The Situation


Banking & Money

NEWSFLASH: A lot of this banking article has now been re used in Money & Value 1 & 2. As I felt the need to really explain why VALUE is so important. If u have just read money & value 1 & 2. Then you may skip a lot of what is said below. Failing that it is always good to re-read certain things. have a nice day :o) Date: 29th June 2011

How the banking system really works!


If you can comprehend the banking system you can really start to see the problems the world faces!. First you have to COMPREHEND something very important about our banking system that is NEVER discussed in public and that is that ALL the money in existence is infact DEBT, and has no VALUE whatsoever. It is created as debt at its source (at the banks), it circulates as debt when we spend it (in shops, the economy), and it hangs like a dead weight around everyones neck as a debt until we die - usually from the stress of the fact that we are in too much debt.

It is a sad fact of reality that every penny you ever earnt, or have saved up in a bank or have stashed away at home is WORTHLESS. How can this be so ? - Because it is created out of fresh air by the banks. Allow me to explain:

What is Money ?

First you need to understand what money actually is!.

Hundreds of years ago "we the people" used to use a barter system. We would labour to create something of value (say a bow & arrow, a weaved basket, a tool of some sort etc) and exchange it with another tribe with something we thought had equal value (say, sugar cane, cotton, exotic fruits, spices etc). Those items had value because the people had to labour to create those products that were to be exchanged. This is what is known as a barter economy. Where we exchange items of value for other items of equal value.

From this we can see that modern money (bank notes, coins and bank accounts) are a store of "value". This "value" in the form of money is nothing more than a medium of exchange. Rather than bartering like our forefathers used to do, we now labour everyday 9am-5pm in a job transferring our labour (sweat equity) into a monetary vehicle called "money" so that we can exchange it for things we need or want when it is convenient for us. Money is the store of our time/labour exerted in order for us to purchase goods and services in the future.

Now this in essence is not a bad thing. Because money is a great evolution of the barter and trading system of exchanging goods for other goods without the hassle of finding someone who has the exact specific item you wish to aquire, and for you to have the exact specific item they wish to aquire in order to do an "equal value exchange".

There are many problems with a barter exchange including storage, deterioration of products (such as fish, meat, vegetables etc) and finding someone to exchange with. Money in itself used as a store of wealth in order to facilitate exchange is not a bad thing!.

However ...

There is a major flaw in the "money exchange system" that we currently have. The problem occurs when "banks" are legally allowed to create money out of fresh air with no value (labour) attatched. Meaning they do not have to work to generate money. Sad but true!

Gold v's Paper Money

Well back in 1931 just before the second world war. Our money was backed by gold. Although we had a paper currency, the bankers could not print more money into the system than the equivalent amount of gold held in the treasury. This acted as a counter weight preventing the bankers from creating money for nothing. Because in order to create more money, they had to source and find more gold to back it up.

Because gold is a commodity, it has intrinsic value (meaning it took, time, energy and labour to dig it out of the ground) it was a fairly good monetary system and helped prevent the bankers from creating endless wealth for themselves out of fresh air. However in 1931, the "gold standard act 1931" (which was written, funded & lobbied by bankers) destroyed paper money's relationship to gold. And thus allowed the bankers to print more paper money than the amount of gold "value" we actually held in the treasury. And there in lies THE BIGGEST CON the world has ever seen!

This along with other legislation (acts of parliament) was an act of aggression and treason of the highest order against every man, woman & child in this country & here's why.

The Great Big Banking Scam

After 1931 our money, which is a representation of our hard work (labour) as a storage of wealth in the "medium of exchange" was DESTROYED at the stroke of a single pen.

You see, before 1931 a banknote used to be redeemable for gold. After 1931 paper currency that was previously redeemable for gold was now only redeemable for other pieces of paper.

The only true value paper money has is the "blind faith" that "we the people" believe it to have and that which is printed on it, i.e 10 note, 20 note or 50 note. When in fact it has no value at all, it is just paper!. Are the alarm bells going of yet ?.

