2. Monopoly Money

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Imagine sitting down to play monopoly and having a friend claim they’re gonna act as both the bank and a player. Then the game starts and your friend, using bank money, buys every single property and fills them with every hotel. You and the other players are quickly bankrupt because your friend has taken all your money and owns everything. Who would ever play the game that way? Unfortunately, we all do. About 100 years ago our financial system was hijacked just like that Monopoly game when private bankers bribed our politicians into granting them the legal right to create money. It’s illegal for you and I to print our own money, but our government lets the bankers create money out of thin air, and then unbelievably, borrows it back from them as interest bearing loans. Let’s take a quick look at how this scam works.

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I’ve generalized the process in these diagrams because the intricacies of the actual process were made really complicated on purpose. You are not supposed to understand, even though as you can see, it’s a pretty simple scam.

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. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent. -John Kenneth Galbraith, Professor of Economics at Harvard

It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning. -Henry Ford, founder of the Ford Motor Company.

The founding fathers knew this scam very well.

It is absurd to say that our country can issue $30,000,000 in bonds and not $30,000,000 in currency. Both are promises to pay; but one promise fattens the usurer, and the other helps the people. -Benjamin Franklin

I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs. -Thomas Jefferson

The Government should create, issue, and circulate all the currency 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. Money will cease to be master and become the servant of humanity. -Abraham Lincoln

Another key to this scam is that most people hear federal reserve and think that it’s a branch of government, but fact is, the Fed is a private bank, owned by private shareholders. It’s only called Federal to trick people.

Some people think the Federal Reserve Banks are the United States government’s institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers. -Congressman Louis T. McFadden Congressional Record 12595-12603 Mcfadden, Chairman of the Committee on Banking and Currency, was later poisoned to death at a banquet.

Faced with the uncomfortable fact that our economy is run by private bankers, many people will shift the debate to a question whether the private bankers are acting in our best interest. Except that’s not really debatable either, because the very structure of the system diverts money to the banks that’s supposed to be for everyone. That would be like asking whether the bully who took your lunch money is donating it to a good cause. Another common defense of the fed is that it’s a not-for-profit institution, but that’s just another swindle, because it’s the banks they enable that actually make all the money. Let me give a few examples of how this rigged game works. First, consider the rule that banks can loan out 90% of their reserves, with the catch that each loan then counts as a new reserve, letting them do it again and again until they have loaned out essentially 9 times as much as they actually have.

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This gives them an incredible engine for wealth, which would not be at all possible in an ordinary economy. Imagine if you loaned out 9 times as much money as you had- how long do you think you could pull that off? But in our system, it all works out because the “non-profit” Fed is there with plenty of money to keep the game going. In the book Web of Debt, Ellen Brown provides a nice example of just how profitable this is for the banks.

“You live in a small town with only one bank. You sell your house for $100,000 and deposit the money into your checking acount at the bank. The bank then advances 90 percent of this sum, or $90,000, to Miss White to buy a house from Mr. Black. The bank proceeds to collect from Miss White both the interest and the principal on this loan. Assume the prevailing interest is 6.25 percent. Interest at 6.25 percent on $90,000 over the life of a 30-year mortgage comes to $109,490. Miss White thus winds up owing $199,490 in principle and interest on the loan – not to you, whose money it allegedly was in the first place, but to the bank. Legally, Miss White has title to the house; but the bank becomes the effective owner until she pays off her mortgage.

Mr. Black now takes the $90,000 Miss White paid him for his house and deposits it into his checking account at the town bank. The bank adds the $90,000 to it’s reserve balance at its Federal Reserve bank and advances 90 percent of this sum, or $81,000 to Mrs. Green, who wants to buy a house from Mr. Gray. Over 30 years, Mrs Green owes the bank $81,000 in principle plus $98,541 in interest, or $179,541; and the bank has become the effective owner of another house until the loan is paid off.

Mr Grey then deposits Mrs. Green’s money into his checking account. The process continues until the bank has “lent” $900,000, on which it collects $900,000 in principal and $985,410 in interest, for a total of $1,885,410. The bank has thus created $900,000 out of thin air and has acquired effective ownership of a string of houses, at least temporarily, all from an initial $100,000 deposit; and it is owed $985,410 in interest on this loan. The $900,000 principle is extinguished by an entry on the credit side of the ledger when the loans are paid off; but the other half of this conjured $2 million – the interest – remains solidy in the coffers of the bank, and if any of the borrowers should default on their loans, the bank becomes the owner of the mortgaged property.

