What we call our banking system is the root of all kinds of evil.There is no understanding without understanding this. There is no history, activity, or purpose that can be known without the knowledge of money power. This deception goes on this very day it is responsible for the blood of millions, it is man's deadliest foe.
Duet 26 [15] But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.
Our system of banking violates the standard of a just measure . But why? Fractional reserves is but one of the reasons why. It is not a true and just measure. It is in truth adulterous. It is having one thing and promising it to Ten. This is the source of every panic and every bank run.
How may we demonstate its unsoundness? We turn to the game of chess. I am a chess player and at my disposal are tactics that I may employ against an unsound position. Here is one anologeous to fractional reserves, like an over promised thing it leads to disaster.
F. Exploiting the OVERWORKED PIECE is one way to win close games. Look the board over to see if your opponent has a piece that is guarding two or more men or threats. If it is possible to make a move that forces your opponent to move the overworked piece, you can win material of gain a better position much of the time. This tactic is often not so clear and obvious as others, so you might surprise even strong opponents if you can catch them with pieces that have too many jobs to do. This tactic often happens as you seek to mate a King on his own back rank.
The Federal Reserve system, World Bank and IMF are likewise used for the desruction of mankind.It is not a sound measure of wealth.
How it works:
We have what is known as a debt based currency(this is also corrupting but we will ignore for now). This means all money is a debt instrument. Imagine an island with 10 people. we have fish, coconuts, and huts. We may barter or use sea shells for money. However what else? Debt. Assume the first person owes the second 5 coconuts. The second goes to the third to buy a grass hut and has 5 coconuts but the hut requires 10 . The second peson offers then offers as part of payment the debt of the first . The third person may offer this to the other 10 people for fish on the island and debt based currency is born. However once the debt is paid, the currency is destroyed. A US Federal Reserve currency is backed by a govenment promise to pay. When one gives another a $100 note it really means you have a promise to pay from the Federal Govenment. That is what creates all bank reserves. Do you now understand that national debts can never be paid in full? Without debt there is no US $1, no not one.
These debts become commerical bank reserves. These reserves may then create 9 dollars worth of debt to lend for every 1 in reserve and charge interest, out of nothing but fiat currency. New currency is created out of private debt(the only risk to the bank is default but even this has a way out and we shall see) . A $100 loan is really only $10 of reserve. A 5% interest loan to the borrower is a 50% return for the bank.
Private banks may lend money to foreign goverments with the right to print this money as they please based upon fractional reserves. These governments borrow easily from private banks because the banks will be rescued by the lender of last resort, The World Bank, and easy credit is a clear consequence.
Prov 28 [22] He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him. Prov 20 [21] An inheritance may be gotten hastily at the beginning; but the end thereof shall not be blessed.
This is the beginning of the destruction of an independent nation. The world lender of last resort, is the World Bank that has G8 hard currency to back it , mostly the dollar. Even foreign debt may be monitized and hard currency is printed for 3rd world debt. Such poorly spent funds end in perpetual debt, often used by dictators to oppress their own people. A government rarely creates income production and thus perpetual debt from the banks is nearly assured. Uganda gulags are a famous case where funds were provided by the World Bank. The World Bank has no political opinion of any kind.
The lender of last resort, the World Bank, then provides loans to bail out the bankrupt government. These are conditional upon Structural Adjustment policies. The govenment is required to cut government spending, devalue their currency, privatize national assets and allow foriegn investmnet. Typically the nation goes into a depression and assets are sold very cheaply to foreign interests. Oil fields, mineral rights, land etc is taken from the locals. The country is then urged to turn to export commodities to raise hard cash and service the debt . This leaves behind an impoverished nation that exports to service its perpetual debt. This is how international cartels are created, at the expense of the common man.
http://www.lewrockwell.com/rothbard/frb.html http://www.globalexchange.org/campaigns/wbimf/TopTenIMF.html
Duet 26 [15] But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.
Our system of banking violates the standard of a just measure . But why? Fractional reserves is but one of the reasons why. It is not a true and just measure. It is in truth adulterous. It is having one thing and promising it to Ten. This is the source of every panic and every bank run.
How may we demonstate its unsoundness? We turn to the game of chess. I am a chess player and at my disposal are tactics that I may employ against an unsound position. Here is one anologeous to fractional reserves, like an over promised thing it leads to disaster.
