All this information can be found in a Federal Reserve document called “Modern Money Mechanics”.
Money is created through a fractional reserve banking system. A government decides it needs some money, say £10M. The central bank, in this case the Bank of England, says ok we will buy £10M of government bonds from you. The government then hands over the £10M of bonds it has printed, and gives them to the Bank of England. Then the Bank of England instructs the mint to print £10M and give it to the government. The government then deposits the £10M in a commercial bank.
These transactions are all carried out electronically as only 3% is physical money the remaining 97% only exists in computers. Government bonds owned by the central bank (Bank of England) are instruments of debt. Now when the Bank of England purchases these bonds with money it has created out of thin air the government promises to pay that money back to the Bank of England, in other words the money is created out of debt. So all the money is created out of debt
That money then becomes part of the commercial banks reserves that must be maintained as a prescribed % of its deposits, i.e most reserves require 10% e.g £1m kept and £9m loaned. What really happens is £9m is simply created on top of the £10m deposited making £19m. This money is again created out of nothing, i.e nine times the amount can be created out of nothing. So this money creation out of nothing goes on and on. More and more money is created out of nothing
This ultimately leads the value of the money created out of nothing to be worth less and less. This then causes inflation which is a hidden tax. The deposit money cycle can technically go on forever. What gives this money value?
Answer: the money that is already there and so this makes your money worth less and less. However as everyone knows prices keep going up and up. The result? Sooner rather than later you start to experience financial difficulties. Banks do not pay out loans from the deposits they hold. If they did this no additional money could be created. When banks make loans they accept promissory notes, i.e contracts you sign and they the banks credit the borrowers account. Then the bank start the whole money creating process again, the bank keeps 10% of the money deposited into the borrowers account and so the money creation goes on and on.
Therefore debt can never be repaid as the money for the debt did not exist in the first transaction. MONEY is DEBT and DEBT is MONEY
As long as the Bank of England exists perpetual debt is guaranteed. As dysfunctional as this system is there is one more nightmare a waiting, interest. When the government borrows money from the Bank of England, or you as an individual or company borrow money from a bank, the money always has to be paid back with “acrued interest”. Every £ borrowed must be returned to the bank plus interest. Remember now the interest does not exist, so the bank wants the principal plus interest.
However the bank has only ever created the principle. This is why inflation is always in the system. New money has to always be created to pay off the old debt, plus interest. Therefore it follows – bankruptsy, insolvency and debt are built into the banking system. Eventually all money will end up with the banks – assets, property and businesses will be taken by the banks to repay debts. Any loan that you take out from a bank personal, business, credit card or mortgage is counterfeit. The loan is also an illegitimate form of consideration and hence voids the amount to pay as the bank money is property to start with. All this information is permanently suppressed as no one is ever taught where money comes from.
This process is all hidden from you. Yes you are taught about Henry the 8th and his wives but the most fundamental system of trade and commerce – nothing. The reason being that in reality banking is a system of modern slavery. To guarantee that slavery banks introduced income tax. Banks make governments of the day through the monetary system the banks introduced, guarantee the banks money by making workers pay income tax to the government.
This banking system keeps the wage slaves in line with a job – just over the breadline. The banking system only benefits those at the top of the pyramid. Banks finance governments and the multi-national corporations. Google, BP, Nestle, Pyslers are just below the banks, the pyramid is shaped so those on the bottom the 99% have what is left, 50% of the world’s population are on less than $2 a day. The top of the pyramid is becoming much more pointed and the base much more wider.
Estimates of the Rothschild’s worth $500 trillion. Physical slavery requires people to be housed and fed, economic slavery requires people to feed and house themselves, it’s the biggest scam ever created for it is an undetected war against all populations with interest as its weapon of destruction. Rothschild central banks exist in all but three countries – this is the entity behind the curtain. The curtain that Toto the dog pulled back in The Wizard of Oz to reveal the lie. Today instead of Toto there are millions of people worldwide who are telling the people the truth about the lie.
“There is something behind the throne greater than the King himself”
– Sir William Pit, House of Lords 1770.
“The World is governed by very different personages from what is imagined by those who are not behind the scenes”
– Benjamin Disraeli English Statesman 1884
“The real truth of that matter is that a financial element in the large centres has owned the Government since the days of Andrew Jackson”
– USPresident Franklin Roosevelt
Let us give you an example of those last three quotes in practice.
Take one bank as an example – HSBC, though there are 20 more to choose from the Globalist Bankers. The usual suspects the ones always getting caught with their hands and noses in the cashiers draw ,Barclays, JP Morgan Chase, UBS, Goldman Sachs, Deshler, RBS, Citibank ETC,ETC
HSBC has 900,000 premier accounts. HSBC premier accounts on average are expected to have £50.000 in deposit and assets with the bank.
900.000 x £50.000 = £45b
Multiplied by say nine:
900.000 x £50.000 x 9=£405b – ample money to buy all the political influence you need, finance all the political parties, buy up the civil servants required , the Police hierarchy , the Judiciary and just for measure all the multi-national corporations and last but not least the corporate news media.
That kind of money buys a lot of influence in a society that’s been programmed to worship money and possessions, bearing in mind that HSBC is only one of the Globalist Bankers
Never be under the illusion that what these Globalist Bankers do does not affect you. Their actions affect everyone on the planet.
Love and blessings