As we can see, the very rules of this game heavily slant the odds into the banks favor, and the engine driving it all is the Fed, which backs the risky loans with an endless supply of money. Mind you, issuing home loans and being leveraged 9 to 1 is just small ball. The better action takes place on Wall St. Take for example the recent crisis where massive losing bets on packages of home loan derivatives left the biggest banks completely underwater and threatened to take the entire global financial system down with them (because the whole system is equally fraudulent). But then the Fed stepped in to save the day with a MASSIVE influx of cash. Note that the public was told the Fed provided 700 Billion, only to have it discovered later via the freedom of information act that the actual number was over 9 Trillion dollars, a small adjustment which was largely ignored by the media (I’ll get into the role of our media and politicians in this scam later). As the economy lay in pieces, it was discovered that certain financial institutions like Fannie Mae and Freddie Mac were leveraged as much as 100:1. To make sure the absurdity of this is clear, let’s take a look at what it means to take a leveraged position of 100 to 1.

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As we can see, betting with 100 times the amount of money you actually have can turn an outrageous profit when you’re winning, but even the slightest downturn can destroy you, which is exactly what happened to the banks during the financial crisis. Of course this isn’t some kind of news flash- the biggest players know exactly how this game is played. In fact, the more volatile the market is, the more profit can be made.

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So while ordinary citizens are being ruined by “shocking” boom and bust cycles, the reality is that the markets are behaving exactly as they are intended, and money is constantly being syphoned by those privy to the scam.

The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class. –Rothschild Brothers of London, 1863

There are many other examples of rigging the system I could cover, such as the LIBOR scandal, or the more recent ISDAfix scandal, where banks were essentially caught colluding to manipulate global markets. But all that isn’t even the worst aspect of the scam. I don’t mind if a few greedy bastards sell their souls to get filthy rich. The worst and most pernicious aspect of the scam is inflation, because it attacks the wealth and health of every honest, hard working person. Consider this: if all money is created as debt, which is being loaned out at interest, how is there ever enough money in the system to cover the interest accruing? The answer is that there isn’t. By definition, there is always more money owed back than was created in the first place, and that ever escalating debt creates a mathematical inevitability where the harder we struggle to break even, the more indebted we become.

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Since the money required to pay back the interest doesn’t exist, more loans are required, and then more loans, and more loans, a process which ultimately inflates the value of currency, drives prices higher and higher, and cripples the nation with debt.

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“If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” -Thomas Jefferson

Sadly, the warning issued by Jefferson has come true before our eyes. Consider that back in the 70’s one could work a summer job lifeguarding at a pool and earn enough to pay for a semester of college plus expenses. With just an ordinary job you could afford to buy a house AND support a family. Nowadays despite working our asses off almost everyone is in debt, and particularly young people. You can even work two jobs and barely have enough to put food on the table. Shockingly, homelessness is on the rise. As of 2011, there were 46.2 million men, women, and children living below the U.S. poverty line. These trends run contrary to any reasonable standard of growth and progress to be expected from a society with a normal economy, especially considering our many technological advancements.

To understand how this colossal fuckup could have happened, we need to step back in history to 1744 and the birth of Mayer Amschel Rothschild in Frankfurt, Germany. The son of a wealthy banker, Amschel’s talent in finance was prodigious, and his financial house rose to great power. In a masterful strategic move, he sent each of his five sons to different European financial centers – London, Paris, Vienna, Berlin and Naples. Their goal was to establish a Rothschild controlled central bank in each country, and they succeeded. Operating in concert across Europe, their central banking scam forced each government to begin borrowing money in order to pay their debts and fund their operations, and established the Rothschild family as quiet conquerors of Europe.

But the Rothschilds did not yet control America, and with a healthy system in place, America was sure to prosper and gain sufficient power to threaten the dynasty. So back and forth they covertly battled America across the 19th century, using their tremendous wealth to lean on politicians and destabilize the financial system. Twice they succeeded in establishing privately controlled central banks, only to have the American people tear them both down. It’s riveting history that is not taught in school. Listen to Andrew Jackson.

Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out -Andrew Jackson as reported from the original minutes of the Philadelphia committee of citizens, February 1834

Or Lincoln.

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.” –Abraham Lincoln

The Rothschild’s emerged victorious in 1913 with the passage of the Federal Reserve Act, but not without a cost. Behind the scenes a deal was brokered with the strongest American industrial dynasty, the Rockefellers, forming what I will heretofore refer to as The Monopoly or the Cartel. It should also be noted that by this time the Rothschild name was so reviled in the U.S. that they were primarily operating through an American employee named J.P. Morgan. After Morgan’s death, people were surprised to see how little wealth he actually held personally, despite wielding vast influence on the market. 1913 was also the year of the first income taxes, which had previously been illegal per the Constitution. Reason being, after diverting the flow of interest into their own pockets, the bankers needed a new revenue stream to pay for running the country. I recommend this book and this book if you are interested to hear the entire history of the Federal Reserve in much more detail, along with many citations for primary sources.

Chapter 3. Globalization How the Cartel used their control over money to conquer the world.

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