Billions for Bankers
"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson
Money is "Created", Not Grown or Built.Economists use the term ‘create’ when speaking of the process by which money comes into existence. “Creation” means making something which did not exist before. Lumber workers make boards from trees, workers build houses from lumber, and factories manufacture automobiles from metal, glass and other materials. But in all these acts they did not actually “create anything.” They only changed existing materials into a more usable and therefore more valuable form. This is not so with money. Here and here alone, man actually ‘creates’ something out of nothing. A piece of paper of little value is printed so that it is worth a piece of lumber. With different figures it can buy an automobile or even a house. Its value has been ‘created’ in the truest sense of the word. ‘Creating’ money is very profitable! As seen above, money is very cheap to make and whoever does the ‘creating’ of money in a nation can make a tremendous profit. Builders work hard to make a profit of five percent above their costs to build a house. Auto makers sell their cars for one to two percent above the cost of manufacture and it is considered good business - but money ‘manufactures’ have no limit on their profits, since a few cents will print a one dollar bill or a ten thousand dollar bill. That profit is part of our story, but first let’s consider another unique characteristic of the thing -- money, the love of which is the “root of all evil”.
Adequate money supply neededAn adequate supply of money is indispensable to civilised society. We could forego many other things, but without money industry would grind to a halt, farms would become only self-sustaining units, surplus food would disappear, jobs requiring the work of more than one man or one family would remain undone, shipping and large movement of goods would cease, hungry people would plunder and kill to remain alive, and all government except family or tribe would cease to function.
An overstatement, you say? Not at all. Money is the blood of civilised society, the means of all commercial trade xcept simple barter. It is the measure and the instrument by which one product is sold and another purchased. Remove money or even reduce the supply below that which is necessary to carry on current levels of trade and the results are catastrophic. For an example we need only look at America's depression of the early 1930's.
Bankers' Depression of the 1930s
In 1930 America did not lack industrial capacity, fertile farmlands, skilled and willing workers or industrious families. It had an extensive and efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilising telephone, teletype, radio, and a well operated government mail system.
No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land. The United States of America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce.
In the early 1930s, bankers - the only source of new money and credit - deliberately refused loans to industries, stores and farms. Payments on existing loans were required however, and money rapidly disappeared from circulation. Goods were available to be purchased, jobs waiting to be done, but the lack of money brought the nation to a standstill.
By this simple ploy America was put in a ‘depression’ and bankers took possession of hundreds of thousands of farms, homes, and business properties. The people were told, “times are hard” and “money is short”. Not understanding the system, they were cruelly robbed of their earnings, their savings, and their property.
No Money for Peace, but Plenty for WarWorld War II ended the ‘depression’. The same Bankers who in the early 1930s had no loans for peacetime houses, food and clothing suddenly had unlimited billions to lend for army barracks, K-rations and uniforms.
A nation that in 1934 could not produce food for sale could suddenly produce bombs to send free to Germany and Japan! (More on this riddle later).
With the sudden increase in money, people were hired, farms sold their produce, factories went to two shifts, mines reopened, and ‘The Great Depression’ was over! Some politicians were blamed for it and others took credit for ending it. The truth is the lack of money (caused by Bankers) brought on the depression, and adequate money ended it. The people were never told that simple truth and in this article we will endeavour to show how these same bankers who control our money and credit have used their control to plunder America and place us in bondage.
Power to Coin and Regulate Money
When we can see the disastrous results of an artificially created shortage of money, we can better understand why our (America’s) Founding Fathers insisted on placing the power to ‘create’ money and the power to control it only in the hands of the Federal Congress.
They believed that all citizens should share in the profits of its ‘creation’ and therefore the Federal Government must be the only creator of money. They further believed that all citizens, of whatever state, territory or station in life, would benefit by an adequate and stable currency. Therefore the Federal Government must also be, by law, the only controller of the value of money.
Since the Federal Congress was the only legislative body subject to all the citizens at the ballot box, it was, to their minds, the only safe depository of so much profit and so much power. They wrote it out in a simple but all inclusive manner: “Congress shall have the power to Coin Money and Regulate the Value Thereof.”
