The Commonwealth of Australia is a most unique country in the world.
But how come it was so resilient during a Global Financial crisis?
There are two simple reasons: our form of Parliament and a Government owned Central Bank Reserve.
The Parliament of Australia was derived from the British, Canadian and American systems to form a uniquely Australian system. It is largely based on the British Westminster System, adopting many of its practices and precedents, but with a similar structure — House of Representatives, and Senate — to the U.S. Congress. The checks and balances ensure an effective democratic system.
Our founding Fathers of this nation took over 10 years to federate the six colonies and form the Commonwealth of Australia in 1901.Their deliberations and founding documents were very wise indeed.
One of the key founding principles was the desire that the Commonwealth of Australia be just that: its Common Wealth is for all its citizens. With this in mind, the Australian Government was not able to grant private enterprise ownership of our Central/Reserve Bank, unlike that of the United States Federal Reserve.
Because the Reserve Bank of Australia is not owned privately, it’s driver is not to maximise profits as do almost all other Central/Reserve Banks do. It is currently governed by the Reserve Bank Act 1959, which was approved by the Australian Parliament. The Reserve Bank Board’s duty stated in the Act, within its outlined boundaries, is to ensure that the Bank’s monetary and banking policy is used to help the Australian population.
This should be accomplished through consultation with the Government and so in the Reserve Bank Board’s opinion its powers are used to help with:
(a) the stability of the currency of Australia
(b) the maintenance of full employment in Australia; and
(c) the economic prosperity and welfare of the people of Australia.
Australia walks a fine line though. We still use Fractional Banking and debt can be our undoing if left unchecked.
The rich rule over the poor, and the borrower is slave to the lender.
If the people of Australia allow the nation’s debt to bloom, the IMF will gladly step in to relieve us of our Common Wealth.
The moral of the story is that as citizens we hold the power and the right to protect the Commonwealth of Australia. While we enjoy being laid back and reap the benefits of those who have diligently gone before us, we must remain ever watchful.
Ultimately, our collective voice is heard when we vote. But remember, if we are not happy with what our Government is doing, why wait? We can make a difference immediately by speaking to, or better still, writing to, our local and federal government representatives.
And that is why, I believe, we survive the Global Financial Crisis.
The question that sits at the back of our mind is, “How do I survive a financial crisis?”
We dare not speak out but it sits heavy upon us. We watch as interest rates for housing rise, cost of living rises, petrol, basic foods, electricity bills, gas bills, rates, all going up so fast. And yet, wages stay dormant.
We shudder when we see Wall Street go into a downward spiral and wait for the onslaught to our shares and superannuation.We regularly see on the news the reaction of the experts and government as it tries unsuccessfully to negotiate the best path through the financial turmoil.
Recessions, depressions, wars, rise and fall of nations, and the quality of your daily living are all influenced by the manipulation of money. We kinda know it because we are all striving to get more of it. People work harder, longer, and yet the appetite for more money is never quelled.
It remains a puzzle. So what is the answer?
First imagine you have a jigsaw puzzle in a plain box. You have no idea what picture the puzzle will form in to. So, you tip the puzzle out and examine the pieces individually. Some make sense and some don’t. Then you discover the corner pieces and the edges of the puzzle. From here the puzzle forms quickly. As each piece is added you begin to see the picture – some parts clearer than others and gaps exist. It is not until the last piece is added that you can say, “I can see the full picture!”
The corner pieces and edges of our puzzle are to understand the history of our Financial System, who controls it and how, and how it impacts on you directly.
TIP #1: There is no shortcut. Remaining naive is not an option.
“My people are destroyed by lack of knowledge”
Knowledge is the first step and key to discovering the answer to the question, “How do I survive?”
The second step requires wisdom… that is, what to do with the knowledge.
Are you ready to put the corner pieces and edges into place?
Here they are:
The History of our Financial System
As you click on each link, it will open a new tab or window. It will allow you to return to this page to keep putting the pieces together.
Also, keep an eye out for the Key to unlock the Puzzle (left) along the way. These are crucial points to unlocking your understanding.
How do I survive?
So, how does the puzzle look to you right now?
Do you see the full picture? Are there any pieces missing? I’m happy to go looking for them together… let me know.
Money and how it works is probably one of the most interesting things on earth.
It is fascinating and mysterious how money appeared on earth. Most things we enjoy can be traced back to a particular inventor or civilisation. But interestingly money appeared in a similar way in civilisations all over the earth at times when these places were not connected in any way.
For example, West Africa traded in decorative metallic objects called Manillas, American Indians used Wampum, and the Fijian economy was based on whales teeth, some of which are still legal tender today. There has been a variety of accepted currency such as shells, amber, ivory, decorative feathers, cattle including oxen & pigs, a large number of stones including jade and quartz which have all been used for trade across the world.
