History of the Rothschilds Central Banking Dynasty Part III

Winning Battles Doesn’t Always Win Wars

Outside Independence Hall when the
Constitutional Convention of 1787
ended, Mrs. Powel of Philadelphia
asked Benjamin Franklin, "Well,
Doctor, what have we got, a republic
or a monarchy?" With no hesitation
whatsoever, Franklin responded,
"A republic, if you can keep it."

As a fledgling nation, when the United States declared its independence from Britain, it did not have the money to fight a prolonged war against the mighty and powerful British Empire. France, a long time rival and enemy of Britain, wanted revenge on Britain for their defeat in the French and Indian War. Politically, it was also in France’s interest to ensure that Britain and America didn't resolve their differences. 

Knowing this, Congress decided to seek French support in the war and sent Benjamin Franklin, who could speak French, to meet with King Louis XVI and the French foreign minister. On February 6th of 1778, France and America signed a treaty called the “French Alliance”. This alliance put France at war with Britain and was the first document to officially recognize America as an independent state. Spain, an ally of France, joined the alliance a year later. 

Britain was now forced to defend its own territory of England against possible French and Spanish attacks. This relieved the pressure on the American forces by forcing Britain to withhold many of its troops from the Americas because they had to defend their own shores.

France also financed our war. They lent us the money to help supply our army with the means to win our war against Britain. But where did France get the money to help finance our war? After all, France had been constantly at war in Europe and in the Americas and their coffers were strained. England was also strapped for money. Where did England get the money to finance their war against the Americans? War is costly!

On Sept 3rd of 1783, the newly formed United States and its former master, Great Britain, signed the Treaty of Paris officially ending the war. Under the terms of the treaty, Britain recognized the United States of America as an independent nation and agreed to remove all of its troops from its land. The treaty also set new borders for the United States including all land from the Great Lakes on the north to Florida on the south, and from the Atlantic Ocean to the Mississippi River. The United States had finally cast off the shackles of Great Britain and had won its independence, right? Not so!

In the Treaty of Paris, America agreed to pay all existing debts owed to Britain, and in the treaty of the French Alliance, France lent us the money to fight the British. France became our creditor and we became the her debtor. We literally owed France the farm.

Earlier, I asked the question, "Where did France and Britain obtain the money to fight their wars and finance their allies?" Through researching the history of the time, we come to find that France and Britain borrowed their money by securing loans from the International Bankers (Rothschilds, et al.). The International Bankers didn’t care which warring faction they financed. In fact they traditionally financed both sides because, win or lose, the Bankers usually ended up getting each country’s security (land) as collateral and, because of the way the Bankers negotiated the terms of the loans, including the interest, no country could ever pay them back.

In the end, America may have won the battle for our nation’s independence, but the International Bankers won the war. They always win the war if a country borrows money from them . The blood that was spilled by many of our Patriots to rid our country of the tyrannical rule of King George III of England was all for naught. We got rid of one tyrant and replaced it almost immediately with another—the International Bankers through debt. In essence, the United States began in bankruptcy by being plunged into debt with France and England. 

In 1790 the United States officially entered into bankruptcy. When a country or any entity enters into bankruptcy, reorganization must take place. In 1791 reorganization began and under the traitorous actions of the bankers' puppet, Alexander Hamilton, and his puppet masters, we were forced into chartering a national bank under the control of the International Bankers in the guise of reorganization.

The problem the International Bankers faced was that the charter for the national bank was for 20 years. Between 1791 and 1811, the bankers were not subtle enough with their manipulation of our currency and the people saw the folly of the banking system set up by the International Bankers. Congress listened to the people and were not willing to extend the charter. In 1811, the renewal of the charter for the national bank was not ratified.

Question:  What happened in America in 1812? 

Answer:  That’s the topic of our next blog post. 

Until the next issue. Keep your powder dry and your money out of banks.

