The beginning
The various kingdoms of europe each used coins specific to them, this made the business of exchanging one coin denomination for another and charging a commission for the service very profitableFurthermore, in order to attract gold and silver coinage, the bankers began to pay interest on coins stored in their vaults
The bankers however, noticed not all depositors redeemed their gold and silver coinage at the same time, this phenomenon would signal the next phase of corruption, which came to be known as: Fractional reserve banking.
FRACTIONAL RESERVE BANKING
To illustrate, a individual deposits 20 gold coins with the bank on the condition that he receives 1 gold coin per month as an interest payment on the deposit.If another four indivudal do the same, the bank then has 100 coins stored in its reserves
At the end of the month however, only one individual returns to redeem his deposit of 20 coins
And to also receives his interest payment of 1 gold coin, but instead of using its own gold to make the interest payment, the bank uses the gold coin of its customers deposited in its reserve
So the bank is left with 79 coins stored in its reserve and with the expectation not all of their customers would return to redeem their coins all at the same time, the bank could then loan a fraction of their coin deposits to new customers, they could for example loan two customers 20 gold coins each on condition that they also pay the bank back the amount of the loan + an extra 2 gold coins as an interest payment, so now not only banks are accruing wealth from wealth through interest, they were now increasing their wealth with wealth that they didn't even own - because it was their customer's gold they were lending out and not their own.
These practices in fact gave rise to the creation of what is in circulation today: Banknotes.
BANKNOTES
Initially, when the people placed gold and silver coins in these banks to accrue interest, the depositor would receive a receipt or a promisory note entiteling the bearer to the amount of gold and silver written on the note, the note merely represented a promise to pay the bearer in coin the sum of the note on demandThe true wealth lay in the gold and silver coins and not in the note itself, the business of banking became so profitable that multinational branches were formed aiming to do business with merchants, from the merchants of Venice to the merchants of London.
Here in London, the first reserve bank was established and named "Bank of England", but it was backed by the force of the english government which institutionalized and and enforced the usage of paper bank notes.
Using the reseve bank of England as their model, the bankers further developed and proliferated this tyranical system throughout Europe, and after much intital opposition, in 1913 CE the model was replicated in America with the establishment of the Federal Reserve.
THE FEDERAL RESERVE SYSTEM
Like its counterpart -the bank of England- the federal reserve was also a private corporation and exclusive banker to the government that was granted the power to print federal reserve notes redeemable for gold coins upon demandSo the gold standard that is tying the note to real gold is what gave these fraudulent notes some legitimacy.
Less than a year after the federal reserve was established,the various nations would witness the first world war, America remained out of the fight until the end of the war, it chose instead to build its own economy by manufacturing and shipping them out along with other exports acrossthe atlantic to Europe, american workers were payed with a piece of paper -federal reserve notes- and payments from Europe into America were made with the true measure of wealth: Gold.
And to continue funding their wars, the nations of Europe abandoned the gold standard - that is - they broke their promise to back these notes with gold, as the notes no longer had any gold backing, the govenments just kept printing more and more, in Germany the sheer volume of bank notes increased by a staggering amount
When countries simply print notes irrespective of the demand for goods and services prices simply rise, in Germany bread that cost 100 Marks at the beginning of the war, rose to 2 Billion Marks by the end of the war, so the people of Germany not only lost their gold to the jews, they also lost their savings because the mark - just became another meaningless piece of paper.
Soon after world war I, America also abandoned the gold standard on a domestic level confiscating the american people's real wealth through an executive decree, and ordering the american people to hand in all their gold.
The federal reserve then printed new dollar bills and removed the words "REDEEMABLE IN GOLD"
Now, on a domestic level a fedral reserve note was only redeembale for another federal reserve note.
With gold out of the equation, bank notes now became the pre-eminent measure of all goods and services, the bankers had succesfully replaced gold.
Gold - real wealth - that was toiled for and extracted from the earth's crust and sifted before being melted and converted into coinage, replaced by piece of paper imposed on the people and printed at the discretion of the jews throughout the world.
