Anderson 1 Alexander Anderson Mrs.

Balasubramanian English 120 April 12th 2012 I sincerely believe that banking institutions, having the issuing power of money, are more dangerous to liberty than standing armies. Thomas Jefferson (Money Masters) At an early age, most humans quickly learn that product and services, which are developed and offered at various marketplaces, can be acquired through exchanging money, or credit. What is not learned by most of the world, nor sought out by the average consumer of credit, is the way money is created, distributed, and sustained by a nations government and banking institutions. The fact that people are uninformed about various aspects of the financial system has allowed a great deal of deceit and inequality to be built into the policies regarding money usage and distribution. There is currently a worldwide tax on money, for private gain. Those who are fully aware and are benefitting from a fraudulent system of money creation are working to keep their game hidden from public scrutiny, and to perpetuate the illusion of a fair and honest financial system. Who could possibly benefit from the majority of Americans being unaware and uninterested in the true function money has taken over the lives of laboring Americans? What lies in the monetary system, that left undiscovered is crippling to a prosperous, bustling, industrialized nation? How is this knowledge currently being used by those who are aware; and have designed such a cryptic and puzzling economic system, generating an inexplicable debt into the working class who had no say in the matter?

Anderson 2 The details regarding the establishment and continuation of such unjust means and unnecessary burdens of operating in a financial marketplace can be easily spelled out, understood, and changed, only if the people of America are willing to be educated about the urgency and necessity of monetary reformation. The residents of America are among the only in the entire world who have the tools necessary to identify the source of various injustices and bring them into the light. The monetary system the American government has engaged in needs to be reformed in order to bring an end to the perpetual debt flung upon the American people, and end the iron grip the central bankers and corporatocracy have taken over individual labor. The first concept which must be understood in an attempt to correct some of the seemingly unwanted attributes of our economy (debt, inflation, depression), is that the people in control of our financial system, and government as a whole, are not the people that are elected in the voting booths, or seen on the evening news (Perkins). The ones directing and controlling the politics not only here in America but also throughout the world are, are not elected, do not serve four or eight year terms; nor do they act out of a desire of equality, peace, or freedom for all. They act solely on the basis of maximizing profits, despite the costs to the liberty of other inhabitants of society, despite having their personal and familys physical comforts met, despite the unsustainable effects on the biological formation they find themselves living on. Through their wealth, they virtually control all aspects of politics that have any true bearing on the nations wealth (Perkins). The group of people, who own the largest, most powerful corporations and organizations throughout the world (the corporatocracy), are focused only on acquiring more control over their environment, and continuously projecting an honest image for all to see, which usually means eradicating any threat to their place in the world. For hundreds of years, this corporatocracy has been plotting and acting in complete harmonization, to manipulate all of

Anderson 3 humanity into blind slavery, and they are very close to their prolonged establishment as permanent landlords of Planet Earth. The most effective method these groups of power-hungry companions have used to fulfill their desire of a worldwide plutocracy has been the creation and establishment of a debt-based monetary system, on a global scale. A debt-based monetary system, is one in which all money is created out of an initial loan, from a privately owned central bank, to the borrowing government (Griffin). The central bank loans the money out with interest, forcing the government to take more and more loans in an irrational attempt to eventually pay off the loan. This means that all the money circulated through government spending, is in fact a debt to a privately owned organization known as a central bank. The debt is obviously insurmountable by the citizens of the government, and ever growing as the interest rates extend the debt beyond the initial loan, or even the amount of money in circulation. In short, the currency used in America belongs to a privately owned bank, and the citizens of America are being taxed because of it. There is a tax on money for private gain, in the form of inflation, which is also controlled by a private group of bankers. Every government throughout the world is currently in continuous debt towards a privately owned bank. If they dont have a central bank of their own, the World Bank or International Monetary Fund has long taken the necessary ramifications. The first bank to enter this debt-money partnership with a government is known as the Bank of England, and the central bank currently holding the American citizens in a perpetual debt is known as the Federal Reserve. There will be much more detail on these two pivotal central banks to come. The second unpleasant characteristic of the monetary system in place today in America is the decree of fractional-reserve banking. In short, for every deposit made in a commercial bank practicing the fractional reserve system (all commercial banks here in America practice this