Gus

History of the Rothschilds Central Banking Dynasty Part II

 "The Bankers are the Money-Creators of the Nation.
To this fact can be traced the cause of every depression, 

every bank failure, our staggering National debt and the
poverty of the vast majority of our citizens, and the slow
starvation of one-third of our population, while vast 

amounts of the produce of the Nation are being 

intentionally destroyed."
— John R. Elsom, Lightning Over the Treasury Building, 1941

Traitors Among Us
While our patriotic soldiers of the American revolution were heroically fighting to break away from England and their Bankers and gain national and economic independence, a fifth-columnist, who was perceived to be a patriot, was busily planning and implementing a double-cross. Who was this fifth-columnist? Alexander Hamilton! He was actually a hireling of the Bank of England and in 1780 he proposed the formation of a Federal Bank, owned by private interests. (Sound familiar? Perhaps a Federal Bank like our present-day Federal Reserve?). These private-interest shadow investors funded this scheme by fronting $12,000,000—$10,000,000 of which was to be supplied by the Bank of England (controlling interest) and the remaining $2,000,000 was to come from the wealthy of America.

With all this injected money floating around and ready to be used and the influential wealthy in America calling for a National Bank, the Bank of America was organized in 1783 by Alexander Hamilton and Robert Morris, who were front men for the racketeers behind the scenes. Robert Morris was the Superintendent of Finance for the Continental Congress. He purposely stole $250,000, the last of the remaining funds in the United States Treasury, and put it in the Bank's capital stock.

Well, the secret leaked out and this created prolonged and bitter controversy. Thomas Jefferson, Andrew Jackson, John Adams, James Madison and Benjamin Franklin led the fight against the scheme. The charter for the proposed bank was refused.

Unfortunately, Benjamin Franklin, the staunch defender of the people's rights,  passed away in 1791. This removed the main obstacle to the scheme and all the sane and logical protests of the other statesmen were swept away by an injection of bankers' gold into the economy. In 1791 Congress relented and granted the exclusive privilege of creating currency based on public and private debts to Alexander Hamilton (who had by that time wiggled his way into the Office of the Secretary of the Treasury) and to his money-manipulating cohorts, by chartering their bank. Instead of naming it the Bank of America, which had a bitter taste in the mouths of the statesmen who were against its formation, they renamed it The Bank of the United States—a different name but with the same insidious scheme and intent, i.e., to defraud and control the people of the United States.

The Ponzi Scheme Enacted
Thus, the Bank of the United States became a reality and it established 90 branches throughout the Nation. After the bank was officially chartered, Alexander Hamilton resigned from the Office of Secretary of the Treasury and devoted the rest of his time to the exploitation of the Nation. Fortuitously, justice was served for his traitorous activities—he was killed in a duel with Aaron Burr. However, the duel was not over this treachery, but was the culmination of a 13-year-long personal vendetta wherein Hamilton repeatedly used his power to defeat Burr in several important political races.

The newly formed bank was capitalized with $35,000,000—$28,000,000 provided by European bankers, mainly the Rothschilds, and $7,000,000 to be subscribed by the Americans. As you can see, the Europeans took control of the the bank because of the amount of their vested interest. This set the stage for the International Bankers to retake America, through the extending and contracting of credit. (Note: Baron Mayer Amschel Rothschild arrogantly once proclaimed, "Give me control of a nation's money and I care not who makes the laws.") At first the bank provided ample money and created stringent rules. Then, like all their greedy goldsmith cousins of the past, they slowly loosened the rules in favor of the bankers by loaning money on first mortgages, by creating usury where the people couldn't afford to pay their mortgages and then foreclosing on them, by stealing their possessions, and by gathering interest on every dollar in circulation in the Nation.

How the Ponzi Scheme Is Run
Let's examine the subtle fallacy of this scheme of "gathering interest on every dollar in circulation in the Nation". Let's say we have five people coming together to play poker for the evening. They decide that they need a banker to handle the money that is going to be played that evening. So they bring in their local banker to loan the players the money. The banker is not one of the players but merely handles the money in play. Let's also say that everyone at the table took out a loan from the banker for $1000. Against that loan each player pledged property that was worth at least $1000. Now the banker is going to loan the money with interest. Let's say the interest is 10%. The available money at the table is now $5000 minus the 10% interest. That leaves the 5 players with $4500 to play with.

