by John Hamer
“When a bank makes a loan, it simply adds to the borrower's deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It is new money, created by the bank for the use of the borrower”. Robert B. Anderson, Secretary of the US Treasury, August 31, 1959. ‘US News and World Report’
“We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon”. Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, 1934
How has this dangerous and criminal state of affairs come about without publicity and with no questions raised? Unsurprisingly, the power and wealth of the corporate Elite and their compliant media and propaganda mills have served them well yet again. With the unlimited resources available to them, it is an absolutely simple process to deceive 99.99% of the trusting populations as to the real situation and smooth the way for the scam of this or indeed any other millennium.
“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through process of law, the common people lose their homes they will become more docile and more easily governed through the strong arm of the government applied by a central power of wealth under leading financiers. These truths are well known among our principal men, who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance. It is thus, by discrete action, we can secure for ourselves that which has been so well planned and so successfully accomplished.” Montagu Norman, Governor of The Bank of England, addressing the United States Bankers' Association, New York, 1924
The story of modern money begins in Renaissance Europe, around five hundred years ago. At that time the currency consisted mainly of gold and silver coinage, with no paper money. Gold coins of course were very durable and had intrinsic value in themselves (unlike paper currency), but they were heavy, difficult to transport in large quantities and they were open to theft if not stored securely. As a result of this, the general population therefore deposited their coins with goldsmiths who had strong-rooms and safes in which to store the coins securely and without fear of theft. These goldsmiths issued paper receipts which could be redeemed at any time for the stated amount of gold. Eventually these convenient receipts began to be traded themselves instead of the less convenient coins they represented.
With the passage of time, the goldsmiths realised that only about 10% of these receipts were ever redeemed in gold at any one time and they could quite comfortably lend the gold in their possession, with interest, time after time as long as they ensured that they retained the 10% of the value of their outstanding loans in actual physical gold to meet any demand. By this process, paper money (notes) which were in reality receipts for loans of gold was born. Notes could now be issued and loans made in amounts that were up to ten times their actual gold holdings. At interest rates of 20%, the same gold could be lent 10 times over yielding a 200% return every year and this was backed by gold that did not even exist! Of course, the goldsmiths were careful not to overextend themselves and thus became very wealthy at the expense of the rest of the populace without producing anything of intrinsic value.
Since only the principal was lent into the money supply, more money was eventually owed back in principal plus interest than the people as a whole, possessed. They had to continually take out loans of new paper money to cover the shortfall, causing the wealth of the towns and eventually of the country to be diverted into the vaults of the goldsmiths, by this time now ‘bankers’, whilst the country began to progressively drown in debt.
As related briefly in the introduction to this book, the Bank of England was formed in 1694 as a long-planned coup of the Elite, to set in motion the eventual world-wide appropriation by them, of the money creation process.
The Dutch branch of the Elite was the first to create a ‘central’ bank to facilitate this scam. The Bank of Amsterdam, the first ever ‘central bank’ was formed in 1609. In 1688, following the usurping of the Catholic King James II by English Elite forces conspiring with their Dutch counterparts to re-introduce a Protestant monarchy, William III, the Prince of Orange and his wife Mary (the daughter of James), were installed on the British throne. This was facilitated by the landing of William’s invasion force at Brixham harbour in Devon, South West England and his claims to the throne being supported by high-ranking English Protestants, including Parliament. James was eventually forced to flee to France, where he lived until his death in 1701.
However, once installed as King of England, one of William’s briefs was to create the same financial conditions, ripe for exploitation, as had been in existence in Holland for almost a century. The Elite banking classes were clamouring for an opportunity to procure the same obscene profits in England, that were available to the Dutch bankers and so the Bank of England was conceived and came into being by 1694. William Paterson, a London merchant banker and initiate of the Merovingian bloodline secret society, the Order of the Orange, was sponsor of the scheme. He petitioned Parliament in 1693 “to form a company to lend one million, two hundred thousand pounds to the government at 8% interest plus the right of note issue”. After a few false-starts and some objections were overcome, this was duly approved after “great debate” and the formation began of the institution that has contributed more than any other to the economic slavery of the people of not just Britain, but also the world.
