|
Until the control of the issue of currency and credit
is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of sovereignty of Parliament
and of democracy is idle and futile... Once a nation parts with control of its credit, it matters not who makes the nation’s
laws... Usury once in control will wreck any nation. William
Lyon Mackenzie King
Federal
Reserve is a Cache of Stolen Assets
The American Revolution, in no small part,
was a repudiation of the central banking tyranny exported to the New World by the Bank of England. Few legacies have grown
more despotic than the consequences of living under the rule of fractional reserve banking. Many good willed conservatives
understand that the system is imploding. Some envision a second American Revolution that expels the remnant Tories that have
hijacked our Federalism separation of powers form of government. Woefully, the prospects for a States Rights revolt are slim. However,
the scenario of a domestic French Revolution style carnage is brewing with every escalation of the pompous arrogance worthy
of a Jean-Joseph, marquis de Laborde or the manipulative usury of the House of Rothschild.
The eruption of populist outrage is long overdue. The lack of objective mainstream media coverage is expected.
Their attempt to spin the natural disguise for a corrupt establishment in the hearts of sincere and persecuted citizens is
typical. The elite’s message is that they will either control the movement, or at the very least, strip it from any
positive synergism. Send in the clowns, like Michael Moore. Wall Street Capitalism: A Love Affair explains the hideous agenda of the clueless socialists that condemn all things Wall Street, while advancing
the ultimate goals of the New World Order globalists. Street theater no longer is enough. The peasants
are rallying their pitchforks, as they storm the Bastille; however, they got their GPS coordinates wrong. The correct address
is 33 Liberty Street, New York, NY. That is the location of the dominate Federal Reserve temple. When the public finally comes
to grips with the real cause of the unsustainable debt, they will understand that the private central banking system bears
the ultimate redress for their sins against America and all humanity.
A Privatised Money Supply, presents an informative analysis. Assuming a reserve ratio of 1:10 the table below shows how $100 of interest-free government
created money (GCM), i.e. cash, is used by the banking system to create $900 of interest-bearing bank-created money (BCM)
in the form of loans. The reserve ratio is the ratio of cash reserves (GCM) to deposits (mostly BCM). In our example the banking
system consists of 50 banks, but the money creation process would be essentially the same for any number of banks from one
to infinity. Modern accounting uses double entry book keeping where liabilities
and assets are kept exactly equal. A bank’s liabilities are its deposits. Its assets are its loans (including bonds
which are loans to government) and its cash reserves. Here is how the banking system creates money. In column 1 $100 of cash
is deposited in Bank 1. Bank 1 creates a $90 loan in the form of a deposit as shown in column 2. This deposit is pure BCM
and, because it must be paid back with interest, is an asset. With a reserve ratio of 1:10 the bank puts aside $10 in cash
(column 3) to meet cash demands from the person who deposited the $100. The remaining $90 in cash covers the $90 loan. The
borrower proceeds to write cheques on his $90 deposit and these cheques get deposited in Bank 2. For these cheques Bank 2
demands and gets cash from Bank 1 until eventually all $90 ends up in Bank 2. (Naturally in real life more than two banks
are involved. Thus the transactions are not so simple and orderly as they must be here for explanatory purposes, but everything
comes out in the wash to give exactly the same result.) However the original $100 deposit still stands to the credit of the
depositor (a liability for Bank 1) even though $90 of it has moved on to Bank 2. And the $90 loan Bank 1 created when it first
received the original $100 deposit also stands (an asset for Bank 1). Banks 2, 3, 4, etc. then repeat this process eventually
creating $900 of BCM in the form of loans (as shown in column 2) and dispersing the original $100 as cash reserves throughout
the banking system (as shown in column 3). Note that $900 of the $1000
of deposits in column 1 is BCM, i.e. credit created by the banks in the form of loans. (Banks make loans by "depositing
money" in your account which you must pay back with interest. Thus they are loan/deposits.) Only the original $100 cash
deposit is GCM. One other point. As a loan/deposit gets spent, a deposit in some other bank grows in inverse proportion. Thus
the banks have increased the money supply by $900 and not by $1800. That would be double counting. The important points, however,
are as follows: this ingenious system is called fractional reserve banking; it creates debt for the sole purpose of enriching
the banking class; it is a subtle form of theft; historically it was condemned as a form of usury.
| |
Column 1
|
|
Column 2
|
|
Column 3
|
| |
LIABILITIES
|
|
|
|
|
| |
|
=
|
|
+
|
Cash Reserves (100% GCM)
|
|
Bank 1 Bank 2 Bank 3
.
