The current money system is said to be unconstitutional...good read here.
The Real Story of the Money-Control
Over America
by Pastor Sheldon Emry
"If the American people ever allow private banks to control the issue of their money, first
by inflation and then by deflation, the banks and corporations that will grow up around
them (around the banks), will deprive the people of their property until their children will
wake up homeless on the continent their fathers conquered." Thomas Jefferson
Americans, living in what is called the richest nation on earth, seem always to be short
of money. Wives are working in unprecedented numbers, husbands hope for overtime
hours to earn more, or take part-time jobs evenings and weekends, children look for odd
jobs for spending money, the family debt climbs higher, and psychologists say one of the
biggest causes of family quarrels and breakups is "arguments over money." Much of this
trouble can be traced to our present "debt-money" system. Too few Americans realize
why our founding fathers wrote into Article I of the U.S. Constitution: Congress shall
have the Power to Coin Money and Regulate the Value Thereof.
They did this, as we will show, in prayerful hope it would prevent "love of money" from
destroying the Republic they had founded. We shall see how subversion of Article I has
brought upon us the horrors of which Jefferson had warned.
MONEY IS MAN'S ONLY "CREATION"
Economists use the term "create" when speaking of the process by which money comes
into existence. Now, creation means making something that did not exist before.
Lumbermen make boards from trees, workers build houses from lumber, and factories
manufacture automobiles from metal, glass and other materials. But in all these they did
not "create," they only changed existing materials into a more usable and, therefore,
more valuable form. This is not so with money. Here, and here alone, man actually
"creates" something out of nothing. A piece of paper of little value is printed so that it is
worth a piece of lumber. With different figures it can buy the automobile or even the
house. Its value has been "created" in the true meaning of the word
MONEY "CREATING" PROFITABLE
As is seen by the above, money is very cheap to make, and whoever does the "creating"
of money in a nation can make a tremendous profit! Builders work hard to make a profit
of 5% above their cost to build a house.
Auto makers sell their cars for 1% to 2% above the cost of manufacture and it is
considered good business. But money "manufacturers" have no limit on their profits, since
a few cents will print a $1 bill or a $10,000 bill.
That profit is part of our story, but first let us consider another unique characteristic of
the thing - money, the love of which is the "root of all evil."
ADEQUATE MONEY SUPPLY NEEDED
An adequate supply of money is indispensable to civilized society. We could forego many
other things, but without money industry would grind to a halt, farms would become only
self-sustaining units, surplus food would disappear, jobs requiring the work of more than
one man or one family would remain undone, shipping, and large movements of goods
would cease, hungry people would plunder and kill to remain alive, and all government
except family or tribe would cease to function.
An overstatement, you say? Not at all. Money is the blood of civilized society, the means
of all commercial trade except simple barter. It is the measure and the instrument by
which one product is sold and another purchased. Remove money or even reduce the
supply below that which is necessary to carry on current levels of trade, and the results
are catastrophic. For an example, we need only look at America's Depression of the early
1930's.
THE BANKERS DEPRESSION OF THE 1930's
In 1930 America did not lack industrial capacity, fertile-farm land, skilled and willing
workers or industrious farm families. It had an extensive and highly efficient
transportation system in railroads, road networks, and inland and ocean waterways.
Communications between regions and localities were the best in the world, utilizing
telephone, teletype, radio, and a well-operated government mail system. No war had
ravaged the cities or the countryside, no pestilence weakened the population, nor had
famine stalked the land. The United States of America in 1930 lacked only one thing: an
adequate supply of money to carry on trade and commerce. In the early 1930's, Bankers,
the only source of new money and credit, deliberately refused loans to industries, stores
and farms.
Payments on existing loans were required however, and money rapidly disappeared from
circulation. Goods were available to be purchased, jobs waiting to be done, but the lack
of money brought the nation to a standstill. By this simple ploy America was put in a
"depression" and the greedy Bankers took possession of hundreds of thousands of farms,
homes, and business properties. The people were told, "times are hard," and "money is
short." Not understanding the system, they were cruelly robbed of their earnings, their
savings, and their property.
