Banking and Financial Reform

World leaders probably know what’s happening but they are not doing anything about it. They don’t care because they are benefiting from what they are doing to us

- Victoria Grant

If a 12 year old girl can understand the problem with central banks, then surely we adults can?

There is an analogy I like to use; the fish cannot know water.

Because the fish is swimming in the ocean it’s whole life and it is surrounded by water from the day it is born to the day it dies, how can it know there’s something that surrounds it all the time called water? How can it know that there’s another world of purely air-breathing creatures living above the water?(Assume the fish is not caught by a fisherman). The lesson here is that when something is so ubiquitous, it is not noticeable.

In the same way, the whole concept of borrowing money from a bank at an interest rate is so ubiquitous and passed down from one generation to the next that it appears to be absolute and the right way of doing things. We all know banks need to make money too, right? Well, that’s where 12 year old Victoria Grant and other money and central bank reformist like Ellen Hodgson Brown tell us we are wrong.

You see, a relatively short time ago, banks were run by the government. This all changed due to a very small handful of greed-driven men hatched up a scheme to allow their private enterprises to intervene in the low or zero interest rate government’s issuance of money. You may have heard of these great financiers of the 20th century? J.D. Morgan, Rothschilds? These and a handful of the most powerful financiers in the world met for years in secrecy at the turn of the last century to create the US Federal Reserve, which has since become the central bank model the world over. Find out more about the world’s greatest con job here.

This small handful of PRIVATE corporations effectively took over the government printing of money and tacked on an interest rate – creating the greatest money making scheme in history. Here is the simplicity of the scheme we have all bought into:

1. Convince the public that the paper money coming from the central bank is legal tender. This means that by law, we must use it for exchange of goods and services. This effectively causes the entire population of a society to use it.
2. Loan money into existence. Every dollar that’s ever brought into any kind of circulation, whether paper money or electronic money in a bank account, is loaned into existence.
3. The loan comes at an interest rate
4. The principal is created into existence but the interest is not. Therefore, there is an inherent shortage of money in the system and people are forced to compete to get enough created money to pay back their principal AND interest. This means that however much interest is in the system, is how many people who take out loans must ultimately default from their loans and lose all their assets they have accumulated. Losers are inherently designed into the system.

This is what keeps the entire world economy, with it’s guaranteed winners (the top winners being the private consortium of banks that sit on the board of the central banks) and losers (who have defaulted on their loans). To find out more, watch an excellent series of films about the central banking system here.

The Central Bank Reform Movement

Ellen Hodgson Brown is a central bank reform advocate and her book Web of Debt is an eye opening introduction to the problem of central banks.

Web of Debt unravels the deceptions in our money scheme and presents a crystal clear picture of the financial abyss towards which we are heading. Then it explores a workable alternative, one that was tested in colonial America and is grounded in the best of American economic thought, including the writings of Benjamin Franklin, Thomas Jefferson and Abraham Lincoln. If you care about financial security, your own or the nation’s, you should read this book. – Source: Web of Debt

For more on the Public Bank solution, go here

Milton Friedman’s Solution to Getting Rid of Fractional Reserve Banking

Remarkably, a number of groups have developed strategies that can phase out the Central Bank in a short period of time without impacting the monetary system. The most famous reccommendation of them all is from the famed economist Milton Friedman.

Friedman suggested the following steps be taken to exorcise contral banking from the US:

1. Debt-free United States notes be issued to pay off the United States Bonds (debts) on the open market.
2. In conjunction with this, the reserve requirements of the day to day bank the regular person banks with, be proportionally raised up to a  maximum of 100% so the mount of money in circulation remains constant.
3. As those people holding bonds are paid off in United States notes, they will deposit the money in their bank, thus making available the currency needed by these banks to increase their reserves.
4. Once all these United States bonds are paid off with United States notes, the banks will convert to 100% reserve banking instead of the 10/1 fractional reserve system.
5. The fractional reserve banking can be outlawed.
6. If necessary, the remaining liabilities of financial institutions could be assumed or acquired by the United States government in a one-off operation.
7. Therefore these institutions would eventually be paid off with United States notes for the purpose of keeping the total money supply stable.
8. The Federal Reserve Act of 1913 and the National Banking Act of 1864 must also be repealed and all monetary power transferred back to the Treasury Department.
9. The effects of this will be seen very soon by the average person as their taxes would start to go down as they would no longer be paying interest on debt based money to a handful of central bankers.
10. A law must be passed to ensure that no banker or any person in any way affiliated with financial institutions, be allowed to regulate banking.
11. The United States must withdraw from all international debt based central banking operations including: the IMF; the BIS; and the World Bank.
12. If all the countries of the world adopted this same strategy, then humanity will at last be free of these central bankers and their debt based currency.