In essence paper money only has "value" because "we the people" have faith that it is redeemable at a later time for something of equal value, to the value we ascribed to it when we exchanged our labour to get it. Meaning if you worked for a day and received 10 for your labour and you could purchase 10 worth of goods, then there is no problem. But lets say 6 months later you labour for a day and earn a similair looking 10 note but it will only buy you 5 worth of goods. Then you may well have a problem, because your money has been devalued and thus so has the value of your hard work and labour.

If you can't see the fundamanetal problem yet, dont worry you are not alone. There is still more to comprehend.

Allow me to elaborate...

The Abuse Of Our Faith - Inflation

As we have seen above, money is a storage of "value" of our labour and the modern monetary system relies on our "faith" that the money will retain that value when we come to spend it. The trouble here is there is a hidden tax on our "value" that just about makes me sick. It is called INFLATION.

Most people think of inflation as prices rising. And although this is true in one aspect it is not the whole truth. What is really happening is the "value" of our money that we worked dam hard to get is being DEVALUED. Look at it like this. If you wanted to buy a new TV and it cost 500 in January. But you didnt quite have enough money. So you decided to wait 6 months and save the money to buy the TV.

6 Months later in July you go back to the shop with your 500, but the TV is now for sale for 550. Puzzled you wonder why. The TV has not changed, nothing new has been added to the TV and you do not get anything free with it. So why has the price of the TV gone up 50 ?. It is because of inflation. And it means your money has been devalued. Because it would take 10% more money to buy the same TV, meaning the purchasing power of your money has been devauled 10%. It is a disgusting hidden tax used to steal the wealth of entire nations without anyone batting an eyelid.

What Is Inflation ?

Inflation in its simplest form is when there is more money in the economy than there are goods to be purchased. This causes the cost of goods to increase to capitalise on the increase in the money supply. Likewise Deflation is the opposite. Deflation occurs when there are too many goods in the economy and not enough money to purchase the goods. This means the price of goods goes down, because there is less money in the economy and everyone still wants to sell their goods, so they lower the price to sell them. This is the basics of Inflation & Deflation & supply & demand.

With more money in the economy. The price of goods in the economy increases to reflect the increase in money. It basically means the more money available in the ecoonmy, retailers raise prices to make more profit due to the increase in available funds. The trouble with this is manufacturers see the prices rising and believe there is more demand for a product. And then invest in more machinery etc to increase the capcity of manufacturing in an attempt to earn more money from the higher prices. This is what is known as the BOOM of the business cycle.

Deflation is the opposite of Inflation. Instead of too much money. There is too little money to reflect the amount of goods in the economy. Because there is a lack of money. Retailers drop their prices (and there profit margins) in order to sell goods and keep making money. However when deflation sets in, manufacturers stop investing in increased capacity and tighten their belts as they are making less money. This can quickly spiral into a full blown depression where noone invests in capcity, people lose their jobs because profit margins are down & prices keep falling to meet the ever fewer dollars in the economy. This is what is known as the BUST in the business cycle.

The problem is the fact that we have "Booms & Busts" at all. As they are 100% MANUFACTURED by the amount of money in the economy. Which is directly controlled by our government who work for INTERNATIONAL BANKERS. The whole system is rotten to the core, because we are all working to the tune of the pied piper who sets the value of money, the inflation rate of money and controls the amount of money in the economy. Everyone has been led to believe that when house prices rise by 50% everyone is rich!. What is really happening is that the value of their money that they worked so hard to get has DEVALUED by 50%. And that is the sad but all to real truth!.

"Give me control of a nations money and I care not who makes it's laws" - Mayer Amschel Bauer Rothschild

Why Do We Have Inflation ?

It is a good question as to why we have inflation. The answer is 2 fold. The first being that the banking system is set up to extract as much "wealth, labour & value" from the human workforce as humanly possible. And 2nd it is to tranfer all that "wealth & value" to the people who operate & control the banking system. The banking system is 100% designed to enslave the population under a constant expansion of never ending debt. We are in effect "economic debt slaves".