MONEY FOR PEACE? NO! MONEY FOR WAR? YES!
World War II ended the "depression." The same Bankers who in the early 30's had no
loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend for
Army barracks, K-rations and uniforms! A nation that in 1934 couldn't produce food for
sale, suddenly could produce bombs to send free to Germany and Japan! (More on this
riddle later.)
With the sudden increase in money, people were hired, farms sold their produce,
factories went to two shifts, mines re-opened, and "The Great Depression" was over!
Some politicians were blamed for it and others took credit for ending it. The truth is the
lack of money (caused by the Bankers) brought on the depression, and adequate money
ended it. The people were never told that simple truth and in this article we will
endeavor to show how these same Bankers who control our money and credit have used
their control to plunder America and place us in bondage.
POWER TO COIN AND REGULATE MONEY
When we can see the disastrous results of an artificially created shortage of money, we
can better understand why our Founding Fathers insisted on placing the power to
"create" money and the power to control it ONLY in the hands of the Federal Congress.
They believed that ALL citizens should share in the profits of its "creation" and therefore
the national government must be the ONLY creator of money. They further believed that
ALL citizens, of whatever State or Territory, or station in life would benefit by an
adequate and stable currency and therefore, the national government must also be, by
law, the ONLY controller of the value of money.
Since the Federal Congress was the only legislative body subject to all the citizens at
the ballot box, it was, to their minds, the only safe depository of so much profit and so
much power. They wrote it out in the simple, but all-inclusive: "Congress shall have the
Power to Coin Money and Regulate the Value Thereof."
HOW THE PEOPLE LOST CONTROL TO THE FEDERAL RESERVE
Instead of the Constitutional method of creating our money and putting it into
circulation, we now have an entirely unconstitutional system. This has resulted in almost
disastrous conditions, as we shall see.
Since our money was handled both legally and illegally before 1913, we shall consider
only the years following 1913, since from that year on, ALL of our money has been
created and issued by an illegal method that will eventually destroy the United States if
it is not changed. Prior to 1913, America was a prosperous, powerful, and growing
nation, at peace with its neighbors and the envy of the world. But - in December of
1913, Congress, with many members away for the Christmas holidays, passed what has
since been known as the FEDERAL RESERVE ACT. (For the full story of how this infamous
legislation was forced through our Congress, read The Creature from Jekyll Island, by G.
Edward Griffin or Conquest or Consent, by W. B. Vennard). Omitting the burdensome
details, it simply authorized the establishment of a Federal Reserve Corporation, with a
Board of Directors (The Federal Reserve Board) to run it, and the United States was
divided into 12 Federal Reserve "Districts."
This simple, but terrible, law completely removed from Congress the right to "create"
money or to have any control over its "creation," and gave that function to the Federal
Reserve Corporation. This was done with appropriate fanfare and propaganda that this
would "remove money from politics" (they didn't say "and therefore from the people's
control") and prevent "Boom and Bust" from hurting our citizens. The people were not
told then, and most still do not know today, that the Federal Reserve Corporation is a
private corporation controlled by bankers and therefore is operated for the financial gain
of the bankers over the people rather than for the good of the people. The word
"Federal" was used only to deceive the people.
MORE DISASTROUS THAN PEARL HARBOR
Since that "day of infamy," more disastrous to us than Pearl Harbor, the small group of
"privileged" people who lend us "our" money have accrued to themselves all of the profits
of printing our money' - and more! Since 1913 they have "created" tens of billions of
dollars in money and credit, which, as their own personal property, they then lend to our
government and our people at interest. "The rich get richer and the poor get poorer" had
become the secret policy of our National Government. An example of the process of
"creation" and its conversion to people's "debt" will aid our understanding.
