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Maine Republic Email Alert

. . . that I should bear witness unto the truth. John 18:33 // David E. Robinson, Publisher
. . . if the trumpet give an uncertain sound, who shall prepare himself for battle? I Corinthians 14:8

No.104
05/22/12

The Monetary Power resides in the banks.


The Legislative power has a seat in Congress, since this is where laws are discussed and voted upon. The Executive power resides in the office of the President and his Cabinet who make the decisions which are carried out by the civil servants. The Judiciary power resides in the courts, where the judges practice their duties. But where does the Superpower, the Monetary power reside? It resides in the banks. It is in the banks that financial CREDIT is actually created. When a bank grants a loan to a customer, a contractor, a retailer or the government, new financial CREDIT is created. The banker credits the borrowers account with the loan granted, just as if the borrower had deposited that CREDIT amount (created from his signature on his application for the loan.) The borrower did not bring in or deposit any actual money, since he came to the bank to get money that he did not have. The borrower is now able to issue checks (promissory notes) on this account. This is, then, a new account added to the accounts that already exist. The total CREDIT in all accounts of the bank are increased by the amount of this new account. There is an increase in the modern money (CREDIT) put into circulation by the checks of the borrower issued on this new CREDIT. Then when a borrower comes to the bank to repay his loan (the CREDIT he had previously borrowed), it reduces the quantity of CREDIT in circulation in the economy. The total quantity of blood in economic circulation is thus reduced by the same amount. A simple bookkeeping process creates financial CREDIT with the stroke of a pen (a signature). And a simple gesture cancels (destroys) this CREDIT when the loan is repaid. If during a given period of time, the total of loans exceeds the total of repayments, more CREDIT is in circulation than what is cancelled. Whereas, if the total of repayments exceeds the total loans, CREDIT is reduced (removed) from circulation. If the reduction period continues, the whole economic body is affected by the decrease of CREDIT in circulation, and the body is weakened accordingly. This is called a CRISIS a crisis caused by a restriction in the flow of CREDIT in the economic body. THE CRUX OF THE PROBLEM OF LACK Since the borrower must pay back more than what was lent to him because of the interest charged; he must withdraw from circulation more money than what was put into circulation. For this, he must withdraw from circulation extra money that had been put into circulation by other borrowers. As every new CREDIT comes from the banks, under the set condition of paying back more money than the capital amount, other people must also borrow as well. They will have even more difficulty to repay their loan, since they too have to find extra money out of the CREDIT in circulation, which is already reduced by the amount of money that the first borrower had to repay in interest on his loan. This chain of reaction continues for the next borrowers, and eventually, some borrowers cannot pay back their loans; are bankrupted by a system deliberately created by the Superpower for this result. Then the banks restrict their loans further, which slows down the bodys economic life even more. But the banks put the blame for this restriction on the population at large. In order to have the free flow of CREDIT that is required for economic life to resume, the chain of loans at interest will have to take place again, breeding a bigger and bigger succession of debt. A TOOL OF THE SUPERPOWER The present banking system (at interest) is the instrument used by the monetary Superpower to maintain its supremacy over governments, nations, and men. One stroke of a pen creates money. One stroke of a pen destroys money. The banks are supported by ridiculous, politico-financial rules that bind the distribution of purchasing power to production that requires fewer and fewer employees to supply the production needed for man to survive. You must not conclude from this analysis that your local banker is any part of the Dictatorship. He is only a subordinate in the system, who, most likely, is not even aware that when he inscribes loans in the ledgers of the bank, he creates CREDIT. He is not aware that the repayments inscribed in his ledger cancels CREDIT. You may still hear backward scholars deny that the volume of CREDIT in circulation in the system today depends upon the action of the banks. These people, who resist the obvious, are an invaluable support to the Superpower, because of their ignorance if it really is ignorance on their part, or is it a vested interest or their ambition to receive easy promotions and bonus rewards through

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the support of this Superpower. Upper-class bankers, on the other hand, know very well that financial CREDIT, which makes up the bulk of modern money today, is created and cancelled in the ledgers of the banks. A distinguished British banker, the Right Honorable Reginald McKenna, addressed an annual general meeting of the shareholders of his bank, on January 25, 1924, and said (quoted from his book entitled, Post-War Banking): I am afraid that the ordinary citizen will not like to be told that the banks can, and do, create and destroy money. The amount of finance in existence varies only with the action of the banks in increasing or decreasing deposits and bank purchases. We know how this is effected. Every loan, overdraft, or bank purchase creates a deposit, and every repayment of a loan,

overdraft, or bank sale destroys a deposit. Having also been the Minister of Finance, McKenna knew very well where the bigger of the two powers the Superpower of the banks, and the sovereign power of governments resided. He was frank enough to make the following statement; which is very uncommon among bankers of his level: They (the banks) control the CREDIT of the nation, direct the policies of governments, and keep in the palm of their hands the destinies of the peoples [of the world]. Those who hold and control money, are able also to govern interest and CREDIT, and determine its allotment, for that reason supplying, so to speak, lifeblood to the economic body, grasping in their hands the very soul of production.

From Debt To Prosperity: Social Credit Defind


There is no reason for us to put up with recession, depression and unemployment. The government simply has to put more money into circulation. It can all be paid for if the government increased the money supply by issuing national, debt-free money, as Lincoln did at the start of the Civil War. We suffer from a failure of consumer demand because of a lack of buying power - because of our failure to use our Godgiven National Credit to prime the pump. Our country was pulled out of the Depression by priming the pump with liquidity and funding new projects that put new money into the peoples pocket. Watering a liquidity starved economy with new, national, debt-free money, - instead of borrowing money at interest from the banks and then giving it back to the banks - would work wonders. Available at your local book store or from AMAZON.com 2 Maine Republic Free State News, 3 Linnell Circle, Brunswick, Maine 04011 http://maine-patriot.com