What this means essentially is that all money comes
into existence as a debt repayable to a bank or finance house. The
bank or finance house doesn't have the money in the first place, but
is allowed by the Central Bank (ie the Bank of England in the UK,
Federal Reserve System in the US, etc) to issue credit (ie loans) up
to a certain amount. This amount varies from time to time, giving the
leading players in this fraudulent business incredible and
So all money is created by the privately-owned banking
system, out of nothing, for its own benefit, not the benefit of the
people. And this money is repayable as interest-bearing debt.
Is that ludicrous or what?
Most people think that banks only lend money that is
in turn owed by them to their wealthier customers or has been borrowed
on the money market.
But this is a subtle deception that banks and
establishment economists allow the public to believe. How have they
managed to get away with such a collosal deception for so long? You'll
find out more about that on our blog, but
meanwhile here is what a couple of prominent bankers have said about
the system in the earlier part of the twentieth century.
banking system manufactures money out of nothing. The process
is perhaps the most astounding piece of sleight of hand that was ever
invented. Banking was conceived in inequity and born in sin . Bankers
own the earth. Take it away from them but leave them the power to
create money, and with a flick of a pen, they will create enough money
to buy it back again . Take this great power away from them and all
great fortunes like mine will disappear, for then this would be a
better and happier world to live in . But if you want to continue to be the
slaves of bankers and pay the cost of your own slavery, then let
bankers continue to create money and control credit."
Sir Josiah Stamp, president of the Bank of
England and the second richest man in Britain in the 1920's, speaking
at the University of Texas in 1927.
"I am afraid the ordinary citizen will not like to be
told that the banks can, and do, create and destroy money."
Rt. Hon. Reginald McKenna, former Chancellor of
the Exchequer and Chairman of the Midland Bank (now part of HSBC) in
Great Britain, addressing a meeting of shareholders on 25th January
1924 (quoted in the 1964 edition of "Promise To Pay" by R. McNair
"When a bank lends it creates money out of nothing."
From "Trade, Depression and the Way Out" by R.
G. Hawtrey, one time Assistant Under-Secretary to the Treasury (USA).
And in case you're thinking these quotations may be out of date and not applicable in the 21st century, here is another bombshell from Martin Wolf, Chief Economics Editor of the London Financial Times, dated 9th November 2010:
"The essence of the contemporary monetary system is the creation of money out of nothing, by private banks' often foolish lending."
These quotations should be broadcast to the entire
world. They should be engraved in stone on the walls of every college,
office and factory in every country.
Think about the implications of these admissions. All
these men - senior figures in the banking system in their day -
frankly admit that the entire financial and monetary system of the
world is fraudulent. That it's based on an illusion, a lie.
The lie is that the money the banks lend out to
people, companies, corporations, local authorities, governments and
international bodies, that this money is real money. Real money that
has been earned by work or by wealth creation. After all, this is only
a reasonable supposition to make.
But no. This money has not been so earned. It has
simply come into being as a computerised book keeping entry. In the
days of Sir Josiah Stamp it would have been an entry in a ledger, but
the principle is the same.
Over 80 years have passed since Sir Josiah's dramatic
admission, but the grip of finance over the lives of all the rest of
us has not slackened. In fact, with the arrival of the Credit Crunch,
it has become steadily tighter.
Don't forget to download the 1930s Classic, Promise
To Pay, written by Dr R. McNair Wilson, which explains in simple
terms exactly how the fraudulent banking system works. Just complete
the form at the top of this page.
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Copyright © 2007-2010 Philip Gegan, Leicester, England.