THEY PRINT IT - WE BORROW IT AND PAY THEM INTEREST
We shall start with the need for money. The Federal Government, having spent more
than it has taken from its citizens in taxes, needs, for the sake of illustration,
$1,000,000,000. Since it does not have the money, and Congress has given away its
authority to "create" it, the Government must go the "creators" for the $1 billion. But,
the Federal Reserve, a private corporation, doesn't just give its money away! The
Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal
Government in exchange for the Government's agreement to pay it back - with interest!
So Congress authorizes the Treasury Department to print $1,000,000,000 in U.S. Bonds,
which are then delivered to the Federal Reserve Bankers.
The Federal Reserve then pays the cost of printing the $1,000,000,000 (about $1,000)
and makes the exchange. The Government then uses the money to pay its obligations.
What are the results of this fantastic transaction? Well, $1 billion in Government bills are
paid all right, but the Government has now indebted the people to the Bankers for $1
billion on which the people must pay interest! Tens of thousands of such transactions
have taken place since 1913 so that by the 1980's, the U.S. Government is indebted. to
the Bankers for over $1,000,000,000,000 (trillion) on which the people pay over $100
billion a year in interest alone with no hope of ever paying off the principal. Supposedly
our children and following generations will pay forever and forever!
AND THERE'S MORE
You say, "This is terrible!" Yes, it is, but we have shown only part of the sordid story.
Under this unholy system, those United States Bonds have now become "assets" of the
Banks in the Reserve System which they then use as "reserves" to "create" more "credit"
to lend. Current "fractional reserve" requirements allow them to use that $1 billion in
bonds to "create" as much as $15 billion in new "credit" to lend to States, Municipalities,
to individuals and businesses. Added to the original $1 billion, they could have $16 billion
of "created credit" out in loans paying them interest with their only cost being $1,000 for
printing the original $1 billion! Since the U.S. Congress has not issued Constitutional
money since 1863 (over 100 years), in order for the people to have money to carry on
trade and commerce they are forced to borrow the "created credit" of the Monopoly
Bankers and pay them usury-interest!
AND THERE'S STILL MORE
In addition to the vast wealth drawn to them through this almost unlimited usury, the
Bankers who control the money at the top are able to approve or disapprove large loans
to large and successful corporations to the extent that refusal of a loan will bring about
a reduction in the price that that Corporation's stock sells for on the market. After
depressing the price, the Bankers' agents buy large blocks of the stock, after which the
sometimes multi-million dollar loan is approved, the stock rises, and is then sold for a
profit. In this manner billions of dollars are made with which to buy more stock. This
practice is so refined today that the Federal Reserve Board need only announce to the
newspapers an increase or decrease in their "rediscount rate" to send stocks up and
down as they wish. Using this method since 1913, the Bankers and their agents have
purchased secret or open control of almost every large corporation in America. Using
that control, they then force the corporations to borrow huge sums from their banks so
that corporation earnings are siphoned off in the form of interest to the banks. This
leaves little as actual "profits" which can be paid as dividends and explains why stock
prices are often depressed, while the banks reap billions in interest from corporate loans.
In effect, the bankers get almost all of the profits, while individual stockholders are left
holding the bag.
The millions of working families of America are now indebted to the few thousand Banking
Families for twice the assessed value of the entire United States. And these Banking
Families obtained that debt against us for the cost of paper, ink, and bookkeeping!
THE INTEREST AMOUNT IS NEVER CREATED
The only way new money (which is not true money, but is "credit" representing a debt),
goes into circulation in America is when it is borrowed from Bankers. When the State and
people borrow large sums, we seem to prosper. However, the Bankers "create" only the
amount of the principal of each loan, never the extra amount needed to pay the
interest. Therefore. the new money never equals the new debt added. The amounts
needed to pay the interest on loans is not "created," and therefore does not exist!
Under this kind of a system, where new debt always exceeds the new money no matter
how much or how little is borrowed, the total debt increasingly outstrips the amount of
money available to pay the debt. The people can never, ever get out of debt!
An example will show the viciousness of this usury-debt system with its "built-in"
shortage of money.
