Some of the biggest men in the United States,

in the field of commerce and manufacture

are afraid of something.

They know that there is a power somewhere

so organized, so subtle, so watchful

so interlocked, so complete, so pervasive

that they had better not speak above

their breath when they speak in condemnation of it."

Woodrow Wilson, former President of the United States.

"Each and every time a bank makes a loan

new bank credit is created - new deposits, brand new money."

Graham F. Towers - Governador, Banco do Canada, 1934-54

"The process by which banks create money is so simple that the mind is repelled"

- John Kenneth Galbraith - Economist

"Permit me to issue and control the money of a nation, and I care not who makes its laws."

- Mayer Anselm Rothschild - Banker

Money as Debt

Debt

Two great mysteries dominate our lives.

Love and Money

What is love? Is a question that has been endlessly explored in stories,

songs, books, movies and television.

But the same cannot be said about the question; What is Money?

It's not surprising that monetary theory hasn't inspired any blockbuster movies.

But it was not even mentioned at the schools most of us attended.

For most of us, the question: "Where does money come from?"

brings to the mind a picture of the mint printing bills and stamping coins.

Money, most of us believe is created by the government

It's true!

But only to a point

Those metal and paper symbols of value we usually think of as money

are indeed produced by an agency of the Federal Government called the "The Mint".

but the vast majority of money is not created by "The Mint"

It is created in huge amounts, every day, by private corporations known as BANKS.

Most of us believe that banks lend out money has been in trusted to them by depositors.

Easy picture, but not the truth

In fact banks create the money they loan, not from the banks own earnings

not from the money deposited,

but directly from the borrowers promise to repay.

The borrowers signature on the loan papers

is an obligation to pay the bank the amount of the loan plus interest.

or loose the house, the car, whatever asset is pledged as collateral

That's a big commitment from the borrower.

What does the same signature require of the bank?

The bank gets to conjure into existence the amount of the loan

and just write it into the borrower's account.

sound far fetched?

Surly that can't be true. But it is!

To demonstrate how this miracle of modern banking came about

consider this simple story:

"THE GOLDSMITH'S TALE"

Once upon various times pretty much anything was used as money.

It just had to be portable and enough people had to have faith

that it could later be exchanged for things of real value, like food, clothing and shelter.

shells, cocoa beans, pretty stones, even feathers have been used as money.

gold and silver were attractive, soft and easy to work with,

so some cultures became experts with these metals

Goldsmith made trade much easier by casting coins

standardized units of these metals whose weight and purity were certified.

To protect his gold the Goldsmith needed a vault

and soon his fellow townsmen were knocking on his door

wanting to rent space to safeguard their own coins and valuables.

Before long the Goldsmith was renting every shelf on the vault

and earning a small income from his vault rental business.

Years went by and the Goldsmith made an astute observation.

Depositors rarely came in to remove their actual physical gold;

and they never all came in at once.

That was because the claim checks

the Goldsmith had written as receipts for the gold

were being traded in the market place, as if they were the gold itself.

This paper money was far more convenient than heavy coins.

and amounts could simply be written

instead of laboriously counted one by one for each transaction.

Meanwhile the Goldsmith had another business.

He lent out his gold, charging interest.

Well, his convenient claim check money came into acceptance.

Borrowers began asking for their loans in the form of these claim checks;

instead of the actual metal.

As industry expanded, more and more people asked the Goldsmith for loans.

This gave the Goldsmith an even better idea.

He knew that very few of his depositors ever removed their actual gold.

So, the Goldsmith figured he could easily get away with lending out claim checks

against his depositors gold in addition to his own.

As long as the loans were re-paid, his depositors would be none the wiser

and no worse off;

and the Goldsmith, now more banker than artisan

would make a far greater profit than he could by lending only his own gold.

For years the Goldsmith secretly enjoyed a good income

from the interest earned on everybody else's deposits.

Now a prominent lender, he grew steadily richer than his fellow townsmen

and he flaunted it.

Suspicions grew that he was spending his depositor's money.

His depositors got together and threatened withdrawal of their gold

if the Goldsmith didn't come clean about his new found wealth.

Contrary to what one might expect

this did not turn out to be a disaster for the Goldsmith.

