How much do you know about the banking system and who prints the money you carry in your pocket? Considering the vital role money plays both in our individual lives and in the world, our educational system teaches us amazingly little about how money is created, how banks operate, and what causes the huge banking scandals and bankruptcies that have occurred. After reading the information below, you will understand why this information is kept quiet and why we feel it is important to reveal these major banking cover-ups. The world's wealthiest bankers guard their secrets very closely.
The Fractional Reserve System: Creating Money Out of Thin Air
Another aspect of banking about which most people know little to nothing is the fractional reserve system. Fractional-reserve banking refers to the common banking practice of issuing more money than the bank holds as reserves. Banks in modern economies typically loan their customers many times the sum of the cash reserves that they hold." Did you know that for every dollar in your checking or savings account, the bank can legally loan out $10 or more?
Here's a description of the origins of fraction reserve banking from a standard university macroeconomics text [1]:
"When the ancients began to use gold in making transactions, it became apparent that it was both unsafe and inconvenient for consumers and merchants to carry gold and have it weighed and assessed for purity every time a transaction was negotiated. It therefore became commonplace to deposit one's gold with goldsmiths whose vaults or strongrooms could be used for a fee. Upon receiving a gold deposit, the goldsmith issued a receipt to the depositor. Soon goods were traded for the goldsmiths' receipts and the receipts became the first kind of paper money.
"At this point the goldsmiths – embryonic bankers – used a 100% reserve system; their circulating paper money receipts were fully backed by gold. But, given the public's acceptance of the goldsmiths' receipts as paper money, the goldsmiths became aware that the gold they stored was rarely redeemed. Then some adroit banker hit on the idea that paper money could be issued in excess of the amount of gold held. Goldsmiths [then began to issue] additional 'receipts' ... into circulation by making interest-earning loans in the form of gold receipts. It was the rothchild family who took the monopoly right from the early days, This was the beginning of the fractional reserve system of banking."
The college text from which the above quote is taken does not question the propriety of goldsmiths creating these new "receipts" or money without any gold backing, without any authority, and indeed without any real reason to do so other than to enrich themselves. In fact, the text even praises the questionable behavior of the one who began this hidden form of corruption as "adroit."
The unsuspecting public had no idea that goldsmiths were issuing paper receipts accepted as money which were backed by no gold deposits at all for ten times or more the amount of gold that had been entrusted to them. The goldsmiths were secretly creating money out of thin air. They thus made themselves fantastically wealthy without anyone noticing what was going on. In order to better hide this deceit and divert people's attention, the goldsmiths stopped their old practice of charging for storing gold and instead began to pay customers a small interest on their gold deposits to keep them happy. Thus it was that modern day bankers were born.
Amazingly, the system has changed little today. Macroeconomics professors, college texts, and all involved with banking almost never question the ethics or morality of this fractional reserve system. No one even questions in any meaningful way the ethics and corruption involved in creating money out of thin air. In fact, the fractional reserve system was formalized into law centuries ago and continues to be both legal and the accepted common practice around the world today.
Have you ever wondered how banks can afford to own those massive buildings downtown if they are only charging 15% or so on loans and paying 5% in interest on deposits? If bankers were not allowed to create money out of thin air, they would be making only 10% or so a year on every loan they issued, far from enough to build the towering skyscrapers owned by banks in practically every major city. But by creating credit (money) using the fractional reserve system, bankers can legally claim credit to 10 times or more the amount of any loan. Now you can understand the foundation upon which global banking empires are built.
As this system has been used for centuries by every country in the world, it clearly works to maintain a relatively stable economic order. We are not in the least advocating a dramatic change of this system. We do, however, feel that suppressing and otherwise hiding this key information is a massive deception which does not serve the public and only serves to allow the bankers to easily become excessively powerful and corruption. War, famine, murders, crimes, competitiveness, patriotism is built in to this system, and politicians keep this system going, and we elect these people, the media keeps you in line, conditioned and they perpetuate and only show you what they want you to see, You can help to inform others of what is going on by educating yourself with videos and spreading the word on the banking and financial cover-up. Thanks
for caring.
some videos
Zeitgeist addenum
http://video.google.com/videoplay?docid ... 7695921912
rothchilds exposed
http://www.youtube.com/watch?v=8F4IGwuKdUQ
mrresonate
No comments:
Post a Comment