The Money System

We have been deceived in many areas. As you study this information you will soon learn that many of the things you always assumed to be true were in fact a lie. Do you want to live a lie? One such lie is how the money system actually works.

The control of money is the other subject one needs to grasp so as come to a complete understanding of how real this conspiracy to create a one world totalitarian socialist government actually is, for without the international financiers creating, regulating and manipulating the money supply they would have no power.

Everything you see discussed and taught by economists, universities and other experts with regards to the monetary system is only related to the effects. The causes or where money actually comes from is practically never discussed.

If you live in the United States you have the Federal Reserve Banking System. Did you realise that the Federal Reserve is a private corporation? Well it is. The Federal Reserve Bank is not federal, it is not a reserve, and it is not a bank. This name has been used to fool you. The Federal Reserve is private and has a reserve of nothing! Australia has the Reserve Bank of Australia which regulates the money supply. The Reserve Bank of Australia has no reserves and is not a bank either. It is amazing what a name can do. The Reserve Bank of Australia is owned and operated by the government but the process and results are identical to the United States system.

The Federal Reserve loans out what is called ‘fiat’ money. Fiat money is money with no intrinsic value. It is worthless.

Money can be classed into three categories. First is commodity money which is money which has intrinsic value in itself such as a gold or a silver coin. Commodity money has been used through most of world history and has been very successful.

Second, there is promisary money which is a promise to pay in commodity money. An example of promisary money would be a note which is backed by gold or silver reserves in a bank. The note is a promise to pay in commodity money. It therefore represents something of real value. The promise is backed by a commodity.

The third kind of money is called fiat money. Fiat money is money which is backed by NOTHING. Fiat money is created out of thin air and the only reason people accept it is because of faith. Fiat money is the money we have all over the world today. Another important thing is that in ALL of recorded history fiat money has ALWAYS collapsed and there is not one single exception! Why? Fiat money can be manipulated very easily by those who are involved in its creaton.

Today we trade copper clad tokens, pieces of paper and computer entries with one another. The value of money is all in people’s heads (faith). People have been brainwashed through education and media to never question the monetary system. Do you now see how controlling the information you recieve controls what you think?

The Federal Reserve for example buys notes from the United States Treasury at printing cost and then loans them to the United States government. In exhange the government gives the Federal Reserve a government bond which is really a fancy name for an I.O.U. Often the Federal Reserve does not even have money printed, the money is simply just created in a computer and is checkbook money. This money has no real value at all.

Furthermore the Federal Reserve then uses the government bonds it recieved from the U.S. government as an asset (they count it as a reserve) and is thus able to loan to the commercial sector as well. The loans are backed by the government promise to pay the Federal Reserve. Remember all this money has been created out of thin air and is thus backed by nothing and furthermore it is created as a DEBT!

The United States used to be on the gold standard, then it went to the silver standard and presently it exists on the paper standard. Total debasement. Do you see something wrong here? I hope so.

Every single dollar in circulation represents a debt because it was first loaned into circulation. All money is originally created out of nothing and then loaned. This is a fact! Debt fiat currency is much worse than a non-debt fiat currency simply because the debt currency enslaves that nation. The people are the guarantors if you will. Australia created fiat money through the Commonwealth Bank (people’s bank) to fund its World War One effort. Yet this money was not a debt to a foreign bank or financier. This currency was backed by the good faith of the Australian people. The Australian people owed themselves. The United States also used this system with the Colonial Scrip and it worked very well. The money was limited by the demand and supply of the goods and services in the system. The currency would remain stable and national debt did not exist. Basically the economy served the people, the people did not serve the economy.

It is not like this anymore unfortunately in Australia or the United States. Since the deregulation of the Australian banking industry Australia’s money is created primarily through private interests. It is also important to note that the Australian debt can never be repaid and currently Australia needs to keep on borrowing just to service the debt interest which further enslaves the nation.

