“If two parties, instead of being a bank and an individual, were an individual and an individual, they could not inflate the circulating medium by a loan transaction, for the simple reason that the lender could not lend what he didn’t have, as banks can do….. Only commercial banks and trust companies can lend money that they manufacture by lending it.” – Professor Irving Fisher, economist in his book 100% Money (1935)

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” – John Kenneth Galbraith economist, author

“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” – Lord Acton (1834-1902) English historian

Maybe your first experience of putting money in the bank wasn’t quite as heartwarming as this. But odds are, years later, you still refer to the balance showing on your bank account as being your money in the bank. But it isn’t.

If we have a deposit box at the bank, the valuables we put in it are still ours. We’re just renting secure space to store them. In common usage, the word “deposit” means to set something down. But the use of the word deposit to refer to a bank account is misleading. A bank deposit is in reality… a loan. What the amount in our bank account really indicates is how much money the bank owes us. It is a record of the bank’s promise to pay us money, not the money we deposited itself. The difference is important. The truth is, when we hand the contents of our piggy bank to the bank teller, our money becomes the bank’s money to do with as it pleases. All of the money in the bank is the bank’s money. None of it is ours. That’s why the bank pays us interest. We have loaned the bank our money.

This may seem to be a semantic distinction. We know we can go to the bank at any time and take our money out in cash if we want to. But the distinction is not semantic. Nor is it trivial. The distinction is crucial. What happens in banking affects everyone and yet few of us know anything at all about how banking really works. The entire world economy now runs on a system of credit provided by banks. And when that credit system breaks down, everyone suffers.

To make things worse, the explanations for these breakdowns offered by the experts never look at the root cause… namely that, other than cash and coins, which make up just 1-5% of money in circulation, all the money in existence today was created as the principal of a bank loan, with the banks requiring principal plus interest as so-called “repayment”. Not only does this make the existence of money entirely dependent on the existence of bank credit, it makes the system as a whole bankrupt by design, as total debits, principal plus interest exceed total assets, from the moment the first loan document is signed.

As the global banking system staggers towards worldwide collapse, more and more people are realizing they can no longer ignore the realities behind banking as it is practiced today. Many have lost their homes and jobs due entirely to the unsustainable practices of moneylenders. It is time people understood money and the pressing need to fundamentally change the way it works. Clarifying what the words used in banking really mean is the first step. Now that we know that a deposit is, in truth, a loan to a bank, the next question is … what is a loan that we take out from a bank?

When we sign for a loan, we give the bank a pledge to pay the amount of the loan plus interest. In return, the bank credits our account in the same amount as this so-called loan. While we speak of the bank as having put the loan money into our account, in reality, the only thing the bank puts into our account is its promise to pay the money.

What has actually happened is an exchange of promises. Neither party has delivered anything to the other, except matching pledges of debt. So, who is the borrower and who is the lender? The terms loan, lender and borrower are all misleading. The truth is that the two parties have traded promises to pay, and in the process created something called “bank credit” or “checkbook money” that can be legally spent as money.

Bank credit can be spent because we, in our innocence, notice that, each time we deposit into our account, it increases our balance by the same amount. In fact, unless we put something in, our account will be empty. Thus it’s a natural assumption that money in an account is money someone put in. Uh-uh. The account is a promise to pay, not the money itself. In fact, a promise always indicates the absence of the item promised. Otherwise why does it need to be promised? Now, because all bank accounts are just promises to pay, the bank and the borrower can simply exchange promises and, in the flash of a few keystrokes, a positive balance appears in the borrower’s bank account without anyone putting existing money in.

Now you know the real source of what we call a “bank loan”.

“Commercial banks create checkbook money whenever they grant a loan, simply by adding new
deposit dollars in accounts on their books in exchange for a borrower’s IOU.” – Federal Reserve Bank of New York, I Bet You Thought, p.19

How different would it be if two parties just got together in a basement with a printing press and created new money that way? We intuitively understand the act of fraud called counterfeiting. In printing fake $100 dollar bills, the counterfeiters also create new money out of thin air.

