Currency Supply And Centralized Private Banking

Introduction

There is a very real and widespread financial crisis which plagues modern society today. Those who recognize the existence of such calamity often readily divert from such discussions as they entail a great level of complexity. Not only that – most people would rather not begin discussing the greed-driven central banking crisis because the topic is really quite disturbing (Take a quick look at the US Debt Clock and you can get a quick glimpse of why many are disturbed by the topic). Denial, however, will not ever bring a solution to the problems at hand. The TRUTH about these matters is what has the power to SET YOU FREE.

truth will set you free

This article includes a list of valuable and essential resources which each contain parts to the full story of what is going on – the story of the economic debt-slavery of humanity.

Hidden Secrets of Money

Currency vs. Money (Hidden Secrets of Money, Episode 1)
Mike Maloney travels to Egypt to unravel the difference between money and currency. Many people have been led to believe they are the same thing, a misconception that could have dire consequences in the near future.

Seven Stages of Empire (Hidden Secrets of Money, Episode 2)
In Greece, Mike discovers when and why currency became money. Then he covers the seven economic stages every Empire goes through. During a private meeting in London, he looks at 140 years of U.S. monetary history to reveal which stage we are in now.

From Dollar Crisis To Golden Opportunity (Hidden Secrets of Money, Episode 3)
Mike states his case for why the world will soon have a new monetary system. He covers events converging today, including countries repatriating gold and bilateral trade agreements, that marks the beginning of the end for the U.S. Dollar Standard.

The Biggest Scam in the History of Mankind (Hidden Secrets of Money, Episode 4)
Mike reveals one of the biggest secrets in the history of the world. It’s a secret that affects everyone on this planet. Most people can feel deep down that something isn’t quite right with the world economy, but few know what it is.

Rise of Hitler Was Economics (Hidden Secrets of Money, Episode 5)
Mike travels to Germany to show you the quality of a society is directly proportional to the quality of its money. When a currency is debased long enough, you get dangerous deficits, debt-driven disasters, and eventually… delusional dictators.

The Roller Coaster Crash (Hidden Secrets of Money, Episode 6)
Mike shares four reasons a deflationary crash bigger than 1929 is coming. This episode features all his latest evidence rolled into one, succinct argument that makes it easy to see exactly how the Fed and the world’s central banks have set us up for a collapse.

The USA’s Day Of Reckoning (Hidden Secrets Of Money, Episode 7)
Mike Maloney glimpses into the near future to show you how fast the U.S. dollar and economy could collapse. You’ll learn about the velocity of currency, a concept economists try to complicate but is actually quite simple when you realize it has more to do with psychology than numbers.

Central Banking: the Big Picture

The simple steps of private central banking are as follows:

Step 1: Government creates glorified I.O.U.s
Step 2: Banks swap I.O.U.s to create currency
Step 3: Government spends the currency
Step 4: Banks multiply the currency by fractional reserve
Step 5: Wages are taxed
Step 6: The Debt Ceiling delusion is propagated
Step 7: Secret shareholders of the Federal Reserve take their cut

hidden secrets of money
“Hidden Secrets of Money: Episode 4” – Mike Maloney

Important Quotes

quote-john-maynard-keynes

The following quotations are from various notable individuals throughout history as they spoke on these topics of central private banking and the creation of the money supply.

(These quotes and many others like them can be found HERE.)

Bankers

William Paterson

“The bank hath benefit of interest on all moneys which it creates out of nothing.”

William Paterson
Founder of the Bank of England in 1694, then a privately owned bank

 


Mayer Amschel Rothschild

“Let me issue and control a nation’s money and I care not who writes the laws.”

Mayer Amschel Rothschild (1744-1812)
Founder of the House of Rothschild


“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

The Rothschild brothers of London
Writing to associates in New York, 1863.


Sir Josiah Stamp“Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the fortunes like mine will disappear, and they ought to disappear, for this world would be a happier and better world to live in. But if you wish to remain slaves of the Bankers and pay for the cost of your own slavery, let them continue to create deposits.”

Sir Josiah Stamp
President of the Bank of England in the 1920s, the second richest man in Britain.


reginald mckenna“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”

Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924


“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.”

H W White
Chairman of the Associated Banks of New Zealand
While addressing the New Zealand Monetary Commission, (1955)


Politicians

thomas-jefferson“I believe that banking institutions are more dangerous to our liberties than standing armies.”

Thomas Jefferson
US President (1801-1809)

“If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations will grow up around them, 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.”

Thomas Jefferson
In the debate over The Re-charter of the Bank Bill (1809)


napoleon-bonaparte“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

Napoleon Bonaparte
Emperor of France


karl-marx“Money plays the largest part in determining the course of history.”

Karl Marx
Communist Manifesto (1848)

 


james_abram_garfield“Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

James Garfield

US President

Assassinated within weeks of the release of this statement during the first year of his Presidency in 1881


abraham_lincoln

“The government should create, issue and circulate all the currency and credits needed to satisfy the spending power of the government and the buying power of consumers. By adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.”

Abraham Lincoln
US President 1861-1865

He created government issued money during the American Civil War and was assassinated


otto_von_bismarck

“The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilization.”

Otto von Bismark (1815-1898)
German Chancellor, after the Lincoln assassination


“That this House considers that the continued issue of all the means of exchange – be they coin, bank-notes or credit, largely passed on by cheques – by private firms as an interest-bearing debt against the public should cease forthwith; that the Sovereign power and duty of issuing money in all forms should be returned to the Crown, then to be put into circulation free of all debt and interest obligations…”

Captain Henry Kerby MP
In an Early Day Motion tabled in 1964


“Banks lend by creating credit. They create the means of payment out of nothing.”

Ralph M Hawtry

Former Secretary to the Treasury


“… our whole monetary system is dishonest, as it is debt-based… We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned.”

The Earl of Caithness
In a speech to the House of Lords, 1997


Others

leo-tolstoy“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.”

Leo Tolstoy
Russian writer


henry-ford“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

Henry Ford
Founder of the Ford Motor Company


“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. Banks can in fact inflate, mint and un- mint the modern ledger-entry currency.”

Major L L B Angus


john_kenneth_galbraith

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.”