No matter how primitive a society, our ancestors used all sorts of things for ‘money’. As colourful as some of them are, Money is simply an object which everyone agrees upon its value and is prepare to exchange.
When a person who has what you need might not need what you have to trade, then ‘Money’ solves that problem. Real value with each exchange, and everyone gaining from the convenience.
The idea of money is really inspired which might explain why so many diverse minds came up with it.
And then entered the Money-Changers…
“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.”
President James Madison
Money, money, money, it’s always just been there, right? Wrong.
Oh, ok. But obviously it is issued by the government to make it easy for us to exchange things. Nope, wrong again!
Truth is most people don’t realise that the issuing of money is essentially a private business, and that the privilege of issuing money has been a major bone of contention throughout history.
Wars have been fought and depressions have been caused in the battle over who issues the money; however the majority of us are not aware of this, and this is largely due to the fact that the winning side became and increasingly continues to be a vital and respected member of our global society, having an influence over large aspects of our lives including our education, our media and our governments.
While we might feel powerless in trying to stop the manipulation of money for private profit at our expense, it is easy to forget that we collectively give money its value. We have been taught to believe printed pieces of paper have special value, and because we know others believe this too, we are willing to work all our lives to get what we are convinced others will want.
An honest look at history will show us how our innocent trust has been misused.
Let’s start our exploration of money in 33A.D. when Jesus expresses His anger toward the money-changers.
Jesus was so upset by the sight of the money changers in the temple, he waded in and started to tip over the tables and drive them out with a whip, this being the one and only time we ever hear of him using force during his entire ministry.
Jesus entered the temple courts and drove out all who were buying and selling there. He overturned the tables of the money changers and the benches of those selling doves. ”It is written,” he said to them, “‘My house will be called a house of prayer,’ but you are making it ‘a den of robbers.’”
So what caused this peace maker to become so aggressive?
For a long time the Jews had been called upon to pay their temple tax with a special coin called the half shekel. It was a measured half ounce of pure silver with no image of a pagan emperor on it.
It was considered by them to be the only coin acceptable to God.
But because there was only a limited number of these coins in circulation, the money changers were in a buyers market and like with anything else in short supply, they were able to raise the price to what the market would bear.
They made huge profits with their monopoly on these coins and turned this time of devotion into a mockery for profit. Jesus saw this as stealing from the people and proclaimed the whole setup to be. “A den of robbers”.
Once money is accepted as a form of exchange, those who produce, loan out and manipulate the quantity of money are obviously in a very strong position.
These are known as the “Money Changers”.
Now, let’s roll forward a few years to 1000A.D. and see the Money Changers at work in Medieval England.
In Medieval England in 1000-1100A.D., we find goldsmith’s offering to keep other people’s gold and silver safe in their vaults. In return, people walked away with a receipt for what they have left there.
These paper receipts soon became popular for trade as they were less heavy to carry around than gold and silver coins.
After a while, the goldsmith’s must have noticed that only a small percentage of their depositor’s ever came in to demand their gold at any one time. So cleverly the goldsmith’s made out some extra receipts for gold which didn’t even exist, and then they loaned it out to earn interest.
A nod and a wink amongst themselves, they incorporated this practice into the banking system. They even gave it a name to make it seem more acceptable, christening the practice ‘Fractional Reserve Banking’ which translates to mean, lending out many times more money than you have assets on deposit.
For example, if Person A deposits $100 in Bank A. The bank shows the $100 as a Liability. Bank A keeps 20% in Reserve and loans out 80% ($80) to Person B. The loan is an $80 Asset to Bank A. Bank A charges interest for this 80%. Person B spends the $80 with Person C who in turn deposits the $80 in Bank A. Bank A keeps 20% of the deposit ($16) in reserve and loans out 80% ($64) to Person D and charges person D interest on the $64. The $64 is added to the Assets of the Bank; now totaling $100 (original deposit)+$80(Loan A)+$64 (Loan B)=$244 . Person D spends the money with Person E who deposits the $64 …
As this process continues, more commercial bank money is created out of thin air!
The amounts in each step decrease towards a limit. This limit is the maximum amount of money that can be created with a given reserve rate. When the reserve rate is 20%, as in the example above, the maximum amount of total deposits that can be created is $500 and the maximum increase in the money supply is $400.
So we can see that the original $100 is inflated to $400… thus we have Inflation. And don’t forget they make more money with the Interest they charge for the loans.
It gets worse… today banks are allowed an 8-10% reserve and can loan out at least ten times the amount they actually are holding, so while you wonder how they get rich charging you 11% interest, it’s not 11% a year they make on that amount but actually 110%.
