Wednesday, April 8, 2020

Small Business Indenture Act (COVID-19 to enrich Life Insurers and Banks) of 2020

When the U.S. Congressional Pujo Committee investigated the conspiracy of interlocking directorates (the fact that multiple corporate boards were made up of the same people across multiple industries including ones with conflicts of interest) in 1912 and 1913, they realized that, in the decades following the Civil War, the United States had become effectively controlled (through its monetary system) by a few life insurance and banking interests. 
The mechanisms were very transparent.  Wages were set to be barely sufficient to motivate persistence of labor.  Not surprisingly, the knowledge of labor costs was shared by, you guessed it, directors who got inside knowledge of each other’s businesses and could thereby control the labor supply.  Consumption was encouraged to keep people addicted to whatever was “new” or “modern”.  And all of this was an elaborate scheme concocted to enrich the life insurance industry and their capital beneficiaries – banks. 
And why do I call them beneficiaries?  Simple.  The principal beneficiary of the life insurance payout in the rare instance that happens is the banks who hold unpaid debt – both consumer credit and mortgages.  To this day, have you ever wondered why purchasing a home often involves the usurious practice of also buying Private Mortgage Insurance (PMI)?  That’s because the real beneficiary of your home purchase is the: a) bank that creates your debt asset; and, b) the insurer who seldom, if ever, pays out.
To keep it simple – here’s how the scam worked then AND WORKS NOW!
1.     Keep people paid just at the margin of ‘enough’ but encourage them to live just a little beyond their means to ensure that indebtedness was persistent and would incentivize indentured obligations;
2.     Encourage credit - particularly in mortgages – by incentivizing ‘home ownership’ for the purpose of manufacturing debt ‘assets’ for banks;
3.     Sell life insurance to settle indebtedness in death never telling the public how much present value was lost in meeting actuarial obligations in death; and,
4.     Set the maturity of life insurance to lead many people to buy products that never would pay out in death (term policies).
In my film, American R/evolution ( – a two hour history of the death denominated U.S. economy - I discuss the thinly veiled control that life insurance has had on our country since the Civil War. 
So, as I was musing about who might be benefiting from the charade playing out before us now and in which we are all thought to be simpletons, I wondered how much has changed. 
“Why not,” I thought, “read House Resolution 6312 recently introduced by Congress entitled the “COVID–19 Relief for Small Businesses Act of 2020”.  Heralded as a landmark rescue package for the businesses that employ an estimated 90% of America, this $350 billion out of the $2 trillion package (yes, you should pause and think about how horrific the mismatch ratio is), I was optimistic that I’d see the best interest of Small Business as the leading priority.
Then came the bad news. 
Before payroll for small business is even mentioned, the real beneficiaries are named.  Have a look for yourself.  The $350 billion bailout is so that:
1.     banks can get their loans repaid; and,
2.      life insurers can keep getting their premiums. 
See for yourself!  Paying wages is the third priority. 
Where were any of the real or fake news outlets when they were fawning over this bill?  That’s right.  NOT READING IT! Your tax dollars are being spent on yet another banking and life insurance protection racket!
2d Session

H. R. 6312
To provide relief from COVID–19 for small business concerns, and for other purposes.

March 19, 2020
Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business

To provide relief from COVID–19 for small business concerns, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
(a) Short Title.—This Act may be cited as the “COVID–19 Relief for Small Businesses Act of 2020”.

(a) In General.—The Administrator of the Small Business Administration shall carry out a program to make loans directly to eligible borrowers.
(b) Eligible Borrower Defined.—In this section, the term “eligible borrower” means a person who—
(1) is a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632); and
(2) is located in a State or territory of the United States with a confirmed or presumed positive case of COVID–19.
(c) Use Of Funds.—In addition to the use of proceeds currently permitted under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), loans made under this section may be used for the following purposes:
(1) To make periodic payments of principal and interest, for a period not to exceed 12 months, on a loan or a loan guarantee made to an eligible borrower that meets the eligibility standards of such section 7(a).
(2) To provide benefits to employees of the eligible borrower, including group life insurance, disability insurance, sick leave, annual leave, educational benefits, paid family leave, or retirement benefits (including a pension plan or IRA).
(3) To pay wages to employees of the eligible borrower, and related State and Federal payroll taxes, except that loan proceeds may not be used to pay amounts under a garnishment order issued by an agency of a State or Federal Government.

People, this is NOT acceptable.  With the Fed making trillions available for bank liquidity, with small business preserved so that they can keep paying loans and life insurance – when will the complicity of this end?

Since I recently learned that footnotes are not accessed by most readers, here’s some information that you might like to see from the industry that needs your taxpayer bailout.  Have a good look.  These unfortunate firms reported:

“2018 net income after taxes for the life/annuity insurance industry fell 10.0 percent to $37.9 billion, from $42.1 billion in 2017. Net income before capital gains fell 15.8 percent in 2018, and a net realized capital gains loss of $4.7 billion contributed to lower net income. Premiums and annuity considerations rose slightly in 2018, up 1.3 percent from 2017, as annuity premiums and deposits fell 6.1 percent. Expenses grew by 10.8 percent in 2018 following a drop in 2017. Capital and surplus rose to $400.0 billion in 2018.”

While you watch governors and Presidents around the world breathlessly recite death counts from the scourge that besets us that is credited with 10% of the normal pneumonia deaths reported during the same period; when you see that the only data supporting social-distancing are computer models that were off by an order of magnitude just one week ago; and when, god-forbid, you look at the Center for Responsive Politics data that shows that one lobbying firm (and only one of their lobbyists) is engaged by 55 clients including most of the major life insurers, bio-tech pharmaceutical companies, and non-profits that include CDC Foundation partners, don’t think for a moment that the branding of COVID-19 is for your health’s sake!

Be informed:

And share this information with a public that is playing into the Kabuki Theatre that will end up with nothing but destruction!



  1. Thank you for sharing these impossible to dispute facts.

  2. Brilliant David - Thank you - A world based on corruption

  3. Never felt called to invest in "life insurance" now I know why!!


Thank you for your comment. I look forward to considering this in the expanding dialogue. Dave