The Story of Money
Reflect with me for a moment upon the nature of money, wealth
and prosperity. And the more time you take reflecting upon it,
the more varied and abstract your thoughts concerning money,
wealth and prosperity will become. "Consider first money, and
soon your mind will guide you to understand the true nature of
money. And you will know that the value of money is determined
by you, with every transaction that you enter. And that the
value of money is determined by the number of zeros on the bill.
And a zero is nothing."
What we call money is not money, and the only value it has is
the value you and I give it. The pieces of paper you and I pass
around are Federal Reserve Notes. They look like money to us
because we have been told that they are money and because they
spend like money, but they are not money. Money is meant to be
a medium of exchanging value for value.
To understand the problem, let me explain how paper began to
circulate as money: Imagine that you are in England around 1660,
at a time when the only money is gold or silver coins. These are
minted and put into circulation by the king. When the king is
short of gold or silver and in need of something, he adulterates
the money by diluting the gold with copper. The newly minted
coins are the same size but with less gold. If the subjects
refuse to accept these adulterated coins, no matter, the king
merely has his court rule that the money is worth whatever he
says it is worth. After all, he is the king.
Imagine you have worked hard and saved some money. Where will
you put that money for safekeeping? In most communities there is
a goldsmith who has a large iron box where he keeps his gold and
silver "safe". You ask him to keep your gold and silver "safe",
he agrees and you pay him a fee for his service. As proof that
he has your gold and silver, he issues you a receipt.
The next time you want to buy something, rather than first
redeem your gold and then buy whatever you want, you use your
gold receipt. It is quicker and easier. As long as the seller
can go to the goldsmith and redeem the certificate for gold
everything works out fine. This is probably how paper receipts
began to circulate as money.
Now, place yourself in the position of the goldsmith. How long
would it take you to figure out that very few people ever come
at the same time to redeem their gold certificates? Maybe one
day, like the king, you find yourself short of gold and silver.
Could you say no to temptation, or would you tell yourself,
'I'll issue a gold receipt without any gold to back it up
because, after all, who is going to check up on me. Besides,
I'll have the gold in a few days to make it right'.
You quickly learn that spending your own gold receipts causes
certain unsettling questions to be asked. You come up with a new
plan that gives you something for nothing but doesn't make it
too noticeable: you loan gold receipts and collect interest. As
long as you don't get too greedy, you can get away with this
something for nothing scheme. Soon you and other
goldsmith/bankers are lending four times as many paper receipts
as you have in gold. This process of the goldsmith/bankers got a
boost when the king of England was in need of a great deal of
money to fight a war. The king turned to William Paterson.
Paterson and his friends pooled their resources and came up with
£72,000 in gold and silver. But instead of lending the gold and
silver directly to the king, they formed a bank and printed
paper receipts equal to 16-2/3 more than their gold and silver
reserves.
They lent the king £1.2 million at 8-1/3 % interest per year.
Their yearly interest was £100,000. The king didn't care; he had
a war to fight. After all, he would simply raise the taxes on
his subjects to pay the interest.
Paterson and his friends were protected. He had the foresight to
lend his paper receipts to the government. Since these receipts
were needed to fight a war, the king couldn't allow them to
fail. He declared them legal tender. These receipts were now
regarded the same as the gold for which they had stood. A new
golden rule came into being: Them that have the gold ... rule!
Since paper money first began circulating, the situation has
changed little. When the federal government wants more money, it
borrows it from and through the private banking system, the
Federal Reserve. The owners of the Federal Reserve are in no
need of gold or silver to back up their loans to the government.
Their money is legal tender. Unlike Paterson's time, there is no
gold or silver in the system. The bankers are still receiving
something for nothing. And you, as a subject, give the bankers
1/3 of your time when you pay federal and social security taxes.
Most everyone knows that, at one time, our government actually
had gold and silver backing our currency. Some people believe
the gold and silver may still be there. Most people don't have a
clue that a few, very rich individuals are in control of this
country through their ownership of the privately owned Federal
Reserve Banks.