In 1100A.D. King Henry of England realised what the Money Lenders were up to. There had to be a better way – So good was the system he created, it lasted until 1854! He had introduced Tally Sticks – this is a real key to solving the question of how to survive a financial crisis today.
So, what were Tally Sticks?
King Henry VIII, King of England, produced sticks of polished wood, with notches cut along one edge to signify the denominations. The stick was then split full length so each piece still had a record of the notches.
The King kept one half for proof against counterfeiting, and then spent the other half into the market place where it would continue to circulate as money.
Because only Tally Sticks were accepted by Henry for payment of taxes, there was a built in demand for them, which gave people confidence to accept these as money.
He could have used anything really, so long as the people agreed it had value, and his willingness to accept these sticks as legal tender made it easy for the people to agree. Herein lies a key: Money is only as valuable as people’s faith in it. Without that faith even today’s money is just paper (or polymer here in Australia).
The tally stick system worked really well for 726 years. It was the most successful form of currency in recent history and the British Empire was actually built under the Tally Stick system, and yet most of us are not aware of its existence?
In 1694 the Bank of England at its formation attacked the Tally Stick System. They realised it was money outside the power of the money changers, (the very thing King Henry had intended).
What better way to eliminate the vital faith people had in this rival currency than to pretend it simply never existed and not discuss it. That seems to be what happened when the first shareholder’s in the Bank of England bought their original shares with notched pieces of wood and then retired the system. You heard correctly, they bought shares. The Bank of England was set up as a privately owned bank through investors buying shares. Shareholders expect a return on investment. Their driver is the return and not what is best for the people the Bank says it serves.
These investors, who’s names were kept secret, were meant to invest one and a quarter million pounds, but only three quarters of a million was received when it was chartered in 1694.
It then began to lend out many times more than it had in reserve, collecting interest on the lot.
This is not something you could just impose on people without preparation. The money changers needed to created the climate to make the formation of this private concern seem acceptable.
And here is how they did it.
With King Henry VIII relaxing the Usury Laws in the 1500′s, the money changers flooded the market with their gold and silver coins becoming richer by the minute.
The English Revolution of 1642 was financed by the money changers backing Oliver Cromwell’s successful attempt to purge the parliament and kill King Charles. What followed was 50 years of costly wars. Costly to those fighting them and profitable to those financing them.
So profitable that it allowed the money changers to take over a square mile of property still known as the City of London, which remains one of the three main financial centres in the world today.
The 50 years of war left England in financial ruin. The government officials went begging for loans from guess who, and the deal proposed resulted in a government sanctioned, privately owned bank which could produce money from nothing, essentially legally counterfeiting a national currency for private gain.
Now the politicians had a source from which to borrow all the money they wanted to borrow, and the debt created was secured against public taxes.
You would think someone would have seen through this, and realised they could produce their own money and owe no interest, but instead the Bank of England has been used as a model and now nearly every nation has a Central Bank with fractional reserve banking at its core.
These central banks have the power to take over a nations economy and become that nations real governing force. What we have here is a scam of mammoth proportions covering what is actually a hidden tax, being collected by private concerns.
The country sells bonds to the bank in return for money it cannot raise in taxes. The bonds are paid for by money produced from thin air. The government pays interest on the money it borrowed by borrowing more money in the same way. There is no way this debt can ever be paid, it has and will continue to increase.
If the government did find a way to pay off the debt, the result would be that there would be no bonds to back the currency, so to pay the debt would be to kill the currency.
With its formation the Bank of England soon flooded Britain with money. With no quality control and no insistence on value for money, prices doubled with money being thrown in every direction.
One company was even offering to drain the Red Sea to find Egyptian gold lost when the sea closed in on their pursuit of Moses.
By1698 the national debt expanded from £1,250,000 to £16,000,000 and up went the taxes the debt was secured on.
As hard as it might be to believe, in times of economic upheaval, wealth is rarely destroyed and instead is often only transferred. And who benefits the most when money is scarce? You may have guessed. It’s those controlling what everyone else wants… it is the money changer’s.
When the majority of people are suffering through economic depression, you can be sure that a minority of people are continuing to get rich.
Even today the Bank of England expresses its determination to prevent the ups and downs of booms and depressions, yet there have been nothing but ups and downs since its formation with the British pound rarely being stable.
One thing however has been stable since 1743 and that is the growing fortune of the ROTHSCHILDS.
So who or what are the Rothschilds?
A goldsmith named Amshall Moses Bauer opened a counting house in Frankfurt Germany in 1743. The two-headed eagle emblem of the Byzantine Empire (Roman Empire) on a Red Shield was adopted by Bauer. The shop became known as the “Red Shield firm”.
The German word for ‘red shield’ is Rothschild.
His son later changed his name to Rothschild when he inherited the business.
