6139008-History-of-Money

Fractional Reserve Banking & The Magic Multiplier: Follow the MoneyTo understand Fractional Reserve Bankingit's necessary to understand where banknotes came from: In the olden times,people deposited their silver and goldmoney at goldsmiths (where it was safelydeposited in the goldsmiths' strongboxes).In return they received a note. Over timethose notes got used in trade, as they weremuch more convenient to carry around thanheavy metal money - thus paper moneywas born. As soon as bank notes wereaccepted as a means of payment, thegoldsmiths/money lenders recognized thatall the people who had their gold and silvermoney deposited at their place would neverwant it back at the same time (unless thereis a “run on the bank”). Therefore theycould lend "virtual" (and you thought cyberspace was a recent invention!) money inthe form of notes, keeping only a fraction ofthe "real" gold and silver money in reserve(usually around 10% of the amount lendedout in note form, i.e. maintaining afractional reserve of 10%). Today, Central/National/Federal Reserve Banks usually have a nation/union-wide monopoly onissuing bank notes.In this sense, a bank is nothing but a fraud (shallwe call them “banksters” as in “gangsters”?) It isa giant loan kiting scheme. If I had $10,000 in myaccount and I wrote a check for $100,000 I mightbe in big trouble. But banks are legally allowed to"loan" seven to 10 times more than they have ondeposit. Where does this "money" come from? Itis actually nothing but ledger entries... They arecreating money from NOTHING. The schemeactually began around the middle ages. The firstBankers said: Here, deposit your gold in our vaultand we will give you a receipt for it, that way youwill not be robbed when you carry that sack ofgold on horseback. The charge is only a small fee.After a while, people found it convenient to "buy"goods and services using these receipts. After all,you can go redeem the gold any time you want,right? Well, the Bankers soon realized that mostof the people never came back and redeemed thegold so they started printing receipts for whichthere were no deposits, and spending them intothe economy. Today we call this fractional reservebanking. So you see, that 100,000 are reallyworth 700,000 in fraudulent loans, plus interest!Bankers took control of the U.S. in 1913 bybribing a few congressmen to pass the FederalReserve Act after which President Woodrow Wilsonlamented about his mistake. "We have come to beone of the worst ruled, one of the most completelycontrolled and dominated Governments in theWorld - no longer a Government of free opinion,no longer a Government by conviction and vote ofthe majority, but a Government by the opinionand duress of small groups of dominant men."President Woodrow Wilson, following theestablishment of the privately owned Federal Reserve System in 1913. The Federal Reserve Act gave the power to issuecurrency and loan fiat money, i.e. money create out of nothing and without being backed by gold, to a private ownedcartel known as the Federal Reserve Banks. A lot more on the details of this gigantic fraud later in several sections of thisbook.The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 141