To understand what is happening with our money today we need to
refer to Article I, Section 8 of the U.S. Constitution which
says: "The Congress shall have Power to coin Money, regulate the
Value thereof, and of foreign Coin, and fix the Standard of
Weights & Measures." It is important to understand that the
"power to coin money" is just that, coin, not print, because if
you have the power to print money you end up with paper money
that is worthless - just as worthless as the goldsmith/bankers
in England.
To ensure that no one but Congress had control of this country's
money, the founding fathers also added Article I, Section 10
which reads: "No State shall coin Money; emit Bills of Credit;
make any Thing but gold and silver coin a Tender in Payment of
Debts." With these two articles of our Constitution in place,
the founding fathers felt they had ensured the stability of the
country's money supply.
In 1792 Congress passed the first Coinage Act which set the
Standard Unit of Value and the ratio of gold to silver. A dollar
of gold was defined as 24-8/10 grains pure 9/10 fine, and a coin
dollar of silver at 371.25 grains .999 fine or 412.5 grains
Standard Silver. Several times in our country's history
Congress has enacted laws that have violated the Constitutional
provision governing money. The last time Congress unlawfully
turned over their responsibility to manage the country's money
supply was with the enactment of the Federal Reserve Act in
1913. For a period of time, the Federal Reserve willingly
exchanged gold and silver for paper certificates on demand. But
as the depression of 1929 deepened, Congress passed a law making
it unlawful to own gold, and the banks stopped redeeming paper
money with gold in 1933. In 1968 all that was left supporting
our money was silver, and that was removed by presidential
order.
Today, there is no gold or silver backing up our money - only
the full faith and credit of the United States government. The
federal government has pledged you and your ability to earn
money as collateral to the international bankers for over $4
trillion in loans. This is a great deal for the bankers. The
bankers put up nothing, and you, as a slave, turn over to the
bankers 1/3 of your income to pay your "fair share" of the
federal income tax.
Your income tax does not pay for the running of the federal
government. It pays the interest on the national debt - a debt
that was created as a bookkeeping entry.
The federal government is out of control. In 1992 it spent
$1,448 trillion. That's $3,967,123,000 each day of the year. The
cost to the average household was $291 a week. As of 1995, every
dollar the federal government collects in individual income tax
goes to pay the interest on the national debt.
LOCAL BANK FRAUD
The fraud of the bankers does not stop with the owners of the
Federal Reserve. It continues through our system and includes
every bank, every savings & loan and every credit card company.
The fraud reaches into every banking transaction that you have
ever been a party to. All of them, without exception, extend the
control of the bankers over our lives.
Consider this scenario. You want to buy a used car. You arrange
with your bank (bank A) for a loan. The banker gives you a check
made out to the car dealer for $5,000. You give the check to the
car dealer. The dealer turns the car over to you and deposits
the $5,000 check into his bank (bank B). It happens all the
time.
Now, let's take a deeper look at the transaction. Did any money
leave the bank? No. The money never left the bank because the
banker didn't give you any. He gave you bank credit.
The courts have ruled that "A check is not money" - School Dist
v. U.S. Nat'l Bank, 211 P2d 723); "A check is an order on a bank
to pay money" - Young v. Hembree, 73 P2d 393. The courts have
further ruled that "National banks may lend their money but not
their credit" - Horton Grocery Co. v. Peoples Nat'l Bank 1928,
144 S.E. 501, 151 Va. 195, because, unlike the Federal Reserve
banks, local banks are not allowed by law to create money.
However, they do it all the time.
WHAT IS BANK CREDIT?
Bank credit is the biggest fraud going. It is the creation of
bills of credit by private corporations for their private gain.
This is one of the most important issues we have to face today
because 95% of the nation's money supply consists of bank
credit.