Loaning money to individuals was all well and good but he soon found it much more profitable loaning money to governments and Kings. It always involved much bigger amounts and always secured through public taxes.
Once he got the hang of things he set his sights on the world by training his five sons in the art of money creation. He then sent them out to the major financial centres of the world to create and dominate the central banking systems.
Their far reaching legacy impacts us even today. Their ‘behind the scenes’ methods of controlling money is far reaching and clandestine.
J.P. Morgan was thought by many to be the richest man in the world during the second world war, but upon his death it was discovered he was merely a lieutenant within the Rothschild empire. He owned only 19% of the J.P. Morgan Companies. We will explore this a little later.
“There is but one power in Europe and that is Rothschild.”
19th century French commentator, Niall Ferguson, THE HOUSE OF ROTHSCHILD, Money’s Prophets, 1798-1848
We will explore a little more about the richest family a little later. But after we have had a look at THE AMERICAN REVOLUTION (1764 – 1781)
By the mid 1700′s Great Britain was at its height of power, but was also heavily in debt.
Since the creation of the Bank of England, they had suffered four costly wars and the total debt now stood at £140,000,000, (which in those days was a lot of money).
In order to make their interest payments to the bank, the British government set about a programme to try to raise revenues from their American colonies, largely through an extensive programme of taxation.
However, there was a shortage of material for minting coins in the colonies. To respond to this shortfall, the colonies began to print their own paper money.
It was known as Colonial Script.
This provided a very successful means of exchange and also gave the colonies a sense of identity. Colonial Script was money provided to help the exchange of goods. It was debt free paper money not backed by gold or silver.
During a visit to Britain in 1763, The Bank of England asked Benjamin Franklin how he would account for the new found prosperity in the colonies. Franklin replied.
“That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.
In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one.”
Benjamin Franklin quote in Congressman Charles G. Binderup of Nebraska, Unrobing the Ghosts of Wall Street
America had learned that the people’s confidence in the currency was all they needed, and they could be free of borrowing debts. That would mean being free of the Bank of England.
This was such a powerful concept and in response the world’s most powerful independent privately owned bank, the Bank of England, used its influence on the British parliament to press for the passing of the Currency Act of 1764.
This act made it illegal for the colonies to print their own money, and forced them to pay all future taxes to Britain in silver or gold.
Here is what Franklin said after that.
“In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.”
“The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War.”
Benjamin Franklin’s autobiography
By the time the war began, on 19th April 1775, much of the gold and silver had been taken by British taxation. They were left with no other choice but to print money to finance the war.
What is interesting here is that Colonial Script was actually working so well, it became a threat to the established economic system of the time.
The idea of issuing money as Franklin put it “in proper proportion to the demands of trade and industry” and not charging any interest, was not causing any problems or inflation. This unfortunately was alien to the Bank of England which only issued money for the sake of making a profit for its shareholder’s.
But did America learn?
Enter in the BANK OF NORTH AMERICA (1781-1785)
Robert Morris was born in Liverpool, England in 1734, the son of ironmonger Robert Morris, Sr. When the senior Morris emigrated to the colonies, he settled in Maryland and became a tobacco agent.
Robert joined his father in Maryland in 1747 and was an apprentice in the Philadelphia mercantile house of Charles Willing. Here he quickly exhibited exceptional talent for commercial pursuits. In 1757 he became a partner in the firm of Willing and Morris which became one of the best known trading companies in the colonies, developing mercantile ties in Great Britain, Portugal, Spain and the West Indies. By 1773 the firm owned at least ten ships and chartered others as the need arose.
Even before the American Revolution, Morris was active in the 1765 fight against the Stamp Act and was a signer of the Non-Importation Agreement. In 1775 he served both as vice-president of Pennsylvania’s Committee of Safety, particularly charged with serving as banker and procurer of arms. That same year he was elected to the provincial assembly and as a Pennsylvania delegate to the Continental Congress, where he was vitally involved in committees relating to trade, war, the navy and foreign affairs.
In 1776 he signed the Declaration of Independence and began his role as the emerging nation’s chief financial agent, on numerous occasions using his savvy as merchant and financier as well as his personal credit to keep supplies coming and the public credit sound in a complicated and difficult situation. On several occasions he personally rescued the Revolution from ruin. As the Revolution progressed, Morris was reelected to the Pennsylvania assembly, attended the second Continental Congress and signed the Articles of Confederation.
With strong business acumen and as a key financial player in the political arena Morris, suggested he be allowed to set up a Bank of England style central bank in America in 1781.
The impoverished American Government was desperate for money. The $400,000 Morris proposed to deposit and then to allow him to loan out many times that through fractional reserve banking, looked really attractive idea to the government. It worked for England, didn’t it?