F. Exploiting the OVERWORKED PIECE is one way to win close games. Look the board over to see if your opponent has a piece that is guarding two or more men or threats. If it is possible to make a move that forces your opponent to move the overworked piece, you can win material of gain a better position much of the time. This tactic is often not so clear and obvious as others, so you might surprise even strong opponents if you can catch them with pieces that have too many jobs to do. This tactic often happens as you seek to mate a King on his own back rank.
The Federal Reserve system, World Bank and IMF are likewise used for the desruction of mankind.It is not a sound measure of wealth.
How it works:
We have what is known as a debt based currency(this is also corrupting but we will ignore for now). This means all money is a debt instrument. Imagine an island with 10 people. we have fish, coconuts, and huts. We may barter or use sea shells for money. However what else? Debt. Assume the first person owes the second 5 coconuts. The second goes to the third to buy a grass hut and has 5 coconuts but the hut requires 10 . The second peson offers then offers as part of payment the debt of the first . The third person may offer this to the other 10 people for fish on the island and debt based currency is born. However once the debt is paid, the currency is destroyed. A US Federal Reserve currency is backed by a govenment promise to pay. When one gives another a $100 note it really means you have a promise to pay from the Federal Govenment. That is what creates all bank reserves. Do you now understand that national debts can never be paid in full? Without debt there is no US $1, no not one.
These debts become commerical bank reserves. These reserves may then create 9 dollars worth of debt to lend for every 1 in reserve and charge interest, out of nothing but fiat currency. New currency is created out of private debt(the only risk to the bank is default but even this has a way out and we shall see) . A $100 loan is really only $10 of reserve. A 5% interest loan to the borrower is a 50% return for the bank.
Private banks may lend money to foreign goverments with the right to print this money as they please based upon fractional reserves. These governments borrow easily from private banks because the banks will be rescued by the lender of last resort, The World Bank, and easy credit is a clear consequence.
Prov 28 [22] He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him. Prov 20 [21] An inheritance may be gotten hastily at the beginning; but the end thereof shall not be blessed.
This is the beginning of the destruction of an independent nation. The world lender of last resort, is the World Bank that has G8 hard currency to back it , mostly the dollar. Even foreign debt may be monitized and hard currency is printed for 3rd world debt. Such poorly spent funds end in perpetual debt, often used by dictators to oppress their own people. A government rarely creates income production and thus perpetual debt from the banks is nearly assured. Uganda gulags are a famous case where funds were provided by the World Bank. The World Bank has no political opinion of any kind.
The lender of last resort, the World Bank, then provides loans to bail out the bankrupt government. These are conditional upon Structural Adjustment policies. The govenment is required to cut government spending, devalue their currency, privatize national assets and allow foriegn investmnet. Typically the nation goes into a depression and assets are sold very cheaply to foreign interests. Oil fields, mineral rights, land etc is taken from the locals. The country is then urged to turn to export commodities to raise hard cash and service the debt . This leaves behind an impoverished nation that exports to service its perpetual debt. This is how international cartels are created, at the expense of the common man.
- The recipe:
- Socialist movements are funded and supported for revolution to confiscate private wealth from locals and is then nationalized.
- Private banks make loans to these regimes with no questions asked. This makes possible the few to rule the many.
- The next step is to fund and bankrupt the inefficient socialist regime which is inevitable as all such funds are misappropriated into boondoggle projects, military, political prisons, slave camps, mansions and palaces. Vast amounts of waste can never be supported by the untrue measure of wealth.
- 4 Next comes the bail out from the World Bank. Funds are lent to pay off the private banks(financed by tax payers) and keep the money flowing. The bankers/capitalists do not go away after they were paid every penny plus interest they wait for what comes next.
- Lastly comes the structural adjustments which exposes the national assets to be confiscated at pennies on the dollar. Money flows from 1st world tax payers into the World Bank who then bail out private banks that made loans to the 3rd world. Worthless debt is used to create hard currency which then comes back to our shores to inflate our currecy. These funds are often used to fund despots or sloppy socialist regimes who then create the conditions for private captial to steal from the 3rd world.
http://www.lewrockwell.com/rothbard/frb.html http://www.globalexchange.org/campaigns/wbimf/TopTenIMF.html
