6139008-History-of-Money

which people make with it. It is clear that it creates the deposit by the issue of the loan; the loan travels back to the bankor another bank and assumes the form of a deposit”.So what/where are the reserves? The reserves are our collective future products and services, i.e. WE ARETHE RESERVES, not the FED nor the commercial banks. The FED and commercial banks actually lend “I-O-U”sor Federal Reserve Dollar Notes with the “promise” that anyone in the US will accept these notes in exchangefor their goods or services, i.e. the FED is using us as credit collateral. The FED can print or issue as manydollars (notes or ledger/computer entries) as it wants against our collective credit; the history of inflationand the M3 measure of money are proofs of this. So, the “reserve” is the FED’s ability to create as manydollars as its owners require, using us all as the collateral against which to collect on those dollars, i.e. theBanklords issue, we “pay with our labor or assets”, they collect the interest and foreclose on assets, AGIGANTIC FRAUD."I have never yet had anyone who could, through the use of logic and reason, justify the FederalGovernment borrowing the use of its own money....I believe the time will come when people will demandthat this be changed. I believe the time will come in this country when they will actually blame you and meand everyone else connected with the Congress for sitting idly by and permitting such an idiotic system tocontinue." - The late Congressman Wright Patman, Chairman of the House Committee on Banking andCurrency for over 16 years.See House of Representatives, Banking and Currency Committee hearing of September 30, 1941:1. Congress says, "We need $10 Billion."2. So they go over to the Treasury and say, "We need $10 Billion."3. The U.S. Treasury prints up $10 Billion in government bonds.4. They take those bonds over to the privately owned Federal Reserve Bank (Fed) down the road from theTreasury.5. They walk into the Fed with these $10 Billion in bonds and say, "We need to borrow $10 Billion."6. The purchase of bonds by the Fed from the Treasury is approved by the Federal Open Market Committee.7. The Fed takes that $10 Billion in Bonds and agrees to then loan the U.S. Government $10 Billion by eithercheque, electronic transfers or by printing Federal Reserve Notes (the US$ notes or paper currency).8. The Fed writes into their little ledger with a stubby pencil, "US Government owes us $10 Billion." (Actually, it'sdone by computer nowadays.)9. The Fed then creates money out of thin air by authorizing some currency to be printed as well as electronictransfers to the Government’s account. These credits are based on nothing and created out of thin air. Note thatthe legislated legal tender in the US is the private Federal Reserve Note (not a United States Government Note).The Federal Reserve notes are printed by the Treasury upon a request from the Fed and given for the cost ofprinting (about 3 cents per note and not the face value) to the Fed. The Fed is using the Treasury BEP as a printshop and to add insult to injury, the Treasury guarantees the private bank’s Federal Reserve Notes as legal tenderin the United States backed by the taxpayers’ wealth!!!10. Now the U.S. Government’s account has been credited with $10 Billion and it owes another $10 Billion to theFederal Reserve Bank.11. The receiving commercial bank then uses these credits as reserves from which they can loan out ten times theamount by again creating money out of thin air using ledger entries. This is known as fractional reserve banking.The books are balanced by treating your promise to pay as the asset against which the currency is created, justlike in the case of the Government loan where the Fed used the Government Bonds as the asset against whichFederal Reserve Notes and credits were issued.12. The commercial banks must borrow from the Fed or their depositors 1/10 th the amount of money they createfrom nothing when making loans. A bank's lending is ultimately limited by the amount of its own capital (assetsminus liabilities). The capital adequacy rule requires that the ratio of its capital to risk-weighted assets be at least8%. For example, mortgage loans have a risk weighting of 0.5 in contrast to ordinary loans which have a riskweighting of 1.0. Since the bank plans to expand its balance sheet by $5,000,000, it must have excess capital ofat least $5,000,000 x 0.5 x .08 = $200,000.The above process injects currency into the economy. To reduce the amount of money in the economy, they simplyreverse the process. The Fed sells the government bonds to the public and money is drawn from the purchasers’ bank topay for them. Each million withdrawn lowers the banks ability to loan by 10 million. The Federal bank in this way hasoverall control of the US money supply. The Banksters through the magic of fractional reserve banking have beendelegated the right to create 90% of the money supply. This control makes a mockery of any elected government. Itplaces so called leaders behind a toy steering wheel, like the plastic ones, set up to amuse small children.Who Owns The FED Banks? Same People who own the Commercial Banks=CREDIT MONOPOLY!The original Stockholders of the Federal Reserve Banks in 1913 were the Rockefeller's, JP Morgan, Rothschild's, LazardFreres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman Brothers and Goldman Sachs (all with roots in Germany’s Zionists justlike the British Royal family, J.P. Morgan, Carnegie, Bush, Rumsfeld, Clintons, the Nazis that were brought into the CIA,etc.). http://land.netonecom.net/tlp/ref/federal_reserve.shtmlThe Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 53