IF $60,000 IS BORROWED, $255,931.20 MUST BE PAID BACK When a citizen goes to a
Banker to borrow $60,000 to purchase a home or a farm, the Bank clerk has the borrower
agree to pay back the loan plus interest. At 14% interest for 30 years, the Borrower
must agree to pay $710.92 per month for a total of $255,931.20. The clerk then requires
the citizen to assign to the Banker the right of ownership of the property if the Borrower
does not make the required payments. The Bank clerk then gives the Borrower a $60,000
check or a $60,000 deposit slip crediting the Borrower's checking account with $60,000.
The Borrower then writes checks to the builder, subcontractors, etc., who in turn write
checks. $60,000 of new "checkbook" money is thereby added to "money in circulation."
However, and this is the fatal flaw in a usury system, the only new money created and
put into circulation is the amount of the loan, $60,000. The money to pay the interest is
NOT created, and therefore was NOT added to "money in circulation."
Even so, this Borrower (and those who follow him in ownership of the property) must
earn and TAKE OUT OF CIRCULATION $255,931, almost $200,000 MORE than he put IN
CIRCULATION when he borrowed the original $60,000! (By the way, it is this interest
which cheats all families out of nicer homes. It is not that they can't afford them; it is
because the Banker's usury forces them to pay for 4 homes to get one!)
Every new loan puts the same process in operation. Each borrower adds a small sum to
the total money supply when he borrows, but the payments on the loan (because of
interest) then deduct a much LARGER sum from the total money supply.
There is therefore no way all debtors can pay off the money-lenders. As they pay the
principal and interest, the money in circulation disappears. All they can do is struggle
against each other, borrowing more and more from the money-lenders each generation.
The money-lenders (Bankers), who produce nothing of value, slowly, then more rapidly,
gain a death grip on the land, buildings, and present and future earnings of the whole
working population.
SMALL LOANS DO THE SAME THING
If you haven't quite grasped the impact of the above, let us consider a small auto loan
for 3 years at 18% interest. Step 1: Citizen borrows $5,000 and pays it into circulation
(it goes to the dealer, factory, miner, etc.) and signs a note agreeing to pay the Banker
$6,500. Step 2: Citizen pays $180 per month of his earnings to the Banker. In 3 years he
will take OUT of circulation $1,500 more than he put IN circulation.
Every loan of Banker "created" money (credit) causes the same thing to happen. Since
this has happened millions of times since 1913 (and continues today), you can see why
America has gone from a prosperous, debt-free nation to a debt-ridden nation where
practically every home, farm and business is paying usury-tribute to some Banker. The
usury-tribute to the Bankers on personal, local, State and Federal debt totals more than
the combined earnings of 25% of the working people. Soon it will be 50% and continue
up.
THIS IS WHY BANKERS PROSPER IN GOOD TIMES OR BAD
In the millions of transactions made each year like those above, little actual currency
changes hands, nor is it necessary that it do so. 95% of all "cash" transactions in the
U.S. are by check, so the Banker is perfectly safe in "creating" that so-called "loan" by
writing the check or deposit slip, not against actual money, but AGAINST YOUR PROMISE
TO PAY IT BACK! The cost to him is paper, ink and a few dollars in salaries and office
costs for each transaction. It is "check-kiting" on an enormous scale. The profits
increase rapidly, year after year, as shown below.
These are a few taken from Arizona newspapers in January, 1979.
Valley Bank posts 49% gain in profits
Gains of 49 percent in net income and 51 percent in operating income were posted last
year by Valley National Bank.
Those gains brought net income to $33,969,-000' in the year ended Dec..31 and
operating income to $34,459.000. The year before those totals were $22,836.000 and
$22,807,000 respectively.
Bank's profits rise 21%
Arizona Bank announced on Monday it had achieved a 21.2 percent increase in net
income in 1978 over 1977. On the basis of operating income, excluding the 1977 sale of
the Arizona Bank Building for $l,336,369, the bank said the increase was 43.9 percent.
