Money for Nothing –
Web of Debt
by Ellen Brown Explains Money Creationand Manipulation by International Banking Cartels
I’m currently reading a book
Web of Debt
by Ellen Brown that is so intriguing, I just had to share it with you. This book talksabout how bankers create money out of thin air on computer ledgers as loans which are recorded as deposits in their bookkeeping and then serve as the basis for “reserves” with the privately owned Federal Reserve. Using the international banking cartel’s principle of
fractional reserve banking
, banks can create money as loans up to 10 or more times the value of their reserve accounts with the Federal Reserve. The banker’s created money, on which they charge us interest, is backed up,not by gold or silver, but by the good faith and credit of the citizens of the United States. So the bankers are making profits bycharging us interest on loans created from thin air, based on our own good faith and credit. This seems like abuse to me.The other insidious thing about this is that the people grant power to the federal government in the Constitution to create andcontrol money. The federal government has given this power to private banking interests, the bankers make money out of thinair based on this granted power, and then loan that money to the government at interest. If the government retained money-making power and made its own money out of thin air, the country would not have to borrow its own money from the bankers,owe anybody interest, or be in so much debt.The control of the money supply is also important. When there is enough money created to meet the demands of commercialexchange, the economy does well and people prosper. When there is too little money created, money becomes scarce, peoplecan’t buy as much, businesses can’t expand and hire new employees, unemployment rises, and the economy and the peoplesuffer, much as we are currently in our Great Recession today. During times of recession, many people lose their jobs, businesses, homes and other assets through firesales or bankruptcy: these assets are sold for pennies on the dollar to peoplewho have money (the bankers create money out of thin air only for themselves and their friends).Periodically, banking interests deliberately act in concert to restrict the money supply by raising interest rates and/or refusing tomake loans (like they are doing in our current Recession), causing a recession that allows these interests to cheaply buy upstock, companies, businesses, property and personal assets of private citizens. By then expanding the money supply (lower interest rates and more loans created, easier credit), the value of the dollar goes up along with the value of their newly acquiredassets. This process acts to enrich the wealthy banking class while impoverishing the rest of us. Internationally, bankinginterests pump up the value of the dollar as compared to third world countries currency, and with that value pillage the assets of these countries, much as they do that of U.S. citizens during a contrived recession.When the government has the power to create and control money but has deferred it to the Federal Reserve, the governmentalso borrows money from the bankers at interest. Each year, only the interest on the federal debt is paid (and this is risingexponentially and soon will cost more than all federal revenue collected each year), while the debt principal continues to risewith deficit spending. If the federal government retained its Constitutional power to create and control money, it could spendits own money without borrowing from bankers at interest, and provide an adequate money supply in terms of lower interestrates and making more loans to businesses and consumers to fuel the economy.A real U.S. Govt. Bank would create money out of thin air for itself, instead of letting the bankers do this for themselves,money could be created to pay off the bankers, there would soon be no more federal debt, principal or interest, and there wouldnot be a need for high taxes to fund necessary government spending. Businesses currently lacking credit to grow or expand, or hire new employees, and consumers making purchases would get the credit they desired and the economy would begin to purr again. Foreclosures and bankruptcies could become rare events as community banks associated with the U.S. Govt. Bank extended credit as needed at no or low interest rates to consumers and businesses.Homes purchased with a 30 year banker’s mortgage for a sale price of $500,000 under current private money management, endup costing the homeowner nearly $ 1 million with interest and principal paid over the 30 year period. With a low interest U.S.Govt. Bank mortgage, interest and principle would be more like $550,000 paid over 30 years—the cost of housing and prettymuch everything else will be less as businesses and consumers pay less for credit. With lower taxes and readily availablecredit, new companies plus others that previously deserted America for cheaper offshore business costs, would relocate to theU.S., and entrepreneurs would flourish with innovation, creating wealth and prosperity again for our nation.What is the downside to such a prospect? I’m still struggling with understanding the principles of money creation and control,and could use any enlightenment any of you might have to offer. Do you think the U.S. could possibly be so bold as to take back the power to make money in America from the powerful international bankers? How do we let the people know, in a waythey would understand, about how we’re being swindled by these bankers and cheated out of prosperity and plenty? In themean time, I’ll finish reading Web of Debt and continue studying the subject matter.