Now the government sets inflation targets somewhere around 2%. But why does it set targets of inflation, when inflation steals the "value" of the peoples wealth ?. A dam good question!.

The reason being is because "The Bank Of England" is not the bank of England at all. It is a play on words, a trick of the mind. It is not a bank for England, by England for the good of the people of England. It is just like the Federal reserve in America and every other Central bank the world over. They are in fact owned & controlled by PRIVATE BANKING FAMILIES. These private banking families are the "hidden hand" behind every economic travesty in the world. Every banking crisis, every world war and every starving child in africa and the rest of the world. Because they control all the money in the world through the issuance of credit, loans & securities etc.

Don't believe me ? Heres a few quotes from history to get you thinking:

"I believe banking institutions are more dangerous to liberty than standing armies." "If Americans (English, European or other) ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless" - Thomas Jefferson
"Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal - that there is no human relation between master and slave." - Leo Tolstoy, Famous Russian writer.
"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 modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency." - Major L L B Angus.
"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." - John Kenneth Galbraith, former professor of economics at Harvard University (1975)

There are many more quotes of people in history who understood what was going on. The scam has been running since time began. It is only now in the modern age of electronic money that the people who control the money are trying to use their control to take over the world. Aka - The NEW WORLD ORDER - they are building a new world & you are not even aware it is going on!.

"The issue which has swept down the centuries and which will have to be fought sooner or later, is the people versus the banks." - Lord Acton (1834-1902) English Historian

Understand this quote by Lord Acton!. Because this is exactly what is going on today in the 21st Century. The bankers are using economic terrorism against the people of the world. By financial collapses, inflation, deflation and cutting of credit whenever it suits them. We are all in debt to bankers through mortgages, loans, credit cards and via our own government through the NATIONAL DEBT.

The question is why are we all in debt to a private corporation ? Why does the government borrow billions & billions of pounds from a private coropration known as "The Bank Of England" and then saddle the debt on "we the people" ?. Why does the government allow the Bank of England to create money out of fresh air and then charge the government INTEREST to borrow it ?. Why does the government not create its own MONEY, INTEREST FREE for the good of the people ? owing interest to no-one, and therefore eliminating the NATIONAL DEBT ?.

It Gets Worse... There Is Always a Catch!

Unfortunatly it gets worse as there is something even more sinister about our monetary system that most people do not see. And that despite money being worthless and being nothing but debt, stole from us constantly through inflation, added to our own personal debt burdon via the National debt which we all have to pay via our taxes. There is 1 more thing that will just about make your blood boil.

And that is that even if we could work, 24hrs a day 7 days a week running 3 jobs, without any sleep or rest for the next 100 years and EARN EVERY PENNY there was in the economy to be earnt. We still would not have enough money to pay off the debts everyone supposedly owes.

Ay.. what..??

What did you say..not enough money to pay the debts off - how can that be ??...

Yes as strange and confusing as it sounds... There is not enough money in the system to EVER pay off our debts. Because the system is designed to keep us on a perpetual treadmill of debt, never being able to get off from paying it. And heres why:

The Problem

Below is a crude illustration of a very basic economy. If we can imagine for a moment that there is no money in the world at all. And that in order to start an economy the government contacted the Central bank and asked for 1 trillion pound to start off the economy. The central bank would dutifully oblige and we would then owe the central bank (private corporation:Rothschild) 1 Trillion in principle payment. Basically the money we just borrowed.

However for the use of borrowing 1 Trillion from a private corporation we have to pay them INTEREST ! And that is the most important factor in this whole scam. INTEREST (princple + interest).

The problem is that only the principle was ever created ! So where does the 100 billion come from to pay the interest on the 1 Trillion borrowed ?. When only the 1 trillion (principal loan) was ever created ?

Can you see the problem we face ?