Anderson 4 system), nine times the amount deposited can be legally loaned out. In this manner, commercial banks are legally allowed to create credit, out of nothing, and charge interest on the new credit. Once a bank holds $100 in deposits, it then can turn around and loan out $900 that it never received, based on the fractional-reserve requirement of ten percent. Fractional-reserve banking allows commercial banks to loan out many more times the amount they own, and charge interest on money that they create the moment a borrower signs a paper. This is an example of the loopholes conjured up by central bankers and forced upon the American people to further control and redistribute wealth. The cunning workings of bankers extend far beyond American borders. The corporatocracy, or collective workings of the largest corporations here in America, have taken control of the American government and are using its resources to exploit less developed nations through impractical monetary practices. In the book, Confessions of and Economic Hitman (2004), John Perkins, a former employee of the government and private corporations, discusses his role on influencing foreign leaders to enslave their citizens in debt for personal affluence. First, he explains the concept of the corporatocracy, or the group of people who run the countrys largest corporations, and spread their authority throughout society with their considerable resources. He talks about the complete control the corporatocracy held over politicians, having funded their campaigns, as well as the constant movement of positions between government officials and large corporations (Former oil tycoon becomes vice president, senator goes into oil business, etc.). He spends a great deal of time explaining his initiation into his specific occupation, and the tasks he was required to do as an economic hitman. First, a nation would be identified that has a resource that the American corporations desired. Then, Perkins, or another economic hitman would be hired by a very large corporation that could benefit from that resource would be sent to persuade the leaders of that government to take loans

Anderson 5 from a central bank, such as the IMF or the World Bank, and build a very large infrastructure, benefiting the few rich people in those countries, but leaving the majority of the population with a huge debt towards these central banks. The money loaned out to a country never goes to the countries where the infrastructure was built, but to American companies responsible for the construction. Once the government was faced with a huge debt that couldnt possibly be repaid, Perkins and similar hitmen would return and use the debt as a foothold in corrupt bargaining. If the economic hitmen failed more measures would be taken by the American corporatocracy. Perkins testifies to personally dealing with the obliteration of Jaime Roldos Aguilera (first democratically elected president of Ecuador following long line of dictators), Omar Tarijos (Panamanian president), Mohammed Mosaddegh (democratically elected Iranian president, Time Magazine Man of the Year in 1951), as well as Saddam Hussein, among many others, all of whom he claims to have been brought down for holding their citizens above the desires of personal wealth and security offered by the American corporations. He goes into great detail about how Saddam Hussein was previously trained by the CIA to assassinate a former president of Iraq, and although he had failed, had gained much insight to the workings of the secret government in America. To Perkins, Saddam Husseins demise represented the typical method of the corporations attempt to first bribe, assassinate, and then war with the various countries that have attempted to resist their expansion. The reason why such bribery is possible from a privately owned corporation to a foreign government, is because of the international, privately owned, central banks (such as the World Bank, and the IMF), that have the power to print an international currency, enforced through the U.N., which they can loan out at interest (Perkins). The author apparently wanted to alert the people of what is going on and has been going on for a very long time in a country widely believed to be very different. He then provides

Anderson 6 numerous examples of different foreign leaders this has happened to in order to show the practicality of all he is saying, and display a very different take on some of the people the media portray as greedy dictators. The intended audience here is the American people. He makes it very clear that only Americans have the power to put an end to the system of giving up our liberties and property away to the few rich in the form of perpetual debt. He wants more people to be aware of these things so that they might be prevented in the future. The idea that Americans are capable of fully possessing material goods is illusory because we operate in a debt-money financial policy. Because all of our money is actually credit, that is it was created out of a loan and must be repaid, there is a well hidden lien on everything purchased with a Federal Reserve Note. The Federal Reserve is privately owned, not a part of the U.S. government, and the product they produce for the American government is a foreign product, loaned out at interest. The fact that Americans believe that they own goods purchased out of this debt is a commonly believed myth, perpetuated by those who are fully aware that anything purchased out of debt is simply a privilege the creditor extends to the debtor, one which can be revoked at the creditors whim. Because of the American governments contractual agreement with the Federal Reserve to borrow money at interest via the Federal Reserve Act of 1913, and the revocation of a gold-backed currency in 1933, the natural right to own property, or the fruits of labor, has been confiscated. In addition to the inability for American citizens to truly own anything, U.S. citizens have also unknowingly relinquished their unalienable rights by a number of hidden contracts (MacDonald). For example, the birth certificate is a means of the government turning a human being, with unalterable rights granted at birth, to a commodity to be bought and sold as a bond on the stock market. The newly created corporation is given the same title as the human being, and