Money gives us the ability to purchase the real goods & services of the world. It’s clear that the counterfeiters have created new ability to purchase real goods & services without giving anything in exchange… except a fancy piece of paper. Counterfeiters get something for nothing, directly at the expense of whoever gets caught with their counterfeit money. And if the counterfeit money is not discovered, it dilutes the money supply, stealing from everyone. Counterfeiting is a serious crime and it is easy to understand why. It’s cheating on a basic social agreement… Thou shalt not steal.

But, taking a loan from a bank also creates new purchasing power. However, instead of being considered a form of theft, it is the very basis of our monetary system. How did one form of creating money out of thin air become a crime, and the other become standard business practice and the source of almost all our money? For this is what has happened.

To understand how, we need to look at the history of the laws governing commerce, but before that, we need to understand the logic of the loan process itself.

The borrower wants to purchase an item but doesn’t have the funds to do so at the present time. However the borrower does have confidence in having sufficient funds over time to pay both the original price of the item and the interest on a loan. So he goes to a bank to arrange a loan. The borrower is capable of making a credible promise of money in the future, but otherwise, at this moment, he comes with empty pockets. That’s why he needs the loan.

We’re probably all familiar with what happens next. The bank gets the borrower to sign an agreement in which the borrower promising to pay the bank the amount of the loan plus interest or, in default, surrender to the bank the object that is to be purchased with the loan. This is done countless times every day all over the world, but there’s a problem. How can the borrower pledge as collateral something that the borrower does not yet own? If I wanted to borrow $10,000 from you to go on a luxury cruise to Europe, would you accept my
neighbour’s car as collateral?

Of course not, because you know very well that I have no legal right to give you my neighbour’s car no matter how much I owe you. But, if instead, I promise to buy my neighbour’s car with the $10,000 you lend me, the situation is different. You might agree to lend me the $10,000 believing I will buy the car and will pledge it as collateral for the loan once I obtain legal title to it. However, until the transaction is completed, your $10,000 loan cannot be secured by title to the car. This sequence of events problem could be very simply avoided. You could buy the car and then sell it to me.

The bank could do it this way too. If the borrower commits to the bank to buy the item, why doesn’t the bank just buy it with its own money and then sell it to the borrower on time payments at interest? Well… the answer to that question is also very simple. It’s because the bank, like the borrower, has come to the transaction with empty pockets. The bank fulfills its part of the so-called loan transaction by creating an “account” for the borrower. The truth is… the so-called borrower has funded his own account by fraudulently pledging a car he does not yet own, as collateral. And the bank, the so-called lender, hasn’t put up any existing money at all…and, if all goes well, it never will.

Hello, my name is Adrian Salbuchi and I’m speaking to you from Buenos Aires in Argentina. Everybody seems to be talking about the global financial crisis. But I want to show you, based on our experience here in Argentina, that there is no global financial crisis. What you are suffering, the First World, is an irreversible global systemic melt down. There’s no way of saving it. You might think, well this is a little bit exaggerated, but I want to show you, based on our experience, perhaps we know better.

I have here a coin which is 1 Argentine peso. This will buy you, well it’ll hardly buy you a bus trip in downtown Buenos Aires. And yet if I were to go to 1970 – in 1970 this little coin would have purchased you Argentina 4 or 5 times after another. Why? Because since January of 1970, we have undergone 4 major monetary changes where they’ve knocked off zeros on our currency. Thirteen zeros to be exact. So this would be worth 10 trillion pesos from that time and 10 trillion pesos at that time would’ve bought you Argentina… 3 or 4 times over. That’s inflation. Actually that’s hyper inflation. So when we hear about your inflationary concerns and everything, we’ve seen that, we’ve done that. We’ve been through the whole thing.

The whole global financial system is a ponzi scheme. And I’m going to show you how this works. First side of the global financial pyramid. Planned monetary insufficiency. The real money in every country – United States, Argentina, Brazil, Britain… Real money is the money that is issued by the state. In other words real “hot money” let’s call it that way, legal tender. Which in the United States is a funny sort of money because it’s issued by the Federal Reserve Bank. And the Federal Reserve Bank is a private entity. Let’s say central banks issue the real money. The dollar bills, the euros, the Argentinian pesos and so forth. The whole system is planned in such a way that there is never real money for the needs of the economy.