John Kenneth Galbraith (1908- )
Former professor of economics at Harvard
In his book, ‘Money: Whence it came, where it went’ (1975)

Conclusion

The journey of a thousand miles begins with the first step. No change will ever come to this world or to your life, personally, if you do not TAKE ACTION.

Read about how cryptocurrency is solving the crisis of centralized private banking in William Thompson’s article, Why People Argue Bitcoin Price but Miss the Bitcoin Value.


Written by: William Thompson – Founder & CEO of Resonova International Consulting, LLC

Quotes on Money, Banking, the Issuance of Currency, and the Federal Reserve

History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.” — President James Madison (1809-1817)

The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the Revolution.” — Benjamin Franklin (Founding Father of the United States)

The Congress shall have power to… coin money [and] regulate the value thereof.” — Section 8, U.S. Constitution, 1783

The eyes of our citizens are not sufficiently open to the true cause of our distress. They ascribe them to everything but their true cause, the banking system.” — Thomas Jefferson

All the perplexities, confusion and distress in America arise not from defects in our Constitution; not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.” — President John Adams, 2nd U.S. President

I killed the bank.” — Written on the grave of Andrew Jackson (1767-1845)

The few who understand the system will either be so interested in its profits or so dependent on its favors that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.” — John Sherman letter sent to New York bankers, Morton, and Gould, in support of the then proposed National Banking Act, 1863

Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — President James A. Garfield, assassinated 1881

People who will not turn a shovel of dirt on the project, nor contribute a pound of material, will collect more money, from the United States, than will the people, who supply all the material and do all the work. This is the terrible thing about interest… But here is the point: If the nation can issue a dollar bond, it can also issue a dollar bill. The element that makes the bond good, makes the bill good, also. The difference, between the bond and the bill, is that the bond lets the money-broker collect twice the amount of the bond, and an additional 20%. Whereas the currency, the honest sort, provided by the Constitution, pays nobody, but those, who contribute in some useful way. It is absurd, to say that our country can issue bonds, and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the people.” — Thomas Edison

The Morgan interests took advantage… to precipitate the panic [of 1907], guiding it shrewdly as it progressed.” — Life Magazine, 1907

Let me control a peoples currency and I care not who makes their laws.” — Meyer Nathaniel Rothschild in a speech to a gathering of world bankers February 12, 1912, a requote of his ancestor Meyer Amschel.

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit… We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world – no longer a Government of free opinion, no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men.” — Woodrow Wilson, 1919

The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money” — Charles A. Lindbergh, Sr., 1923

I am afraid that the ordinary citizen will not like to be told that the banks can and do CREATE money, and they who control the credit of the nation direct the policies of governments and hold in their hands the destiny of the people.” — Reginald McKenna (1863-1943), President of the Midlands Bank of England, UK Chancellor 1915-16, January 1924

When the Federal Reserve Act was passed, the people of these United States did not perceive that a world banking system was being set up here. A super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure. Every effort has been made by the Fed (Reserve) to conceal its powers but the truth is — the Fed has usurped the government!” — Congressman Louis McFadden, Chairman of House Comm. on Banking and Currency from 1920 to 1931

[The Depression] was a carefully contrived occurrence. International bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all.” — Louis T McFadden

The depression was the calculated ‘shearing’ of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market….The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.” — Curtis Dall, FDR’s son-in-law as quoted in his book, My Exploited Father-in-Law

The Federal Reserve is one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this Nation is run by the international bankers.” — Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee, June 20, 1932

Some people think the Federal Reserve Banks are United States Government Institution. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers.” — Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee, June 20, 1932

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency… By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some… The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” — John Maynard Keynes

The increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks.” — Eustace Mullins In Secrets of the Federal Reserve (1952)

Here are the simple facts of the great betrayal. Wilson and House knew that they were doing something momentous. One cannot fathom men’s motive’s and this pair probably believed in what they were up to. What they did not believe in was representative government. They believed in government by an uncontrolled oligarchy whose acts would only become apparent after an interval so long that the electorate would be forever incapable of doing anything efficient to remedy depredations.” — Ezra Pound in the intro to Secrets of the Federal Reserve (1952)

The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements, arrived at in frequent private meetings and conferences. The apex of the system was the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the worlds’ central banks which were themselves private corporations. The growth of financial capitalism made possible a centralization of world economic control and use of this power for the direct benefit of financiers and the indirect injury of all other economic groups.” — Professor Carroll Quigley, 1966

The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present which put nations and peoples under the control of the few. If the American people knew the corruption in our money system there would revolution before morning!” — Henry Ford, Sr (1863-1947)

We have gold because we cannot trust Governments.” — President Herbert Hoover (1929-1933)

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” — Alan Greenspan, in 1966, before becoming Chairman of the Federal Reserve Board, 1987-2006.

This is a staggering thought. 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. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.” — Robert H. Hemphill (Credit Manager of Federal Reserve Bank, Atlanta, Ga.)

I cannot morally blame all Americans for allowing, for instance, the birth of the Federal Reserve System and the money destruction that has followed. They are simply ignorant about it and don’t know what happened or what is happening. They think that prices go up rather than that dollars go down.” — Robert R. Prechter, Jr, economist born 1949

When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.” — Boston Federal Reserve Bank

Every Congressman, every Senator knows precisely what causes inflation…but can’t support the drastic reforms to stop it because it could cost him his job.“ — Robert A.. Heinlein, Expanded Universe, 1980

The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.” — U.S. President Franklin D. Roosevelt in a letter written Nov. 21, 1993 to Colonel E. Mandell House

If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations.” — Andrew Jackson

The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.” — Abraham Lincoln

We can’t be so fixated on our desire to preserve the rights of ordinary Americans.” — Bill Clinton, USA Today on 3/11/93, page2a

Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.” — Henry Kissinger, Bilderberger Conference in Evians, France, 1991

The drive of the Rockefellers and their allies is to create a one-world government combining super capitalism and Communism under the same tent, all under their control…. Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent.” — Congressman Larry P. McDonald, 1976, killed in the Korean Airlines 747 that was shot down by the Soviets

Some even believe we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.” — David Rockefeller, Memoirs, page 405

It is the system of nationalist individualism that has to go….We are living in the end of the sovereign states….In the great struggle to evoke a Westernized World Socialism, contemporary governments may vanish….Countless people…will hate the new world order….and will die protesting against it.” — H.G. Wells, in his book, “The New World Order”, 1940

Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again… If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.” — Sir Josiah Stamp, Director, Bank of England, 1940.