The "INTEREST" otherwise known as "USURY" is NEVER CREATED BUT ALWAYS OWED. So INFLATION is used as a money confiscation tool against the public in order to fuel the INTEREST payment to the central bank. Not only that but because the Interest is always compounding. The amount of money in the banking system is never enough to pay the DEBT off. It is a perpetual treadmill of debt. The government has to RAISE taxes year on year to pay higher interest on an ever EXPANDING debt which the bankers created out of fresh air in the first place. Which they also have to perpetually borrow from the central bank in order to pay the money back to the central bank in INTEREST payments. It is utter lunacy!.

It is an absolute luciferian controlled DEBT SLAVERY system from top to bottom. Thats what it is designed to be and thats all it can ever be. Our monetary system is a sick joke, a gigantic fraud against the people of the world. This is why the IMF (International Monetary Fund) is only so happy and willing to lend billions of pound to 3rd world countries and ENSALVE them in a debt that can NEVER be paid off. But i've got news for you as The WESTERN WORLD is next.

It is 100% without a doubt a systematic take down of the western world (check out European Union "Agenda 21"). We have gorged ourselves on cheap money through car loans, mortgages and other frivilous consumerables. We got caught up in the madness of house price rises, when in reality all that was happening was the value of our currency was dropping like a stone and being artificially kept up via the CPI index (consumer price index) manipulations and other economic machinations such as Hedonics!.

But now the tide is turning and the sights are firmly set on the western world. A financial collapse in 2008 due to mortgage backed securities (another sickening fraud) is only the start of things to come. There is NO RECOVERY because the system itself is a FRAUD. But more on this later as there is one more glaring obvious problem with our economic system!.

Fractional Reserve Banking

Do you know what fractional reserve banking is ?. Well all the economies of the world run on the fractional reserve banking system. And basically it means that banks can create x10 the amount of money they have on deposit. The fractional reserve ratio is set by law and is a ratio of 10:1. Which means that for every 1 on deposit at the central banks (reserve ratio), the commercial banks can loan out 10 in loans. And then rake in INTEREST PROFITS on x10 the amount of money they actually have in the coffers.

It is yet another astounding piece of legalised criminality that allows the bankers to manipulate and rob the people of wealth. The reason this is so bad for our economy is through the creation of excess money into the system. By the use of fractionalization bankers can inflate the money supply by 10 times, by making more loans than reserves they hold in principle.

This increase in money, dilutes the buying power of our money and increases the amount of interest we as a collective group owe to bankers. Even though they created it out of fresh air. This is the main reason why we had a credit crunch in 2008 due to the mortgage backed securities crisis that sent shockwaves around the world. And we had countless, news reporters, politicians and economists telling us that no one could of predicted it and the only way to deal with the crisis is to print more money into the system (quantitive easing) and give it all to bankers so they didnt collapse.

I mean hold on one freaking minute!!. Bankers greased the palms of governments (worldwide) to change laws so they could expand the money supply by getting us all into untold amounts of debt by making millions of loans to people who couldnt afford repayments. This inturn diluted everyones buying power and wealth making us work harder, longer and often 2 jobs just to survive and then when the house of cards came crashing down. Because the people couldnt afford repayments due to several reasons the main one being that the banks cut off the expansion of credit. We are told that we must all through the national debt pay back those very bankers who caused the problem.

What a wonderful system FREEDOM & DEMOCRACY is. The freedom to rob the public blind and the democratic process to legalise the criminality of it - truly brilliant!.

If you havent figured it out yet. It is a 100% banking take over of every country on earth. We are being lead into perpetual debt slavery on the promise of the "American Dream". And people need to wake up and smell the coffee, before our children and childrens children are left with nothing but the shirt on their backs. Thats providing the bankers do not lobby government to pass a law making it illegal to wear a shirt!. Believe me if they wanted to they would. Because our government is not a government of the people. It is a government of the rich to protect themselves from "the people". It has always been this way!.