"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire and I control the British money supply." Nathan Mayer Rothschild, 1815
Can anyone please explain to me why any government would agree to such terms and in doing so forfeit the right to create interest-free money, whilst agreeing to pay a private corporation 8% interest on a loan that it did not even need had it retained the power to create its own currency? There can be only one reason and this speaks volumes to my mind.
“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money and, with a flick of a pen, they will create enough money to buy it back again. . . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.” Sir Josiah Stamp, Chairman of the Bank of England and the second richest man in Britain in the 1920s
Following the Bank of England model, in nineteenth century America, private banks issued their own bank-notes in sums up to ten times their actual reserves in gold. This is known as ‘fractional reserve’ banking, meaning that only a fraction of the total deposits managed by a bank are kept in reserve to meet the demands of depositors. But, ‘runs’ on the banks when the customers all demanded their gold at the same time, caused several banks to go bankrupt and made the system unstable. In 1913, the private bank-note system was therefore consolidated into a national bank-note system under the Federal Reserve Bank, a privately-owned corporation, given the right to issue Federal Reserve Notes and lend them to the US government at interest. These notes, which were issued just for the cost of printing them, came to form the basi
s of the American national money supply.
Prior to the formation of the Federal Reserve Bank, there had been a previous attempt at forming a Central Bank in the US, in the early 19th century and this was known as the Bank of the United States. Here is what the US President (at the time) had to say about it…
“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out. If only people understood the rank injustice of our banking and money system, there would be a revolution before morning.” Andrew Jackson, former US President
Shortly after this statement and the subsequent annulment of the Bank of the US, Jackson survived an assassination attempt, when the would-be assassin’s gun jammed. There was no arrest made.
As previously stated, The Federal Reserve Act was passed through Congress in the early hours of the morning of the 23rd December 1913 whilst opposition was at a minimum, most Congressmen having already left for their Christmas holiday break. The Act itself was a lengthy document and had in fact only been introduced to Congress earlier that previous evening, allowing no time whatsoever for the document to be even read in full, let alone studied in detail.
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." Former US President, Woodrow Wilson, several years after signing the Federal Reserve into existence
Inflation is nothing less than theft. Inflating the money supply by continually printing more money to pay the interest on the money that already exists has the disastrous effect of inflating prices. More money in competition for the same goods sends prices skywards and therefore the currency buys less, robbing people of the value of their money and savings. Inflation is then blamed on the government by the financial Elite, which is accused of printing money to fuel its excessive spending. However, the only money that governments actually issue is coins. This is a nice little deception and another sleight of hand by the ‘banksters’ and their media poodles.
At the time of writing, the US National debt (ie. to the Banksters) is $15 trillion and increasing by $1.5 trillion per year in interest alone! How can these sums ever be paid back? The simple unambiguous truth is that they cannot – in any way shape or form – ever. This in effect means that we and our descendants are in debt to and are slaves to the banksters forever and ever, giving them the ‘right’ to basically do whatever they see fit with our lives. By way of an illustration what these ‘monopoly money’ sums look like, please the illustrations below.
Believe it or not, this small pile is $1 million dollars. You could easily hold it in your hands and carry it around with you.
Although $1 million looks a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet...
And $1 BILLION dollars...
Next let us examine ONE TRILLION dollars. This is that number that we have been hearing so much about. A trillion is a million millions, a thousand billions. It is a one followed by 12 zeros.
So here we are…. $1,000,000,000,000 (one trillion dollars)…….
(And notice the pallets are double stacked.)
So if you hear someone casually mention the phrase ‘one trillion dollars/pounds’... that is what they are talking about.
In addition, to put these figures into perspective even further, would it surprise you to learn that, despite the fact that figures of one million and much, much more are casually tossed around these days, an average human lifetime is considerably less than one million hours – at 657,000 for a span of 75 years? Or put another way, just under 40 million minutes. And since the alleged birth of Christ over 2000 years ago, less than 0.75 million days have passed.