Now, because all this money on the table is debt money, every dollar played is subject to additional interest on every dollar in circulation. So as the players play their hands money is put into the pot as the betting continues. Eventually the pot is filled with money, the hand ends and someone wins the pot. However, just before the winner can get his money from the pot, the banker intervenes and takes out 10% from the winnings. After all, the banker controls all the money being played. It's basically his money they are playing with until the debts are settled. Because he loaned the money he sets the rules and gets to control the money in play. For this, he gets to take interest out of the money being circulated in the game. How long can the 5 people play until all the money is taken out of circulation through interest on each transaction? The players either have to borrow more money to play or go home. However, everyone playing in this game loses. The players lose the collateral they put up for the initial loans and the money to play dwindles every time they play a hand. The banker comes out like a bandit. He got their collateral and the interest from the money in circulation. Pretty soon, the banker owns everything, just like the bankers do today.

Would you ever enter into a game with the scenario I just described above? Maybe not intentionally, but that's the ponzi scheme the Republic got itself into right after our revolution. We broke away from England and their bankers and then, through deception, enslaved ourselves almost immediately by entering into an International Banking System. We're in the same position today with the Federal Reserve System. Do you see any similarities to what the Foundering Fathers got into and what we are in today? I do! Someone once said, "if you don't learn from history, you are apt to repeat it." We have not learned from history, over and over again....

Conclusion
As you can see, our Republic was truly sovereign only from the end of the revolutionary war to 1791 when the International Bankers and the Bank of England once again became our masters through the consent of the Congress of 1791. I feel that Alexander Hamilton and the Congress of 1791 should take their place alongside Benedict Arnold on the infamous list of traitors to the Republic. These were not the last of the traitors as will be revealed in the continuing saga of the deceptions of the International Bankers throughout our Nation's history.

The charter for the Bank of the United States was for twenty years and was to expire in 1811. You'll be amazed at what happened when Congress tried to rectify the hideous mistake they made in granting a private institution such tremendous powers. Stay tuned for Part III of this epic saga.

Until next posting, keep your powder dry and your money out of banks.

Gus

P.S. Much of this history lesson was taken from the book “Lightning Over the Treasury Building”, by John R. Elsom, published by Meador Publishing Company, 1941.

History of the Rothschilds Central Banking Dynasty Part I

“While boasting of our noble deeds, we are careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression, which, though more refined, is not less cruel than the old system of chattel slavery.”
— Horace Greely

In the mid-18th Century, Amshel Moses Bauer, a gold- and silver-smith, traveled throughout Germany peddling silver articles that he himself manufactured. Peddling was a long and arduous venture. After so many years of traveling and living like a gypsy, he became weary of this kind of life and decided that enough was enough. So in 1750 he decided to settle down. He opened a goldsmith shop in the Judenstrasse section of Frankfurt, Germany to sell his wares. Over his shop door he hung a red shield.

He, like all the other goldsmiths who went before him, built a strong-room to store his own gold and silver and that of others who needed the security of a safe-deposit vault to keep their riches, including gold and silver coins (the currency of the times). And, like all his fellow goldsmiths before, he practiced the art of loaning money at interest on those coins which did not belong to him (see the first blog post for more details on this practice of usury, theft,  and deceit).

Amschel Moses Bauer had  a son and named him Maier Amshel. Maier Amshel was a very clever and studious boy and was studying to become a rabbi. When he was eleven years of age his father died and in order to make a living, Maier Amshel went to work at the Oppenheimer Bank in Hanover, Germany. After several years working as a clerk, and because of his keen sense of banking, he advanced through the ranks and eventually became a junior partner. 

He eventually returned to Frankfurt and bought the house with the red shield, the house in which his father had set up shop in and assumed the name of Red Shield (“Rot Schild” in German) and thus established the “House of Rothschild”. 

While he was working with the Bank of Oppenheimer he accumulated much wealth. With this money, combined with the money he inherited from his father, he formed his own business, and an unholy business it was. What was this unholy business? It was a business that induced German soldiers to volunteer, and unwittingly become his own private mercenaries, whom he sold to England to fight its wars with Scotland, France, and other nations and later the American Revolutionaries. Those he could not induce to volunteer, he kidnapped. These mercenaries were essentially slaves. 

This was a very profitable enterprise. It cost him very little to induce, kidnap and enslave these men and England was willing to pay a fortune for  mercenaries. For example, in 1787, he sold 12,000 men to England and received 80,000 pounds sterling. Rothschild made numerous such sales over the years. Such unholy sales became the foundation of the Rothschild fortune.