Already spending the money they would be loaned, no one made a fuss when Robert Morris couldn’t raise the deposit, and instead suggested he might use some gold, which had been loaned to America from France.
Once in, he simply used fractional reserve banking, and with the banks growing fortune he loaned to himself, and his friends the money to buy up all the remaining shares. The bank then began to loan out money multiplied by this new amount to eager politicians, who were probably too drunk with the new ‘power cash’ to notice or care how it was done.
The scam lasted five years until in 1785, with the value of American money dropping like a lead balloon. The banks charter didn’t get renewed.
The shareholder’s walking off with the interest did not go unnoticed by the governor.
“The rich will strive to establish their dominion and enslave the rest. They always did. They always will… They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres.”
Governor Morris - THE CONSTITUTIONAL CONVENTION OF 1787, 7/2
Still, did America learn?
Enter in the First Bank of the United States.
Hey! It worked once, it will work again. It’s been six years. There are a lot of new hungry politicians. Let’s give it a try. And so there it was, in 1791, the First Bank of the United States. Not only deceptively named to sound official, but also to take attention away from the real first bank, the Bank of North America, which had been shut down.
True to its British model, the name of the investors were never revealed.
Having gotten away with it a second time, some of them probably wished Amshall Rothschild had picked a different time to make his pronouncement from his private central bank in Frankfurt.
“Let me issue and control a nation’s money and I care not who writes the laws.”
Mayer Amschel Rothschild, 1790
Not to worry, no one was listening. The American government borrowed 8.2 million dollars from the bank in the first 5 years and prices rose by 72%. This time round the money changer’s had learned their lesson, they had guaranteed a twenty year charter.
The president, who could see an ever increasing debt, with no chance of ever paying back, had this to say.
“I wish it were possible to obtain a single amendment to our Constitution – taking from the federal government their power of borrowing.”
Thomas Jefferson, 1798
While the independent press, who had not been bought off yet, called the scam “a great swindle, a vulture, a viper, and a cobra.”
As with the real first bank, the government had been the only depositor to put up any real money, with the remainder being raised from loans the investors made to each other, using the magic of fractional reserve banking.
When time came for renewal of the charter, the bankers were warning of bad times ahead if they didn’t get what they wanted. Yet, the charter was not renewed.
Then, just five months later, Britain attacked America and started the war of 1812.
Meanwhile, and a short time earlier, an independent Rothschild business, the Bank of France, was being looked upon with suspicion by none other than NAPOLEON (1803 – 1825)
Napoleon Bonaparte (1761-1829) didn’t trust the Bank of France, saying:
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
Napoleon Bonaparte, 1815
For both sides of a war to be loaned money from the same privately owned Central Bank is not unusual. Nothing generates debt like war.
A Nation will borrow any amount to win. So naturally if the loser is kept going to the last straw in a vain hope of winning, then the more resources will be used up by the winning side before their victory is obtained more resources used, more loans taken out, more money made by the bankers; and even more amazing, the loans are usually given on condition that the victor pays the debts left by the loser.
In 1803, instead of borrowing from the bank, Napoleon sold territory west of the Mississippi to the 3rd President of the United States, Thomas Jefferson for 3 million dollars in gold; a deal known as the Louisiana Purchase.
Three million dollars richer, Napoleon quickly gathered together an army and set about conquering much of Europe.
Each place he went to, Napoleon found his opposition being financed by the Bank of England. All the while, the Bank of England was making huge profits as Prussia, Austria and finally Russia all went heavily into debt trying to stop him.
Four years later, with the main French army in Russia, Nathan Rothschild took charge of a bold plan to smuggle a shipment of gold through France to finance an attack from Spain by the Duke of Wellington.
Wellington’s attack from the south and other defeats eventually forced Napoleon into exile. However in 1815 he escaped from his banishment in Elba, an Island off the coast of Italy, and returned to Paris.
By March of that year Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.
With 74,000 French troops led by Napoleon, sizing up to meet 67,000 British and other European Troops 200 miles NE of Paris on June 18th 1815, it was a difficult one to call. Back in London, the real potential winner, Nathan Rothschild, was poised to strike in a bold plan to take control of the British stock market, the bond market, and possibly even the Bank of England.
Nathan, knowing that information is power, stationed his trusted agent named Rothworth near the battle field.
As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington’s courier.
A victory by Napoleon would have devastated Britain’s financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market.
This powerful man was not without observers as he hung his head, and began openly to sell huge numbers of British Government Bonds.
Reading this to mean that Napoleon must have won, everyone started to sell their British Bonds as well.
The bottom fell out of the market until you couldn’t hardly give them away. Meanwhile Rothschild began to secretly buy up all the hugely devalued bonds at a fraction of what they were worth a few hours before.
