posted on Mar, 27 2008 @ 10:01 PM
This is an attempt to state it simply, because if you to understand the problem, then you're going to be able to see the solution clearly too. If
it doesn't make sense the first time you read it, try reading it again. Eventually, the whole picture will sink in...
A quick history of money
1) Once, gold and silver were considered the only “real” money, but it was heavy and risky to carry around...
2) So people paid goldsmiths to store the money, and got paper receipts for it...
3) After a while, people used the receipts like money, and left the gold in the bank most of the time. So the bankers got clever and came up with a
4) The banks printed off receipts for more gold than they actually had, and “loaned” those receipts out to charge interest on it. They kept
their fingers crossed hoping that not too many people would come in trying to redeem their receipts for real gold all at the same time. This let them
make a lot of money charging interest, because they could charge interest on MONEY THEY DIDN'T HAVE.
An analogy can be made using property and titles. Here's the scam in another way:
Step 1: Acquire a vacation home.
Step 2: Sell the title to the home to one person.
Step 3: Sell the title to the home to ANOTHER person.
Step 4: Hope they both don't show up on the same weekend!
Fractional reserve banking lets a bank say to a depositor that all his money is safe and sound at the bank while at the same time they get to loan
most of it out to someone else and charge interest on it. So there are two people with a legitimate claim to the same pile of money. (So whose is
it, really?) After the loan is made, the depositor and borrower together have more money than existed before the loan. So where did the extra money
come from? The answer: the banks CREATED it so they could loan it. Otherwise, the depositor's money would vanish.
It is important to remember that since money is no longer tangible stuff (like gold) but is instead represented by quantities written down as numbers
(which could be written “one million” or “one billion” just as easily) accountability becomes vague, deceptive, and easily manipulated. It
can be created and destroyed just by writing down different numbers, or modifying information stored in a computer.
(One wonders why the banks don't just create for themselves the money outright, and spend it as they please. The reason is that such a simple
counterfeiting scheme would be detected by the public and immediately put to a stop. The illusion that banks are accountable and trustworthy with the
public's money must be maintained for them to continue stealing.)
Considering all the interest being made on all these loans you see it is a very profitable scam. The interest charges allowed banks to gather up
enormous amounts of gold which they bought with their paper money, and once most of the gold was siphoned from the public, they rewrote the laws so
that the banks no longer had to carry any gold reserves at all! Since then the public has been using paper to back paper, trading nothing but titles
to nonexistent property!
What's the result?
1) Almost every dollar that exists is owed to a bank somewhere, because at some time in history, it was created when it was loaned out.
2) Far more dollars are owed to banks (because of compound interest) than even exists! So as a country, we cannot possibly get out of debt under
this system. It is important to recognize, however, that the bulk of our debt is in the form interest, which is an arbitrary amount of money banks
demand in return, but never gave you. This raises questions of its legitimacy.
3) There is no money, in the real sense. Just checks, data stored on computers, and promises. It is all created by typing on a keyboard, and
signing signatures. The only tangible assets in regard to money is the collateral we pledge when we ask for a loan. The money they loan you comes
from nowhere, but the assets you lose in foreclosure are real!
4) Because the US government borrows from the Federal Reserve, bankers have the power to influence our society and government by controlling finance.
They decide to create (or not create) money depending on who's asking, and for what. They choose what projects get funded, and let other needs
wither on the vine by starving them of working capital. This subtle yet immense power is more than enough to undermine democracy, and guide the
course of a nation's history.
What is the solution?
Simple. Money must not be created by loaning it into existence. It must be something that serves the public as a store of value, circulating
permanently without being easily created from thin air or vanishing back into it. Otherwise many forms of abuse and deceit can work their way into
the system, and a class of parasites will rise to power in society by cleverly disguising the fact that they create money from thin air.