Understanding Money & Bankers Scam

One of the last things John F. Kennedy did before he was assassinated was declare his intention to reform the central banking system of the United States. No connection between these two events?

United States Congressman Louis McFadden, Chairman of the House Banking and Currency Committee from 1927-33, opposed the Federal Reserve System. There were three reported attempts on his life before he finally died of "heart failure." Here's what he said about the Federal Reserve from the floor of Congress:

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the mal-administration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it."

And here is another good one:

"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 direct the policy of Governments and hold in the hollow of their hands the destiny of the people." - Reginald McKenna, past Chairman of the Board, Midlands Bank of England.


The Banks Lend 70 Times Their Capitals. The banks do not lend the money of their depositors - they create the money that they lend

This 'licik' way for the private banks of creating new money goes back to the Middle Ages, when gold was the only form of money. Those who owned gold, for fear of being robbed, deposited this gold in the strong-rooms of the goldsmiths, who gave gold owners receipts for the gold they kept for them in their vaults. So, instead of paying in gold when they purchased goods, these individuals paid with the receipts they had received from the goldsmiths, which proved that they had gold in the goldsmiths' vaults. The one who was paid with these receipts was thus becoming the new owner of the gold kept in the goldsmith's vault, and was free to go and withdraw this gold any time from the goldsmith.The goldsmith noticed that most of the people preferred to exchange receipts instead of going to the goldsmith and withdraw their gold. For example, for one person who actually came to the goldsmith and ask for his gold, ten people did not come, preferring to exchange the receipts issued by the goldsmith. The goldsmith soon realized that he could thus issue, without risk, ten times more receipts than he had actual gold in his vault. As long as the same ratio of people did not show up at his place and ask for their gold, the goldsmith could go on with his confidence trick, but if all of his customers show up and want their gold back, the whole system collapses, and the fraud is unveiled: the goldsmith cannot repay them all, since there is ten times less gold than he pretended to have in his vault! Today's private banks operate exactly the same way. They noticed that for one person who came to the bank and wanted to be paid in cash (paper money), about ten people only transfer figures from one account to another one, without using any cash. (Today, over 95% of our nation's monetary transactions are done by cheque, and less than 5% by cash.) This is what allows the banks to lend more money than they actually have. For example, with RM1 million in cash reserve, a chartered bank can lend RM10 million in credit, or bookkeeping money (not paper money, but figures written in bank accounts). The only restraint to this creation of credit is the fear that too many people show up to the bank and ask to be paid in cash, since the bank could only repay in cash about one consumer in ten. One of the ways for the banks to protect themselves against such a possibility is to encourage depositors to leave their money at the bank as long as possible, by paying higher interest in fixed deposits, which are tied up with a bank for one, two or three years.

Seventy Times
Over the recent years, the use of cheques or bookkeeping money has increased significantly, and the bankers can thus create a larger percentage of bookkeeping money. For instance, for the third quarter of 1995, the Canadian chartered banks held $3.1 billion in cash, and lent, for the same period, $216 billion (non-mortgage loans) - seventy times the amount of cash they actually held! Until a few years ago, according to the Canadian Bank Act, the minimum reserve required in cash was 4%, but in December, 1991, the Federal Government enacted a new version of the Bank Act, which stated that as of January, 1994, the primary reserve in the form of cash that a chartered bank has to maintain is nil, zero!In other words, chartered banks are no longer limited by law in creating credit. The only limit is the fact that some bank customers still want to be paid in cash. So, one can easily understand why banks do everything they can to eliminate the use of cash, by encouraging the use of debit cards, direct payment, to eventually eliminate all cash in circulation. They promote the existence of only one kind of money - electronic money. The citizens of our country must do their utmost to prevent the elimination of cash, for it the bankers' wish comes true and there is no more cash, it would be the greatest swindle in the history of our nation, and it would give the banks absolute control over the economy and every individual. Get it?..