In this way Nathan Rothschild captured more in one afternoon than the combined forces of Napoleon and Wellington had captured in their entire lifetime.
The 19th century became known as the age of the Rothschild’s. It has been estimated that they controlled half of the world’s wealth.
While their wealth continues to increase today, they have managed to blend into the background, giving an impression that their power has waned.
They only apply the Rothschild name to a small fraction of the companies they actually control.
Some authors claim that the Rothschild’s had not only taken over the Bank of England but they had also, in 1816, backed a new privately owned Central Bank in America called The Second Bank of The United States. This caused huge problems to the American president, Andrew Jackson (1828 – 1836).
Andrew Jackson retaliated. What he did is a key to reviving any economy! So, let’s go see what Andrew Jackson did.
When the American congress voted to renew the charter of The Second Bank of The United States, President Andrew Jackson (1767-1845) responded by using his veto vote to prevent the renewal bill from passing. His response gives us an interesting insight.
“It is not our own citizens only who are to receive the bounty of our government. More than eight millions of the stock of this bank are held by foreigners… is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country?… Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence… would be more formidable and dangerous than a military power of the enemy. If government would confine itself to equal protection, and, as Heaven does its rains, shower its favour alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.”
Andrew Jackson, Veto of the Bank Bill, to the Senate, (1832)
In 1832, Jackson ordered the withdrawal of government deposits from the Second Bank of the United States and instead had them put into safe banks.
The Second Bank of the United States’ head, Nicholas Biddle was quite candid about the power and intention of the bank when he openly threatened to cause a depression if the bank was not re-chartered, we quote.
“Nothing but widespread suffering will produce any effect on Congress… Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the bank.”
Nicholas Biddle 1836
By calling in existing loans and refusing to issue new loans, the Bank did cause a massive depression.
However, in 1836, when the charter ran out, the Second Bank ceased to function.
It was then Andrew Jackson made these two famous statements:
“The Bank is trying to kill me – but I will kill it!”
“If the American people only understood the rank injustice of our money and banking system – there would be a revolution before morning…”
When asked what he felt was the greatest achievement of his career Andrew Jackson replied without hesitation:
“I killed the bank!”
However, you will see this was not the end of private financial influence passing itself off as official when we look at ABRAHAM LINCOLN and THE CIVIL WAR (1861 – 1865).
Even though Andrew Jackson had killed off the Central Bank, fractional reserve banking moved like a virus through numerous state chartered banks instead. Fractional Banking continues to cause instability… and it thrives. Greed drives it on. When people lose their homes someone else wins them for a fraction of their worth. Depression is good news to the lender; but war causes even more debt and dependency than anything else.
Therefore, if the money changers couldn’t have their Central Bank with a license to print money, a war it would have to be.
Enter in the American Civil War (1861-1865).
We can see from this quote of the then chancellor of Germany that slavery was not the only cause for the American Civil War:
“The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the US, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world.”
Otto von Bismark chancellor of Germany (1876)
On the 12th of April 1861 this economic war began.
Predictably Lincoln, needing money to finance his war effort, went with his secretary of the treasury to New York to apply for the necessary loans. The money changers wishing the Union to fail offered loans at 24% to 36%. Lincoln declined the offer.
An old friend of Lincoln’s, Colonel Dick Taylor of Chicago was put in charge of solving the problem of how to finance the war. His solution is recorded as this:
“Just get Congress to pass a bill authorising the printing of full legal tender treasury notes… and pay your soldiers with them and go ahead and win your war with them also.”
Colonel Dick Taylor
When Lincoln asked if the people of America would accept the notes Taylor said:
“The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution.”
Colonel Dick Taylor – Lincoln By Emil Ludwig 1930, containing a letter from Lincoln, also reprinted in Glory to God and the Sucker Democracy A Manuscript Collection of the Letters of Charles H. Lanphier compiled by Charles C. Patton.
Lincoln agreed to try this solution and printed 450 million dollars worth of the new bills using green ink on the back to distinguish them from other notes.
“The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers….. The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government’s greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power.”
Abraham Lincoln. Senate document 23, Page 91. 1865.
From this we see that the solution worked so well Lincoln was seriously considering adopting this emergency measure as a permanent policy.
This would have been great for everyone except the money changers who quickly realised how dangerous this policy would be for them. They wasted no time in expressing their view in the London Times. Oddly enough, while the article seems to have been designed to discourage this creative financial policy, in its put down we’re clearly able to see the policies goodness.
“If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”
Hazard Circular – London Times 1865
From this extract its plan to see that it is the advantage provided by the adopting of this policy which poses a threat to those not using it.
