THE MONEYLENDERS AND THE SYSTEMATIC CREATION OF DEBT. by Kieron McFadden Extract from: Truth Seeker Magazine.

97% of money in circulation, including all the money that sits in your bank account, is owed to the banks...! When someone avoids giving specifics and what you get instead is a sales pitch thick with diplomatic jargon, then you can smell a rat.You know he is being evasive and that there is more to what he is saying than meets the eye.

To preserve our freedom, which is now threatened by intergration into a Federal State of Europe,we need to see very clearly why our statesmen are so keen to persuade us to surrender control of our destiny to remote and bureaucratic powers based on foreign soil. We know that the reality of European Union is that our laws will be made in Brussels, our gold reserves removed to Frankfurt and our national destiny decided in distant councils but we also know that our statesmen do not describe what is happening in these terms. They hide the truth with diplomatic jargon, or vague notions of how union is "an opportunity" or how we will be "left behind" if we do not join or that union is "inevitable" in any case.

What we are getting here is a sales pitch. The lack of details and specifics, considering the importance of the issue and its ramifications for the future, is quite startling. Is there something about all this we are not being told? There is a hidden purpose to intergration which is being kept out of sight.The unspoken reality is that we might not like it if we discovered what it is.

Sure enough, when we discover the hidden agenda upon which some of our statesmen are working, we can see very clearly why the truth must be concealed. It becomes clear, too, that we are being very carefully kept in the dark because the truth is never ever revealed by the press or by the electronis media. The real issues are never discussed, therefore we think they should be examined very openly.

The hidden agenda, in case you are still wondering, concerns money.

The hidden truth about money

Who creates it?

There is a truth about money which you are not supposed to know:that truth is 97% of money in circulation, including all of the money that sits in your bank account, is owed to the banks.All of it!

Almost our entire currency has only been lent to us and that fact will not change whether we call it the Euro, the Ecu, Intergalactic Credit or the Paper Doily.

If you thought our goverment issues our currency, think again. It doesn't. Believe it or not our currency is issued by banks and it is issued as a loan, which we must pay back with interest. As if that one startling fact were not enough there's more, much more, but bear with us and you will see what we mean. Take a look at this simple fact: America, the richest and most powerful country in the world, has a national debt of over $5 trillion, added to which the sum of all its private and commercial debt is around $22 trillion. Japan's (the secound richest economic power on the planet) national debt is $2 trillion, Britain's combined national, private and commercial debt to the banks is over £1 trillion and all the nations of the world are in debt. Who lent all the nations of the world this money?The Martians? Where does so much money come from?

The answer is:it does not come from anywhere. It does not exist until the moment it is loaned. It is conjured out of thin air! Banks are not lending money some depositers left in their vaults. When they lend, no depositers account is debited. When, for instance, the bank very kindly lends Joe £5000, Tom does not receive a letter from them saying his savings are temporarily unavailable because they have been lent to Joe. It does not work like that, although people have been allowed to believe it does.

So what does go on when Joe is loaned £5000? What actually happens is that the bank simply enters the figure £5000 in Joe's account....And that's just about it! No money moves from one account to the other. The transaction is purely and only a ledger entry, the writing of figures in a column, the changing of numbers on a computer screen, A stab of computer keys and, hey presto, Joe now has the figure of £5000 in his account, which he can spend by writing cheques or whatever. That £5000 has now entered the economy although it did not exist until the moment it was loaned.

But Joe has to pay the money back, plus interest. He does this by working hard to earn it, selling assets or whatever and eventually pays the bank more money than he borrowed, say £6000. The bank now has £6000 in its vaults where no money existed to begin with.

Neat, isn't it? The bank lends £5000 it did not have in the first place, in the process creating a £5000 debt out of nothing and ends up with £6000 from the sweat of someone's labour. This is the method used to supply the economy with money and it operates, often obscured by a smokescreen of added complexities, at every level: private borrowing, mortgages, industrial and commercial borrowing, goverment borrowing - right up to the cruel iniquity of Third World debt.

The goverment pays back its loans - or at least some of the interest on them - using money taken from the citizenry through taxation. So when we say the goverment pays back the non-existent money it borrowed, what we really mean is you pay. It is not hard to see the inherent unfairness and dishonesty in such a system, particularly as banks make billions without having to earn them and even have the legalised power to foreclose or confiscate property where someone cannot keep up with their loan repayments.

Consider, for instance, mortgage lending. The bank conjures £70,000 out of thin air and lends it to Joe to buy a house. Joe buys the house and spends the next ten years working hard paying off interest at say £400 per month - depending on interest set by the banks!After ten years he has paid the bank around £48,000 in interest in non -existent money it loaned to him. But now the economy is in trouble due to various problems occasioned by the debt-money system and Joe loses his job or cannot keep up with his mortgage payments. So the bank repossesses the house. By providing exactly nothing in exchange but a ledger entry made by the sweep of a pen or a tap of computer keys, the bank has Joe's £48,000 plus his house, an asset worth £70,000, and may even send him a further bill on some pretext or other.

However such a legal system may be, there is no way such an iniquitous piece of sleight-of-hand can be considered honest or fair as the rest of us understand honesty or fairness. If we focus on Britain, we discover that more money is owed to the banks than actually exists in circulation.Far more. If all the money owed to the banks were paid off, the entire money supply of the country would disappear into a black hole and there would still be colossal debts.