We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.” — David Rockefeller

We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years… It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.” — David Rockefeller, Bilderberg Meeting, June 1991 Baden, Germany

Give me control of a nation’s money and I care not who makes it’s laws.” — Mayer Amschel Bauer Rothschild

I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war.” — Abraham Lincoln – In a letter written to William Elkin

In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn’t such a great idea after all.” — Strobe Talbot, President Clinton’s Deputy Secretary of State, Time Magazine, July 20th, 1992

The money power preys on the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes.” — Abraham Lincoln

A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world – no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men…. Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.” — Woodrow Wilson – In The New Freedom (1913)

The fact is that there is a serious danger of this country becoming a Pluto-democracy; that is, a sham republic with the real government in the hands of a small clique of enormously wealthy men, who speak through their money, and whose influence, even today, radiates to every corner of the United States.” — William McAdoo – President Wilson’s national campaign vice-chairman, wrote in Crowded Years

The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction… I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.” — Thomas Jefferson

I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.” — Thomas Jefferson

… To take a single step beyond the boundaries thus specially drawn around the powers of Congress is to take possession of a boundless field of power, no longer susceptible of any definition. The incorporation of a bank, and the powers assumed by this bill [chartering the first Bank of the United States], have not, been delegated to the United States by the Constitution.” — Thomas Jefferson – in opposition to the chartering of the first Bank of the United States (1791).

We have stricken the (slave) shackles from four million human beings and brought all laborers to a common level not so much by the elevation of former slaves as by practically reducing the whole working population, white and black, to a condition of serfdom. While boasting of our noble deeds, we are careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery.” — Horace Greeley – (1811-1872) founder of the New York Tribune

When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it.” — Frederic Bastiat – (1801-1850) in Economic Sophisms

In a small Swiss city sits an international organization so obscure and secretive….Control of the institution, the Bank for International Settlements, lies with some of the world’s most powerful and least visible men: the heads of 32 central banks, officials able to shift billions of dollars and alter the course of economies at the stroke of a pen.” — Keith Bradsher of the New York Times, August 5, 1995

The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements….The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States….The United States under present conditions will be transformed from the most active of manufacturing nations into a consuming and importing nation with a balance of trade against it.” — Rep. Louis McFadden, Chairman of the House Committee on Banking and Currency, quoted in the New York Times (June 1930)

Nothing did more to spur the boom in stocks than the decision made by the New York Federal Reserve bank, in the spring of 1927, to cut the rediscount rate. Benjamin Strong, Governor of the bank, was chief advocate of this unwise measure, which was taken largely at the behest of Montagu Norman of the Bank of England….At the time of the Banks action I warned of its consequences….I felt that sooner or later the market had to break.” — Money baron Bernard Baruch in Baruch: The Public Years (1960)

The Federal Reserve Bank is nothing but a banking fraud and an unlawful crime against civilization. Why? Because they “create” the money made out of nothing, and our Uncle Sap Government issues their “Federal Reserve Notes” and stamps our Government approval with NO obligation whatever from these Federal Reserve Banks, Individual Banks or National Banks, etc.” — H.L. Birum, Sr., American Mercury, August 1957, p. 43

[The] abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holdings illegal, as was done in the case of gold…. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves…. [This] is the shabby secret of the welfare statist’s tirades against gold. Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” — Alan Greenspan in an article he wrote in 1966.

I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within.” — General Douglas MacArthur

In March, 1915, the J.P. Morgan interests, the steel, shipbuilding, and powder interest, and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press….They found it was only necessary to purchase the control of 25 of the greatest papers. “An agreement was reached; the policy of the papers was bought, to be paid for by the month; an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers.” — U.S. Congressman Oscar Callaway, 1917

The invisible Money Power is working to control and enslave mankind. It financed Communism, Fascism, Marxism, Zionism, Socialism. All of these are directed to making the United States a member of a World Government.” — American Mercury Magazine, December 1957, p. 92

The world is governed by very different personages from what is imagined by those who are not behind the scenes.” — Benjamin Disraeli, first Prime Minister of England, “Coningsby, the New Generation”, 1844

I believe that if the people of this nation fully understood what Congress has done to them over the last 49 years, they would move on Washington; they would not wait for an election….It adds up to a preconceived plan to destroy the economic and social independence of the United States!” — George W. Malone, U.S. Senator (Nevada), speaking before Congress, 1957

The United Nations will spearhead our efforts to manage the new conflicts (that afflict our world)….Yes the principles of the United Nations Charter are worth our lives, our fortunes, and our sacred honor.” — General Colin Powell, 4/21/93, receiving the UN-USA Global Leadership Award

The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses… This little coterie…runs our government for their own selfish ends. It operates under cover of a self-created screen…seizes…our executive officers…legislative bodies…schools… courts…newspapers and every agency created for the public protection.” — John F. Hylan, Mayor of New York, Mayor, 1918-1925

The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power–Political, Monetary, Intellectual, and Ecclesiastical.” — U.S. Senator Barry Goldwater, his book “No Apologies”, 1964

From the days of Spartacus, Weishaupt, Karl Marx, Trotski, Belacoon, Rosa Luxenberg and Ema Goldman, this world conspiracy has been steadily growing. This conspiracy played a definite recognizable role in the French Revolution. It has been the mainspring of every subversive movement during the 19th century. And now at last, this band of extraordinary personalities from the under- world of the great cities of Europe and America have gripped the Russian people by the hair of their head and have become the undisputed masters of that enormous empire.” — Winston Churchill to the London press in 1922.