Shortly after this great theft, the world was blasted by the shock of World War II, the waring nations yet again exhausted their gold supplies through war, but in the early stages of the war, America resorted to the same tactics they had previously employed in WW1, selling armaments, food and other commodities to Europe in return for Gold.
With the great influx of gold from the two world wars coupled with the gold confiscation, America now held a high proportion of the world's gold, it used this position of strenght to organize a meeting in Bretton Woods with over 40 other nations, here it developed a new banking and foreign exchange sytem post-WWII, called the Bretton Woods System
THE BRETTON WOODS SYSTEM
Under this new system, the federal reserve note world remains on an international level redeemable for gold at a fixed rate of 35 dollars an ounce and the rest of the nations would link their notes to the federal reserve note: THE FEDERAL RESERVE WAS NOW THE BANKER TO ALL THE NATIONS OF THE WORLD.Countries therefore now had to accumulate dollars in their reserves in order to engage in international trade, and how did they acquire these dollars? They had to gove America either their exports or their gold, in return all the federal reserve had to do was print pieces of paper worth next to nothing.
Filled with arrogance and brimming with worthless dollar notes, America now attempted to implement this capitalist system worldwide beginning with the communist nation of Vietnam, but America's war with Vietnam exposed their fraud to the world. To continue funding the Vietnam war, the federal reserve printed and lent out more notes to the American government that it could ever redeem for gold, nations worldwide began taking note of this fraud and in the years leading to the end of the Vietnam war, they began exercising their redemption rights to gold which resulted in the commencement of the flow of gold out of America.
To protect their remaining gold reserves, the federal reserve counter-acted with another conceded presidential decree, this time delivered by president Nixon who annulled the Bretton Woods system by cancelling all redemption rights to gold.
View: https://www.youtube.com/watch?v=7_Xw5tWsOQo
This meant that the federal reserve note for the first time was no longer backed by gold on an international level, it was not just another worthless piece of paper.
And because the dollar was no longer redeemable for gold, the jewish former chairman of the federal reserve arrogantly proclaimed:
View: https://www.youtube.com/watch?v=Ck3FuTzZvhI
In fact, following the Nixon decree, the amount of base dollar in circulation generated by the federal reserve rose from a little over 200 billion dollars to to over 2,500 trillion dollars
And through the process of fractional reserve banking, this time under the federal reserve system, banks are also allowed to create new digital dollars called bank credits against loan contracts such as mortgages, in fact, this is how most the dollars in circulation are generated as the graph reveals:
Now, at the peak of this jewish system stands the application of the most insidious instrument: Interest.
INTEREST
To borrow dollars from the federal reserve, the american government first issues a bond which is simply a loan contract to borrow a set amount dollars and pay them back with interestThe federal reserve then purchases these bonds via private banks and upon completion of this transaction federal reserve notes are simply printed into existence, but when the federal reserve creates dollars against the bond or when banks create dollars against a loan contract for that matter, only the amount of principal on the loan is actually created
But the loan has to be payed back with interest
So a question arises: if the banks are creating these dollars through loans, then where do the dollars to pay back the interest come from?
The answer is: they don't exist.
For under this fraudulent system, the debt's total amount (the principal + interest) will always be greater than the amount of the principal on the loan
Therefore, extra dollars have to continually be borrowed into existence in order to pay for the oppressive interest payments on the loan as financial analyst Mike Maloney illustrates:
View: https://www.youtube.com/watch?v=a2XRxSdeFVY
This also means that inflation is an inherent and perpetual part of this evil system as new dollars are always required to be pumped into it therefore prices will always rise.
The dollar has in fact lost almost all of its value since the federal reserve came into existence
To put this into perspective, a load of bread that cost $0.06 at the time of the federal reserve's inception, today costs over $1.50 ; that's a price increase of over 2200% , this is plain theft because it robs the people of their savings.
Now with so many dollars being generated, a couple of important questions arise, why isn't America feeling the effects of inflation more sharply than it is, and why there continues to remain a demand for these fraudulent notes?