As you can see from this short lesson in history, the Rothschild fortune was made on the lives of men who were duped into volunteering or who were shanghaied into servitude to fight wars for the explicit personal accumulation of wealth of one man. 

In following blog posts I will show you how the Rothschilds used wars and may have even created wars to further their accumulation of wealth and power which lives on today in the form of the Federal Reserve, the IMF, and other Central Banking Systems, all run by the “House of Rothschild” and its minions, which are vast, hidden in the shadows, and insidious.

As always, keep your powder dry and your money out of banks!

Gus

P.S. Much of this history lesson was taken from the book “Lightning Over the Treasury Building”, by John R. Elsom, published by Meador Publishing Company, 1941.

Early History of Central Banking

“Those who do not learn from history are doomed to repeat it”
– George Santayana
(Spanish born American Philosopher,
Poet and Humanist 1863-1952)

In the Beginning...Came the Hyksos
In a far distant time and land, long, long ago, around 2200 B.C., in the biblical land of Goshen, there came upon the Earth a great natural catastrophe that spread throughout the Middle East (it must have been an Al Gore moment). It was during this period of time that the Hyksos, a people of Semitic origin, migrated from Mesopotamia and settled in the land of Egypt. Over the course of time their chieftains took control and eventually became kings over the land. These rulers were named “The Shepherd Kings”. It was during the reign of the Hyksos that, as noted by the archaeologists James Henry Breasted and Sir Flinders Petrie in their field notes: “...there was a profound impact these Semitic peoples had on the evolution of the early Egyptian civilization.”

"Hyksos" in Hieroglyphics

Shepherd Kings
During the rule of these “Shepherd Kings” (Notice the shepherd's staff in the hieroglyphic above), Egypt leaped forward, into a new age from a relatively primitive civilization into a great and powerful civilization, which advanced, geometrically, in every field of knowledge and endeavor. Wise men from the Hyksos society were brought in to teach astronomy, medicine, and mathematics. Innovations such as boats with keels, the building of canals, the control of water resources, wheels and wheeled vehicles, the introduction of horses, donkeys and oxen, the pottery wheel, advanced agriculture and the introduction of new fruits, like pomegranates, figs and olives, and new grains and vegetables, brought untold wealth and prosperity to these early Egyptians.

The Hyksos also introduced composite bows of laminated bone and wood, which were superior to the Egyptians' bows of basically bent branches, as well as the modification of the Egyptians' swords and daggers that made them more effective and durable. New spinning devices and the upright loom, new fibers and dyes, new musical instruments such as the harp, the lute, lyre, oboe and tambourine from Mesopotamia now appeared in Egyptian culture along with new forms of dancing and entertainment. These were just a few of the numerous improvements introduced to the early Egyptians.

The Fall of the Hyksos
The Semitic rule over Egypt endured for only two centuries and the “Shepherd Kings” were overthrown by the Egyptian Pharaoh, Ahmose I. The Hyksos were eventually enslaved and the progress they introduced that brought wealth, prosperity, and power to Egypt came to a halt and Egypt never fully recovered. If the Hyksos were so important to the evolution, wealth, and prosperity of the Egyptians, why did the Pharaoh depose and enslave the Hyksos? I believe it was the Hyksos themselves that led to their demise.

The Earliest Currency Manipulation
There were three negative contributions that the Hyksos brought with them from Mesopotamia that probably led to their downfall. They were: central banking, military conscription, and juryless trials. The main focus of this blog, however, centralizes on the untold story of the world's earliest currency manipulation that began with the introduction of “scarabs” and “central banking”. It's my firm belief that central banking with its fiat money (scarabs) was the proverbial "straw that broke Egypt's back!"

Scarabs

Scarabs
Scarabs are little stones carved in the shape of beetles. The live beetle, which the scarab represents, rolls amorphous animal waste into perfect spheres and buries them in the soil. These spheres provide stored food for the beetle, a nesting medium for the beetle's eggs, and food for its larvae. (We have these beetles in America, too. In Tennessee, they are called "tumble bugs.")