.
. Bank 49 Bank 50 Totals
|
$100.00
90.00
81.00
.
.
. 0.64 0.57 $994.85
|
|
$90.00
81.00
72.90
.
.
. 0.57 0.52 $895.36
|
|
$10.00
9.00
8.10
.
.
. 0.6 0.6 $99.43
|
|
|
|
=
|
|
+
|
|
This method of theft operates as the normal
course of business. What the banksters do with the money they obtain from debt created money is even more repulsive. All the
financial speculative instruments of leveraged trading just compound the heist. So what do these outlaws do with all the money? The
end net result is that they buy, especially at rock bottom prices, all the real assets that the filthy money can purchase.
When you think of Wall Street greed, go beyond the usual suspects and focus on the controllers of the assets that are under
the hegemony of the central bank. Here lies the reason why the rebellion must remove the engine of enslavement from the landscape
for any future financial system of commerce. Think about who really owns the land, the buildings and the resources
in our country. In order to really understand the scope and extent of the economy, the differential between actual Main Street
enterprise, that feeds, clothes and shelters the population, is minuscule when compared to the financial assets, both liquid
and real property, that is under the command and control of the central bank. Most individuals do not own property
encumbrance free. Most debt is owed to the banksters. The middle class is in a tailspin because the Fed has a zero interest
rate policy that effectively diminished your return on capital of your savings to nothing. The same is not true for the banks.
The fact that they have in excess of a 2 Trillion Dollars cash hoard on their balance sheets and refuse to lend out money
to the general public, demonstrates that the inside money is waiting to pick up even more real assets, when the signal comes
for the total collapse.
TARP, QE2 and the Twist are all ploys to
enrich the selective banks that are part of the orthodox Fed fraternity. Technically all federal charted banks have an ownership
interest in the Fed. Who among us are so naive to think that every bank is equal to the sacredly held corporate interlocking
directorates that make and direct monetary policy? Only when the middle class takes to the streets
with a spontaneous civil disobedience commitment that dwarfs the Tea Party movement, will the central banking tyranny be eliminated.
All the fraudulent debt that funded the asset acquisitions of crooks must be clawed back. As long as the banksters hide behind
the shield of corporation personhood, LLC liability exemption and government guaranteed loans, the ordinary family will continue
to be reduced to perpetual and permanent poverty. What kind of revolution is coming to America?
The lesson of the French élan of bloodletting to remove an aristocratic class is not pretty. However, a national discussion
needs to concentrate on: 1) Methods of eliminating the Federal Reserve fraud
and restoring an honest money system for commerce 2) Repudiation of the corporatist "Free
Trade" global business model and a return to a merchant class free enterprise independent domestic economy 3) Confiscation
of assets and wealth acquired through illegal systematic RICO style schemes that demand treble damages from their ill-gotten
gain
Americans deserve property right protections
from the criminal extortion and the cold-blooded offenses that the banksters used, to steal the national wealth. The expanding
protest must result in a true restoration of a traditional upwardly mobile society, not an expanded nanny state. The suffocating
debt and the profane system that spawned it must end. The term "Citizen" does not apply to elitist plutocrats. If
Americans want to stave off a 21st century version, of the Committee of Public Safety, get behind the "Revolt against the Fed". Tear down the
House of Rothschild. This is one time the concept of "Reparations" has standing in a legitimate court of law. SARTRE –
October 9, 2011
|