Now understand this, all the money in circulaton is debt currency and thus every single day every single dollar in circulation is earning compounded interest. Very few people understand this and the vast majority of people simply do not want to hear it. The result of this is that the national debt can NEVER be repaid for if the debt was to be repaid as best as possible there WOULD BE NO MONEY IN CIRCULATION, and the second reason that the debt can never be repaid is because the ‘interest’ on the debt was never created in the first place, it doesn’t exist. This interest comes out of things of REAL VALUE. This is the situation of every single nation on the planet today except for four. When politicians talk about the national debt being in control they are lying to you. They use phrases like ‘monetising the debt’ which you don’t understand but sound good. Monetising the debt is simply the process of the government borrowing more money so as to keep up with the interest repayments on the debt. All this just digs a deeper hole which is even more disasterous in the long run.

Now stop and think for a moment. The money you use are pieces of paper or computer entries which came into existence because it was borrowed. Now this money in itself has no real commodity value of its own yet interest is collected for its use. In essence what has happened is a third party (the International Financiers) has been brought into every transaction made and this third party collects a part of that transaction simply because we are using their currency. In a fuedalistic society this is called a tribute. The international financiers loan us their money AT NO COST TO THEMSELVES (they created it), they then expect the money to be paid back with the addition of interest. I hope you can now basically understand the core issue I am describing here. That issue is fraud.

If you take the time to study this system in depth you will realise how practically all the wars throughout banking history have been used to create government debt, and this is an entire subject on its own which I will not delve into here. Suffice to say that practically all conflict in recent history has been intentionally manipulated to bring more power and influence to the global elite. These people have a lot of blood on their hands indeed.

An example of the deciet of government debt at a more local level is as follows. In the State of Victoria of Australia the Kennet government apparently made more money than it spent (a surplus), they created jobs and did many other supposedly wonderful things. People believed they had a good government that was balancing the books quite well. What these people did not know (because no-one will tell them, neither the education system nor the corporate media except maybe as some small article in the back of some newspaper) was that the Kennet government ‘borrowed’ money to bring these results. All that has actually happened is the people of Victoria have become further enslaved to the current economic system and they know it not. Borrowing money brings a temporary solution and ensures that the end result will be more devastating. The Victorian people will find this out eventually yet they will not understand the real reasons for what is happening. The starving masses of people in Africa are due to this very process yet the ignorant people (sheople) of the world do not have a clue.

Now when a monetary system self destructs the goods and services are not destroyed. The goods and services are merely transferred to those who are informed. The coming world economic collapse will achieve two primary objectives. First it will destroy the middleclass and second it will transfer the wealth lost to those who are bringing about the collapse. The destruction of the middle class is essential for the establishment of a socialist system. Socialism has only two classes, the rich (in control) and the poor(slaves).

The events which have been occuring in Asia and Russia are only the beginning of the global collapse. Russia did not want to go into further foreign debt and turned on the printing presses which insured hyper-inflation and the total collapse of the Rouble. This collapse is spreading due to the fact that nations of the world over the past twenty years have become ‘interdependent’ on each other. The collapse is intentional and is not a result of the so called ‘business cycle.’ Those who have awakened and converted a fair proportion of their paper assets into tangible assets such gold and silver coins (and food as you cannot eat gold and silver!!!) will be in a much better situation than those who will be caught totally by surprise. If you are in any form of debt right now I would advise you to GET OUT even if it means selling your house to pay off the mortgage! Those in debt are slaves as they have to secede to the dictates of the lender. The lure of easy credit in the present system has encouraged people to get into some form of debt.