The governments of the present day have to deal not merely with other governments, with emperors, kings and ministers, but also with the secret societies which have everywhere their unscrupulous agents, and can at the last moment upset all the governments’ plans.” — British Prime Minister Benjamin Disraeli, 1876

For some time I have been disturbed by the way the CIA has been diverted from its original assignment. It has become an operational and at times a policy making arm of the government.” — President Harry Truman

The idea was that those who direct the overall conspiracy could use the differences in those two so-called ideologies [Marxism/fascism/socialism v. democracy/capitalism] to enable them [the Illuminati] to divide larger and larger portions of the human race into opposing camps so that they could be armed and then brainwashed into fighting and destroying each other.” — Myron Fagan

From the earliest days, the Rothschilds appreciated the importance of proximity to politicians, the men who determined not only the extent of budget deficits but also the domestic and foreign policies…” — Niall Ferguson

By remaining behind the scenes, they (the Rothschilds) were able to avoid the brunt of public anger which was directed, instead, at the political figures which they largely controlled. This is a technique which has been practiced by financial manipulators ever since, and it is fully utilized by those who operate the Federal Reserve System today.” — G. Edward Griffin

Lord Rothschild had access to all manner of leaders and experts. He was responsible only to the Prime Minister and answerable to neither the electorate nor the civil service chiefs.” — Derek Wilson

Throughout the first half of the nineteenth century, the (Rothschild) brothers conducted important transactions on behalf of the governments of England, France, Prussia, Austria, Belgium, Spain, Naples, Portugal, Brazil, various German states and smaller countries. They were the personal bankers of many of the crowned heads of Europe. They made large investments, through agents, in markets as distant as the United States, India, Cuba and Australia.” — G. Edward Griffin

The money power denounces, as public enemies, all who question its methods or throw light upon its crimes.” — Democrat Presidential candidate William Jennings Bryan

This Federal Reserve Act establishes the most gigantic trust on earth. When the President (Wilson) signs this bill the invisible government of the Monetary Power will be legalized.” — Hon. Charles A. Lindbergh, Sr.

The process by which banks create money is so simple that the mind is repelled.” — John K. Galbraith, in “Money: Whence it came, where it went”, p. 29.

The banks do create money. They have been doing it for a long time, but they didn’t quite realize it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must all be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create credit.” — H. W. White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.” — Daniel Webster

Nothing but widespread suffering will produce any effect on Congress… Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the bank.” — Nicholas Biddle

There cannot be stable money within an environment dominated by ideologies hostile to the preservation of economic freedom.” — Ludwig von Mises

Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” — Daniel Webster

Every circulating FRN (Federal Reserve Note) represents a one dollar debt to the Federal Reserve System.” — Money Facts, House Banking and Currency Committee

Neither paper currency nor deposits have value as commodities, intrinsically; a ‘dollar’ bill is just a piece of paper. Deposits are merely book entries.” — Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975

The governments alone are responsible for the spread of the superstitious awe with which the common man looks upon every bit of paper upon which the treasury or agencies which it controls have printed the magical words legal tender.” — Ludwig von Mises

Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people.” — Reginald McKenna, former Chancellor of Exchequer, England

How pale is the art of sorcerers, witches, and conjurors when compared with that of the government’s Treasury Department!” — Ludwig von Mises

We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.” — Congressman Louis T. McFadden in 1932

If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit.” — Ludwig von Mises

Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon.” — Robert H. Hemphill, former credit manager, Federal Reserve Bank of Atlanta

Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess.” — Irving Fisher, 100% Money

Without the confidence factor, many believe a paper money system is liable to collapse eventually.” — Federal Reserve Bank of Philadelphia, Gold, p. 10

Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal — that there is no human relation between master and slave.” — Leo Tolstoy

You are a den of vipers and thieves and I intend to rout you out, and by the eternal God, I will rout you out. If Congress has the right to issue paper money, it was given them to be used by themselves, and not to be delegated to individuals or corporations..” — Andrew Jackson’s address to Congress 1829

I have two great enemies, the southern army in front of me and the financial institutions, in the rear. Of the two, the one in the rear is the greatest enemy….. I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war.” — Abraham Lincoln

I wish it were possible to obtain a single amendment to our constitution – taking from the federal government their power of borrowing.” — Thomas Jefferson, 1798

If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, 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.” — Thomas Jefferson, The Debate Over The Recharter Of The Bank Bill, (1809).

In the Colonies, we issue our own paper money. It is called ‘Colonial Scrip.’ We issue it in proper proportion to make the goods and pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one. In this manner, by creating ourselves our own paper money, we control its purchasing power, and we have no interest to pay, to anyone.

You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury.” — Benjamin Franklin Autobiography

If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.” — Hazard Circular – London Times 1865

The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the US, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world.” — Otto von Bismark, Chancellor of Germany 1876

The earth, in its natural, uncultivated state was, and ever would have continued to be, the common property of the human race.” As the land gets cultivated, “it is the value of the improvement, only, and not the earth itself, that is in individual property. Every proprietor, therefore, of cultivated lands, owes to the community a ground-rent..to every person, rich or poor…because it is in lieu of the natural inheritance, which, as a right, belongs to every man, over and above the property he may have created, or inherited from those who did” — Thomas Paine 1796, p. 611; 612-613

When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” — Napoleon Bonaparte, 1815

If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also. The difference between the bond and the bill is the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who contribute directly in some useful way. It is absurd to say that our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people.” — Thomas Edison, The New York Times, December 6, 1921

The Central Banks (which charge interest to governments for the money they produce from out of nothing, with no labour or wealth involved) have secured these loans against your future taxes. Without even asking you, a substantial part of your future worth has been put up as collateral. What Central Banks do in a big way with countries, your local bank will replicate on organisations and individuals, using the same slight of hand to produce the funds they lend out of thin air.” — Alternative Trading Network article

Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” — James Garfield (assassinated within weeks of release of this statement during first year of his Presidency in 1881)

Money plays the largest part in determining the course of history” — Karl Marx (Communist Manifesto)

Those few who can understand the system will either be so interested in its profits, or so dependent on its favors, that there will be little opposition from that class, while on the other hand, the great body of people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” — The Rothschild Brothers of London

Every gun that is made, every warship launched, every rocket fired signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of it laborers, the genius of its scientists and the hopes of its children” — President Dwight D. Eisenhower

Since 1940, Washington has spent the unimaginable sum of $20 trillion ($20,000,000,000,000!) on the military–enough money to have provided for adequate nutrition, clean water, electrification, housing, literacy, and basic health care for the world’s entire population. In the next four years alone an additional $1.2 trillion will go
down the military rathole. Today the U.S. military budget is bigger than that of the rest of the United Nations Security Council members combined. This bloated military establishment exists to protect and serve U.S. capital–not only to extend and maintain its domination in what used to be called the Third World, the oppressed countries, but also vis-a-vis its imperialist allies and rivals.” — Richard Becker

The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt modern civilization.” — Otto von Bismarck, German Chancellor (1815-1898), after Lincoln assassination.

Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits.” — Sir Josiah Stamp, President of the Bank of England in the 1920’s, the second richest man in Britain

Because of ‘fractional’ reserve system, banks, as a whole, can expand our money supply several times, by making loans and investments.” “Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.” — Federal Reserve Bank, New York

The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money..”Confidence in these forms of money also seems to be tied in some way to the fact that assets exist on the books of the government and the banks equal to the amount of money outstanding, even though most of the assets themselves are no more than pieces of paper–.”, P.3.”Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.”, p. 19. “The 12 regional reserve banks aren’t government institutions, but corporations nominally ‘owned’ by member commercial banks.” — Federal Reserve Bank of Chicago

The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it (p15). The process by which banks create money is so simple that the mind is repelled.” — John Kenneth Galbraith, Money: Whence it came, where it went – 1975, p29.

The bank hath benefit of interest on all moneys which it creates out of nothing.” — William Paterson (founder of Bank of England 1694)

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. Banks can in fact inflate, mint, and un-mint the modern ledger-entry currency.” — Major L. L. B. Angus

Banks lend by creating credit. They create the means of payment, out of nothing.” — Ralph M. Hawtery (Former Secretary of the British Treasury)

There does exist and has existed for a generation, an international Anglophile network which operates, to some extent, in the way the radical Right believes the Communists act. In fact, this network, which we may identify as the Round Table groups, has no aversion to cooperating with the Communists, or any other groups, and frequently does so. I know of the operations of this network because I have studied it for 20 years and was permitted for two years, in the early 1960s, to examine its papers and secret record.” — Carroll Quigley, Georgetown University professor (deceased), in Tragedy and Hope: A History of the World in Our Time, 1966, p.950

The greatest enemy of mankind is his ignorance of the inherent money power in all of us. When the realization of this comes to man, he will like Samson, push down the walls of his prison.” — E.C. Riegel

In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.” — John Kenneth Galbrath

Right after the Civil War there was considerable talk about reviving Lincoln’s brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution.” — W. Cleon Skousen.

While economic textbooks claim that people and corporations are competing for markets and resources, I claim that in reality they are competing for money – using markets and resources to do so. Greed and fear of scarcity are being continuously created and amplified as a direct result of the kind of money we are using. For example, we can produce more than enough food to feed everybody, and there is definitely not enough work for everybody in the world, but there is clearly not enough money to pay for it all. In fact, the job of central banks is to create and maintain that currency scarcity. Money is created when banks lend it into existence When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn’t create the second $100,000 – the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.” — Bernard Lietaer, Former Central Banker

In addition to almost unlimited usury, the bankers have another method of drawing vast amounts of wealth. The banks 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 selling price of the corporation’s stock. After depressing the price, the
bankers’ agents buy large blocks of the company’s stock. Then, if the bank suddenly approves a multi-million dollar loan to the company, 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 “discount rate” to send stocks soaring or crashing at their whim. Banks collect billions in interest by loaning to Government and the Corporations!” — Pastor Sheldon Emry

I went to America in the winter of 1872-73, authorised to secure, if I could, the passage of a bill demonetising silver. It was in the interest of those I represented – the governors of the Bank of England – to have it done. By 1873, gold coins were the only form of coin money.” — Ernest Seyd, agent of Bank of England.

The disaster of the Dark Ages was caused by decreasing money and falling prices… Without money, civilisation could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish. At the Christian era the metallic money of the Roman Empire amounted to $1,800 million. By the end of the fifteenth century it had shrunk to less than $200,million. History records no other such disastrous transition as that from the Roman Empire to the Dark Ages…” — United States Silver Commission

I have never seen more senators express discontent with their jobs. … I think the major cause is that, deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. .. We have defrauded our country to get ourselves elected.” — John Danforth, Republican senator from Missouri, reported in the Arizona Republic of April 21, 1992

Your money’s value is determined by a global casino of unprecedented proportions: $2 trillion are traded per day in foreign exchange markets, 100 times more than the trading volume of all the stock markets of the world combined. Only 2% of these foreign exchange transactions relate to the “real” economy reflecting movements of real goods and services in the world, and 98% are purely speculative. This global casino is triggering the foreign exchange crises which shook Mexico in 1994-5, Asia in 1997 and Russia in 1998. These emergencies are the dislocation symptoms of the old Industrial Age money system.” — Future of Money by Bernard Lietaer

US foreign policy during the Cold War was not primarily about keeping the USSR out of Western Europe, but rather about promoting the global capitalist system on a worldwide stage. American foreign policy since 1945 has primarily been driven by the goal of being hegemon of the world capitalist economic system. As protector of global capitalism, the United States has replaced the United Kingdom which played this role for more than a century before World War II. Although the 1947-91 Cold War presented an easy-to-understand threat to this objective, US diplomacy in these years was not primarily about keeping the USSR out of Western Europe (the usual explanation for containment), but rather about projecting its own power, globally. It was not about making the world safe for democracy, but about being the leader of the capitalist world, upholder of the international economic system.” — Michael Sullivan

Federal Reserve is not Federal and it has doubtful reserves. The name is an open deception designed to give this private bank the appearance that it is operating in the public’s interest, when in fact it is run solely to gain private profit for its select stockholders. It came into being as the result of one of the slickest moves in financial history. On 23rd December 1913 the house of representatives had past the Federal Reserve Act, but it was still having difficulty getting it out of the senate. Most members of congress had gone home for the holidays, but unfortunately the senate had not adjourned sene die (without day) so they were technically still in session. There were only three members still present. On a unanimous consent voice vote the 1913 Federal Reserve Act was passed. No objection was made, possibly because there was no one there to object.” — Who owns the FED

