So, what is the national deb? When government spends more than it collects in taxes, it has to borrow the difference by selling interest bearing IOUs, such as US bonds. When a US bank buys a $100 dollar US bond, it gets to loan out ten times that amount. So, the bank not only gets back the $100 dollars plus interest from the Federal Government, it gets to loan out another $1000 dollars it doesn’t have and charge additional interest. Banks are allowed to create this extra money out of thin air. So, banks aren’t making just 6% interest, for example, they are really making over 1000% interest. That’s why bank buildings are the biggest in every town on the planet.

This system of lending way more than you have is called fractional reserve lending. Almost all our money is created by banks, lending it to people, to companies, or government.

As we’ll see, there is a better way for our government to get money. Simply issue it without debt for the benefit of all citizens equally. Abraham Lincoln did it. Ben Franklin did it, Jefferson wanted to do it. Honest Americans have fought against this bank controlled-debt money system throughout American history. But unless we change it soon most of our freedoms will soon be lost in a tidal wave of debt.

75 years ago an employee of the Atlanta Federal Reserve explained the importance of the debt money system and how it can strangle our economy:
“Someone has to borrow every dollar we have in circulation… If the Banks create ample money we are prosperous if not we starve when one gets the complete grasp of the picture the tragic absurdity of our hopeless position is incredible… It is the most important subject intelligent persons can investigate and reflect upon.” -1934, Robert H. Hemphill, credit Manager of the Federal Reserve Bank of Atlanta

Nobody’s talking about the debt problem as such. They’re talking about the fact that the the bankers aren’t making enough money to live in the way that they’re accustomed to.

After 600 years, the money changers were finally able to reassert their control over English money when they convinced the Parliament to create the Bank of England. This put the banking community back in control of manipulating the quantity of English money. Now England had to borrow its money supply from banks and pay interest on it, instead of the government simply issuing its own money without such debt. So in England we learned that simple sticks of wood broke the monopoly of gold money. This debt free money lasted for seven centuries and allowed a small island nation to rule the waves and freedom to root deeply in the new middle class, With the goldsmiths back in control, England was now financing its wars with this bank loaned money.
Just 75 years later, England’s war debts consumed 75% of its budget. Three quarters of British taxes were spent just on paying the interest on its war bonds. As a result England needed to squeeze more and more money from all her colonies to pay the interest on this new growing debt.

America was no exception.

Pre-revolutionary America was still relatively poor. There was a severe shortage of precious metal coins to trade for goods. So the early colonists were increasingly forced to experiment with printing their own homegrown paper money. This paper money was called Colonial Scrip. Colonial scrip was a dangerous concept for bankers. It broke the colonies free of the privately owned central banking system where a money had to be created by banks and then loaned to governments, as Franklin put it:
“In the Colonies we issue our own money. It is called Colonial Scrip. …we control its purchasing power, and we have no interest to pay to no one.” – Benjamin Franklin

In 1764 the British Parliament passed the Currency Act. Again it ordered all Americans to pay their taxes in gold or silver coin. For those who believe that a return to a gold backed money is the answer for America’s current monetary problems, look what happened to America after the Currency Act of 1764 was passed. As Franklin put it:

“In one year, the the conditions were so reversed that the prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.” -Benjamin Franklin.

To Ben Franklin, this return to a gold money system was the basic cause of the American Revolution.

“The Colonies would have gladly borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction.” -Benjamin Franklin.

Americans were mad and did everything they could to get around Britain’s gold money system. In 1765 Parliament past the Stamp Act, requiring that every item sold had to have a stamp placed on it indicating that a tax had been paid on that item and paid in gold. This is what drove America to open revolt.

Do you understand what that means? Without gold you could literally buy or sell nothing. Why? Because the British had successfully forced the colonies to pay for everything using only a precious commodity, gold. This is the very definition of the word plutocracy, ruled by the rich.

By the outbreak of the revolution in 1775, the colonies started printing a new form of paper money to finance the war. I was called Continental Currency. Because unlike Colonial Scrip, it was the first issued by the new central government. Continentals worked great at first, but then the British started counterfeiting it massively sending it to America literally by the bail. By the end of of the war the currency was virtually worthless, as George Washington lamented: “A wagon load of money will scarcely purchase a wagon load of provisions.”

Earlier Colonial Scrip has worked, because just enough was issued to facilitate trade and counterfeiting was minimal. In other words the quantity was controlled by the government that issued it. Gold bugs today try to claim that because paper money didn’t work during the Revolutionary War, it shouldn’t be used today. But keep in mind it doesn’t matter what backs your money. All that matters is who controls its quantity. Will it be your elected officials? Or will it be some unelectable banker? Colonial paper money, before the revolution had worked so well, that the Bank of England had Parliament outlawed, and forced America to use only gold money. Gold which they controlled.

On our next stop on the yellow brick road, which represents the bankers gold money system, we find how the curse of the privately owned central bank first came to America.

In 1781 towards the end of the war, the Continental Congress met here in Philadelphia. They pondered what to do about their grave financial situation. The money was so worthless that the people papered their walls. Congress finally agreed to give a group of bankers a monopoly on creating US money by loaning it to the Government. It was the first privately owned central bank. The plan of course was modeled on the bank of England. The new bank would be called the Bank of North America. It would be the first of a string of controversial privately owned central banks which Congress would charter, and then in the face of public outrage, uncharter over the years.

Four years later in 1785, the value of the new currency had plummeted. Inflation was rampant. Prices had risen by 72%. So after a stiff battle, Congress killed this, the first privately owned central bank in America.

Two years later when it came time to write the Constitution in 1787, many of the delegates did not remember how well America’s government issued paper money had worked in Pennsylvania. They were still stung by the inflation of the Bank of North America and the hyper inflation during the revolution, primarily caused by British counterfeiting. Strangely the Constitution allows the Federal Government to borrow money, but is silent on the federal role on printing paper money, known in the language of the day as emitting Bills of Credit. This defect in the Constitution is at the root of all our economic problems today.

Two years after the Constitution was signed, debt free money was tried in Sweden in 1789, but with tragic results. To pursue a war with Russia, King Gustav III persuaded the Swedish Parliament to print debt free money called riksdalers. This was very costly to the bankers. Sweden had learned the secret to printing its own money without debt. In 1792, only three years into the experiment, King Gustav was assassinated by money lender Jacob Johan Anckarström. As is frequently the case in time of war, too many riksdalers were printed. The quantity was not controlled. A nation with sacrifice everything for survival during time of war. So inflation ruined the debt free money experiment in Sweden by 1834 just as it had a few years earlier during the American Revolution, again, because the quantity was not controlled.

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.