Despite the duplicity inherent in his scheme,

his idea did work. The depositors had not lost anything.

Their gold was all safe in the Goldsmith's vault.

Well, rather than taking back their gold, the depositors demanded that the Goldsmith,

now their banker, cut them in, by paying them a share of the interest.

That was the beginning of "Banking"

The banker paid a low interest rate on deposits of other people's money

that he then loaned out on a higher interest.

The difference covered the bank's cost of operation and its profit.

The logic of this system was simple.

And it seems like a reasonable way to satisfy the demand for credit.

However this is not the way banking works today.

Our Goldsmith banker was not content with the income remaining

after sharing the interest earnings with his depositors;

and the demands 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 the claim check holders didn't come to the vault at the same time

and demanded 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 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 banker's loans

and his ostentatious wealth did trigger suspicions, once again.

Some borrowers started to demand real gold,

instead of paper representations.

Rumors spread...

Suddenly several wealthy depositors showed up to remove their gold.

The game was up.

The 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 into their hands.

This is called, "a run on the bank", and it is what every banker dreads.

This phenomena, of "a run on the bank", ruined individual banks,

and not surprisingly damaged public confidence in all bankers.

It would have been straight forward to outlaw the practice of creating money from nothing.

But the large volume of credit the bankers were offering

had become essential to the success of European commercial expansion.

So instead, the practice was legalized and regulated.

Bankers agreed to abide by limits on the amount fictional loan money

that could be lent out.

The limit would still be a number much larger than the actual

value of gold and silver in the vault.

Quite often the ratio was 9 fictional dollars

to one actual dollar in gold.

These regulations were enforced by surprise inspections.

It was also arranged that in the event of a run,

Central Banks would support local banks with emergency infusions of gold.

Only if there were runs on a lot of banks simultaneously,

that the banker's credit bubble burst and the system come crashing down.

THE MONEY SYSTEM TODAY

Over the years...the fractional reserve system

and its integrated network of banks backed by a central bank

has become the dominant money system of the world.

At the same time the fraction of gold

backing the debt money has steadily shrunk to nothing.

The basic nature of money has changed.

In the past a paper dollar was a actually receipt that could be redeemed for a fixed weight of gold or silver.

In the present, a paper or digital dollar can only be redeemed for another paper or digital dollar.

In the past, privately created bank credit, existed only in the form of private bank notes

which people had the choice to refuse just as we have the choice to refuse someone's private check today.

In the present, privately created bank credit is legally convertible to government issued fiat currency.

The dollars, lunes, and pounds, we habitually think of as money.

Fiat currency, is money created by Government fiat or decree ...

and legal tender laws declare that citizens must accept this fiat money

as payment for debt or else the courts will not enforce the obligation.

So now the question is

if governments and banks can both just create money ....

then how much money exists?

In the past the total amount of money in existence

was limited to the actual physical quantities of whatever commodity was in use as money.

For example,

in order for new gold or silver money to be created,

more gold or silver had to be found and dug out of the ground.

In the present money is literally created as debt.

New money is created when ever anyone takes a loan from the bank.

As a result the total amount of money that can be created has only one real limit.

The total level of debt.

TOTAL AMERICAN DEBT

Government place an additional statutory limit on the creation of new money

by enforcing rules known as "Fractional Reserve Requirements"

Essencialy arbitrary, "Fractional Reserve Requirements"

vary from country to country and from time to time

In the past, it was coming to require

banks to have at least one dollar worth

of real dollar in the vault to back

10 dollars worth of that money created

Today, Reserve Requirement ratios

no long apply to the ratio of new money

to gold on deposit.

but nearly to the ratio of new

debt money to existing debt money

on deposit in a bank.

Today a bank reserves consist of two things:

The amount of Government issued cash or equivalent

that the bank has deposited with the Central Bank

plus, the amount of already existing debt money that bank has on deposit

To illustrate this in a simple way.