All the ingredients for ending poverty of a person always comes neatly packaged with the person himself. A human being is born in this world fully equipped not only to take care of himself (which all other life-forms can do too), but also to contribute in enlarging the well-being of the world as a whole. Poverty is not created by the poor people. So we shouldn’t give them an accusing look. They are the victims. Poverty has been created by the economic and social system that we have designed for the world. It is the institutions that we have built, and feel so proud of, which created poverty. It is the concepts we developed to understand the reality around us, made us see things wrongly! It is the failure at the top – rather than lack of capability at the bottom – which is the root cause of poverty. Concepts, institutions, and analytical frame conditions which created poverty, cannot end poverty. If we can intelligently re-work the frame conditions, poverty will be gone, never to come back again….Try to imagine how the economists would have built their theory if they had started out with an axiom that all men and women are created equal, that each of them is endowed with unlimited creativity, and each of them is a potential entrepreneur. In some important ways our designing of the theoretical framework of economics or the misrepresentation of it is responsible for perpetuating poverty.” — Commonwealth Lecture 2003 by Professor M. Yunus, Creator of Grameen Bank, Nobel Peace Prize winner 2006

The international bankers swept statesmen, politicians, journalists and jurists all to one side and issued their order with the imperiousness of absolute monarchs.” — Lloyd George, Former British Prime Minister

The governor of the Bank of England…dictates the terms upon which alone the government can obtain borrowed money.” — Sir Drummond Fraser, vice president of The Institute of Bankers, England

Powerful individuals and forces are making enormous fortunes out of the ruin of Australia.” — B. A. Santamaria

We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the United States for the benefit of themselves and their foreign customers. The Federal Reserve banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.” — Congressman Louis T. McFadden, Chairman of the House Banking and Currency Committee, addressed the House on June 10, 1932. 75 Congressional Record 12595-12603

The Federal Reserve banks are privately owned, locally controlled, separate corporations.” — The Ninth Circuit Court, USA – (Lewis v. United States on June 24, 1982)

…bank records are not the depositor’s private papers and having given the information to the bank, the depositor has no legitimate expectation of continued privacy…” — United States Supreme Court in U.S. v. Miller

…100% of what is collected is absorbed solely by interest on the Federal Debt…all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government.” — 1984 Grace Commission report submitted to President Ronald Regan

If all bank loans were paid…there would not be a dollar of coin or currency in circulation. Someone has to borrow every dollar we have in circulation. We are absolutely without a permanent money system.” — Robert Hemphill, Federal Reserve Bank in Atlanta, in foreword to “100% Money” by Irving Fisher

Democracy is a form of government that cannot long survive, for as soon as the people learn that they have a voice in the fiscal policies of the government, they will move to vote for themselves all the money in the treasury, and bankrupt the nation.” — Karl Marx, 1848 author of “The Communist Manifesto”

Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When through the process of law the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.” — 1924 US Bankers Association Magazine

When Rothschild said, “Let me issue and control a nation’s money and I care not who writes its laws”, it was the beginning of the modern era’s financial, political, social, commercial, and military strife and subversion.” — perfecteconomy.com

Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve system have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.” — Barry Goldwater, R-AZ

The whole aim of practical politics is to keep the populace in a continual state of alarm (and hence clamorous to be led to safety) by menacing them with an endless series of hobgoblins, all of them imaginary.” — H.L. Mencken

I have unwittingly ruined my country.” — W. Wilson, upon passage of Federal Reserve Act, 1913

If one understands that Socialism is not a “share the wealth” program but is in reality a method to consolidate and control the wealth, then the seeming paradox of super rich men promoting Socialism becomes no paradox at all. Instead it becomes logical, even the perfect tool of power-seeking megalomaniacs. Communism, or more accurately Socialism, is not a movement of the down-trodden masses but of the economic elite.” — Gary Allen

It (the Great Depression) was not accidental; it was a carefully contrived occurrence. The international Bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.” — Louis McFadden

It is well enough that the people of this nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford

You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect to these gentlemen, I advise you to vote for gold.” — George Bernard Shaw

Assembled by William Thompson

Breaking the Blockchain

Hard Fork

DEFINITION of ‘Hard Fork’

As it related to blockchain technology, a hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions valid (or vice-versa), and as such requires all nodes or users to upgrade to the latest version of the protocol software. Put differently, a hard fork is a permanent divergence from the previous version of the blockchain, and nodes running previous versions will no longer be accepted by the newest version. This essentially creates a fork in the blockchain, one path which follows the new, upgraded blockchain, and one path which continues along the old path. Generally, after a short period of time, those on the old chain will realize that their version of the blockchain is outdated or irrelevant and quickly upgrade to the latest version.

BREAKING DOWN ‘Hard Fork’

A hard fork can be implemented to correct important security risks found in older versions of the software, to add new functionality, or to reverse transactions (as in the case with the hard fork to reverse the hack on the DAO [decentralized autonomous organization] in the Ethereum blockchain).

blockchain hard fork

A hard fork involves splitting the path of a blockchain by invalidating transactions confirmed by nodes that have not been upgraded to the new version of the protocol software. Following the hack on the DAO, the Ethereum community almost unanimously voted in favor of a hard fork in order to roll back transactions that siphoned off tens of millions of dollars worth of digital currency by an anonymous hacker. The hard fork also allowed DAO token holders to get their ether funds returned to them.

The proposal did not exactly unwind the network’s transaction history. Rather, it relocated the funds tied to The DAO to a newly created smart contract with the single purpose of letting the original owners withdraw them. DAO token holders will be able to withdraw ETH at a rate of approximately 1 ETH to 100 DAO. The extra balance and any ether that remains as a result of the re-entry exploit and the splitting mechanism will be withdrawn and distributed by the DAO curators, or individuals selected prior to the collapse of the DAO to provide “failsafe protection” for the organization.

Soft Fork

DEFINITION of ‘Soft Fork’

In terms of blockchain technology, a soft fork (or sometimes softfork) is a change to the software protocol where only previously valid blocks/transactions are made invalid. Since old nodes will recognize the new blocks as valid, a softfork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules, as opposed to a hard fork which requires all nodes to upgrade and agree on the new version.