There enters the second side of the pyramid. Since there is not sufficient public money, that is replaced, or that is substituted by private money. In other words, the private banking system exerts sufficient control over the state and over the central bank, over the Federal Reserve System, as to guarantee that it will always issue insufficient amounts of money. And in comes the private banking system saying ‘Mr. individual, Mr corporation, Mr. government… you need money? No problem. We’ll give it to you.’And that’s when the banks come out with the fractional reserve system and charging huge amounts of interest. Whereby for all the loans that they make, tey make huge amounts of money. That’s the second part of the pyramid. Replacing real money, with funny money. In other words banking money, Which grows at an exponential rate because it grows based on the fractional monetary system, the fractional banking system.

The third side of the pyramid.Do everything by debt. Consumers are always indebting themselves. Do everything with a credit. Do everything with a loan. If an individual wants something, no problem have it on credit. If a corporation needs to build a new headquarter or a new manufacturing assembly line, no problem. Do it on credit. If the government has to do something in Argentina, the United States, no problem. Just get yourself nicely indebted with all the major private banks.

And you have now a situation where, in the United States for example, the government owes over 10 trillion dollars, that’s your debt indebtedness. Corporations owe about 9 trillion dollars. Individuals owe about another 9 trillion dollars. my country Argentina, the state is indebted over 350 billion dollars and our individuals are also indebted. Everybody’s indebted. Everywhere in the world. Individuals, corporations, states… Everybody owes money. And the key question is owes money to who. Why is the entire planet indebted to somebody?

And the forth part of the pyramid is the one we Argentinians are experts on. And I will call it privatizing the profits, socializing the losses. Because since the whole thing is a model, that model can be predicted how it will react, we know that when this ponzi scheme is growing there’s money all over the place. There’s easy loans, easy credit – “everybody” makes money. And when this is growing, the whole system is planned in such a way, that the channels for the huge profits will go to the private bankers. It will go to the private shareholders. It will go to all the people that they want it to go to. When it gets to a point where this is just going to explode, as happened to you (U.S.) on September of 2008, the whole thing starts collapsing, a new set of channels is activated. And all the losses are socialized. Just as the profits were privatized to the people they wanted to privatize them to, when the whole thing blows down and starts imploding and collapsing, that is socialized by taxpayer bailout plans or via the Federal Reserve issuing trillions of dollars of fake money, which means the entire planet is paying for it.

Everything you know is a lie. You are a slave of a hidden power. This power has been in control of the world for centuries. The name of this power is Rothschild.

“Let me issue and control a nation’s money and I care not who writes the laws”. Mayer Amschel Rothschild

“If my sons did not want wars…there would be none”. Gutle Schnaper…Wife of Mayer Amschel Rothschild

The Rothschilds have caused every war since 1800.

“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 control the British Empire, and I control the British money supply”.

“Rothschild is the Lord and Master of the money markets of the world, and of course virtually Lord and Master of everything else”. Benjamin Disraeli, British Prime Minister

The Rothschilds control half the wealth of the world.

“Teach those impudent Americans a lesson. Bring them back to colonial status”. Nathan Mayer Rothschild

“Whoever controls the volume of money in our country is absolute master of all industry and commerce…” President Taft

The Rothschilds establish the “FED” in 1913 and have controlling interest. The Rothschilds rule by proxy. They virtually control the entire planet through their money power. Their central banks control the money supply of many countries, including the United States.

For understanding of the Federal Reserve system it’s vital to take a look to the past, and specifically to the Rothschild family. Mayer Amschel Rothschild, the son of an itinerant money lender and goldsmith who settled in Jewish ghetto in Frankfurt-am-Main in 1744 was the founder of the Rothschild family, son Amschel Mozes Bauer. As the paterfamilias became more successful he dispatched four of his five sons to different European capitals to take advantage of the rise of capitalism and the growth of international trade…of these the two most important proved to be London and Paris.

“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 Rothschild

“Let me issue and control a nation’s money, and I care not who writes it’s laws.” Mayer Amschel Rothschild

“I state these points fearlessly and without reserve, for you have yourself well reminded me that there is a power beyond us that disposes of what we are and do. Rothschild is the Lord and Master of the money markets of the world.” Benjamin Disraeli, British Prime Minister

So, in the 19th century their power was almost absolute. However, Rothschilds were yet weak in the New World (America). They tried to obtain a Central American Bank in the decade of 1860, but President Lincoln opposed to their efforts.

