Search This Blog

Thursday, July 17

Banking 101: Banks create money when they lend it - True or False.

I currently have 8 windows open on my computer. This Probably has a lot to do with my inability to focus most of the time. When I'm not on the computer, I usually have at least 8 or so ideas, thoughts, problems, songs, etc. etc. etc. in my head.
A tangled web indeed. You guys always manage to clear my cluttered mind and set me thinking straight.

So, I turn to my friends at Blondesense today to help me figure out a way to GET RID OF THE BANKERS. I can't do it by myself.

Here is what I am reading at the moment:

.........The court rejected the bank's claim for foreclosure, and the defendant kept his house. To Daly, the implications were enormous. If bankers were indeed extending credit without consideration – without backing their loans with money they actually had in their vaults and were entitled to lend – a decision declaring their loans void could topple the power base of the world. He wrote in a local news article:

This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all U.S. and State bonds held by the Federal Reserve, National and State banks to be null and void. This amounts to an emancipation of this Nation from personal, national and state debt purportedly owed to this banking system. Every American owes it to himself . . . to study this decision very carefully . . . for upon it hangs the question of freedom or slavery.
Needless to say, however, the decision failed to change prevailing practice, although it was never overruled. It was heard in a Justice of the Peace Court, an autonomous court system dating back to those frontier days when defendants had trouble traveling to big cities to respond to summonses. In that system (which has now been phased out), judges and courts were pretty much on their own. Justice Mahoney, who was not dependent on campaign financing or hamstrung by precedent, went so far as to threaten to prosecute and expose the bank. He died less than six months after the trial, in a mysterious accident that appeared to involve poisoning.4 Since that time, a number of defendants have attempted to avoid loan defaults using the defense Daly raised; but they have met with only limited success. As one judge said off the record:

If I let you do that – you and everyone else – it would bring the whole system down. . . . I cannot let you go behind the bar of the bank. . . . We are not going behind that curtain!

From time to time, however, the curtain has been lifted long enough for us to see behind it. A number of reputable authorities have attested to what is going on, including Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain in the 1920s. He declared in an address at the University of Texas in 1927:

The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again. . . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta in the Great Depression, wrote in 1934:

We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon.

Graham Towers, Governor of the Bank of Canada from 1935 to 1955, acknowledged:

Banks create money. That is what they are for. . . . The manufacturing process to make money consists of making an entry in a book. That is all. . . . Each and every time a Bank makes a loan . . . new Bank credit is created -- brand new money.

Robert B. Anderson, Secretary of the Treasury under Eisenhower, said in an interview reported in the August 31, 1959 issue of U.S. News and World Report:

[W]hen a bank makes a loan, it simply adds to the borrower's deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower.
How did this scheme originate, and how has it been concealed for so many years? To answer those questions, we need to go back to the seventeenth century.

Continue reading The Shell Game of the Goldsmiths


"We have restricted credit, we have restricted opportunity, we have controlled development, and we have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world--no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.
~Woodrow Wilson
(1856-1924) 28th US President
in his book, The New Freedom: A Call For the Emancipation of the Generous Energies of a People, chapter 9

This "Quote" is still being debated


"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
~Written by Jefferson in a letter to the Secretary of the Treasury Albert Gallatin (1802).


When England lost the Revolutionary War with America where our forefathers were fighting their own government, they planned to control us by controlling our banking system, the printing of our money, and our debt. The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank: First National Bank of New York, James Stillman National City Bank, New York, Mary W. Harnman, National Bank of Commerce, New York, A.D. Jiullard Hanover, National Bank, New York, Jacob Schiff, Chase National Bank, New York, Thomas F. Ryan, Paul Warburg, William Rockefeller, Levi P. Morton, M.T. Pyne, George F. Baker, Percy Pyne, Mrs. G.F. St. George, J.W. Sterling, Katherine St. George, H.P. Davidson, J.P. Morgan (Equitable Life/Mutual Life), Edith Brevour, T. Baker.

How did it happen? After previous attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. He had committed to sign this act. In 1913, a Senator, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through Congress just before Christmas when much of Congress was on vacation. When elected, Wilson passed the FED. Later, Wilson remorsefully replied, referring to the FED, "I have unwittingly ruined my country". Now the banks financially back sympathetic candidates. Not surprisingly, most of these candidates are elected.
(The Federal Reserve Fraud)


From Yahoo's "Best Answer" to this (resolved) question:
Is the Federal Reserve a priate bank and who owns it?

The Government Accounting Office does not have complete access to all aspects of the Federal Reserve System. The Federal Banking Agency Audit Act stipulates the following areas are to be excluded from GAO inspections:

(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;

(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, open market operations;

(3) transactions made under the direction of the Federal Open Market Committee; or

(4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to items.

So, basically everything that we NEED to know about the Fed is excluded from any Audit. Anyone who says otherwise is twisting the facts, or lying outright.

I have also heard claims that the Fed does not print money or oversee the printing of money. This is false.

"In 1990, at a cost of 2.6 cents each, over seven billion notes worth about $82 billion were ((produced for circulation by the Federal Reserve System.)) Ninety-five percent will replace unfit notes and five percent will support economic growth. At any one time, $200 million in notes may be in production. Notes produced in 2002 were the $1 note, 41% of production time; the $5 note, 19%; $10 notes, 16%; $20 note, 15%; and $100 note, 9%. No $2 or $50 notes were printed in 2002."

This quote is from a Federal Reserve Website under (oddly enough) "PRINTING OF CURRENCY":

Gee....I can't post the quote because
" longer available" - LOL!!


Confusion at IndyMac fuels customers' anger



a quote from reader NevadaLiberal in the comment section of a huffpo article: Fannie Mae, Freddie Mac Spent $200M to buy influence:
"We are a consumer driven nation. We want money and "things". We want iphones and other non-essential toys. Family and community are secondary to our busy dollar driven and possession driven daily lives. This is what happens when we lose focus and chase the God of Consumerism. Why would we expect any of the people we elect as our representives to be any different then any of us. It wont change until something absolutely drastic and terrible make us change. Obama wont change it. I am voting for him, but I dont expect him to change it. Because we wont change...our American lives wont change...we refuse to change. So how can I expect Obama to change things? The criminal crime family known as the Republicans and the red-headed stepchild known as the Democrates have just about completed the destruction of this country.......but we elected every single one of who really is to blame???"



I'm hitting the music blogs to clear my head for a while.

I'm searching for Gilberto Gil today. Have a listen to this happy go lucky tune and forget all your troubles:
Chiclete com banana
~I’ll only add be-bop to my samba
When Uncle Sam starts playing the ‘tamborim’
When he grabs the tambourine and the bass drum
When he understands that samba’s not rumba

"Apparently, the breezy feel of “Chiclete” hides a serious conversation about musical appropriation and cultural imperialism…which might explain why college professors sometimes include the song in their coursework. But since I speak not a word of Portuguese and “Chiclete” is so damned catchy, for me, it remains a happy song. (How’s that for Yankee appropriation?)"

From a Gilberto Gil/Chiclete com banana review

I await your ideas my friends.

Please hurry though......... I haven't had a bath in days!!!
(Thanks to Minstrel Boy)

He made me very nervous with his comment on my previous GET RID OF THE BANKERS post:

Five or six hundred heads cut off would have assured your repose, freedom and happiness.

a quote from Jean-Paul Marat

No comments: