Central Banks – What You Should Know

by on December 28, 2010 under Banking

[singlepic id=39 w=280 h=210 float=right]Today Central Banks are so well established in all major western civilisations that we barely question them. I will show you why this is in their best interests, and not in yours.

What is money? Money is a mechanism that facilitates fair exchange of real goods and services in a society. As such, the mechanism of money belongs to all citizens in the society. The actual money itself will broadly be distributed according to who has added the most value to the society, but the mechanism is there for everybody and therefore belongs to everybody. Or does it?

Underlying all modern history there has been another war raging. You didn’t learn about it in school, or at university, and you sure won’t learn about it on TV. Several well known wars and high profile assassinations including that of US President John F. Kennedy have been motivated by it. This war has been over who has the right to issue a nations money supply. In the UK, Europe and the USA, financial war has been raging since the 18th century with the right to issue money moving between Kings and Governments (the representation of the people), and the privately controlled central banks.

Why all the fuss over the right to issue money? Well, it was best said by one of the central bankers themselves:

“Permit me to issue and control the money of a nation, and I care not who makes its laws.” – Mayer Anselm Rothchild

If you have the exclusive power to issue money for a nation, then you determine everything in that nation financially. You can create boom times and you can create depressions. You determine what the average house will be worth, and the average wage. You can expand the money supply and create a housing bubble, and you can contract the money supply, collapsing the markets.

Consider this analogy: The nation is a bath, the water in it the money supply, and there are fish in the bath representing the people of the nation. If there is plenty of water in the bath, the fish are happy. They can swim freely through the water, they can breed, they can live. If the plug is opened, the fish are squeezed to the bottom, they can no longer swim and if the tap is not turned on they will surely die. Central banks have their hand exclusively on the plug, and on the tap at the same time. The people and the government are fish in the water and are therefore at the mercy of the central banks.

I can hear you. “But the central bank is required to act in the best interest of the country!” you say. Wrong. The central banks are required to act in the best interest of their private shareholders. If that happens to be by making things run smoothly for a decade or two, then that is what they will do. “But the central banks are owned by the government, not private shareholders!” you say. Wrong. One of the marketed benefits of central banks is that they act independently of the government. If they were ‘owned’ by the government they could not act independently could they. Why would the government take out huge loans from itself and pay huge amounts of interest to itself? It wouldn’t, and it doesn’t.

If the government borrowed money from itself, there would be no interest to pay, and no concern over the national debt. So why are we concerned over the national debt? Because the central banks have private shareholders and the massive amounts of interest we pay as taxpayers goes to those shareholders, not back into the government. Like any bank, central banks are in the debt business. More debt = more revenue.

The alternative to central banks is for the government (the people) to issue its own debt free money – to permanently block up the plug and occasionally turn on the tap to make things comfortable for everyone. Imagine how much money would be available for health care and infrastructure if we were not paying billions per year in unnecessary interest. This would not result in inflation. Retire debt based money and replace it with debt free money 1 for 1. Zero inflation. Governments have successfully issued their own money throughout history and this is the answer to our economic woes today. Then we need to ensure our memory lasts for centuries and we never go back despite the instability the central bankers would attempt to cause.

Closing facts about our current system:

  • Physical money is only 4% of our money supply (minted). The rest is interest bearing bank credit.
  • Central banks are misleadingly named to create the illusion of having national reserves of money and being government controlled.*
  • Central banks create the credit for nations out of nothing. Nothing at all. 96% of money is keystrokes on a computer.
  • Financial instability is manufactured by central bank shareholders as justification for the existence of central banks.
  • National debt can never be extinguished because to do so would also extinguish the debt based money supply. The nation is therefore trapped in perpetual debt.
  • For the privilege of having a money supply to use as a fair exchange mechanism the people must pay interest to the central bank. (Our money supply is rented not owned)
  • Since the central bank has the power to issue money and control its availability they dictate our ability to pay the interest on the loans they issue!
  • Continual inflation is necessary to maintain the system therefore hyperinflation and/or instability are ultimately guaranteed. (Assured failure of stated aim)
  • Real resources are pillaged, real assets are sold, and real services (health and infrastructure) are reduced to fund these fabricated loans.
  • When a nation inevitably defaults on loans from its own central bank, the World [central] Bank steps in. Without action from us, the World Bank will eventually hold all nations to ransom. First Greece, now Ireland, where next?

Please do everything you can to learn the truth about central banks and encourage your government to take back the issuing power of money on behalf of us all.

Learn the history of money by watching this documentary: The Money Masters – How International Bankers Gained Control of America.

Learn about debt based money: Money As Debt.

* Take a close look at the RBA logo above. Now focus your attention from the white 3 spoked image to the 3 black circular images in the negative space. What do you see? The true character of the RBA and all central banks. A wolf in sheeps clothing hidden in plain view.

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