BREAKING DOWN ‘Soft Fork’

New transaction types can often be added as soft forks, requiring only that the participants (e.g. sender and receiver) and miners understand the new transaction type. This is done by having the new transaction appear to older clients as a “pay-to-anybody” transaction (of a special form) and getting the miners to agree to reject blocks including these transactions unless the transaction validates under the new rules. This is how pay to script hash (P2SH) was added to Bitcoin.

A soft fork can also occur at times due to a temporary divergence in the blockchain when miners using non-upgraded nodes violate a new consensus rule their nodes don’t know about.

blockchain soft fork

Soft forks don’t require any nodes to upgrade to maintain consensus since all blocks with the new softforked in rules also follow the old rules, therefore old clients accept them. Soft forks cannot be reversed without a hard fork since a soft fork by definition only allows the set of valid blocks to be a proper subset of what was valid pre-fork. If users upgrade to a post-soft fork client and for some reason, a majority of miners switch back to the pre-softfork client, the post-softfork client users would break consensus as soon as a block came along that didn’t follow their client’s new rules. In order for a softfork to work, a majority of the mining power needs to be running a client recognizing the fork. The more miners that accept the new rules, the more secure the network is post-fork. If you have 3/4 of miners recognizing the fork, 1/4 blocks created aren’t guaranteed to follow the new rules. These 1/4 blocks will be valid to old nodes that aren’t aware of the new rules, but they will be ignored by new nodes.

Soft forks have been used on the Bitcoin and Ethereum blockchains, among others, to implement new and upgraded functionalities that are backwards compatible.


Written by: William Thompson – Founder & CEO of ResoNova International Consulting

Content adapted and formatted from source material at bitcoin.org and investopedia.com

The Wealth-Biased Exclusivity of Modern American Investing

The inaccessibility and poor performance of traditional investment vehicles have limited the wealth-building process almost entirely to those with high levels of pre-existing wealth. This exclusivity of investing (growing wealth by investing wealth) has forced all those without pre-existing wealth to attempt to grow wealth by trading time for money (example: by working a “9 to 5” job). Herein lies the hopeless and unfair state of modern economic affairs.

Traditional investing was designed to only be profitable for people with a significant amount of funds to invest. The average financial advisor requires a minimum investment of $50,000. 63% of American’s don’t have enough savings to cover a $500 emergency. Traditional financial systems primarily focus on the small percentage of the American population who can invest enough money to actually see profits.

The average annual stock market returns are quoted as being 7%. (This 7% figure is reached by taking the nominal 10% annual returns on common stocks and including the adjustment of an annual 2% loss of value due to inflation.) However, after closer examination of the data behind this 7% figure, a very different trend emerges.


“Average returns are exceedingly rare — and for a good reason. People are obviously doing something very wrong with their investment dollars.”

Barry L Ritholtz (Bloomberg) – founder and chief investment officer of Ritholtz Wealth Management


The sad truth – according to Bloomberg and investment specialist Barry Ritholtz – is that the average investor actually realizes returns of about 3.7% (See the graph below). This new number of actual returns realized by the “Average Investor” is further diminished when the annual 2% inflation factor is included which leaves the “Average Investor” with only 1.7% returns annually.

Asset Class Returns vs. The "Average Investor"

With all the foregoing information being considered, after taxes, fees, and inflation, a minimum investment of $50,000 will achieve an average of $850 of growth each year. If an average 20-year old invested $50,000 into a managed fund and saved the annual $850 dividends for retirement, that person (upon reaching 60 years of age) who have only $34,000 of accumulated dividends. If that same person also managed to save up an additional $5,000 every year toward their retirement (from the time they were 20 years old until the time they reached 60 years old) on top of their managed fund accumulations, their total amount of retirement savings would come out to $284,000. This falls significantly short of the safe and reasonable retirement savings of $850,000 recommended by Investopedia.

Unfortunately, the vast majority of people do not have $50,000 to invest at 20 years of age and are also unable to save up an additional $5,000 every year. In fact, 63% of Americans don’t even have enough savings to cover a $500 emergency. If you invest $500 without a financial advisor and the growth is also the average realized return of 1.7%, you will see an average $8.50 of growth each year.

The obvious conclusion, based on the data presented above, is simply this: Unless individuals have access to $50,000 or more, they are excluded by mainstream investing and must resign themselves to the common “paycheck to paycheck” lifestyle which inevitably ends in poverty with no retirement and no inheritance remaining for future generations.

Written by: William Thompson


SOURCES

The Finance Buff, The average Investor Should Use an Investment Advisor: How To Find One – https://thefinancebuff.com/the-average-investor-should-use-an-investment-advisor-how-to-find-one.html

Forbes, 63% Of Americans Don’t Have Enough Savings To Cover A $500 Emergency – http://www.forbes.com/sites/maggiemcgrath/2016/01/06/63-of-americans-dont-have-enough-savings-to-cover-a-500-emergency/#77ddd3df6dde

The Simple Dollar, Average Stock Market Return: Where does 7% Come From? – http://www.thesimpledollar.com/where-does-7-come-from-when-it-comes-to-long-term-stock-returns/

Bloomberg, Average Returns, Rare Than You Think – https://www.bloomberg.com/view/articles/2015-04-09/average-market-returns-are-rarer-than-you-think

Barry Ritholtz, Asset Class Returns vs. “The Average Investor” – http://ritholtz.com/2015/01/asset-class-returns-vs-the-average-investor/

Jonas Elmerraji (Investopedia), Retirement Planning: How Much Will I Need? – http://www.investopedia.com/university/retirement/retirement2.asp

The Effects of Burning Tokens on a Cryptonomy

By now most stakeholders in blockchain and cryptocurrency have heard the term “token burning” but what does this actually mean? Tokens are not necessarily destroyed or removed from existence. Tokens that are burned are typically sent to the genesis wallet. The genesis wallet is the very first wallet that is formed when a token is created. The interesting thing about these wallets is that tokens sent there cannot be retrieved. This is why people refer to the process of sending tokens there as “burning.” Some projects even base their entire cryptonomy around this concept and call their model “proof-of-burn.”