An important benefit of the beetle's work (to humans) is the enrichment of the soil, which leads to better crops. Thus the Egyptians revered, even worshiped, these beetles. Images, jewelry, and decorations abounded to honor these creatures. Because of the benefits to the life of the early Egyptians the beetles played an important part in Egyptian culture. The Hyksos, being shrewd businessmen, took advantage of this and carved thousands of these scarabs and inscribed uplifting mottoes and the names of officials on them and distributed them to the Egyptians, who enthusiastically traded their gold and silver for them and used them as a medium of exchange. It only took a carver a few minutes at a workbench to carve a scarab out of soapstone or some other soft material, but it took weeks, months and even years for hardworking men to mine and refine the gold and silver taken from the earth with muscle, sweat and tears.

Gradually, the Hyksos officials began hoarding the gold and silver for themselves (much like the Goldsmiths of the Middle Ages, as noted in my first blog post) and carved more and more scarabs to distribute to the Egyptians, leaving an ever-increasing supply of scarabs to circulate and little, if any, gold or silver. Since the officials now controlled the money and thus the population, they were able to dictate the value put on human labor and many frivolous projects were undertaken. Some of these projects, like the canals that controlled water flow and resources, may have been of value to the betterment of the society, but others, like building pyramids* and waging wars, were just projects to keep the populace occupied and to keep their minds off the fact that they were being robbed of their wealth — i.e., their gold and silver.

            * “Many Egyptologists conclude that the Pyramid was built as a tomb for
            some pharaoh.... Oddly, ...[there is] no reliable report of any body having 
            been found in any of the pyramids”

– Peter Tompkins, Secrets of the Great Pyramid,                           
New York: Harper Colophon Books, p. 236                            

The pyramids may have been magnificent and very scientific monuments, but they were costly and really served no practical known purpose, except to distract the population. There are about 36 major pyramids in Egypt — all with no bodies.

With the misuse of Egypt's money, manpower and resources (e.g., building pyramids and fighting wars), agriculture and the production of food began to decline. This meant a scarcity in food, which meant that food had to be controlled by some centralized bureaucracy. The Hyksos officials formed the bureaucracies, and used the gold and silver they scammed from the Egyptians to import food from other lands. The Egyptians then had to go, scarabs in hand, to the bureaucrats to buy food and hope they could get enough to feed their families. Eventually, poverty, hunger, and chaos ensued and something had to give. Perhaps the native Egyptians had had enough of the Hyksos and their central banking system and all the rest of the abuses from that ruling class, causing the people to rise up against them and overthrow them. (Note: A similar event seems to be happening currently in Egypt.)

The State of Our Nation
Since 1913 and the formation of the Federal Reserve, “We the People” have also been scammed out of our gold and silver and given worthless scarabs (Federal Reserve Notes aka FRNs) with no substance backing them. FRNs are created by a few computer binary key strokes and a printing press. Just like in ancient Egypt our country is building pyramids (bridges to nowhere), fighting wars in other countries (e.g., Iraq, Afghanistan, Korea...distracting the population), and reducing our agriculture to a bare minimum (e.g., enacting the "Food Act" during a lame-duck session in December 2010 that basically nationalizes food production in the U.S.). This control of our food production by bureaucrats will further contribute to food scarcity in the U.S. and we will have to go to the bureaucrats with our scarabs in hand for food, just like the ancient Egyptians, and hope they don't ration it.

The central banking system, along with its practice of buying politicians in Washington DC, is draining our economy with entitlements (so-called free money, complements of the bankers) by allowing illegal aliens to infiltrate our country — people who live "underground" and do not pay into the programs they use (e.g., taxes and Social Security), and in some cases take over our land (e.g., Arizonans cannot go within 70 miles of the Mexican border because it's too dangerous due to armed infiltrators). And just like in ancient Egypt, the International Bankers (Hyksos) have all our gold, silver, land and institutions. Food is becoming scarce (look at the rising food prices), unemployment is rising (too many worthless scarabs in circulation), poverty is on the rise (more and more welfare recipients), and our wealth is going into the pockets of the bankers and their minions. Isn't it time we oust the central bankers and the Federal Reserve, like "Pharaoh, Ahmose I" did 4,000 years ago, and bring back Constitutional money before we end up like Egypt? Congress enacted the Federal Reserve System and Congress can depose it.

