By Liam Roberts
"Give me control of a nation's money and I care not who makes the laws."
Mayer Amschel Bauer (1744 -1812), Godfather of the Rothschild Banking Cartel of Europe
The monetary system is one that affects us all, we cannot get by without it to the extent that it dictates our daily lives.
- "Wanna go out tomorrow mate?"
- "Can't mate, working I'm afraid!"
Now I'm not saying we shouldn't have to work or we should have money handed out to us, or even that money is a bad idea, what i'm saying is that the current monetary system and banking systems are designed to create debt and effectively enslave people. If that sounds extreme to you then you need to wake up. Look at the Third world, Brazil should be one of the most prosperous countries on the Earth, judging by its natural resources, however, due to "third world debt" you have hundreds of thousands of Brazilians dying through hunger-related diseases. And what's even more crazy is that Brazil is one of the biggest food exporters in the World! How can this be? The International Monetary Fund, (IMF), thats how.
According to the 11th annual World Wealth Report compiled by Merrill Lynch & Co just 0.14% of the population possess a staggering 25% of the wealth. Lets just put that into perspective shall we, if this 0.14% of people decided to combine their assets and split the money evenly among all 9.5 million of them, they'd each be left with $3,915,789.
So basically $4 million each, more than the majority of us can earn in our entire lives, this is crazy, can no one else see that this is not right?
How Banks Work
Its interesting to know that if everyone decided to go to the bank on the same day to withdraw their funds, the banks would not have enough money! Sound strange? Its quite simple, banks are allowed to lend out more money than what they have in deposit.
"The fact that banks are required to keep on hand only a fraction of the funds deposited with them is a function of the banking business. Banks borrow funds from their depositors (those with savings) and in turn lend those funds to the banks’ borrowers (those in need of funds). Banks make money by charging borrowers more for a loan (a higher percentage interest rate) than is paid to depositors for use of their money. If banks did not lend out their available funds after meeting their reserve requirements, depositors might have to pay banks to provide safekeeping services for their money. For the economy and the banking system as a whole, the practice of keeping only a fraction of deposits on hand has an important cumulative effect. Referred to as the fractional reserve system, it permits the banking system to create money". (Wikipedia)
No, you didn't misread that, here it is again, "it permits the banking system to create money".
This is how only 3% of money in circulation is notes and coins and 97% is credit or in reality, debt.
When you take out a £10,000 loan the Bank does not go and print ten thousand pounds in notes, a member of staff simply keys £10,000 into your account and transfers it electronically.
Once the bank has done this you are immediately paying interest on that money which was simply created by pushing buttons on a computer. There was absolutely no more money bought into circulation because you took out this loan but you must now pay back the bank £10,000 plus interest.
And remember, if you do not pay back the loan or you can't meet your repayments the bank can then take your home and your possessions away from you.
You are paying the bank for lending you money that does not exist!
There are two types of money in a fractional-reserve banking system operating with a central bank such as in the UK, EU or the US for example:
1. Central bank money (money created or adopted by the central bank regardless of its form (precious metals, commodity certificates, banknotes, coins, electronic money loaned to commercial banks, or anything else the central bank chooses as its form of money).
2. Commercial bank money (demand deposits in the commercial banking system) - sometimes referred to as chequebook money.
When a deposit of central bank money is made at a commercial bank, the central bank money is removed from circulation and added to the commercial banks reserves (it is no longer counted as part of money supply). Simultaneously, an equal amount of new commercial bank money is created in the form of bank deposits. When a loan is made by the commercial bank (which keeps only a fraction of the central bank money as reserves), using the central bank money from the commercial bank's reserves, the money supply expands by the size of the loan.
Put simply, If I took £100 to a bank to deposit in my account with a fractional-reserve rate of 20%, the bank will put £20 into their reserve, and can then lend out the other 80% to another customer and charge them interest on it. Even though I could still withdraw this £100 from the bank.
This process can be repeated and repeated, lets look at it on a bigger scale.
Person A deposits £1,000,000 into a bank, bank puts £200,000 into the reserve and then lends out £800,000 charging interest.