As we now know, banks create the principal in the form of currency, but not the interest owed on their ’loans’ to government. This creates an ever-spiralling shortfall as more money is printed just to pay the interest owed to the banksters. One pound lent at 5% becomes two pounds in 14 years which in effect means that the money supply has to double every 14 years just to cover the interest payments alone. Or to put it another way; every 14 years, banksters take as much money in interest payments from the government as comprised the entire economy 14 years previously! Easily the biggest deception ever perpetrated on a helpless humanity. This is the real reason for inflation and the fact that a loaf of bread which now costs around £1.00 cost about 2 pence in 1911.
"World bankers, by pulling a few simple levers that control the flow of money, can make or break entire economies. By controlling press releases of economic strategies that shape national trends, the power elite are able to not only tighten their stranglehold on this nation's economic structure, but can extend that control worldwide. Those possessing such power would logically want to remain in the background, invisible to the average citizen.” Aldous Huxley
The seizure of the power to create money, by these arch-criminals is the absolute cause of all the global poverty and economic slavery that defines the sad state of the world today. These Elite that control the world’s purse strings, causing the death of millions by starvation and disease whilst wielding ultimate power over us all are culpable of genocide on a grand scale. There can be no denial of this fact whatsoever.
“The Federal Reserve was set up in 1913 to finance both sides of two subsequent world wars. In other words, these wars were funded by the credit of the US taxpayer. Apart from profiting from it, the Illuminati bankers use war to enslave us with debt, enact social change and consolidate their power”. Dr. Henry Makow, researcher and author, 2011
So, where are all the riots in the streets, the public storming of the Bank of England and the Federal Reserve Bank in New York, the loud demands from government and the media for financial reform? Unfortunately, through the mind-control process otherwise known as state education, mass media propaganda and the self-policing syndrome that infects the entire population from top to bottom, we are controlled and manipulated to believe that all is well and our current system is the ‘only way’. Even when it becomes patently obvious that all is not well, we are still conditioned to believe that we are helpless and cannot make effective changes to the ‘way of the world’. …Go back to work everyone, nothing to see here. Everything is under control.
“The banks are allowed to create the money out of nothing and charge interest for turning the trick, while the masses have to earn it. The right to create money is the right to leverage, and it's that financial leverage that hoists them to the top of the pyramid. Without this leverage they would not be able to create such massive amounts of wealth and control. The only way to destroy this system and create fair money is by creating awareness. Once people understand the ‘trick’, the whole house of cards begins to collapse”. Robert Bonomo, activistpost.com 13th October 2011
This problem can only be rectified by governments wresting back the constitutional power to print and issue currency. Fractional reserve banking should be eliminated, limiting banks to lending only existing funds. If the power to create money was returned to governments, all national debts could be paid off instantly, taxes could be reduced or even eliminated and governmen
t-sponsored social programmes could be instigated, benefitting the people as a whole and not just some tiny Elite clique. 100% of all our taxes go towards servicing the debt to the bankers and not, as we are widely led to believe, to providing services for the people.
It is worth relating the true story of a landmark court case in Minnesota, USA in 1969. First National Bank of Montgomery vs. Daly was an epic courtroom drama and although unsurprisingly, not widely reported either at the time or subsequently, is actually extremely significant. The defendant Jerome Daly a lawyer, defended himself against the bank's attempted foreclosure on his $14,000 mortgage on the grounds that there was no ‘consideration’ for the loan. ‘Consideration’ in legal-ese is a way of saying, ‘the item exchanged’ and is an essential element of any legal contract. Daly contended that the bank offered no consideration for his loan on the grounds that they had ‘created’ the money by bookkeeping, ‘out of thin air’ and had therefore not suffered a loss (another relevant point of law) by his refusal or inability to pay back the money.
The proceedings were recorded by Associate Justice William Drexler, who had given no credence whatsoever to the defence, until Mr. Morgan, the bank's president, took to the witness stand. To Drexler’s and indeed everyone's surprise, Morgan casually admitted in cross-examination that the bank routinely created money ‘out of thin air’ for all its loans and mortgages and that this indeed was standard practice in all banks. Presiding Justice, Martin Mahoney declared that ‘It sounds exactly like fraud to me’, accompanied by nods and murmurs of assent from all the jury members. In his summary of the case, Justice Mahoney reported that; “Plaintiff (the bank) admitted that it, in combination with the Federal Reserve Bank of Minneapolis, did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. (my emphasis - JH) Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.”