Here is another fact you probably did not know. Banks are LEGALLY able to loan out more than they have in reserve (fiat reserves in reality). This process is called ‘Fractional Reserve Banking.’ Sounds nice huh? Basically a percentile limit is put on the bank and it works like this. If a bank has a percentile fractional reserve banking limit of 10 percent it is able to loan out 90% of any deposit. Legally they have to hold 10% in reserve. The problem though is that each time the bank loans 90% it does not loan cash. Tha bank merely puts the 90% into someone’s account and then COUNTS THIS AS ANOTHER ASSET (a reserve)! They then loan 90% of the 90% they just loaned to someone else and so on and on. Banks can legally loan what they do not have. If the person does happen withdraw the money it usually ends up in another bank and the process just occurs from there. I hope you see something wrong with this. I also hope you take the time to look this up as you will see it is true.

Fractional Reserve Banking has its origins in medievil Europe with the gold and silver merchants. People would deposit their gold and silver coins for safekeeping with these merchants for a small fee. The merchants soon became aware that many people were trading in the reciepts (promisary money) which they issued to depositors. The merchants soon began to write out extra receipts and loan them at interest to people. This in turn caused inflation as the purchasing power of people’s receipts was lessoned. When many people awakened and demanded their gold and silver coins the merchants were not able to cover their liabilities and thus went out of business. Today we have the same system but the money elite are protected by the political elite.

If you are an American the taxes you pay to the Internal Revenue Service (IRS) which you think are going to the government are not really going there at all. You have been decieved again. The IRS is ‘also’ a private corporation. If you read your tax receipts you will note it says, “Pay OBLIG to FRB.” What this means is you pay the United States obligation to the Federal Reserve Bank. This money is in reality being sucked out of circulation to prevent the rampant inflation that would occur because of the constant creation of money out of thin air.

The whole system is a massive scam! It is contract fraud. It is the theft of your wealth through deception. Step by step the International Financiers and those who represent them gain ownership of real assets as collateral for the debt interest. Now these assets are not ‘directly’ aquired by the Federal Reserve but the wealth is aquired through the continual process of inflation which is merely the result of the flooding of the economy with fiat money. Inflation is in fact a hidden tax.

This system ensures that the wealth is slowly transferred from the middle class to the upper class. How? Now pay close attention. When the government finds itself with a budget deficit (which is basically always the case) it needs more money to cover costs. The government then ‘borrows’ this money from the central bank. This money is created out of nothing and thus the extra money in the economy leads to inflation because the supply of money exceeds the available goods and services. The thing to pay attention to though is that when the money first enters the economy the economy does not react immediately by rising the prices of goods and services, there is a delay as the people do not yet realise that there is more money in the system. So because of this the government is able to spend this new money by paying the old prices. Those closest to the beauracracy do very well. By the time the money filters down to everyone else the public has reacted to the inflated economy and thus the public has to pay more for everything. It is a very subtle way to transfer wealth and it is working very well for the elite.

When a person makes something and sells it, it increases the value of the money in supply because the goods and/or services increases. When fiat money enters the system that person loses a little bit of their wealth. I hope all this is starting to become a clear to you as a basic understanding of these processes is important to grasp in order to gain a more accurate perspective on reality.

It is an incredible scenario indeed but it is also true. When you try to explain this to people you will find, as I have, that very few will listen.

The International Financiers and the politicians continue these processes and the nation involved gets deeper and deeper into debt, and there is NO way out of it because the interest was never created. The interest comes out of YOU! Then when a nation gets in trouble, and Indonesia is a good example of this, along comes the International Monetary Fund and the World Bank to LOAN more money so that the the nation in question can keep up with the interest repayments. Remember a ‘tribute’ would be a more accurate term than ‘interest’ because nothing of value was actually loaned. It is all psychological.

A quick point with regards to Indonesia is that Australia recently loaned 3 billion dollars to Indonesia. This 3 billion is debt money created out of nothing. Australia owes it! We borrow to loan and because of the economic situation there is no way that Indonesia can ever pay it back. Yet the Australian people are so ignorant, dumbed down and apathetic they just smile and fall for the deception. This loan put Australia deeper in debt! Figure that one out.