Lets return to a few quotes:

"Banking was conceived in iniquity and was born in sin. The Bankers OWN the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take this power away from them, and all the great fortunes disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit." - Josiah Stamp, director of the Bank of England. (Even the director of the Bank tells us - why are we so BLIND ?)
"If the American people ever allow private banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up HOMELESS on the continent their father's conquered ... " - Thomas Jefferson

"Deprive the people of all property" & "wake up HOMELESS on the continent their fathers conquered". - Do you understand what im saying, can you comprehend what is going on ?. In Oct 2010, there were 100,000 reposessions in America alone. And have a guess where all those houses went ?. Thats right to your friendly hightstreet bankers, who just so happen to be nothing more than a front organisation for the central bankers known as the Rothschild banking family. The richest family in the world.

Do you think this is by chance ?. Do you think none of this could of been predicted. What if i were to say it is more than predicted. It is actually planned this way. The banking system is designed 100% to extract every bit of wealth from the working man and hand it over to crafty little gremlin bankers, who create money (value) out of nothing, lend it out at interest, putting everybody into debt and then creating the financial crisis so we all default on the debt and they get to collect the windfall. The houses, the cars, the business and your very soul. Once you're a destroyed broken wreck from the stress of it all.

There is more criminality than you could ever fathom when you look at the banking system. From the laundering of all the drug money world wide to the securitization and derivatives market. The stock exchange itself is nothing more than a ponzi scheme playing russian roulette with everyones lives. Raising the price of food crops, oil and commodities to suit themselves and their bonus packages. Im not sure about the rest of the people in the world, but i am fed up of the legalized criminality, the corporate and financial take over of the world. And the problems that will come about as a result of it.

And those problems are already starting to manifest themselves in the wider community. Crime will skyrocket with the lack of employment and when INFLATION & HYPER INFLATION kick in from all the Quantative easing that is going on worldwide in a vein attempt to keep the party going. We will all starve as a result. Noone will be able to afford a loaf of bread when its 25 a loaf. And there will be NO JOBS to earn any money to pay for it anyway. And if you think oh well I will grow my own vegetables, then think again. As under the European Nazi Union's Codex Alimentarius. They have re-classified ALL vitamins & minerals as TOXINS. Thereby labelling them dangerous and making them subject to regulation. Therefore banning the production of vitamins & minerals unless you have the correct license. Do you understand what that means ? It means you will not be allowed to grow anything unless you have a license. And good luck with that because it will cost you 10,000,000,000 to buy one!. Unless ofcourse your a government approved NAZI.

Is There A Solution ?

Absolutly 100% there is a solution. But first you have to get it out of your head that there are different banks and that they somehow compete for business. This is a major fallacy of the banking industry. The truth is that all highstreet banks are subordinate to the central banks. In the UK the central bank is "The Bank Of England" in USA it is the "Federal Reserve". The same in Europe it's the ECB "European Central Bank", we all have central banking systems. Well except, IRAQ, AFGHANISTAN, NORTH KOREA & IRAN and a few others on George Bush's Axis of Evil! - (anybody notice a patern here ?)

Why is this important ? - I'll tell you why, because the Central banks in all the world including the (IMF) - International Monetary Fund & (BIS) Bank of International Settlements are owned by PRIVATE groups. Owing no allegience to any country and to any of its people.

Thats right !. All our banks are subordinate to the central banks and the central banks are owned by age old banking families. Most noteably the Rothschild banking family. See Wikipedia Rothschild Family.

Did you comprehend what i just said to you ?

I said that the United Kingdom, America, the whole of Europe and the rest of the world, because China & Russia are no exception are all at the mercy of the central banks in each country. And all central banks of each country are owned by the same banking families that have run the monetary system for hundreds of years. Namely the Rothschild banking family. My guess is that the majority of the public have never even heard of this family. For good reason too. If you think Bill Gates and his 50 Billion is the richest man on the planet, i think you need a re-think.

Watch this vid:

If the video does not work.. Google "Money as Debt". It should be available on google, youtube or another video site.