are also worried about their bank closing (like they did in Greece yesterday) so they are hoarding cash. The normal supply of actual cash is about $350 billion in the US but now less than half of that cash is available to stores and businesses and banks. People are putting money in lock boxes, and under their mattress. Cash is so short that Morgan Chase Bank of New York is reportedly not allowing its own customers to take cash out of their own bank account and storing the cash in their bank lock box. Many banks are either now or hinting soon they will charge their customers with savings accounts a monthly fee to keep their cash in their bank. (Australian banks have already started this negative savings.)(b) The second thing a strong economy needs is consumer confidence, which means they are out spending money. We have reports that consumer spending is up but in reality most of those paychecks are going to designated fixed costs and not to retailers or even service companies. (Now you know why the big box stores are in such deep trouble in America.) Most Americans are using extra cash to pay down bills and to hoard their cash waiting to see when the next big crash will come.(c) The third thing a strong economy needs is a free flow of credit. The farmer needs credit to buy seed, the producer needs credit to process the food, truck companies need credit to run their trucks, grocery stores need credit to finance their stores and consumers need credit cards to buy their food. This chain of credit is absolutely needed in our modern economy. As long as everyone pays their credit on time this system works fine. But Americans were at 104% of their ability to pay off their credit in 2008 with a savings rate that was actually negative, or no savings.The only people who have been able to pay down their credit lines are the people in the 30% group of upper middle and upper class Americans with discretionary money left at the end of the month. Most rich people really do not have much of a credit card debt to begin with as they can pay off their bills each month. Which leaves the upper middle class to pay down the nation’s credit card debt, and sorry to say the middle class in America is on a dramatic decline.
   Which leaves our whole credit line system at a breaking point. Many do not realize that this credit system actually came within hours of a complete collapse in 2008. It could happen tomorrow and the trucks will stop bringing food to your local grocery and guess who will go hungry within three days?
   (d) The fourth ingredient to a strong economy is to have confidence in the financial system. We already know that 72% of Americans do not have much confidence in our banking system. If they really knew how fragile the big banks are with trillions of dollars of bad debt on derivatives and junk bonds they would even be more afraid then they are today. America has five giant banks that control over 70% of all international wire transfers, over 75% of all consumer credit, 70% of all business and private mortgage loans, and since 2008 these five banks have been able to buy up or out the next largest 100 banks in America.
   Most Americans do not realize that the Federal Reserve was bought in 1913 for $43 million by a group of private banks, and that the Federal Reserve Bank, while called the Central Bank of the United States, is not accountable to any government agency or owned by the US government. The Federal Reserve was given the right to manage the US economy through issuing of interest rates and by being allowed to print money.
   Since 2008 the Federal Reserve has created (printed electronically) over $3 trillion in new money. Guess what happens when some one prints new money? The value of that money goes down. Guess where almost all of the Economic Easing money from this printing of new money actually went? Yep those same five giant banks.
   Now you might realize why the Federal Reserve has kept the prime interest rate so low (actually at almost zero), and basically how these five banks were able to buy out the next 100 largest banks in America. The bottom line is the Federal Reserve may be bankrupt, these five giant banks may be bankrupt and the whole system may be a giant ponsi scheme. The entire financial system is a HOUSE OF CARDS, that could come down at any time.

This is my opinion. You may agree or disagree. But why wait around and watch the whole financial system crumble to the ground. Unemployment will soar. The credit system will stop. There will be violence in the streets as soon as the grocery stores close. The 600 FEMA detention centers will be filled within months and the United States could become like a third world country within a very short time.

This is not acceptable to the members of the New Independent Party and why we are bringing forward the New Independent Credit Union for these reasons:

1. The New Independent Credit Union will be owned by its members, (one vote per member) and be a nonprofit association. Members will buy shares to organize and operate it. Members will be paid annual dividends from any profits shared.
2. The New Independent Credit Union will have the legal reserve requirement of keeping back 3 to 5% of deposits but it will also maintain a 2 to 3% gold reserve to protect depositors. This gold will be kept safe in foreign depositories. (We remember what the government did in 1935.)
3. The New Independent Credit Union will be chartered as a federal credit union which will allow each depositor to have an insured account up to the maximum allowed.
4. The New Independent Credit Union will organize each branch in each county that shows it is willing to develop one. Each county’s New Independent Credit Union will be governed by local board members and local managers.
5. Each New Independent Credit Union will offer services that may include savings and checking accounts, vacation accounts and cooperative member trips, ATM machines, debit and credit cards, wire transfers, small business loans, car loans, mortgage loans, home improvement loans, education loans, personal and business credit advising. Services will be developed according to community needs.
6. New Independent Credit Unions will promise that accounts will be free of charges, no overdraft charges, opening fees or administrative charges or requiring minimum balances and open to everyone. (There are over 40 million Americans who can not qualify for a bank account today)
7. The New Independent Credit Union will offer a two level interest on savings accounts with all accounts having idle funds after 30 days receiving an interest rate of 4% and when funds are idle in an account for over 180 days the interest rates goes to 6%. (What is your bank paying on interest rates on savings?)
8. The New Independent Credit Union will offer business loans and personal loans beginning at 8 percent with some higher risk loans at 12%. These loans will be used to create 1000 new businesses per county and 1000 new farm families per county on micro farms. (We already have businesses interested in these loans because their local bank has refused to serve them.)
9. The New Independent Credit Union will coin our own money. We will design and create metal coins valued at $1, $5, $10, $20, $50 and $100. Each of these coins will have a plug of silver or gold embedded to give each coin a market value equal or higher than it’s face value. We will also still honor US cash, Bit Coins and various forms of electronic money.
10. The New Independent Credit Unions want to develop a Master Account in which a members money can be automatically deposited into the Master Account and then have a series of sub accounts automatically move the funds to (Individual Retirement Accounts), (Individual Medical Accounts), (Individual Savings Accounts), (automatic bill paying accounts), (debit smart card accounts), as well as automatic county, state and national income tax accounts. We support a flat tax strategy of everyone paying 15% of income to federal taxes, 5% to state taxes and 15% to inheritance, capital gains and all business taxes. Everyone pays with no exceptions and no deductions. With this kind of tax structure the New Independent Credit Unions can actually perform all tax and benefit accounting for small businesses to save them considerable money.
11. The New Independent Credit Union will also provide financial and management support to all of their members and business members. If we give a loan then we will require that the member or business take part in one or more online courses (provided by the New Independent Learning Centers) dealing with credit management and financial responsibility. These courses are being developed currently at www.newindependentlearningcenters.info
12. The New Independent Learning Center will also provide online and on site courses in each New Independent Credit Union on management, marketing, business planning, cost controls, diversity training, micro farming, retail management and small business management. We not only will provide funds for new economic growth in a community we will also provide monthly financial monitoring of business loans as well as educational support to new businesses.
13. The New Independent Credit Unions also wants to organize more fun events like group travel trips, local contests, as well as supporting cultural activities such as plays, dances, art and craft, and cultural exchanges with sister cities both nationally and internationally.
14. The New Independent Credit Union will be an independent organization and while associated with the New Independent Party and the New Independent Learning Centers they will function with their own Board members and staff. There will be no demands or requirements of being a member in one organization to that of the other organizations.

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