Lets imagine that a new bank has just started up and has no depositors yet.

however the banks investors have made a reserve deposit of U$ 1,111.12.

of existing cash money at the Central Bank

The required reserve ration is 9 to 1

Step 1

The doors open and the new bank welcome its first loan customer

He needs ten thousand dollars to buy a car

At the 9 to 1 reserve ratio the new bank reserved at the Central Bank

also known as "high powered money" allows it to legally conjure into existence

9 times that amount or ten thousand dollars.

on a basis of the borrower pledge of debt

his ten thousand dollars is not taken from anywhere.

It is a brand-new money simply typed into the borrower's account as bank credit.

the borrower then writes a check on that bank credit to buy the used car.

Step 2

The seller then deposit this newly created ten thousand dollars at her bank

unlike the high powered government money deposited at the central bank

this newly created credit money can not be multiplied by the reserve ratio

instead, it is divided by the reserve ratio

At a ratio of 9 to 1 a new loan of nine thousand dollars can be created

on a basis of the ten thousand dollar deposit

Step 3

If that nine thousand dollars is then deposited by a third Party

at the same bank that created it or at a different one

it becomes a legal basis for a third issue of bank credit.

this time for the amount of eight-one hundred dollars.

Like one of those Russian dolls

for each layer contains a slightly smaller doll inside,

each new deposit contains the potential for a slightly smaller loan

in an infinitely decreasing series.

Now... If the loan money created is not deposited at the bank, the process stops.

That's the unpredictable part of the money creation mechanism

But more likely at every step the new money will be deposited at a bank

and the reserve ration process can repeat itself over and over

until almost a hundred thousand dollars of brand-new money has been created

within the banking system.

All this new money has been created entirely from debt.

and the whole process has been legally authorized by the initial reserve deposit

of just one thousand one hundred and eleven dollars and twelve cents.

which is still seated untouched at the Central Bank.

What's more? Under this ingenious system. The books of each bank, in a chain,

most show that the bank has ten percent more on deposit that it has out on loan.

this gives banks a very real incentive to seek deposits in order to be able to make loans

supporting the general but misleading impression that loans come out of deposits.

Now... unless all the success of loans are deposited at the same bank.

It can not be said that anyone bank got to multiply its initial high powered money reserve

almost ninety times by issuing bank credit out of nothing.

However, the bank system is a close loop.

Bank credit created at one bank becomes a deposit in another and vice versa.

In a theoretical world of perfect equal exchanges

the ultimate would be exactly the same as if the whole process

took place within one bank. That is..

The bank's initial Central Bank Reserve of a little over of eleven hundred dollars

allows it to automatically collect interested up to a

hundred thousand the bank never had.

Banks loan money they DO NOT HAVE!

If that sounds ridiculous! Try this:

In recent decades as a result of steady lobbing by the banks

the requirements to make a reserve deposit at the nations central bank

have all but disappeared in some countries.

and actual reserve ratios can be much higher than 9 to 1

for some types of account 20 to 1 and 30 to 1 rations are common.

NO RESERVE AT ALL in some cases.

And even more recently, by using loan fees

to raise required reserves from the borrower, banks have now found

a way to circumvent reserved requirement limitations entirely

So, while the rules are complex, the common sense reality is actually quite simple.

Banks can create as much money as we can borrow.

"Everyone sub-consciously knows banks do not lend money when you draw

on your saving account, the bank doesn't tell you you can do this,

because it has lent the money to somebody else."

- Mark Mansfield, economist and author

Despite the endlessly presented mint footage; Government created money

typically accounts for less then 5% of the money in circulation.

More than 95% of the all money in existence today.

was created by someone signing a pledge of indebtedness to a bank.

What's more? This bank credit money is being created and destroyed

in huge amounts everyday

as new loans are made and old ones re-paid.

Principal payments "un-create" the loan, ceasing to exist as money.

PAID

I am afraid that the ordinary citizen will not

like to be told that banks can and do create money.

... and they who control the credit of the nation directl the policy of Governments

and hold in the hollow of their hands the destiny of the people. "

- Reginald MacKenna - Past Chairman of the Board Midiands Bank of England

DEBT

Banks can only practice this money system

with the active cooperation of the government

First, government passes legal tender laws to make us use the national fiat currency.

Secondly, governments allow private bank credit to be paid out.

in this government curreny.

Thirdly, government courts enforces debts

and lastly, Governments pass regulations to protect the money systems functionality

and credibility with the public

while doing nothing to inform the public about where money really comes from.