How We Lost Control of the Federal Reserve
Instead of the Constitutional method of creating our money and putting it into circulation, we now have and entirely unconstitutional system. This has brought our country [the United States]to the brink of disaster, as we shall see.
Since our money was handled both legally and illegally before 1913, we shall consider only the years following 1913, since from that year on,all of our money had been created and issued by an illegal method tha twill eventually destroy the United States if it is not changed. Prior to 1913 America was a prosperous, powerful and growing nation, at peace with its neighbors and the envy of the world. But in December of 1913,Congress, with many members away for the Christmas Holidays, passed what has since been known as the Federal Reserve Act. (For the full story of how this infamous legislation was forced through our Congress, read "Conquest or Consent", by W. D. Vennard).
Omitting the burdensome details, it simply authorised the establishment of a Federal Reserve Corporation, run by a Board of Directors (The Federal Reserve Board). The act divided the United States into 12 Federal Reserve ‘Districts’.
This simple but terrible law completely removed from Congress the right to create money or to have any control over its creation, and gave that function to The Federal Reserve Corporation. It was accompanied by the appropriate fanfare. The propaganda claimed that this would ‘remove money from politics’ (they did not say ‘and therefore from the people's control’) and prevent ‘boom and bust’ economic activity from hurting our citizens.
The people were not told then and most still do not know today that the Federal Reserve Corporation is a private corporation controlled by bankers and therefore is operated for the financial gain of the bankers over the people, rather than for the good of the people. The word ‘Federal’ was used only to deceive the people.
More Disastrous than Pearl Harbor
Since that day of infamy, more disastrous to us than Pearl Harbor, the small group of privileged people who lend us ‘our’ money have accrued to themselves all of the profits of printing our money – and more! Since 1913 they have ‘created’ tens of billions of dollars in money and credit, which, as their own personal property, they can lend to our government and our people at interest (usury).
‘The rich get richer and the poor get poorer’ had become the secret policy of the Federal Government. An example of the process of money creation and its conversion to peoples’ ‘debt’ will aid our understanding.
We shall start with the need for money. The Federal Government, having spent more than it has taken from its citizens in taxes needs, for the sake of illustration, a billion dollars. Since it does not have the money, and Congress has given away its authority to create it, the Government must go to the ‘creators’ for the $1 billion.
But the Federal Reserve, a private corporation, does not just give its money away! The Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal Government in exchange for the government's agreement to pay it back – with interest. So Congress authorises the Treasury Department to print $1,000,000,000 in U.S. Bonds, which are then delivered to the Federal Reserve Bankers.
The Federal Reserve then pays the cost of printing the $1 billion (about$1,000) and makes the exchange. The government then uses the money to pay its obligations. What are the results of this fantastic transaction? Well, $1billion in government bills are paid all right, but the Government has now indebted the people to the bankers for $1 billion on which the people must pay interest!
Tens of thousands of such transactions have taken place since1913 so that by 1996, the U.S. Government is indebted to the Bankers for more than $5,000,000,000,000 (trillion). Most of the income taxes that we pay as individuals now goes straight into the hands of the bankers just to pay off the interest alone, with no hope of ever paying off the principle. Our children will be forced into servitude.
But wait! There's more!
You say, “This is terrible!” Yes, it is, but we have shown only part of the sordid story. Under this unholy system, those United States Bonds have now become ‘assets’ of the banks in the Reserve System which they then use as ‘reserves’ to ‘create’ more ‘credit’ to lend. Current reserve requirements allow them to use that $1 billion in bonds to ‘create’ as much as $15 billion in new ‘credit’ to lend to states, municipalities, to individuals and businesses; to you.
Added to the original $1 billion, they could have $16 billion of ‘created credit’ out in loans paying them interest with their only cost being $1,000 for printing the original $1 billion! Since the U.S. Congress has not issued Constitutional money since 1863 (more than 100 years), in order for the people to have money to carry on trade and commerce they are forced to borrow the ‘created credit’ of the monopoly bankers and pay them usury-interest!
Manipulating Stocks for Fun and Profit
In addition to almost unlimited usury, the bankers have another method of drawing vast amounts of wealth. The banks who control the money at the top are able to approve or disapprove large loans to large and successful corporations to the extent that refusal of a loan will bring about a reduction in the selling price of the corporation's stock.