He stopped their plans…but he got assassinated. However, they came back in the early 20th century.

Central person in their new efforts was another German-Jew, Jacob Schiff who had arrived in the U.S. in 1865. In 1873, they gave him economical support and he could buy shares of a German-Jew company Kuhn and Loeb.

Jacob Schiff – Schiff got married Solomon Loeb’s older daughter, Teressa, and virtually was the unique owner of Kuhn, Loeb & Co. He became a millionaire by financing America’s expanding railroads and growth companies, including Western Union and Westinghouse. Rothschild’s funds through Schiff financed even the Russian Revolution. In 1917, Lev Davidov Bronstein visited New York where he met Jacob Schiff. Schiff, using again Rothschild’s funds, financed a steel company – Empire of Carnegie and Standard Oil, John’s Rockefeller’s. Andrew Carnegie built Carnegie Steel Company and later U.S. Steel Co. His fortune was worth 298.3 billion dollars.

John D. Rockefeller – founded the Standard Oil Company and became, officially, the wealthiest person of modern history. His fortune worthed 318.3 billion dollars.

Another key person was Paul Warburg. Paul and his brother Felix, also German-Jew, came from Frankfurt in 1902, and financed by the Rothschilds, bought shares of Kuhn, Loeb & Co. Rothschild sent Warburgs in New York to influence Congress to vote a law about a Central Bank, which law would establish a Central Bank with responsibility to create money and to determine it’s value. So, Paul Warburg was responsible for Central Bank’s action, mastermind of which was Baron Alfred de Rothschild in London. In 1910 Paul Warburg gave an important speech requesting one united Federal Bank with total assets of 100 million dollars and with the authority to supply money.

A secret meeting converged. The island (Jekyll Island) had been bought in 1888 by J.P. Morgan, John D. Rockefeller’s brother William, Vanderbilt and some others. Present were Senator Aldrich, Vanderbilt, Paul Warburg, John D. Rockefeller, Bernard Baruch, Colonel House and Jacob Schiff. By one way or the other, all of them had a connection with the Rothschild family. Wanting to avoid the term of Central Bank, which refers to the European system, they suggested the new Regional Banks to be named Federal Banks. The draft of Federal Banks was approved by the House of Representatives and by the Senate on December 23rd 1913, when most of the representatives and senators were absent fro Christmas holidays. One hour after the Senate’s voting, President Wilson signed the Federal Bank’s act (Federal Reserve Act). So, in one day, the Rothschilds and their supporters, First National Bank of J.P. Morgan and National City Bank of Kuhn, Loeb & Co. virtually took America’s economy control.

“The Rothschild family has founded one of the world’s largest private banking dynasties to sustain their secretive fortune, which industry insiders count not in billions, but in trillions, and keep it within the family”. THE INDEPENDENT

During the early 20th century, J.P. Morgan was spotted to be one of the richest men in America, but after his death it was discovered that he was actually Lieutenant of the Rothschilds. Once Morgan’s will was published, it was discovered that he owned only 19% of J.P. Morgan companies…majority shares owned by the Rothschilds.

1963: On June 4th, President John F. Kennedy signs the Executive Order 11110, which returned to the U.S. Government the power to issue currency, without going through the Federal Reserve. Their answer…

As many are aware at this time, both our societal integrity and ecological integrity are in serious question. The current economic system is falling apart at an accelerating rate with the prospect of worldwide unemployment and destabilization occurring possibly on the largest scale ever seen. Simultaneously we are cording the point of no return in regard to the destruction of the environment. Given the current state of affairs, many of which will be addressed in the first part of this presentation, the viewer should find that we not only need to move in another direction, we have to.

In order to understand where we are and how we have gotten to this point in history, we need to address those societal attributes which have greatly effected our social conduct. The most important observation of this regard is our use of a monetary system. In this section we are going to address the mechanisms of our world monetary system, pointing out the consequences this type of organizational structure has produced.