The SIMPLE TRUTH is that when we sign on the dotted line for a so called loan or mortgage

Our signed pledge of payment backed by the assets we pledge to forfeit should we fail to pay

is the only thing of real value involved in a transaction.

To anyone who believes we will honor our pledge.

That loan agreement or mortgage is now a portable, exchangeable and sellable

piece of paper. It is an IOU. It represents value and is therefore

a form of money.

This money the borrower exchanges for the banks so called: LOAN

Now a loan, in a real world means that a leander must have something to lend.

If you need a hammer, my loaning you a promise to provide you a hammer...

...I don't have... won't be of much help

But in the artificial world of money, a bank's promise to pay a money it doesn't have

is allowed to be passed off as money

and we accept it as such!

"Thus our national circulation medium is now at the mercy of

loan transactions of banks, wich lend, not money, but promises to supply money

they do not possess"

- Iriving Fisher, economist and author.

Once the borrower signs the pledge of debt

the bank then balances the transaction by creating,

with a few key-strokes on the computer

a matching debt of the bank to the borrower.

From the borrower's point of view this becomes loan money

in his or her account, because the government allows this debt

of the bank to the borrower to be converted to governement FIAT currency

everyone has to accept it as money.

Again the basic truth is very simple

Without the document the borrower signed, the bank would have nothing to lend.

Have you ever wonder how everyone, governements, corporations

small businesses, families, can all be in debt at the same time

and for such astronomical amounts.

Have you ever questioned how there can be that much money out there to lend?

Now you know! There isn't.

Banks do not lend money. They simply create it from debt.

And as debt is potentially unlimited, so is the supply of money.

And as it turns out, the opposite situation is also true.

Isn't it astounding that despite the incredible wealth of resources, innovation and productivity

that surround us, almost all of us, from government, to companies to individuals

are heavily in debt to bankers

If only people would stop and think: "How can that be?"

How can it be that people who actually produce all the real health in the world

are in debt to those who merely lend out the money

that represents the wealth.

Even more amazing is once we realize that money really is debt

we realize that if there was no debt there'd be no money.

"That is what our money system is. If there were no debts in our money system,

there wouldn't be any money."

- Marriner S. Eccles, Chairman and Governor of the Federal Reserve Board

If this is news to you... you are not alone!

Most people imagine that if all debts were paid off

the state of the economy would improve.

It is certainly true on an individual level

just as we have more money to spend when our loan payments are finished

we think that if everyone were out of debt

there would be more money to spend in general

But the truth is exactly the opposite.

There would be no money at all.

ALL DEBTS PAID OFF LEAVES SOCIETY WITH NO MONEY

There it is. We are totally dependent on continually renewed bank credit

for there to be any money in existence.

No loans...No money

Which is what happened during the great depression

the money supply shrank drastically

as the supplies of loans dried up

This is a staggering thought.

We are completely dependent on the Commercial Banks.

Some 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, absolutetly, without a permanente money system

When one gets a complete grasp of the picture, the tragic absurdity

of our hopeless position is almost incredible, but there it is."

- Robert H. Hemphill, Credit Manager Feral Reserve Bank, Atlanta, Georgia

PERPETUAL DEBT

That is not at all.

Banks create only the amount of the principle

They don't create the money to pay the interest.

Where is that suppose to come from?

The only place borrowers can go to obtain the money to pay the interest

is the general economy's over all money supply.

But almost of all that over all money supply

has been created exactly the same way

As bank credit that has to be paid back with more than was created.

So, everwhere, there are other borrowers in the same situation

frantically trying to obtain the money they need to pay back both principle and interest

from a total money pool which contain only principal

this is clearly impossible for everyone to pay back the principal plus interest

because the interest money doesn't exist.

This can even be expressed by a simple mathematical formula

WILL FULFILL THEIR LOAN CONTRACT

WILL BE FORECLOSED

The big problem here is that for long term loans such as:

mortgages and government debt. The total interest far exceeds the principle

So, unless a lot of extra money is created to pay the interest

that means a very high proportion of foreclosures in a non-functioning economy

To maintain a functional society the rate of foreclosure needs to below

And so, to accomplish this, more and more new debt money has to be created

to satisfy todays demands for money to service the previous debt.