   Hyksos Scarab   =   Federal Reserve Note (FRN)

As the quote at the beginning of this blog post implies, history is a valuable subject to study and it's a great teacher. It's said that when the pupil is ready, the teacher will appear. Isn't it time “We the People” educate ourselves with the history of these global deceptions and learn from them, and not make the same mistakes as those who preceded us? My intent with this blog is to educate not only myself with these deceptions and learn from them, but to pay-it-forward to you, the reader, so you can educate yourself, learn and apply. Once I finish documenting a few more of these deceptions, I'll explain how “We the People” can wean ourselves off the use of FRNs, even if the Federal Reserve is not abolished. The only reason we are taxed at all is due to the use of FRNs (debtor notes) and the central banking system. We need to get back to the use of Constitutional money in order to save our wealth, lives, liberties and our pursuits of happiness.

As always, keep your power dry and your money out of banks!

Gus

P.S. My next blog posts will deal with a few more case histories of central banking scams and what they've done to the people of the world. This story of ancient Egypt and the Hyksos is only one example of the ruinous nature of central banking systems and why we must abolish the Fed.

What Is This National Bank Mentioned in the Communist Manifesto?

"Centralization of credit in the hands of the 

State, by means of a national bank with 

State capital and an exclusive monopoly,"

—5th Plank of the Communist Manifesto

What is this National Bank mentioned in the Communist Manifesto?

It's a Central Banking System, like our Federal Reserve System! In my opinion central banks, if not controlled (and they never are), are the most insidious and dangerous monsters on the face of the earth. Wars, famine, natural catastrophes, plagues, murder, drug trafficking, terrorism, you name it, all combined, pale in comparison to the total destruction of life, liberty, and the pursuit of happiness of individuals, as well as the sovereignty of nations caused by Central Banking Systems.

All that being said, before revealing why I believe a Central Banking System is so insidious and dangerous to a People and to any Nation, let's take a look at its origins.

Origins

Central banks practice the art of the best con game in town called "fractional-reserve banking". This art form is best illustrated in Renaissance Europe with the practice perfected by the early goldsmiths. In those Renaissance days, before our Republic was formed, goldsmiths in Europe would build what were called strong-rooms (sort of like a mini Fort Knox) against thieves and store not only their own cache of gold for their own smithing but would store gold coins for individuals, especially royalty, land barons, and merchants, for safe keeping. Upon deposit of the coins the goldsmith would give the depositor a receipt or note stating how many coins were deposited and that upon demand of the bearer of the note, the goldsmith would return the same amount of coins deposited, less the fee for storage. These notes were sometimes used within the community as currency—for trade, payment of debt, goods, etc. This practice led to the beginning of the use of paper money as currency in Europe.

During this same period of time, there existed a class of merchants called “scriveners” who lent coins to people from their own private funds. Seeing this, and the fact that very few of the goldsmiths' depositors ever withdrew their coins, the goldsmiths decided that they too could lend coins, just like the scriveners. Instead of practicing what the scriveners did, i.e., lending only their own coins, the goldsmiths lent their depositors' coins. At first they were very cautious and lent only a few coins at a time. Later they got emboldened and worked their way up to lending 80 or even 90 percent of the coins in storage. Of course, they charged interest (usury) for the use of the coins.

Sometimes, when a borrower came to the goldsmith, instead of lending the borrower physical coins, the goldsmith would issue a certificate stating that he had lent the borrower so many coins. The diabolical parts of this act were (1) that many of the coins never left the possession of the goldsmith, so he could lend out more and more certificates, and (2) the interest collected for the use of the coins by the borrowers wasn't shared with the true owners of the coins. It wasn't until later, when depositors discovered that the goldsmiths were collecting interest on coins that belonged to the depositors, that sharing of the profits from the interest was put into practice. Sharing of interest was only introduced by the goldsmiths in self defense, so they wouldn't run the risk of being lynched, as many before them had.

