08 Oct A perfect robbery on global scale
“The bank hath benefit of interest on all moneys which it creates out of nothing.”
— William Paterson, founder of the Bank of England in 1694
“The idea of a national bank is dead, and will not be revived in my time.”
— Zachary Taylor
President Zachary Taylor opposed the creation of a new Private Central Bank, owing to the historical abuses of the First and Second Banks of the United States. Taylor died on July 9, 1850 after eating a bowl of cherries and milk rumored to have been poisoned. The symptoms he displayed are consistent with acute arsenic poisoning.
“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
— The Rothschild brothers of London writing to associates in New York, 1863
“From now on, depressions will be scientifically created.”
— Charles Lindbergh
after the passage of the Federal Reserve act 1913
All our lives we’ve been told that economics is boring. It’s dull. It’s not worth the time it takes to understand it. And all our lives, we’ve been lied to. War, Poverty, Revolution, they all hinge on economics. And economics all rests on one key concept: money
Contrary to popular belief, most money in our economy is not created by the government. By far the largest role in creating money is played by the private banking sector … when banks make loans they create additional deposits for those that have borrowed the money. 97% of the money is created by private banks. 3% is issued by printing or coining by government. This is known as fractional reserve banking. Fractional reserve banking involves the issuance and creation of money through a commercial bank, giving banks the ability to increase money supply through loans and gain profit for it.
It is indeed devious. For each $ 100 dollars or Euro’s which are deposited into your bank account, the bank is allowed to keep only a fraction of this money in your account (less than 10%) and to re-use the other 90% or more. These funds are loaned out (ex. new car loan) and end up in other bank accounts where the same principle of fractional reserve banking is applied. Each $10 so creates an additional $ 100. When the loan is paid back, the corresponding out of thin air money will be “destroyed” (deleted from the computer screen) but the banks keep the interest.
When the price of everything is rising it is in fact the value of the Fiat Currency coming down because too large quantities of it have been and are increasingly created. This is a direct consequence of the law of Supply and Demand: the more supply (of currency), the less it is worth. Prices are rising not because demand for good and services change but simply because the Value of the Currency drops.
The Achilles heel of this imaginary system is the fact that INTEREST must be paid on the money created out of thin air and that this money simply doesn’t exist. Because of this each month MORE money/debt MUST be created in order to keep this currency system alive. In the end exponential amounts of money/debt must be created just to keep the system alive and this in turn leads to Hyperinflation. See what happened in the Weimar Republic of Germany 1920ties.
Once there is Hyperinflation people realize that Fiat Currency and Bank bonds have no value whatsoever and bank deposits or the currency system blow up. Only REAL MONEY survives (Gold, Silver, real assets). As this point there is a contraction of the currency supply and we enter an era of DEFLATION. Unless DEBT is forgiven the Deflation cycle makes the Economic Depression even worse as the debt which has been accumulated during the Inflationary cycle must now be repaid with a smaller amount of available money. So the possessions of the few that still had assets and real money will be confiscated by the creditors. Repeating this cycle will end up in a monopoly of some mighty people possessing almost everything. One can see it as the perfect robbery. The U.S. president Lincoln once tried to establish a true debt free money system, the Greenbacks. But we all know how that ended. One can easily create a list of leaders or politicians in the last centuries trying to introduce a debt free money system based on value and will see they all died a violent death or war destroyed their economy and plans.
Most don’t realize that since August 15, 1971, (when the U.S. would no longer officially trade dollars for gold), the monetary system has de-facto become a SELF DESTRUCTING entity and that it has become harder and harder to keep it alive. Because today’s monetary system is thriving on fiat currency, not even a balanced budget can solve the problem created by this system.
to be continued …