The different national economies are like ships in the sea. All these ships are sinking but some are going down faster than others. While this is happening we also see sinking ships who are trying to bail out other sinking ships so as to prolong the inevitable.

These International Financiers are the greatest and most successful criminals ever to walk the earth and the politicians who are aware of this system and do not do anything about it (because they are more worried about their paychecks and career) have sold their nations out. They are traitors! Hard words but this is reality folks.

Compare a 100 dollar note to a 50 dollar note and ask yourself why the 100 dollar note is worth more? Also why is the 100 dollar note worth anything? Is it because people believe it is worth something? Think about it.

Now there is much much more to learn than this and I suggest you check into some of the references at the end of this article so you can become informed. A study of monetary history is also recommended so as to understand how we got to where we are in the present.

Learn about the economic treaties which fall under the Global Agreement on Trade and Tariffs (GATT) such as the North American Free Trade Agreement (NAFTA), Asia Pacific Economic Cooperation (APEC), and the European Union (EU). These have primarily been designed to lower the standard of living in the developed nations via a transfer of wealth (this is exactly what has been happening and you think it is all an accident?). With these treaties governments remove tariffs and trade protections thus forcing small business to compete on equal terms with transnational corporations. They have a nice word for this also, they call it ‘economic rationalism.’ There is nothing rational about it unless you want to transfer industry to large corporations and lower the standard of living in developed nations.

Economic rationalism is based on a free market working in laissez-faire (free enterprise) society. Free market economics worked when all business was small and contained within national borders. When corporations arose in the mid to late 1800’s and soon became recognised as a ‘corporate personality,’ corporations gained the ability to control the market price of a commodity. This violated the rules and conditions of genuine free market economics.

A corporation is able to sustain a loss in an area to drive out competitors but can remain viable because of profits made in another area. The mixed economy was introduced by governments to combat this and it worked very well. Australia, for example, thrived on the mixed economy system whereby the goverment introduced both controls on big business (which were to prevent an oligopoly forming) and introduced tariffs, subsidies and exemptions in order to help small to medium sized business.

Economic rationalism totally ignores these factors and has thus insured the scenario which has developed in the world today. The name ‘economic rationalism’ is in itself a clever use of words which do not mean what people think they do and thus is another example of mind control.

Now to further understand how this both ensures the destruction of small business, high living standards and the enviroment it is important to note that a transnational corporation with a factory situated in Asia does not have the same health and safety regulations or the same expenses in wages or enviromental regulations to submit to let’s say as a small business who produces the same goods located in Australia. Transnational corporations can pack up and move shop whenever required while a small business cannot do this. Transnational corporations also have the ablitiy to control the market price and thus are able to destroy small business. What we have is big business and government working hand in hand. This is defined as CORPORATE FASCISM folks, even though the government will not tell you this definition. It happened in Germany with Hitler and now it is happening again except it is on a much larger scale, a world wide scale.

Our so called representatives sell us these economic treaties by claiming they will offer increased competition and thus a better product with a cheaper price. Has this actually happened? NO it has not, we have been lied to! Small business is in trouble, unemployment grows and an oligarchy has been created. But the average person continues to buy into these lies and the same people believe that all this is happening by accident. Sit back, THINK, and look at what has happened and is happening and can you really believe that all these things which result in the International Financiers and the owners of transnational corporations obtaining more political power and wealth really be an accident?

Privatisation is also another one of those nice sounding concepts which the people are buying into. Under privatisation a nation sells off its publically owned assets and services. The result is that the control of these assets and services ends up in the hands of internationalists. This is happening right now in Australia and Australian’s are soon going to wake up and find that they are tenants in their own country.

What we are witnessing is the greatest transfer of wealth to have ever been undertaken in the history of the world. The wealth is not being transferred amongst the common people but into the hands of the elite.

Now with regards to the political leaders who are meant to represent the people who live in their nations (democratic nations), look up the word TREASON in the dictionary and read what it says.



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