But of course this just make the total debt bigger

And that means more interest must automatically be paid

resulting in a ever escalating and inescapable spiral

of mounting indebtedness

It is only the time lag between money's creation as new loans and its repayment

that keeps the over all shortage of money

from catching up and bankrupting the entire system.

However as the bank's sensational credit monster gets bigger and bigger

the need to create more and more debt money to feed it

becomes increasingly urgent

Why are interest rates so low?

Why do we get unsolicited Credit Cards in the mail?

Why is the US Government spending faster than ever?

Could it be to stave off collapse of the entire monetary system?

A rational person has to ask: Can this really go on forever?

Isn't a collapse inevitable?

"One thing to realize about our fractional reserve banking system is that,

like a child's game of musical chairs,

as long as the music is playing, there are no losers."

- Andrew Gause, Monetary Historian

Money facilitates production and trade as the money supply increases

money just becomes increasily worthless

unless the volume of production and trade in a 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 is not!

This year 3% represents more real good and services than last year 3%

Because it is 3% of the new total.

Instead of the straight line as a natural visualized from the words.

It is an exponential curve getting steeper and steeper.

The problem of course is that perpetual growth of the real economy

require perpetual escalating news of real world resources and energy

more and more stuff has to go for natural resources to garbage, every year

forever !

just to keep the the system from collapsing

"Anyone who believes exponential growth can go on forever in a finite world

is either a madman or an economist."

What can we do about this down right scary situation?

For one thing, we need a very different concept of money

It is time more people ask themselves and their government 4 simple questions:

Around the world governments borrow money

and interest from private banks.

Government debt is a major component of total debt

and servicing that debt takes a big chunk of our taxes

Now we know that banks simply create the money they lend.

and that Governments have given them permission to do this.

So, the first question is: Why do governments CHOOSE

to borrow money from private banks at interest when government

could create all the interest-free money it needs itself?

And the second big question is: Why create money as DEBT at all?

Why not create money that circulates permanently

and does have to be perpetually re-borrowed and interested in order to exist?

The third question: How can a money system

that can only function with perpetually accelerating growth

be used to build a sustainable economy?

Isn't it logical that

Perpetually accelerating growth and sustainability are incompatible?

And finally: What is it about our current system

that makes it totally dependent on perpetual growth?

What needs to be changed to allow the creation of a sustainable economy?

USURY

One time, charging any interest on a loan was called: USURY.

and at one time several 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 regarding as the act of a parasite

or of a thief.

However as the credit needs in commerce increased

the moral argument 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 the idea of making money from money

is held as an ideal to strive for.

Why work when you can get your money to work for you?

However in trying to envision a sustainable future

it is very clear that the charging of interest is both a moral and a practical problem.

Imagine a society and an economy that can endure for centuries, because

instead of plundering its capital stores of energy

it restricts itself to present day income

No more wood is harvested than grows in the same period.

All energy is renewable:

solar, gravitational, geothermal,

magnetic or whatever else we discover.

This society lives within the limits of its non-renewable resources

by reusing and recycling everything.

And the population just replaces itself.

Such a society can never function using a money system utterly dependent

on perpetually accelerating growth.

A stable economy would need a money supply at least capable of

remaining stable without collapsing.

Let's say that the total volume of this stable money supply

is represented by this big circle.

Let's also imagine that money lenders must actually having existing money to lend

if some people, within this money supply

begin systematically lending money at interest

their share of the money supply will grow.

If they continually re-loan at interest all the money that gets paid back

what's the inevitable result?

whether its gold, fiat or debt money, it doesn't matter.

The money lenders will end up with all the money.

and after the foreclosures and bankruptcy's are all filed

They'll get all the real property too.

Only if the proceeds of lending and interest were evenly distributed among the population

would this central problem be solved.

Heavy taxation of the bank profits might accomplish this goal.

But then why would bank want to be in business?

If we were ever able to free ourselves from the current situation

We could imagine banking run as a non profit service to society

Dispersing its interest earnings as a universal citizen dividend

or lending without charging interest at all

"I have never yet had anyone who could, thorough the use of logic and reason,

justify the Federal Government borrowing the use of its own money...