Person B loans £800,000 from bank, the £800,000 loan is electronically put into person Bs account and a further £160,000 will go to the Banks reserve making £640,000 available to loan.
Person C loans £640,000 from bank,the £640,000 is again transferred electronically, reserve takes 20%, further 80% or £512,000 available to loan.
Now thats repeating the system just 3 times and it means that the bank has reserved £1,952000 and loaned £1,440,000 which totals £3392000 yet the original deposit was only £1,000,000.
And remember the banks are charging interest on these loans too.
Financial 'Booms' and 'Busts'
Another great illusion. Banks are creating money out of thin air and only the amount of money in supply in the system dictates a financial boom or a financial bust. So who controls the amount of money in supply and the interest rates? The Rothschild controlled central banks.
What happens in a financial boom is the Central bank lends money to the commercial banks, that is X amount plus interest, in turn, the banks loan it to the public, plus interest. When the money is in our hands we buy things, clothes, houses, cars, whatever it may be, and as money supply good and credit is easy to obtain we do this, just look at the trends.
Here is a prime example, in 2006, at 20 years of age, I was able to take out a 100% mortgage on a house, got 3 credit cards and took out a big loan. Now, in 2009, like most of us, I couldn't get credit anywhere if I wanted to. But this is through design, when we're in full swing of enjoying easy credit and spending money we don't have, the Central bank calls in its loans from the commercial banks, in turn, they stop lending and call in any loans outstanding. It becomes hard to get credit, people have to stop spending because they are paying back the credit they have already had and in turn production of goods across the board drop and jobs get cut, unemployment soars, bla bla, I don't need to tell you, its happening outside your front door right now.
I Promise to Pay the Bearer...
If I withdraw money from a bank, the notes state "I promise to pay the bearer on demand the sum of...", what does that mean exactly?
The first recorded use of paper money was in the 7th century in China. However, the practice did not become widespread in Europe for nearly a thousand years.
In the 16th century the goldsmith-bankers began to accept deposits, make loans and transfer funds. They also gave receipts for cash, that is to say gold coins, deposited with them. These receipts, known as “running cash notes”, were made out in the name of the depositor and promised to pay him on demand.
At that time, a member of the public could exchange banknotes for gold to the same value. For example, a £5 note could be exchanged for five gold coins, (sovereigns). But the value of the pound has not been linked to gold for many years, so the meaning of the promise to pay has changed.
Exchange into gold is no longer possible and Bank of England notes can only be exchanged for other Bank of England notes of the same face value. Public trust in the pound is now maintained by the operation of monetary policy, the objective of which is price stability.
Now this is all correct, you can check the Bank of England's own website and confirm this.
The Money which comes into circulation is loaned to the government in return for Treasury Bonds to the value of the loan, Treasury Bonds have a maturity of 30 years maximum before they are due to be paid back to the Central Bank, The Bank of England, to the original value plus interest, of course. When the Bonds are due to be paid back, the Government creates more Bonds and loans more money to pay the old Bonds. Again, interest is charged at whatever the Central Bank's rate is and can change at any time.
To gain a further understanding of the corruption of this system read the following excerpt from the Bank of England's website.
The Bank of England (formally the Governor and Company of the Bank of England) is, despite its name, the central bank of the whole of the United Kingdom and is the model on which most modern, large central banks have been based. It was established in 1694 to act as the English Government's banker, and to this day it still acts as the banker for the UK Government. The Bank was privately owned and operated from its foundation in 1694 until it was nationalized in 1946. In 1997 it became an independent public organisation, wholly-owned by Government, with independence in setting monetary policy.
So its owned by the Government! The same Government that exchanges Treasury Bonds for currency. Currency which is loaned from the central bank and paid back with interest.
But if the Government own the Central Bank, why does it need to charge interest on loans? Why doesn't the Government just create money interest-free?
I will tell you, because that would mean everyone on earth could have enough food, clean water, good health and maybe even a place to live without fear of tomorrow. That is not what the elite want. As we've said, this current system is designed to control us and that is exactly what they want.