Bank credit, unlike Federal Reserve Notes, is not something
tangible that you can see or hold. The closest you will ever get
to seeing bank credit is to look at your checkbook or credit
card. Essentially, bank credit is nothing more than the creation
of numbers which are added to your checking account in a bank's
bookkeeping department. When you write a check, numbers called
dollars are transferred from your checking account to someone
else's checking account. The creation, transfer and use of
bookkeeping entries as money is what bank credit is all about.
Bank credit is first created when a banker hands you a check
after you take out a loan. This check is not money, but a
promise from the bank to pay you money. The bank might have
enough money to cash your check, as long as everyone doesn't
bring their checks in at the same time.
The basis for the fraud charge is that the bank has written a
check against funds which do not exist. The banker gambles that
you will use your checking account in place of cash. Most of the
time the banker is right, people usually deposit the check they
receive in their checking account and then spend it by writing
other checks against the bookkeeping entries which have been
added to their account. Most people do not know that a check is
not money, that bank credit is not lawful money, and that the
courts have consistently ruled against the banks for lending
credit.
FRACTIONAL BANKING
When the car dealer deposits your check into his account, bank B
then has access to $5,000 more that it can make loans against.
Modern banking regulations allow banks to loan up to 90% of all
money deposited. With sleight of hand and the blessing of modern
bookkeeping entries, bank B can now lend an additional $4,500. A
different customer at bank B wants a loan. S/he borrows the
$4,500 and deposits it in bank C. Now bank C can loan 90% of the
$4,500 ($4,050). All the banks (A,B & C) charge interest on each
of the loans. The process can go on indefinitely. The bank
credit was created out of thin air.
The Federal Reserve Bank of New York offers The Story of Banks,
an illustrated booklet that explores the creation of money,
credit, bank loans and more. For free copies, call 212-720-6134.
Most of us have several of these bank loans. Many of you have
been forced into bankruptcy and forced to give up your homes
because of this fraudulent system.
SECURED CREDIT CARDS
Suppose for a moment that you have bad or limited credit and you
apply for a credit card. Given these circumstances, you would be
required to put up some collateral. The bank would probably ask
you to open a certificate of deposit (CD) for 125% of the credit
card's credit limit. (If the credit card had a limit of $1,000,
you would have to put up $1,250 in collateral).
Note that the bank has nothing to risk when you use your credit
card. You have made the arrangements with the bank to lend you
up to $1,000. You have promised to pay them according to the
terms and conditions of the note you signed. The question is:
Where does the bank get the money you borrowed?
Some people think it comes from the money in your CD, but that
is not the case. The truth is that the PROMISSORY NOTE you
signed is now an asset of the bank, and, based upon this PROMISE
to pay, the bank created bank credit, which it lent to you.
The bank doesn't reduce the amount of your CD as you make
purchases or take out loans. As the bills come into the bank, it
pays the merchant for your purchases by electronically
transferring numbers in its computer. If for any reason you do
not pay for your purchases, the bank has the authority to use
the money in your CD to cover your credit card debt.
A MORTGAGE NOTE
Suppose that you go to your bank to borrow money for a home. You
fill out the application and the bank runs a check on you. You
pass with flying colors and, next, you sign all the papers. Of
course, you will have to make a deposit on your home, just like
you did with the credit card. The bank will have you sign a
PROMISSORY NOTE, called a mortgage, as you did with the credit
card. The bank takes the title to your home as collateral, as it
did with the CD. And if you default on your payments, the bank
will foreclose on your home and sell it, just as they would use
your CD to cover your credit card debt.
The same question arises: Where did the bank get the money it
lent you for your home? Answer: It didn't lend you any money -
it lent you its credit. Based on the asset of your signature on
the PROMISSORY NOTE, the bank issued a check from the magic
money machine which was accepted as money.
We know that a check is not money, but a PROMISE to pay money.