I believe the time will come, when people will demand that this be changed.

I believe the time will come in this country when they will actually blame you and me

and everyone else connected with the Congress for sitting idly by and

permitting such an idiotic system to continue."

- Wright Patman - Democratic Congressman 1928-1976, Charmain Comitee on Banking & Currency - 1963 - 1975

CHANGING THE SYSTEM

If it is the fundamental nature of the system that causes the problems

tinkering with the system can not ever solve those problems.

The system itself must be replaced

Many monetary critics call for a return to gold based money

claiming that gold has a long history of reliability

They ignore the many scams that can be played with gold.

shaving coins to basing the metal, cornering the market.

All which were abundantly practiced in ancient Rome.

And contributed to its fall.

Some advocate silver at being more abundant than gold

and therefore more difficult to corner

Many question then need to bring back precious metals at all.

No one want to go back to carrying heavy sacs of coins to go shopping.

Its a certainty that paper, digital, plastic

or more likely biometric ID money, would be the real medium of trade.

with the same potential for creating unlimited debit money we have now.

beyond that if gold again became the sole legal basis of money

those who have no gold, would suddenly have no money.

Other monetary reform advocates have concluded that greed and dishonesty

are the main problems.

And there are maybe better ways to create an honest and equitable money system.

than returning to silver or gold.

Inventive minds have proposed a variety of alternate ways to create money.

Many private barter system create money as debt as much as bank do

but it is done openly and without charging interest

An example as a barter system

in which debt is expressed as pledges of hours of work

all work being valued equally at the dollar figure

that then allows hours to be equated with the dollar price of goods.

This kind of money system can be set up by anyone

who can devise a way to do the accounting

and finding willing and trustworthy participants.

Setting up a local barter money system, even if it were little used now

would be a prudent emergency planning for any community.

Monetary reform, like Electoral Reform is a big topic.

And one that requires a willingness to change and to think outside the box

Monetary reform again like electoral Reform

will not come easily,

because the enormously powerful

interests that benefit from the existing system

will do their utmost to maintain their advantage

Now that we've seen that money is just an idea.

And that in reality money can be whatever we make it

Here is a one very simple alternative monetary concept to consider

This model is based on systems that have worked in the past

In England and in America.

Systems that were undermined and destroyed by the Goldsmith bankers

and their fractional reserve system.

To create an economy based on permanent interest free money

money could simply be created and spent into the economy

by the government

preferably on long lasting infrastructures that facilitates the economy

such as roads, railroads, bridges, harbors and public markets.

This money would not be created as debt

It would be created as value.

That value being in the form of whatever it was spent on.

If this new money facilitated a proportional increase in trade

requiring its use. It would cause no inflation whatsoever.

If Government spending did cause inflation

there would be two courses of action available:

Inflation as equivalent in a fact to a flat tax on money

wether the money goes down and value 20%,

or the government takes 20% of our money away from us

the effect on our buying power is the same.

Viewed this way. Inflation in place of taxation,

might be politically acceptable.

if well spent and kept within limits.

Or government could choose to counter inflation

by collecting tax monies that it then takes out of use.

thus reducing the money supply and restoring its value.

To control deflation,

which is the phenomena of falling wages and prices

the government would simply spend more money into existence.

With no competing private debt money creation

governments would have more effective control

of their nation's money supply.

The public would know whom to blame if things went wrong.

Governments would rise and fall

on their ability to preserve the value of money.

Government would operate primarily on taxes as it does now.

But taxes money would go much much further

as none of it would be required to pay interest to private bankers.

There could be no national debt

if the federal government simply created the money it needed.

Our perpetual collective servitude to the banks

through interest payments on government debt, would be impossible.

"Money is a new form of slavery,

and distiguishable from the old simply by the fact that

it is impersonal there is no human relation

between master and slave."

- Leo Tolstoy

THE INVISIBLE POWER

"None are more enslaved than

those who falsely believe they are free."

- Goethe

What we have been taught to believe as democracy and freedom

has become in reality an ingenious and visible form

of economic dictatorship

As long as our entire society remains utterly dependent on bank credit

for supplying of money.