The practice of issuing more notes to the public than the number of coins held in storage deflated the value of the coins in the vault, especially on coins that were not the goldsmith's property to begin with. Basically, the goldsmith created notes (a form of money, a medium of exchange) with no true value (the coins were not his to play this con game with). These notes became “fiat money” (money that couldn't be converted into coins) because there were not enough coins on deposit to cash in all the outstanding notes. Let's say the goldsmith issued 200 notes, each note being worth one gold coin and there were only 100 coins in the vault. If everyone cashed in all outstanding notes at once and everyone was only going to receive an equal share, the coins would only be worth half of their value. So if the number of coins in the vault was the standard by which you conducted business, you would have to have two notes to have the same purchasing power of one gold coin. This is inflation.

Look at the cost of a $20 gold coin today in Federal Reserve Notes (today's “fiat money”) and compare it with the cost of a $20 gold coin in 1914. In 1914, when the Federal Reserve Act was enacted, a $20 U.S. gold coin was worth 20 $1 U.S. silver coins. In 1914 the Federal Reserve Act said, in essence, that if you took a $1 silver coin or a $1 U.S. Note or a $1 Federal Reserve Note to the bank and deposited it in savings or your checking account, you would receive a $1 entry into your account. Today, a silver dollar is worth about $28 in FRNS (pronounced “Ferns” for Federal Reserve Notes). A $20 U.S. gold piece costs somewhere around $1,400 FRNS. Talk about inflation! Talk about a con job on the American People!

This is fractional-reserve banking—lending out more money than the amount deposited. Number one, the deposits aren't owned by the bank but by the depositors, and two, the bank keeps only a fraction of those deposits on reserve. That's why, when there's a run on a bank, the bank can't pay out all the demands on the deposits and the bank becomes insolvent. When a bank fails and government steps in and either bails them out or pays off their debt, “We the People” lose, because the only way the government can pay a debt or bail someone out is through taxation. The more banks there are that fail, the more we pay in taxes. The more we pay in taxes, the less net worth we have.

A good example of the effect of fractional-reserve banking is illustrated in the movie “It's a Wonderful Life,” 1946, Liberty Films, with James Stewart, Donna Reed and Lionel Barrymore, distributed by RKO. In the movie, there was a run on the banks at the beginning of the crash of 1929, Bailey's Building and Loan had lent out most of the money deposited by the citizens of Bedford Falls to build homes, finance construction, pay medical bills, education, etc. However, Potter, the villainous banker of the town, offered to pay only 50% of the value of the paper the depositors owned with the Building and Loan, if they wanted their money immediately. Thus, Potter was able to buy up more shares of the Building and Loan and gain more and more control of the Building and Loan. By fractionalizing the deposits, the value of the deposits were worth only half the worth of the original deposits made. Potter made a fortune from the people who panicked and cashed in their paper with his bank. 

But are these deposits really available to be lent out?

Some are and some aren't. In the case of Bailey's Building and Loan the deposits were available for loan. The depositors knew and agreed that when they deposited their money it would be used for building and loan purposes and that they would be able to withdraw all of their deposits only after giving 60 days notice. But the notes given out by the goldsmith in the early days of Europe were certificates or contracts that stated that the smith would only store the coins and return them on demand. Nowhere did the contract state that the coins would be lent out nor did the depositors of coins know that their coins were being used fraudulently.

The Federal Reserve operates in the same way as these early goldsmiths. They lend out money that is not theirs, charge interest to put it into circulation, and pay out very little, if any, of the profits from the interest collected to the depositors.

Using today's Federal Reserve Banking System, here's a very simple example of what happens with a $100 deposit. If you deposit $100 in your bank, your bank can legally loan up to 10 times the amount on deposit minus no less than 10% kept in reserve. That means that they can loan up to $900 and keep $10 in reserve on a $100 deposit. The bank charges interest on that $900 loan. Let's say the interest on the loan is 4%, so 4% of $900 equals $36. Remember, your deposit isn't really their money, but they're in possession of it, just like the goldsmiths of early Europe, and just like the goldsmiths, they loan out more than is deposited. What's your share of their $36 profit from that loan? Let's say that the bank pays you a whopping 1% on your deposit of $100. That's $1. The bank earns $36 dollars off of $900 in loans and pays you only $1 for your $100 deposit. Multiply this example by millions, billions and even trillions of dollars held on deposit in this country or even in the world. You can now see how bankers can make out like bandits and acquire vast amounts of wealth from the American People using fractional-reserve banking practices. When a person has all the money he can possibly want or spend for the pleasures of life, what is left for him to acquire?