The function of money. Money was originally invented by some genius whose identity is lost in antiquity as a convenient alternative to barter, an alternative without which a highly developed civilisation like ours could not exist

Imagine trying to pay the taxi driver with a bag of coal or the grocery bill with a box of spanners and a set of golf clubs.Imagine trying to carry all that around with you when you go shopping.

So the idea which is money was conceived. All money is a system of tokens (notes or coins or even symbols ) adopted to represent or stand proxy for goods and services. One can then exchange the tokens rather than bags of coal , boxes of spanners or what have youand the tokens are easy to carry around. One can then exchange the tokens for actual goods when one wishes to. That's just about all money is; a system of tokens that have been adopted and agreed by people to represent goods and/or services.

Where money went off the rails

The existing money system, where money is issued by private institutions known as banks, out of thin air and as a loan which has to be paid back with interest, has been firmly established for 300 years. Although many challenges to it have arisen over those years, those running the operation have had things pretty much their own way in recent decades. The whole core basic of how our money is issued, by whom and with what results has simply vanished from the media, from political debate or even the economic textbooks used in schools and universities.

Even though President Abraham Lincoln and President John Kennedy, both attempted monetary reform that would restore to elected goverment the right to create and issue money, assassins stopped them dead in their tracks. Their successors immediately reversed the reforms.

Money's original purpose, as we have shown, was a system of tokens to represent or stand proxy for goods and services.Where it is issued to a nation by that nation's goverment debt free, that is precisely what it does; it remains a flexible and convenient system that enables the basic principles of exchange, supply and demand and reward for endevour to operate smoothly.

The Hidden Truth About Money

Britain's combined national, private and commercial debt to the banks is over £1 trillion...It does not exist until the moment it is loaned.It is conjured out of thin air!

Where money comes into existence as a loan, where every pound in circulation represents not only goods and services but also a debt greater than its face value, that money is pulled in two fundametally different direcrions at once. As you will see, it becomes dysfunctional as a means of exchange and the whole economy, originaly evolved to serve human need, begins to operate like a faulty machine spinning increasingly out of human control.

If you imagine a calculator, which unbeknown to the operator has a fault which holds down the number seven and multiplies every answer by seven, that calculator will always give the wrong answer. Two times two becomes twenty eight, three plus four becomes forty nine and so on. If the operator uses the calculator to work out his accounts or do his tax returns he will pretty soon wrap himself around a pole trying to make anything make sense. The current money system has become just such a "held down seven" wrapping goverments and honest men around said proverbial pole trying to make anything make sense and thwarting their best endevours to come up with solutions to problems.

Thus for example we have in a world of unparalleled technical brilliance and productive capacity an apparent inability to distribute the fruits of that genius. There is grinding poverty even in the heart of the world's richest nation; Third World debt that keeps climbing even though nations render themselves destitute trying to pay it off; enviromental destruction that everyone wants to handle if we are to survive, that we can handle technically and must handle if we are to survive, that nevertheless never getshandled; degraded food that is making us ill even though we have the technical ability to produce wholesome food in sufficient quantity to eliminate hunger and malnutition; more and more tax for less and less in return; men who produce nothing of value making billions on money markets whilst proffessions of inestimable worth, such as nurses, are paid a pittance; the cost of a home rising ever higher at a time when we have never been able to build more quickly or cheaply. The list of "two plus two equals twenty eight" goes on and on.

The dysfunctional machine has been with us for a long time. So long, prehaps, that we think that is how the machine is supposed to be, that nothing better should be expected from it. Money went off the rails, to be precise , in 1694 when England's King William found himself in debt to the sum of £20 million. He could not pay his army and was advised by his financiers to borrow money which they would issue to him.

Someone should have warned King William of the perils of listening to "experts" with a vested interest in their own "advice."

The Tonnage Act was passed which enabled the financiers to create, as credit, the currency required to run the economy. In other words, instead of the goverment issueing the nation's currency, as had been the case up until that time, that duty was passed to the bankers of the day and has been in the hands of the bankers ever since.

But instead of just supplying the the economy with it, they called it a "credit", in other words a loan. Calling it a loan enabled them to charge interest on it. So for every £1 million issued (loaned) to the economy by the bankers, £1 million was expected to be paid back to them, plus interest. In other words more money is owed than was created. When the proportion of debt money increases to the point it has reached today where it comprises 97% of the total money stock, the debt can never be paid back because it is far greater than all the money in existence.What occurs then is a continual reschedualing of the loans, borrowing to pay back what one owes, then borrowing to pay that back and so on forever.

The money stock is in effect trying to do two things at the same time: on the one hand it is serving its original function as a supply of tokens issued in sufficient volume to enable all goods in the economy to be exchanged and on the other hand it represents a debt that must be paid back. At every level indebtedness to the banks, the continual repayment of money to them , is becoming bigger and bigger components of costs, committing more and more of disposable incomes, company profits or local and central goverment revenues to debt servicing instead of spending in the economy on goods and services. In other words there is a continual and worsening shortage of spending power.

The ramifications of such a monetary system are dire.As a system of currency it does not work, except to make those who issue it very very rich by grdually siphoning off all the wealth of the country and depositing it in their hands.

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