After depressing the price, the bankers' agents buy large blocks of the company's stock. Then, if the bank suddenly approves a multi-million dollar loan to the company, the stock rises and is then sold for a profit. In this manner, billions of dollars are made with which to buy more stock. This practice is so refined today that the Federal Reserve Board need only announce to the newspapers an increase or decrease in their "discount rate" to send stocks soaring or crashing at their whim.
Using this method since 1913, the bankers and their agents have purchased secret or open control of almost every large corporation in America. Using this leverage, they then force the corporations to borrow huge sums from their banks so that corporate earnings are siphoned off in the form of interest to the banks. This leaves little as actual "profits" which can be paid as dividends and explains why banks can reap billions in interest from corporate loans even when stock prices are depressed. In effect, the bankers get a huge chunk of the profits, while individual stockholders are left holding the bag.
The millions of working families of America are now indebted to the few thousand banking families for twice the assessed value of the entire United States. And these Banking families obtained that debt against us for the cost of paper, ink, and bookkeeping!
The interest amount is never created
The only way new money (which is not true money, but rather credit representing a debt), goes into circulation in America is when it is borrowed from the bankers. When the State and people borrow large sums, we seem to prosper. However, the bankers "create" only the amount of the principal of each loan, never the extra amount needed to pay the interest. Therefore, the new money never equals the new debt added. The amount needed to pay the interest on loans is not "created," and therefore does not exist!
Under this system, where new debt always exceeds new money no matter how much or how little is borrowed, the total debt increasingly outstrips the amount of money available to pay the debt. The people can never, ever get out of debt!
The following example will show the viciousness of this interest-debt system via its "built in" shortage of money.
The Tyranny of Compound Interest
When a citizen goes to a banker to borrow $100,000 to purchase a home or a farm, the bank clerk has the borrower agree to pay back the loan plus interest. At 8.25% interest for 30 years, the borrower must agree to pay $751.27 per month for a total of $270,456.00.
The clerk then requires the citizen to assign to the banker the right of ownership of the property if the borrower does not make the required payments. The bank clerk then gives the borrower a $100,000 check or a $100,000 deposit slip, crediting the borrower's checking account with $100,000.
The borrower then writes checks to the builder, subcontractors, etc. who in turn write checks. $100,000 of new "checkbook" money is thereby added to the "money in circulation."
However, this is the fatal flaw in the system: the only new money created and put into circulation is the amount of the loan, $100,000. The money to pay the interest is NOT created, and therefore was NOT added to "money in circulation."
Even so, this borrower (and those who follow him in ownership of the property) must earn and take out of circulation $270,456.00, $170,456.00 more than he put in circulation when he borrowed the original $100,000! (This interest cheats all families out of nicer homes. It is not that they cannot afford them; it is because the bankers' interest forces them to pay for nearly 3 homes to get one!)
Every new loan puts the same process in operation. Each borrower adds a small sum to the total money supply when he borrows, but the payments on the loan (because of interest) then deduct a much larger sum from the total money supply.
There is therefore no way all debtors can pay off the money lenders. As they pay the principle and interest, the money in circulation disappears. All they can do is struggle against each other, borrowing more and more from the money lenders each generation. The money lenders (bankers), who produce nothing of value, gradually gain a death grip on the land, buildings, and present and future earnings of the whole working population. Proverbs 22:7 has come to pass in America. "The rich ruleth over the poor, and the borrower is servant to the lender."
Small loans do the same thing
If you have not quite grasped the impact of the above, let us consider an auto loan for 5 years at 9.5% interest. Step 1: Citizen borrows $25,000 and pays it into circulation (it goes to the dealer, factory, miner, etc.) and signs a note agreeing to pay the Bankers a total of $31,503 over 5 years. Step 2: Citizen pays $525.05 per month of his earnings to the Banker. In five years, he will remove from circulation $6,503 more than he put in circulation.
Every loan of banker "created" money (credit) causes the same thing to happen. Since this has happened millions of times since 1913 (and continues today), you can see why America has gone from a prosperous, debt-free nation to a debt-ridden nation where practically every home, farm and business is paying usury-tribute to the bankers…
Excerpted from and continues at –
Excerpted from and continues at –
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