A monetary system’s foremost motivating principle is profit, or more generally income. All people must seek out a strategy to acquire more money. A wage earner seeks out the best possible pay he can get for his services, while the employer seeks to constantly reduce costs in order to maximize their profit. This competitive mentality extends into all facets of society and it should be no surprise that those who are in positions of great wealth are often the most ruthless and indifferent.

The pursuit of profit almost always comes before human concern. And a simple glance at the cancer causing preservatives in our foods, the planned obsolescence of nearly everything manufactured, along with a healthcare industry that charges $300 for a single antibiotic pill will indicate that the profit incentive is actually a detriment.

We are being afflicted with a new disease of which some readers may not yet have heard the name, but of which they will hear a great deal in the years to come – namely, technological
unemployment. This means unemployment due to our discovery of means of economizing the use of labor outrunning the pace at which we can find new use of labor. John M. Keynes

Energy is the cornerstone of society today. It is one of the most critical factors to all social functionality. The age of oil and fossil fuels along with all the resulting pollution is coming to a close. There is no reason to burn fossil fuels at all anymore, other than the profit oriented vested interest that keeps new clean energy prospects at bay. Remember, the last thing the energy industry wants is abundance for that translates into a loss of profit in the monetary system.

A resource based economy utilized existing resources rather than commerce. All goods and services are available without the use of currency, credit, barter or any other form of debt or servitude. The aim of this new social design is to free humanity from the repetitive, mundane, and arbitrary occupational roles which hold no true relevance to social development while encouraging a new incentive system that is focused on self-fulfillment, education,social awareness and creativity as opposed to the shallow and self centered goals of wealth, property and power which are dominant today. The Venus Project recognizes that the Earth is abundant with resources. And that our outdated methods of rationing resources through monetary control are no longer relevant. In fact they are very counter productive to our survival.

1790: Mayer Amschel Rothschild states “Let me issue and control a nation’s money and I care not who writes the laws.”

1791: The Rothschilds get, “control of a nation’s money,” through Alexander Hamilton (their agent in George Washington’s cabinet) when they set up a central bank in the USA called the First Bank of the United States. This is established with a 20 year charter.

1811: The charter for the Rothschilds Bank of the United States runs out and Congress voted against the renewal. Nathan Mayer Rothschild is not amused and he states, “Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.” However the United States stands firm and the Charter is not renewed which causes Nathan Mayer Rothschild to issue another threat, “Teach those impudent American’s a lesson. Bring them back to colonial status.”

1812: Backed by Rothschild money, and Nathan Mayer Rothschild’s orders, the British declare war on the United States. The Rothschild’s plan was to build up such a debt in fighting this war that they would have to surrender to the Rothschilds and allow the charter for the Rothschild owned First Bank of the United States to be renewed.

1816: The American Congress passes a bill permitting yet another Rothschild dominated central bank, which gives the Rothschilds control of the American money supply again. This is called the second bank of the United States and is given a twenty year charter. The British War against America therefore ends with the deaths of thousands of British and American soldiers, but the Rothschilds get their bank.

1832: President Andrew Jackson (the 7th President of the United States from 1829 to 1837), runs the campaign for his second term in office under the slogan “Jackson And No Bank!” This is in reference to his plan to take control of the American money system to benefit the American people, not for the profiteering of the Rothschilds.

1833: President Andrew Jackson starts removing the government’s deposits from the Rothschild controlled, Second Bank of the United States and instead deposits them into banks directed by democratic bankers. This causes the Rothschilds to panic and so they do what they do best, contract the money supply causing a depression. President Jackson knows what they are up to and later states, “You are a den of thieves and vipers, and I intend to rout you out, and by the Eternal God, I will rout you out.”

1835: On January 30, an assassin tries to shoot President Jackson, but miraculously both of the assassin’s pistols misfired. President Jackson would later claim that he knew the Rothschilds were responsible for the attempted assassination.

1836: Following his years of fighting against the Rothschilds and their central bank in America, President Andrew Jackson finally succeeds in throwing the Rothschilds central bank out of America, when the bank’s charter is not renewed,

1841: President John Tyler (the 10th President of the United States From 1841 to 1845) vetoed the act to renew the charter for the Bank of the United States. He goes on to receive hundreds of letters threatening him with assassination.