Tostenrud said loans and deposits increased in the last year: Deposits 18.8 percent to
$1.353 billion and loans 21.9 percent to $951 million.
THE COST TO YOU? EVENTUALLY, EVERYTHING!
In 1910 the U.S. Federal debt was only $1 billion, or $12.40 per citizen. State and local
debts were practically non-existent.
By 1920, after only 6 years of Federal Reserve shenanigans, the Federal debt had
jumped to $24 billion, or $226 per person.
In 1960 the Federal debt reached $284 billion, or $1,575 per citizen and State and local
debts were mushrooming.
By 1981 the Federal debt passed $1 trillion and was growing exponentially as the
Banker's tripled the interest rates. State and local debts are now MORE than the Federal,
and with business and personal debts totaled over $6 trillion, 3 times the value of all land
and buildings in America.
If we signed over to the money-leaders all of America we would still owe them 2 more
Americas (plus their usury, of course!)
However, they are too cunning to take title to everything. They will instead leave you
with some "illusion of ownership" so you and your children will continue to work and pay
the Bankers more of your earnings on ever-increasing debts. The "establishment" has
captured our people with their ungodly system of usury and debt as certainly as if they
had marched in with a uniformed army.
FOR THE GAMBLERS AMONG MY READERS
To grasp the truth that periodic withdrawal of money through interest payments will
inexorably transfer all wealth in the nation to the receiver of interest, imagine yourself in
a poker or dice game where everyone must buy the chips (the medium of exchange) from
a "banker" who does not risk chips in the game, but watches the table and every hour
reaches in and takes 10% to 15% of all the chips on the table. As the game goes on,
the amount of chips in the possession of each player will go up and down with his "luck."
However, the TOTAL number of chips available to play the game (carry on trade and
business) will decrease rapidly.
The game will get low on chips, and some will run out. If they want to continue to play,
they must buy or borrow them from the "banker." The "banker" will sell (lend) them ONLY
if the player signs a "mortgage" agreeing to give the "banker" some real property (car,
home, farm, business, etc.) if he cannot make periodic payments to pay back all of the
chips plus some EXTRA ones (interest). The payments must be made on time, whether
he wins (makes a profit) or not.
It is easy to see that no matter how skillfully they play, eventually the "banker" will end
up with all of his original chips back, and except for the very best players, the rest, if
they stay in long enough, will lose to the "banker" their homes, their farms, their
businesses, perhaps even their cars, watches, rings, and the shirts off their backs!
Our real-life situation is MUCH WORSE than any poker game. In a poker game none is
forced to go into debt, and anyone can quit at any time and keep whatever he still has.
But in real life, even if we borrow little ourselves from the Bankers, the local, State, and
Federal governments borrow billions in our name, squander it, then confiscate our
earnings from us and pay it back to the Bankers with interest. We are forced to play the
game, and none can leave except by death. We pay as long as we live, and our children
pay after we die. If we cannot pay, the same government sends the police to take our
property and give it to the Bankers. The Bankers risk nothing in the game; they just
collect their percentage and "win it all." In Las Vegas and at other gambling centers, all
games are "rigged" to pay the owner a percentage, and they rake in millions. The Federal
Reserve Bankers' "game" is also rigged, and it pays off in billions!
In recent years Bankers added real "cards" to their 'game. "Credit" cards are promoted as
a convenience and a great boon to trade. Actually, they are ingenious devices by which
Bankers collect 2% to 5% of every retail sale from the seller and 18% interest from
buyers. A real "stacked" deck!
YES, IT'S POLITICAL, TOO!