The money changers waited for their opportunity. Then in 1863, Lincoln needed just a bit more money to win the war. Seeing him in this vulnerable state, and knowing that the president could not get the congressional authority to issue more greenbacks, the money changers proposed the passing of the National Bank Act.
The act went through.
From this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them from reserves for bank notes.
The greenbacks continued to be in circulation until 1994, their numbers were not increased but in fact decreased.
“In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”
John Kenneth Galbrath
The American economy has been based on government debt since 1864 and it is locked into this system.
Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility.
That same year Lincoln had a pleasant surprise.
The Tsar of Russia, Alexander II, was well aware of the money changers scam. The Tsar was refusing to allow them to set up a central bank in Russia. If Lincoln could limit the power of the money changers and win the war, the bankers would not be able to split America and hand it back to Britain and France as planned.
The Tsar knew that this handing back of a split America would come at a cost. Who would pay? The Tsar knew it would come by attacking Russia, it now being clearly in the money changers sights.
Therefore, the Tsar declared that if France or Britain gave help to the South, Russia would consider this an act of war. So Britain and France would instead wait in vain to have the wealth of the colonies returned to them. And, while they waited, Lincoln won the civil war.
With an election coming up the next year, Lincoln himself would wait for renewed public support before reversing the National Bank Act he had been pressured into approving during the war.
Lincoln’s opposition to the central banks financial control and opposition to a proposed return to the gold standard is well documented. He would certainly have killed off the central banks monopoly had he not been assassinated just 41 days after being re-elected.Convenient?
Sure. The money changers were pressing for a gold standard. Gold was scarce and easier to have a monopoly over. Much of this was already waiting in their hands and each gold merchant was well aware that what they really had could be easily made to seem like much, much more.
And the threat of Silver would only widen the field and lower the share, so they pressed for THE RETURN OF THE GOLD STANDARD.
Let’s explore the Gold Standard (1866 – 1881).
“Right after the Civil War there was considerable talk about reviving Lincoln’s brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution.”
Even after his death, the idea that America might print its own debt free money set off warning bells throughout the entire European banking community.
On April 12th in 1866, the American congress passed the Contraction Act, allowing the treasury to call in and retire some of Lincoln’s greenbacks. With only the banks standing to gain from this, it’s not hard to work out the source of this action.
To give the American public the false impression that they would be better off under the gold standard, the money changers used the control they had to cause economic instability. This in turn panicked the people.
And, it was fairly easy to do, too. The Banks simply called in existing loans and refusing to issue new ones. A tried and proven method of causing depression. Then they would spread the word through the media of the day (that they largely controlled) that the lack of a single gold standard was the cause of the hardship.
Meanwhile they simply used the Contraction Act to lower the amount of money in circulation. It went from
$1.8 billion in circulation in 1866 allowing $50.46 per person, to $1.3 billion in 1867 allowing $44.00 per person, to $0.6 billion in 1876 making only $14.60 per person and down to $0.4 billion only ten years later leaving only $6.67 per person… all while there was a continually growing population.
Most people believe the economists when they tell us that recessions and depressions are part of the natural flow.
Sound recently familiar?
But in truth, the money supply is controlled by a small minority who have always done so and will continue to do so if we let them.
By 1872 the American public was beginning to feel the squeeze. So the Bank of England, scheming in the back rooms, sent Ernest Seyd, with lots of money to bribe congress into demonetising silver.
Ernest drafted the legislation himself, which came into law with the passing of the Coinage Act, effectively stopping the minting of silver that year. Here’s what he said about his trip, obviously pleased with himself:
“I went to America in the winter of 1872-73, authorised to secure, if I could, the passage of a bill demonetising silver. It was in the interest of those I represented – the governors of the Bank of England – to have it done. By 1873, gold coins were the only form of coin money.”
Or as explained by Senator Daniel of Virginia:
“In 1872 silver being demonetized in Germany, England, and Holland, a capital of 100,000 pounds ($500,000.00) was raised, Ernest Seyd was sent to this country with this fund as agent for foreign bond holders to effect the same object (demonetization of silver)”.
Senator Daniel of Virginia, May 22, 1890, from a speech in Congress, to be found in the Congressional Record, page 5128, quoting from the Bankers Magazine of August, 1873
Within three years, with 30% of the work force unemployed, the American people began to harken back to the days of silver backed money and the greenbacks. The US Silver Commission was set up to study the problem and responded with telling history:
“The disaster of the Dark Ages was caused by decreasing money and falling prices… Without money, civilisation could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish. At the Christian era the metallic money of the Roman Empire amounted to $1,800,million. By the end of the fifteenth century it had shrunk to less than $200,million. History records no other such disastrous transition as that from the Roman Empire to the Dark Ages…”
United States Silver Commission
While they obviously could see the problems being caused by the restricted money supply, this declaration did little to help the problem. In 1877, riots broke out all over the country. The bank’s response was to do nothing except to campaign against the idea that greenbacks should be reissued.