The bank lied to you. You thought you were borrowing money, and
the bank lent you credit instead. In good faith, you entered
into what you thought was an honest transaction, but the fact
that the transaction was suspect was known only to the bank (and
to the courts who have decided that it is illegal for a bank to
lend its credit). In legal terms, you have been defrauded
because your PROMISE to pay was backed by collateral (the title
to your home), but their PROMISE to pay was backed by nothing
(neither gold nor silver). In effect, the bank which risked
nothing by lending you credit that it created, now has the title
to your home.
STATE BORROWING
When your state is short of money, it also borrows from the
banks. A state's PROMISE to pay is called a bond. These PROMISES
to pay are based upon the state's ability to get you to pay. The
bank accepts the bonds as an asset and does the same sleight of
hand with the state that it did with you. It gives the state a
check from the magic money machine. The state deposits the check
back into the bank and writes more checks on the check. Again,
ask yourself this: Did the bank lend your state any money in
return for their PROMISE to pay? No! Once again the bank wrote a
check, which is not money.
Much of the money that your state collects from you in taxes
goes toward paying the principal and interest on these
fraudulent bank loans. You and I and our ability to pay, along
with our property, homes, cars, etc., are pledged as collateral
to the bankers for these loans. The bankers put up little of
value. They use their magic money machine, and you and I pay and
pay and pay.
THE FEDERAL GOVERNMENT AND THE NATIONAL DEBT
It's the same story. The federal government issues a bond. The
bond goes to the privately owned Federal Reserve Bank. The bond
is a PROMISE to pay based upon the government's ability to
collect taxes from you and me. Again, the bankers issue a check
from the magic money machine. And again, you pay and pay and
pay.
WHAT ... IS THIS MONEY?
The Constitution says that money is gold or silver, probably
because they are rare, and also because they require someone's
labor to bring it to us in a form that we can use. This has
never changed. The Constitution also says that only Congress has
the authority to coin or regulate the value of money. We got
into this mess because, for the third time in history in 1913,
Congress committed treason to the Constitution by illegally
turning over to a group of bankers, its responsibility to coin
and regulate the value of money.
Consider that these Federal Reserve Notes are made out of paper
(and cotton) and cost only 2.6 cents per note to produce,
regardless of denomination. You know that whoever is producing
these notes is making a tremendous profit.
Consider also that real money cannot be counterfeited. A pound
of gold is a pound of gold, regardless of whose profile is
stamped in it. The only money that can be counterfeited is the
other counterfeit money (Federal Reserve Notes).
When We Became Chattel
Colonel Edward Mandell House is attributed with giving a very
detailed outline of the plans to be implemented to enslave the
American people. He stated, in a private meeting with Woodrow
Wilson (President 1913 - 1921),
Very soon, every American will be required to register their
biological property
(that's you and your children)
in a national system designed to keep track of the people and
that will operate under the ancient system of pledging. By such
methodology, we can compel people to submit to our agenda, which
will affect our security as a charge back for our fiat paper
currency.
(property)
and we will hold the security interest over them forever, by
operation of the law merchant under the scheme of secured
transactions. Americans, by unknowingly or unwittingly
delivering the bills of lading
(Birth Certificate)
to us will be rendered bankrupt and insolvent, secured by their
pledges.(presidency)
of our dummy corporation
(USA)
to
foment this plot against America.
Every American will be forced to register or suffer being able
to work and earn a living. They will be our chattels
They will be stripped of their rights and given a commercial
value designed to make us a profit and they will be none the
wiser, for not one man in a million could ever figure our plans
and, if by accident one or two should figure it out, we have in
our arsenal plausible deniability. After all, this is the only
logical way to fund government, by floating liens and debts to
the registrants in the form of benefits and privileges.
This will inevitably reap us huge profits beyond our wildest
expectations and leave every American a contributor to this
fraud, which we will call "Social Insurance." Without realizing
it, every American will unknowingly be our servant, however
begrudgingly. The people will become helpless and without any
hope for their redemption and we will employ the high office.
-
Colonel Edward Mandell House