The Effects of Burning Tokens

Burning tokens will effectively decrease the total number of tokens in circulation. If you had 1 bitcoin out of 21 million bitcoins, then you have 1/21 million of the total market supply. If, however, 2 million tokens are burned and you have held onto your 1 bitcoin, you now possess 1/19 million of the total market supply. Your “slice of the pie” has now grown. The question is, what deeper effects does this have?

One popular reason for burning tokens is to artificially create scarcity. The thought process is simple – if fewer tokens exist and the demand remains constant, then the value of the tokens must increase. While this is not entirely untrue it also is not the most effective manner of managing unsold tokens. Artificially driving up the value of tokens is seen by many people as a poor and ineffective way to operate because it lacks sustainability. If tokens are continuously removed from the ecosystem the remaining token supply will eventually dwindle to an amount that simply cannot maintain the platform. On another hand, there is also a degree of legal concern regarding this form of cryptonomy. Munchee Inc. is the best example of this to date. The SEC, when investigating Munchee, found that by burning tokens Munchee was trying to promise or guarantee investors an “expectation of obtaining a future profit.”

Alternative Uses for Unsold Tokens

Tokens that remain unsold at the end of an ICO do not have to be burned. There are other methods that are equally as good, or even better, for investors. It is certainly in the best interest of a long-term blockchain venture to avoid the burning of tokens.

One possible solution is to offer the remaining tokens for sale on the website, app, or platform developed by the company. This is a very feasible option for companies who are creating a platform where the tokens play an integral part in the user’s ability to interact with the platform.

Another alternative for this is to distribute the unsold tokens, in equal parts, to investors who purchased the tokens during the sale. For example, if 100 million tokens were created, and 50 million were sold (and 10 million left aside for the core team) then there are 40 million tokens remaining. If George bought 1 million of these tokens (2% of the tokens sold) he would receive an additional 2% of the 40 million unsold tokens ( or 800,000 tokens). This greatly benefits the investor without changing the percentage of the token supply allocated to the team, developers, etc.

While burning tokens might seem attractive in the short term by artificially creating scarcity, it is not always the most appropriate way to manage tokens. Companies should always carefully consider the design of their cryptonomy before launching their ICO.

 

How to Write a Whitepaper

There is no shortage of people releasing “whitepapers” for ICO’s that they are planning to launch. One of the most common questions many people ask is “Can you review my whitepaper?” The problem with this is that most people today should not be asking if someone will review their whitepaper before they first ask the question “What is a whitepaper?”

A whitepaper is, in essence, a technical description of the theory you are presenting or the product you are developing. It should explain what the product is, how it works, and what technological underpinnings it is built upon.

What many startups release today and call a whitepaper is realistically no more than a business plan or, even more likely, a pitch deck. There has been a shift towards creating a sharp graphical presentation with minimal evidence that a team can perform what they are promising. This is a dangerous practice and many investors view these kinds of “whitepapers” as a red flag.

What Belongs in a Whitepaper

A whitepaper should contain technical descriptions of what is being proposed or built. The classic example that should be reviewed by those writing their own whitepaper is Satoshi Nakamoto’s bitcoin whitepaper. See the example below of one section:

bitcoin-whitepaper-diagram
Source: Bitcoin Whitepaper

The above description of the simplified payment verification provides insight into how this process works and is accompanied by a diagram that visualizes the concept. This type of information, along with introductions to the industry and the purpose of the proposed product, is essential to writing a good whitepaper. It is also important to cite any sources used in research. This validates where the concept is derived from.

What Doesn’t Belong in a Whitepaper

Where many go wrong with whitepapers is by adding in information that does not need to be there and oftentimes excluding the pertinent information that explains their project. What a large number of ICO’s in 2017 and early 2018 released as “whitepapers” were made to function as a pitch deck. Look at this excerpt from an example Uber pitch deck:

uber-pitch-deck-slide
Source: Uber Pitch Deck

This above image represents a brief industry analysis. This kind of information, along with some well-branded charts, are extremely common in whitepapers today. While it is important to provide insight into the industry and the solution you are providing, charts like these belong more in a pitch deck or broken down into more detail in business plans. Pitch decks are meant to sell others on the value of the product or service. They are not meant to replace technical descriptions.


It is important for companies that want to release a whitepaper to sit down and consider what they are building, how it is being built, what target market they are focusing on, and every other question that businesses have been asking for years. The key here is properly dividing this information into appropriate documents. Topics such as business strategies, marketing plans, executive summaries, timelines, and financial descriptions belong in well-developed business plans. The marketing discoveries made such as target market, unique selling proposition, brand/positioning strategies, and competitor analysis should be used in creating a pitch deck to present to interested individuals and organizations.

Writing a whitepaper shouldn’t be a scary process. It should, however, demand attention to detail and careful consideration of what information is present and how it is being presented. Completing a proper whitepaper is, after all, the foundation of the product you are offering.

 

Intro to Cryptocurrencies and Blockchain Technology (Part 4 of 4)

Practical Application


Screenshot from 2018-08-02 04-13-52
(This does not constitute investment advice.)

On-Ramping via Bitcoin

To begin using cryptocurrency, start by getting some bitcoin first. Numerous methods are available for you to acquire Bitcoin:

The Blockchain Arms Race Has Started

Just like when the internet adoption began, businesses had the opportunity to be the first to leverage the new technology. Now, businesses that do not exist on the internet won’t survive.

We are presented with another opportunity to leverage one of the latest technological advances that is taking the world by storm – blockchain. The technology is only beginning to become more mainstream and the ability to be the “first in your industry” still exists.

NOW ACCEPTING BITCOIN

Screenshot from 2018-08-02 04-28-15.png

These are just a few of the companies that have started accepting Bitcoin as payment:

  • Microsoft
  • Dell
  • Sears
  • Gap
  • GameStop
  • Home Depot
  • Etsy
  • Shopify
  • Tesla

If you would like to know more about how you can plug into the world of blockchain and cryptocurrency, or if you are interested in how you can leverage blockchain technology in your industry, please contact us.

Sources

Intro to Digital Assets – https://willinspire.us/digital-assets/

Disruptive Presentation – http://disruptive.works