1861: President Abraham Lincoln (16th President of the United States from 1860 till his assassination in 1865) approaches the big banks in New York to try to obtain loans to support the ongoing American Civil War. As these large banks were heavily under the influence of the Rothschilds, they offer him a deal they know he cannot accept, 24% to 36% interest on all monies loaned. Lincoln is very angry about the high level of interest so he prints his own debt free money and informs the public that this is now legal tender for both public and private debts.

1862: By April $449,338,902 worth of Lincoln’s debt free money (Greenbacks) has been printed and distributed. He states of this, “We gave the people of the republic the greatest blessing they ever had, their own paper money to pay their own debts.”

1863: President Abraham Lincoln discovers the Tsar of Russia, Alexander II (1855-1881), was having problems with the Rothschilds as well as he was refusing their continual attempts to set up a central bank in Russia. The Tsar then gives President Lincoln some unexpected help. The Tsar issued orders that if either England or France actively intervened in the American Civil War, and help the South, Russia would consider such action a declaration of war, and take the side of President Lincoln. To show that he wasn’t messing about, he sent part of his Pacific Fleet to a port in San Francisco and another part to New York.

1865: In a statement to Congress, President Abraham Lincoln states, “I have two enemies, the Southern Army in front of me, and the financial institutions in the rear. Of the two, the one in my rear is my greatest foe.” Later that year, on April 14, President Lincoln is assassinated, less than two months before the end of the American Civil War.

1881: President James A. Garfield (The 20th President of the United States who lasted only 100 days) states two weeks before he is assassinated, “Whoever controls the volume of money in our country is absolute master of all industry and commerce…when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

1913: The last and current central bank in America, the Federal Reserve, is set up during the presidency of Woodrow Wilson.

1917: The Rothschilds order the execution by the Bolsheviks they control, of Tsar Nicholas II and his entire family in Russia, even though the Tsar had already abdicated on March 2. This is both to get control of the country and an act of revenge for Tsar Alexander I blocking their world government plan in 1815 at the Congress of Vienna, and Tsar Alexander II siding with President Abraham Lincoln in 1864.

1963: On June 4th (the 35th President of the United States 1961-1963) signs Executive Order 11110 which returned to the U.S. government the power to issue currency, without going through the Federal Reserve.

Then along came the corporation. Now the reason the corporation looks bigger than the government is that the corporation is bigger than the government. Of the 100 largest economies on Earth now 51 are corporations. And as the corporation has grown in size and power we’ve seen a change in the government where they’re a little more concerned in making sure everything’s working out for those guys than for us.

80% of the planet’s original forests are gone. In the Amazon alone we’re losing 2000 trees a minute. That is seven football fields a minute. And what about the people who live here? Well according to these guys, they don’t own these resources, even if they’ve been living there for generations. The done own the means of productions and they’re not buying a lot of stuff. And in this system ,if you don’t own or buy a lot of stuff, you don’t have value.

Globally 200,000 people a day are moving from environments that have sustained them for generations, into cities, many to live in slums… looking for work no matter how toxic that work may be.

Money facilitates production and trade. As the money supply increases, money just becomes increasingly worthless, unless the volume of production and trade in the real world grows by the same amount. Add to this the realization that when we hear that the economy is growing at 3% per year, it sounds like a constant rate. But it’s not. This year’s 3% represents more real goods and services than last year’s 3%, because it’s 3% of the new total. Instead of a strait line is as naturally visualized from the words it is really an exponential curve that is getting steeper and steeper. The problem of course is that perpetual growth of the real economy requires perpetually escalating use of real world resources and energy. More and more stuff has to go from natural resource to garbage every year forever just to keep this system from collapsing.