Anderson 7 the knowledge of this is very rarely understood due to its liberating nature. All of the legal institutions in the world today deal with these corporations, and the people in society dont understand that the only authority any organization has over them doesnt exist unless they verbally agree to, or sign a contract agreeing to represent the corporation created by the birth certificate. The judicial system is for these government created corporations, but when a human goes to court and states the name of the corporation on the birth certificate, they are unwittingly agreeing to represent the corporation, relinquishing their rights (MacDonald). The spread of control from the rich lawmakers to the uneducated public has long extended into personal labor. The greatest hoax the government has played on its people is the voluntary income tax, carried out by the IRS, and other third-party organizations. There are two types of tax laws permitted by the U.S. constitution. The first constitutional form of taxation is a direct tax, which must be apportioned, or the same amount throughout the nation. The second is an indirect tax, or a tax on a good or service, giving Americans an opportunity to avoid the taxed activity. The income tax is neither of these, an un-apportioned tax on personal labor; although the Supreme Court has ruled time and time again that the income tax is unconstitutional. (Brushaber v. Union Pacific Railroad, Pollock v. Farmers Loan and Trust Company) (America). There is no legal justification for any organization to tax personal, privately owned wages, not one statute the IRS bases its authority on. Every year millions of Americans file the voluntary but prosecutable, income tax, sending millions of their privately earned commissions to aid the government. Where does all the money go? In 1982 President Ronald Reagan appointed a team of men to the Grace Commission. Their job was to find out what happens to the money collected by the government in the form of the income tax. Their report stated that 100 percent of what is collected is absorbed solely by INTEREST on the federal debt in other words, all individual

Anderson 8 income tax revenues are gone before one nickel is spent on the services taxpayers expect from their government. (America). The income tax is a means of redistributing wealth from the American workforce to the hidden creditors known as the central bankers. Central banking began is 1694, when the English government turned to bankers to loan them the necessary funds for their political means (Money Masters). The most powerful bankers throughout the nation all collaborated to form a private banking cartel with the power of creating and issuing currency, granted by the government. The newly formed private bank, owned by private bankers, was deceptively named the Bank of England, to give the appearance it was maintained by the government, instead of private bankers. Thus the partnership was made between the worlds first central bank and the English government. Government officials would be able to borrow large sums of money from the banking cartel instead of taxing the people for their projects, and the Bank of England would be able to charge interest on the loan, slowly draining the value of the currency as a whole, and robbing the British citizens of their labor. Basically the central bank is legally allowed to counterfeit money for private gain. Central banks hold governments in eternal debt but give nothing in return. Benjamin Franklin said that the partnership between the international central bankers and the British government was the prime reason for the American Revolution (Money Masters). Unfortunately, central banking has found its way into the American way of life. For those who have yet to do personal research on the Federal Reserve, it may seem to be a tool used by the government to stabilize the economy, when in reality nothing could be further from the truth. The Federal Reserve was conceived in a secret meeting off the coast of Georgia on a private resort known as Jekyll Island. In November of 1910, Senator Aldridge sent a private railroad car to escort six people to Jekyll Island. The guests were given strict instructions not to

Anderson 9 tell anyone where they were going, reveal who else would be involved, or even address each other by their full names while traveling in the railroad car. The guest list consisted of Abraham Piat Andrew (former Assistant Secretary of Treasury), Frank Vanderlip (owner of Bank of NY, at the time largest commercial bank in America), Henry Davidson (CEO of J.P. Morgan c.o.), Charles Norton (president of First National Bank of NY), Benjamin Strong (later first head of Federal Reserve), and Paul Warburg (Rothschild representative; international banker) (Griffin). After the meetings concluded and the Federal Reserve Act was passed, Frank Vanderlip reported to the Saturday Evening Post that he did not think it any exaggeration to credit their secret meetings for the eventual establishment of the Federal Reserve (Griffin). Vanderlip declared that they were told to leave their last names behind them, and that their names printed together would have made their mysterious journey significant in Washington, Wall St, and even London. Vanderlip stated that if their meeting had been exposed along with the banking bill, it would have no chance of passing Congress. The Federal Reserve was preached to the government as an escape from the large banks, although written by the nations largest bankers, collectively. The largest competitors in banking in America had agreed on a banking bill, resulting in a new banking cartel here in America, deceivingly titled the Federal Reserve. Currently the privately owned, privately run Federal Reserve has the legal authority to issue credit to the government in the form of currency. The government has the ability to take loans from the central bank whenever they want more money, instead of asking its citizens for money in the form of a direct or indirect tax. Once the money has been received by the government, and circulated through government spending, it has become a hidden tax on everyone else operating in the economic structure, also known as inflation. The Federal Reserve was sold as an economic stabilizer to the American people. Since its conception in 1913, the

