6139008-History-of-Money

and it creates a loan account of an equal amount. The effect on the bank's balance sheet is that total deposits haveincreased by the amount of the loan, and the banks total loans have increased by the amount of the loan. Since we aretalking of the creation of two equal and offsetting accounting entries, it does not matter how small or how large thesenumbers are, hence the concept of an unlimited supply of credit. No matter how large the loan created, the bank'sbalance sheet will remain balanced. A picture of the fraudulent, horrible, enslaving and tyrannical Federal Reserve Act. Arethere any practical limits to credit growth? The fact that banks are allowed to create an unlimited amount of loans andmoney is an accounting truism. Consider for a moment loans involved in the Yen-carry trade. Here, loans are created inYen within the Japanese banking system. A borrower’s account is credited with Yen, and an equal loan account is created,on which the borrower pays a very low rate of interest. These Yen are then sold for U.S. dollars and invested in the U.S.bond market earning 6% or the U.S. stock market earning 20%. These loans were created in such massive amounts since1995 that they drove up the value of the U.S. dollar in spite of large trade imbalances. Money from nothing in the truestsense of the word.David Korten (1999, 0. 34) elaborates further on the nature of mortgages (the word “mort-gage” comes from theLatin meaning “death-pledge’ or “death grip” (Rowbotham, 1998): “Say a bank provides me with a $100,000 mortgage. Itopens an account in my name and credits it with the amount of my loan. In so doing it creates $100,000 that I thenspend into circulation. So far, so good. The catch is this: the bank expects to be repaid with interest, which on a longtermmortgage might require repayments of $200,000 or more above the loan capital. Because all the other money incirculation was also created through lending by banks that also expect to be paid back with interest, there simply isn’tenough money in circulation to pay the banks their dues – unless the economy grows fast enough to expand borrowing arate sufficient to create the money required to repay the principal and interest on previous loans. The banks check of yourcredit worthiness is in fact your ability of competing and winning against other players and if you fail in that game youlose your house or whatever other collateral you had to put up.”Evidence of this process of money creation through debt is best portrayed in a picture. The graph below shows a hugemountain of debt since 1950 in the US. Notice the small sliver that represents government notes (seignorage) that can becreated at no cost to citizens while debt imposes an obligation to repay the principal plus interest on money created out ofnothing to finance the purchase or production of something. The total outstanding debt of the US (total credit marketdebt, domestic non-financial federal government, state and local government, household, and business, and financial, hasgrown from $425 billion in 1950 to an astounding $25.6 trillion by the end of 1999 (Federal Reserve System,1999). The majority of this credit market debt is owed by financial institutions ($7,606 billion), households ($6,466billion, in mortgages and consumer debt), business ($5,986 billion), and federal, state and local governments ($4,932billion). Foreign debt has also been rising and stands at $622 billion by end of 1999. Most troubling is the trend is themounting debt by the financial sector and the soaring amount of margin debt. Margin debt has grown from a mere $1.4billion 1950 to $278 billion by March 2000, an increase of 20,410% or increased 10 fold in the last 10 years of the USstock market bull run! The mountain of US debt is in fact greater than the entire Third World nations ($2.5 trillion)combined. How can the richest and most economically powerful nation on earth be so indebted and to whom? These arecomplex issues but demand inquiry. What is immediately apparent from the debt chart is that the mountain of debt neverceases growing reflecting the perpetual motion nature of money creation in parallel with debt and the “magic” ofcompounding interest. It is important to realize that because of the nature of the debt laying claim to real wealth, inexcess of the physical supply of real wealth, means the debt effectively unrepayable. There is only one conclusion to thisjourney, the repudiation of all debt or the collapse of the entire oikonomia as the debt becomes impossible to repay, and asubsequent deflationary cycle in prices as liquidity falls.Debt-write-offs have no capital affect on banks overall since the money was created out of nothing. The only affect is thatthey don’t get to collect interest anymore on the written-off debt. Since all debt is borrowed money, in order to write off adebt, it is necessary to destroy part of the money supply. Actual and impending losses give rise to a desire for additionalliquidity in the financial system in the form of more “fiat” money. Until that liquidity is obtained, bankruptcies and pricedeflation will set in. The losers are always the employees, shareholders, tax payers and the masses when public assetshave to be sold off for a penny on the $. With this backgrounder, let’s start our journey into the history of money andexplore what some interesting people have been saying about money and power! after this aside note. The FederalReserve bill was sneakily passed through congress in the winter of 1913 and President Woodrow Wilson signed the bill intolaw. The Illuminati, particularly the Rockefellers and Rothschilds, bad usurped the financial power of the United States.The first governor of the New York branch of the Federal Reserve was Benjamin Strong. The first governor of the FED’sboard of directors was Paul Warburg. Both connected to Schiff, J.P. Morgan, Jr, and the House of Rothschild. The FED hasbeen an effective tool of the Illuminati and the Rothschilds, creating crisis such as the Great Depression (which J.P.Morgan, Jr was very involved in creating). Apparently (according to Congressman Louis McFadden), the Depression helpedconsolidate financial power over the US., putting It in the hands of the Rothschild banking alliance between J.P. Morgan’sFirst National Bank group and Schiff’s Kuhn, Loeb-run National City Bank. The Great Depression also led to Roosevelt’sNew Deal. On 23rd December 1913 the House of Representatives had past the Federal Reserve Act, but it was still havingdifficulty getting it out of the senate. Most members of congress had gone home for the holidays, but unfortunately thesenate had not adjourn sine dei (without day) so they were technically still in session. There were only three members stillpresent. On a unanimous consent voice vote the 1913 Federal Reserve Act was passed. No objection was made, possiblybecause there was no one there to object.Charles Lindbergh would have objected: "The financial system has been turned over to... the federal reserve board.That board administers the finance system by authority of... a purely profiteering group. The system is private, conductedThe Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 275