THE MYTHS ABOUT MONEY.
The first myth about money is that it is backed by gold. It is not true, money today is not backed by gold or anything of that nature. It is backed by nothing more than the law of fiat. In other words a legal requirement to accept whatever is money as determined by the authorities.
The second myth about money is that 100% of a nation’s currency is its paper currency and coins. It is not true, paper currency and coins forms on average only 3% of a nation’s currency, 97% is money created by banks.
The third myth about money which is about to be debunked is that banks’ creation of money begins with a deposit of cash by a depositor in a bank. Then less a certain percentage paid to the central bank as reserves the balance is lent to a customer of the bank who in turn places the money in his bank which is again relent minus the central bank reserve. With the deposit of RM1000, and say a 2% statutory reserve the banks can create in total RM24,000 of money out of thin air making a new total of money of RM25,000. Indeed if the initial deposit is RM1 billion, RM24 billion of money can be created by banks out of thin air. This is referred to as the Multiplier Model of Money which is now being debunked as a money creation process even by Central Bankers such as Mervyn King, Governor of Bank of England in 1994, Adair Turner, Chairman of Financial Services Authority of Britain in 2011 and Vitor Constancio, Vice President of the European Central Bank.
The success of the central banking scheme developed into a far-reaching plan described by President Clinton’s mentor, Georgetown Professor Carroll Quigley, “to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank….sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the levels of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.”
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -James Madison
If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations. -Andrew Jackson
The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity. -Abraham Lincoln