Democrat, Republican, and Independent voters who have wondered why politicians
always spend more tax money than they take in should now see the reason. When they
begin to study our "debt-money" system, they soon realize that these politicians are not
the agents of the people but are the agents of the Bankers, for whom they plan ways to
place the people further-in debt. It takes only a little imagination to see that if Congress
had been "creating," and spending or issuing into circulation the necessary increase in
the money supply, THERE WOULD BE NO NATIONAL DEBT, and the over $4 Trillion of
other debts would be practically non-existent. Since there would be no ORIGINAL cost of
money except printing, and no CONTINUING costs such as interest, Federal taxes would
be almost nil. Money, once in circulation, would remain their and go on serving its
purpose as a medium of exchange for generation after generation and century after
century, just as coins do now, with NO payments to the Bankers whatever!
MOUNTING DEBTS AND WARS
But instead of peace and debt-free prosperity, we have ever-mounting debt and periodic
wars. We as a people are now ruled by a system of Banker-owned Mammon that has
usurped the mantle of government, disguised itself as our legitimate government, and set
about to pauperize and control our people. It is now a centralized, all-powerful political
apparatus whose main purposes are promoting war, spending the peoples' money, and
propagandizing to perpetuate itself in power. Our two large political parties have become
its servants, the various departments of government its spending agencies, and the
Internal Revenue its collection agency.
Unknown to the people, it operates in close cooperation with similar apparatuses in other
nations. which are also disguised as "governments." Some, we are told, are friends.
Some, we are told, are enemies. "Enemies" are built up through international
manipulations and used to frighten the American people into going billions of dollars more
into debt to the Bankers for "military preparedness," "foreign aid to stop communism,"
"minority rights," etc. Citizens, deliberately confused by brainwashing propaganda, watch
helplessly while our politicians give our food, goods, and money to Banker-controlled alien
governments under the guise of "better relations" and "easing tensions." Our
Banker-controlled government takes our finest and bravest sons and sends them into
foreign wars with obsolete equipment and inadequate training, where tens of thousands
are murdered, and hundreds of thousands are crippled. Other thousands are morally
corrupted, addicted to drugs, and infected with venereal and other diseases, which they
bring back to the United States. When the "war" is over, we have gained nothing, but
we are scores of billions of dollars more in debt to the Bankers, which was the reason for
the "war" in the first place!
BUT WAIT... THERE'S STILL MORE
The profits from these massive debts have been used to erect a complete and almost
hidden economic and political colossus over our nation. They keep telling us they are
trying to do us "good," when in truth they work to bring harm and injury to our people.
These would-be despots know it is easier to control and rob an ill, poorly-educated and
confused people than it is a healthy and intelligent population, so they deliberately
prevent real cures for diseases, they degrade our educational systems, and they stir up
social and racial unrest. For the same reason they favor drug use, alcohol, sexual
promiscuity, abortion, pornography, and crime. Everything which debilitates the minds
and bodies of the people is secretly encouraged, as it makes the people less able to
oppose them or even to understand what is being done to them.
Family, morals, love of Country, the Christian religion, all that is honorable is being swept
away, while they try to build their new, subservient man. Our new "rulers" are trying to
change our whole racial, social, religious, and political order, but they will not change the
debt-money economic system by which they rob and rule. Our people have become
tenants and "debt-slaves" to the Bankers and their agents in the land our fathers
conquered. It is conquest through the most gigantic fraud and swindle in the history of
mankind. And we remind you again: The key to their wealth and power over us is their
ability to create "money" out of nothing and lend it to us at interest. If they had not
been allowed to do that, they would never have gained secret control of our nation.
"The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs
22:7).
Let us now consider the correct method of providing the medium of exchange (money)
needed by our people.
INTEREST-FREE MONEY
History tells us of debt-free and interest-free money issued by governments. The
American colonies did it in the 1700's and their wealth soon rivaled England and brought
restrictions from Parliament, which led to the Revolutionary War. Abraham Lincoln did it in
1863 to help finance the Civil War. He was later assassinated by an agent of the
Rothschild Bank. No debt-free or interest-free money has been issued in America since
then. Several Arab nations issue interest-free loans to their citizens today. The Saracen
Empire for bad interest on money for 1,000 years, and its wealth outshone even Saxon
Europe. Mandarin China issued its own mone |