The answer lie in linking the dollar to a commodity that no nation could effectively function without, refered to by americans as black gold, this commodity is Oil, it is the lifeblood of all economies, fueling motor vehicles power plants and factories; and it also helps protect these countries by fueling their war machines.
Accordingly the demand for oil will always be high and so too, as a result, the demand for US dollars.
Following the Nixon decree, the american government directed the saudi government to use its strong influence in OPEC whose membership is comprised of the leading oil producing nations to manipulate oil prices and ensure that oil woild only be sold in federal reserve dollars. In return, america would continue to militarily and politically support the saudi regime, these agreements came to be known as the Petrodollar system.
THE PETRODOLLAR SYSTEM
This system firstly meant that America - directed by the federal reserve - could simply print dollars worth no more than the paper they were printed on in order to purchase oil [which should have been sold for gold].Secondly, as nations now required US dollars to purchase oil, America could also ship its inflation overseas as financial commentator Edward Griffin highlights
View: https://youtu.be/DyV0OfU3-FU?feature=shared&t=1115
And even if countries weren't swaping exports for dollars, they still nonetheless have to hold federal reserve dollars in order to purchase oil and trade internationally, which meant remained outside America.
Thirdly, the petrodollar system aided America in getting away with continuously spending more than it could earn, to illustrate, America's revenue for 2014 was 3 trillion dollars, its expenses however were 3.5 trillion dollars: a difference of 500 billion dollars
So to pay for this huge difference, America issues bonds to borrow the extra dollars it needs, this is called deficit spending.
So how does America continue to get away with this deficit spending while also maintaining enormous trade deficit? Again the answer lies in the petrodollar system.
The petrodollar system created a high demand for US dollars which in turn made US bonds very marketable, to illustrate the implications of this benifit, China sends their exports to America, in return of US dollars which then pile up in China's dollar reserves, but instead of letting these dollars simply sit there, China uses a large proportion of them to purchase US bonds which pay interest, so the dollars return back to America, and America then reuses them to purchase even more imports, so in the end, the dollars remain largely outside of America and America can always spend more than it could ever earn without sharply feeling the effects of inflation.
The big irony is that under the petrodollar system, the saudi and other oil exporting countries who already own the oil, were nonethless required to use a large part of their oil revenue to also purchase US bonds which pay interest thereby also allowing America to reuse these dollars to puchase more imports or further build its military capabilities.
In fact, the amount of american bonds alone held by the nations of the world is staggering, with China owning the largest piece of the pie.
But the petrodollar system that helps sustain America's bond market is also their Achilles heel, when struck it will mark the death of this oppressive bank note and bring America - the symbol of injustice and tyranny - to her knees, for this system born out of the tyranny of banks and established upon the foundation of interest, together with the nation that it funds, will be destroyed on the same usurious foundation upon which it was established.
There are two key manifetations of America's financial vulnerability:
Firstly, if dollars are not continually pumped into the system to pay for the intrest on bank loans, their entire fraudulant system will collapse on itself.
Secondly, with the current upheaval of the geopolitical landscape, major nations led by Russia and China have already demonstrated their willingness and ability to strategically attack the petrodollar system and US bond market by simply dumping US bonds.
When nations begin dumping US bonds, the real consequences of borrowing on interest will be felt: Interest rates goes up, stock markets fall, debts rise etc... you start death spiral and there is no way out of it.
And when the petrodollar system is shattered and nations beging clearing US dollars from their reserves, the value of US dollars will also fall: when the time comes, as it looks like it's now coming, when the rest of the world is saying we dont wanna play this game anymore, those dollars start to come back to America, once this little trickle of money is coming back that the US previously exported - once it becomes a flood and starts to rush back - the US will get its former exported inflation brought back to her, that's when we will really see the tanking of the US dollar in terms of what it would buy.
But at the same time, the other nations cannot move too quickly, as they also benifit from this system by printing their own fraudulent notes, so they play a waiting game holding out for the geopolitical or economic trigger that will bring about the ultimate collapse of the dollar while taking measure to protect themselves by returning to and stockpiling the world's only true measure of wealth and the ultimate medium of exchange: Gold, as the following graph illustrates.