Anderson 10 stock market crashed in 1921 and 1929, the first two stock market crashes to occur within a decade of each other (Griffin), the various Great Depressions, the dollar has dropped a staggering amount in value (Fig.2), and for the first time in American history an international trade deficit exists (Griffin). Central banks have brought much of the world to its knees, as families across the
Figure 2: http://www.americanussr.com/american-ussr-bank-fraud.htm

world enter into their third and fourth generation of debt to these private bankers. Examine the workings of the corporatocracy in their attempts to thwart economic freedom and liberty through means of economic hitmen, such as John Perkins, and a handful of increasingly violent means. Consider the many deceptive devices and traps used on the American people, and foreign leaders for the expansion of corporate profits. The income tax has been reduced to an illegal means of further depriving the uninformed at the benefit of the informed rich, and the IRS has been exposed as a private organization profiting off peoples collective ignorance. The history of central banking has been condensed, and reviewed. The Federal Reserve has been exposed as a banking cartel designed to keep the American people away from any impervious financial significance. Now what needs to take place to direct humanity into an era of peace, freedom, and resilience from the oppression of the money handlers? Primarily, and

Anderson 11 most importantly, progress of any kind out of debt cannot be made while we are operating in a debt-based currency, laboring for the profits of the central bankers. The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumer creating and issuing money is the supreme prerogative of government... Money will cease to be master and become servant of humanity. Abraham Lincoln (Money Masters) The most effective steps toward a government operated effort in replacing the Feds debtmoney with an honest currency is the creation and circulation of their own currency while simultaneously raising the reserve requirement in commercial banks. This plan was first proposed by filmmaker William B. Still. Once half the money in circulation are the government issued notes (U.S. Notes for example), the reserve requirement would have been raised to %50. This would force banks to hold on to the percentage of money that was not created out of debt. Once the government printed notes was at the amount for proper economic distribution based on population size, the reserve requirement would be at %100, bringing an end to the commercial banking driven inflation that takes place today. Federal Reserve Notes would be abolished, and the U.S. government could then pay off the debt owed to the Federal Reserve with the debt-free U.S. notes, and have ended the policy of fractional-reserve banking in one fell swoop. The Federal Reserve Act of 1913 and National Banking Act of 1864 could be repealed in Congress, as they legalize central banking. Once the problem of legalized counterfeiting is dealt with here in America, we should withdraw from the World Bank and the IMF as they spread the corrupt practices of banking throughout the Third World, and have already successfully impoverished many affluent nations.

Anderson 12 The system of monetary exchange and use is one that channels vast quantities of wealth into the hand of a few super-rich bankers, from the mouths of the needy, laboring, and unable. Very few people within the various banking institutions and corporate structure understand what is taking place on a global scale or understand their role in the formation of a worldwide plutocracy. Until people can operate in an economic system free of unlimited debt, and fundamental economic misunderstandings, they will continue to labor for other peoples gain, and fall victim to a system they were born into. It is our duty as aware humans to bring an end to the privately owned debt that has claimed the world, simply because we are in a position to do so. We have identified an injustice where others would not dare to look, and it is now our responsibility to spread the information as far as it will reach. If you want to continue [being] the slaves of bankers and pay the cost of your own slavery, let them continue to created money and control credit. Sir Josiah Stamp, Director Bank of England (America)

Anderson 13 Works Cited Griffin, Edward G. The Creature from Jekyll Island: A Second Look at the Federal Reserve. Boca Raton: American Media, 2002. Print. MacDonald, Ronald, Rowen Robert. They Own It All (Including You)!: By Means of Toxic Currency. Charleston: Booksurge, 2009. Print. Perkins, John. The Confessions of an Economic Hitman. San Francisco: Berrett-Koehler, 2004. Print. America: Freedom to Fascism. Dir. Aaron Russo. Prod. Aaron Russo, Richard Whitley. Perf. Aaron Russo, Ron Paul, Irwin Schiff. Cinema Libre Studio, 2006. Film. The Money Masters. Dir. William T. Still. Prod. Patrick S. J. Carmack. Narr. William T. Still. Independent, 1996. Film