Bankers will be in a position to make the decision on

who gets the money they need and who doesn't.

The modern 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 the great power away from them and all great fortunes, like mine,

will disappear, and they ought to disappear,

for them 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 (reputed to be the 2nd richest man in England at the time)

"The inability of the Colonists to get power to issue their own money

permanently out of the hands of George III and the international bankers

was the PRIME reason for the revolutionary war."

- Benjamin Franklin

Few people are aware today the history of the United States

since the revolution in 1776 has been in large part

the story of an epic struggle to get free and stay free.

of control by the European international banks

This struggle was finally lost in 1913

When president Woodrow Wilson signed into effect

The Federal Reserve Act

putting the international banking cartel

in charge of creating America's money.

"I am a most unhappy man.

I have unwittingly ruined my country.

A great industrial nation is controlled by its system of credit

Our system of credit is concentrated. The growth of the nation, therefore,

and all our activities are in the hands of a few men.

We have come to be one of the worst ruled,

one of the most completely controlled and dominated Governments

in the civilized world, no longer a Government by free opinion,

no longer a Government by conviction and the vote of the majority,

but a Government by the opinion and duress of a small group of dominant men.

- Woodrow Wilson President of the United States 1913 - 1921

The power of this system is deeply engrained

so is the educational and media silence on this subject

Year ago, a Canadian deputy and prime minister

surveyed scores of non-economists

both highly educated professionals

and common's sense people on the street

and found that not one of them had an accurate understanding

of how money is created.

In fact. It is probably safe to say that most people

including the front line employees of banks

have never given the matter a moment thought.

Have you?

"All of the perplexities, confusion, and distress in America arises,

not from the defects of the Constitution or Confederation,

not from want of honor or virtue,

so much as from downright ignorance of the nature of coin, credit and circulation.

- John Adams, Founding Father of the American Constitution.

The modern money as debt system was born a little over 300 years ago.

When the first bank of England was set up with a Royal Charter

for fractional lending of gold receipts had a modest ratio of 2 to 1

That modest ratio was just the proverbial foot in the door

The system is now worldwide

creates virtually unlimited amounts of money out of thin air

and has almost everyone on the planet

chained to a perpetual growing debt that can never be paid off.

Could it have all happen by accident?

or is it a conspiracy.

Obviously ! Something very big is at stake here.

"Whoever controls the volume of money in our 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 originates."

- James A. Garfield, assassinated President of the United States.

"The Government should create, issue, and circulate all the currence

and credits needed to satisfy the spending power of the Government

and the buying power of consumers.

By the adoption of these principles, the taxpayers will be saved

immense sums of interest.

The privilege of creating and issuing money

is not only the supreme prerogative of government,

but it is the government's greatest creative opportunity."

- Abraham Lincoln, assassinated President of the United States

"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 democracy is idlle 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 former Prime Minister of Canada

(who nationalized the Bank of Canada)

"We are grateful to the Washington Post, the New York Times, Time magazine

and other great publications whose directors have attended our meetings

and respected the promises of discretion for almost forty years.

It would have been impossible for us to develop our plan for the world

if we had been subject to the bright lights of publicity during those years.

But the world is now more sophisticated

and prepared to march towards a world-government.

The supranational sovereignty of an intellectual elite and world bankers

is surely preferable to the National auto–determination

practiced in past centuries."

- David Rockefeller in an address to Trilateral Commission meeting, 1991

"Only the small secrets need to be protected.

The big ones are kept secret by public incredulity."

- Marshall McLuhan, media "guru"

MONEY AS DEBT

"Money as Debit" was created & produced by Paul Grignon

Voice Over: Bob Bossin

Editing Assistance: Tsiporah Grignon

Music Compositions: Vivaldi and Paul Grignon

Digital Music Production & 3D modelling: Paul Grignon

Additional 3-D Models: Courtesy of "free stuff" at 3dcafe.com

and help3d.com

"Money as Debt" owes its origin to the work of many dedicated educators

and advocates of monetary reform

It is intended as general introduction to the conceptual basis of money

To learn more visit: http://moneyasdebt.net

A production of: Moofire Studio / Lifeboat News

© 2006 - Paul Grignon all rights reserved