Our goldsmith banker was not content with the income remaining after sharing the interest earnings with his depositors, and the demand for credit was growing fast as Europeans spread out across the world. But his loans were limited by the amount of gold his depositors had in his vault. That’s when he got an even bolder idea. Since no one but himself knew what was actually in his vault, he could lend out claim checks on gold that wasn’t even there. As long as all of the claim check holders didn’t come to the vault at the same time and demand real gold how would anyone find out. This new scheme worked very well and the banker became enormously wealthy on the interest paid on gold that did not exist. The idea that the banker would just create money out of nothing was just too outrageous to believe. So for a long time the thought did not occur to people.
But the power to just invent money went to the banker’s head, as you can well imagine. In time the magnitude of the bankers loans and his ostentatious wealth did trigger suspicions once again. Some borrowers began to demand real gold instead of paper representations. Rumors spread. Suddenly several wealthy depositors showed up to remove their gold. The game was up. A sea of claim check holders flooded the street outside the closed doors of the bank. Alas the banker did not have enough gold and silver to redeem all the paper he had put in to their hands. This is called a run on the bank. And it is what every banker dreads.

“I am afraid that the ordinary citizen would not like to be told that banks can and do create money… and they who control the credit of the nation direct the policy of Government and hold in the hollow of their hands the destiny of the people” -Reginald McKenna past Chairman of the Board, Midlands Bank of England

Banks can only practice this money system with the active cooperation of government. First, governments pass legal tender laws to make us use the national fiat currency. Secondly, governments allow private bank credit to be paid out in this government currency. Thirdly government courts enforce debts. And lastly governments pass regulations to protect the money system’s functionality and credibility with the public while doing nothing to inform the public about where money really comes from.

“Thus our national circulation medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess” Irving Fisher, economist & author

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 grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. – Robert H. Hemphill, Credit Manager Federal Reserve Bank, Atlanta, Georgia.

That’s not all. Banks create only the amount of the principal. They don’t create the money to pay the interest. Where is that supposed to come from? The only place borrowers can go to obtain the money to pay interest is the general economy’s overall money supply. But almost all that overall money supply has been created exactly the same way… as bank credit that has to be paid back with more than was created. So everywhere there are borrowers in the same situation frantically trying to obtain the money they need to pay back both principal and interest from a total money pool which contains only principal. It’s clearly impossible for everyone to pay back the principal plus interest, because the money doesn’t exist.

At one time charging any interest on a loan was called usury and was subject to severe penalties including death. Every major religion forbade usury. Most of the arguments made against the practice were moral. It was held that money’s only legitimate purpose was to facilitate the exchange of real goods and services. Any form of making money from simply having money was regarded as the act of a parasite or of a thief. However as the credit needs of commerce increased the moral arguments eventually gave way to the argument that lending involves risk and loss of opportunity to the lender and therefore attempting to make a profit from lending is justified. Today these notions seem quaint. Today making money from money held as an ideal to strive for.

“The modern day 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 iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create money, and with the flick of the 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, and they ought to disappear, for then this would be a better and happier world to live in.
But, if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit.” – Sir Josiah Stamp Director Bank of England 1928-1941

The problem is since 1864 we’ve had a debt based banking system. All our money is based on government debt. We cannot extinguish government debt without extinguishing our money supply. That’s why talk of paying off the national debt without reforming our banking system is an impossibility. That’s why the solution does not lie in discussing the size of the national debt rather it lies in reforming our banking system.

well what we’re about to show you is that there’s nothing federal about the Federal Reserve and there are no reserves. The name is a deception created back before the Federal Reserve Act was passed, in 1913, to make Americans think that America’s central bank operates in the public’s interest. The truth is that the Federal Reserve is a private bank owned by private stockholders and run purely for their private profit.

The Federal Reserve really, even though it is not part of the federal government, it is more powerful than the federal government. It’s more powerful than the president, the congress, and the courts. Now a lot of people challenge me on that but let me prove my case. The Federal Reserve determines what the average persons’ car payment is going to be… what their house payment is going to be, and whether they have a job or not and I submit to you that’s total control. And the fed is the largest single creditor of the United States government. …The borrower is servant to the lender…

When his son Mayer Amschel Bauer inherited the business, he decided to change his name to Rothschild. Amschel soon learned that loaning money to governments and kings was more profitable than loaning to private individuals. Not only were the loans bigger, but they were secured by the nations taxes.

By cooperating within the family the Rothschilds soon grew unbelievably wealthy. By the mid 1800s they dominated European banking and were certainly the wealthiest family in the world. They financed Cecil Rhodes making it possible for him to establish a monopoly over the diamond and gold fields of South Africa. In American they financed the Harrimans and railroads. The Vanderbilts and railroads and the press. And, Carnegie and the steel industry among many others.