POWER! And they're using power, right now, against the American People and the Nations of the world.

How do Central Bankers or the Federal Reserve (Feds) use the vast wealth they have acquired from the American People, against the American People?

“...this is where that money has been going...to acquire control over these groups and institutions by buying up influence and control over the people who run them. That means that they're buying up politicians, political parties, [judges—the author's addition to this list], television networks, cable networks, newspapers, magazines, publishing houses, wire services, motion picture studios, universities, labor unions, church organizations, trade associations, church organizations, tax exempt foundations, multinational corporations, boy scouts, girl scouts,you name it. Any group, any institution, which exercises influence, has been a target for control, and they have a lot of money to spend to acquire that control.

—G. Edward Griffin, “How Banks Control and Rob Americans” (CD)

This, my friends, is the “Shadow Government” I talked about in the first blog post.

Until next time, keep your powder dry and your “coins” out of banks!

Gus

P.S. The next several posts will feature a history of Central Banking Systems and their negative effect on every economy they touched.

What Happened to Our Republic?

Introduction
Are you concerned with the erosion of our Constitutional Republic and the economic chaos our country is in?

Well, I am!

My name is Charles "Gus" Gustafson and I consider myself a "Constitutional Conservative" and an "American Patriot". I'm also an active supporter of the "Tea Party" movement.

I prefer the term "Constitutional Conservative" because I find the term "conservative", used alone, can mean anything in today's political spectrum. It's been tainted by those politicians who claim to adhere to "conservative" values of limited government, fiscal responsibility, and free enterprise, but when it comes time to vote in Congress, they vote to pass unconstitutional laws. In fact, most of the time they don't even read the bills they vote on. Would you avoid reading a contract you were going to sign and be bound by? Well, bills passed in the legislature are contracts which bind us, the people, to specific performances or obligations. Shouldn't our representatives be required to read each bill in its entirety before voting, especially when our liberty is at stake?

Because I'm concerned with the socialist direction in which our country is headed, I've decided to do something about it, i.e., to get involved! That's the purpose of this blog — to write down my thoughts and discoveries about how and why our Republic has been usurped by what I call the "Global Shadow Government". This blog is not only a public diary of my thoughts, views and values, but it'll be an educational tool for anyone who reads it. It'll be loaded with facts, citations, links, and bibliographies. It's a way for me to get information out to anyone who wants to know the truths I've discovered that are hidden by the shadows of deception and to get them out into the light of day. This way "We the People" will have the information we need so we can act accordingly.

Information is powerful, but only if acted upon!

Why do I call these global deceptors the "Shadow Government"? One clue of many I'll unveil later came from President Ronald Reagan. When he was asked by a reporter how he felt about being the most powerful man in the world, his answer summed up what I've known since I began my constitutional studies 25 years ago. To paraphrase, he said that he wasn't the most powerful man in the world — that every morning, when he enters the oval office, there's a note on his desk telling him what he is to do that day. Even though he said it in what seemed like jest, there was a message behind his words — but that's for another time.

Future posts will reveal the ugly truths I've discovered about this Shadow Government, how, like a spider, it wove its way into all three branches of our government (executive, legislative and judicial) and destroyed our money one strand of deception at a time starting with the Federal Reserve Act of December 23, 1913. I'll discuss how it's sped up the overthrow of our Republic, and give suggestions as to what we, as individuals, can do about defeating this Shadow Government and the Federal Reserve and reclaim our Constitution, our Republic, the Common Law, and our individual Liberty.

As a result of all my research over the past 25 years, I've come to the conclusion that the main strand, the center of this web of deception, is directly related to our Central Banking System.

My next blog post will begin with a discussion of the Central Banking System, its history and its intentions. I won't be able to cover the whole topic in one sitting, but in many subsequent serialized posts.

Note: I remember when I was a kid, I would go to the movies every Saturday afternoon, not to see the main movie, but to see the next serialized episode of either Buck Rogers, The Shadow, Roy Rogers, etc. The same will be done here in this blog.

Until next time, keep your powder dry!

Gus