“The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the United States, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination of the world.” –Otto Von Bismark

Lincoln understood who was really pulling the strings and what was at stake for the American people. This is how he explained his rationale.

“The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers… The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the government’s greatest creative opportunity…
By the adoption of these principles the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.” –Abraham Lincoln

If that mischievous financial policy, which had its origin in the North American Republic during the late war in that country, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without a debt.

It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.

…claimed that Lincoln was assassinated , not only because international bankers wanted to reestablish a central bank in America, but because they also wanted to base America’s currency on gold. Gold they controlled. In other words, put America on a gold standard. Lincoln had done just the opposite by issuing U.S. notes. Greenbacks, which were based purely on the good faith and the credit of the United States…

They were the men interested in the establishment of the gold standard money system and the right of the bankers to manage the currency and credit of every nation in the world. With Lincoln out of the way they were able to proceed with it in the United States. Within eight years after Lincoln’s assassination silver was demonetized and the Gold Standard money system set up in the United States.

3 years later American the people elected republican James Garfield president. Garfield understood how the economy was being manipulated. As a congressman, he had been chairman of the Appropriations Committee and was a member of Banking and Currency. After his inauguration he slammed the money changers publicly in 1881.

Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.

Unfortunately, within a few weeks of making this statement
on July 2nd of 1881, he was assassinated.

“After WWI, Germany fell into the hands of the German international bankers. Those bankers bought her and they now own her, lock, stock, and barrel. They have purchased her industries, they have mortgages on her soil, they control her production, they control all her public utilities. The international German bankers have subsidized the present Government of Germany and they have also supplied every dollar of the money Adolph Hitler has used in his lavish campaign to build up a threat to the government of Bruening. When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission… Through the Federal Reserve Board… over $30 billions of American money… has been pumped into Germany… You have all heard of the spending that has taken place in Germany… Modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories. All this was done on our money. All this was given to German through the Federal Reserve Board. The Federal Reserve Board… has pumped so many billions of dollars into Germany that they dare not name the total.” – Rep. Louis T. McFadden (D-PA)

At first Roosevelt railed against the money changers as being the cause of the depression. Believe it or not, this is what he said on March 4th 1933 in his inaugural address.

“Practices of the unscrupulous money changers stand indicted in the court of public opinion rejected by the hearts and minds of men… the money changers have fled from their high seats of the temple of our civilization.” –Franklin D Roosevelt March 4th 1933 in his inaugural address

But, 2 days later Roosevelt declared a bank holiday and closed all banks. Later that years Roosevelt outlawed private ownership of all gold bullion and all gold coins with the exception of rare coins. Most of the gold in the hands of the average American was in the form of gold coins. The new decree was in effect a confiscation. Those who didn’t apply risked as much as 10 years in prison and a $10,000 fine; the equivalent of $100,000 today. Out in small town America some people didn’t trust Roosevelt’s order. Many were torn between keeping their hard earned wealth, or obeying the government. Those who did turn in their gold were paid the official price for it; $20.66 per ounce. So unpopular was the confiscation order, that no one anywhere in government would take credit for authoring it. No congressmen claimed it. At the signing ceremony President Roosevelt made it clear to all who was present that he was not the author of it and publicly stated that he had never read it. Even the Secretary of the Treasury said that he’d never read it either saying it was quote ‘what the experts wanted’. Roosevelt convinced the public to give up their gold by saying that pooling America’s resources was necessary to get America out of the depression. With great fan fair he ordered a new bullion depository, built to hold the mountain of gold the U.S. government was illegally confiscating. By 1936, the U.S. bullion depository at Fort Knox was completed. And in January 6th 1937 the gold began to flow into it.
THE RIPOFF OF THE AGES WAS ABOUT TO PROCEED.
In 1935, once the gold had all been turned in, the official price of gold was suddenly raised to $35 per ounce. But the catch was only foreigners could sell their gold at the new higher price. The money changers, who had heeded Warburg’s note and gotten out of the stock market just before the crash and bought gold at $20.66 per ounce, then shifted to London could now bring it back and sell it back to the government nearly doubling their money while the average American starved.