The American Bankers Association secretary James Buel expressed the bankers attitude well in a letter to fellow members of the association. He wrote:
“It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the Agricultural and Religious Press, as will oppose the greenback issue of paper money and that you will also withhold patronage from all applicants who are not willing to oppose the government issue of money. To repeal the Act creating bank notes, or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders. See your congressman at once and engage him to support our interest that we may control legislation.”
From a circular issued by authority of the Associated Bankers of New York, Philadelphia, and Boston signed by one James Buel, secretary, sent out from 247 Broadway, New York in 1877, to the bankers in all of the States
What this statement exposes is the difference in mentality between your average person and a banker. With a banker ‘less really is more’ and every need is simply an opportunity to exploit.
James Garfield became President in 1881 with a firm grasp of where the problem lay.
“Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”
James Garfield 1881
Within weeks of releasing this statement, President Garfield was assassinated. Convenient?
The cry from the streets now was to “Free Silver!”
Fleecing of the flock is the term the money changers use for the process of booms and depressions which make it possible for them to repossess property at a fraction of its worth. In 1891 a major fleece was being planned.
“On Sept 1st, 1894, we will not renew our loans under any consideration. On Sept 1st we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price… Then the farmers will become tenants as in England…”
1891 American Bankers Association as printed in the Congressional Record of April 29, 1913
As an aside, consider this: Do you think this can’t happen today? Take a close look at your Home Mortgage Contract – the Bank can make a demand for payment at any time and foreclose as mortgagees in possession if you do not comply. They can in fact sell your house in a “fire-sale” for just the amount owing to the Bank and you are left with nothing but the legal bills. We have just seen this happen in America in 2009/2010 under the auspices of the Global Financial Crisis.
In 1894, the continued gold standard made this possible.
William Jennings Bryan was the Democratic candidate for president in 1896. He campaigned to bring silver back as a money standard – Free Silver!
“We will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labour this crown of thorns, you shall not crucify mankind upon a cross of gold.”
William Jennings Bryan
Of course the money changers supported his opposition on the Republican side so long as he wanted the gold standard maintained.
The factory bosses were somehow convinced to tell their work force that business would close down if Bryan was elected, and everyone would lose their jobs. The Republicans won by a small margin.
Bryan tried again in 1900 and in 1908 but lost both times. He became secretary of state under Wilson in 1912 but became disenchanted and resigned in 1915 under suspicious circumstances connected with the sinking of the Lusitania which drove America into the First World War.
These were hard times. Let’s look at THE CRASH OF 1907 and the rise of J.P. Morgan.
If you want to work out the cause of the Crash of 1907
, checking who benefited is where you might like to look first.
The stock market slumped causing most of the over extended banks to falter. But in steps J.P. Morgan offering to save the day.
People will do strange things when in a panic, and this might explain why Morgan was authorised to print $200 million from nothing. He then used the $200 Million to prop things up. Some of the troubled banks with less than 1% in reserve had no choice. It was accept this solution or go under. Even if they had worked out that their problems had been caused by the same people now offering the solution, there is not a lot they could have done about it.
J.P.Morgan was hailed a hero.
“All this trouble could be averted if we appointed a committee of six or seven men like J.P.Morgan to handle the affairs of our country.”
But not everyone was fooled.
“Those not favourable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the Money Trust would frame.”
Rep. Charles A. Lindbergh (R-MN)
Apart from making a small number rich at the expense of the many, in this case the instability also served the second purpose of encouraging the public to believe that they would be better off living under a Central Bank and a Gold Standard.
Unfortunately, desperate people have little time for logic and the path was opened to establish The Federal Reserve.
In Washington, the statue of Lincoln sits in his chair and looks out toward a building called the Federal Reserve Headquarters. Interestingly, this institution would not be there if Lincoln’s monetary policy had been adopted by the USA.
The Federal Reserve is not Federal and it has doubtful reserves. The name is an open deception designed to give this private bank the appearance that it is operating in the public’s interest, when in fact it is run solely to gain private profit for its select stock holders.
How it came into being was one of the shrewdest moves in financial history.
On 23rd December, 1913, the House of Representatives had passed the Federal Reserve Act, but it was still having difficulty getting it out of the Senate. Most members of Congress had gone home for the holidays, but unfortunately the Senate had not declared Adjournment Sene Die (without day). They were therefore technically still in session. There were just three members still present. On a unanimous consent voice vote the 1913 Federal Reserve Act was passed. No objection was made. There was no one there to object.
Charles Lindbergh would have objected:
“The financial system has been turned over to… the federal reserve board. That board administers the finance system by authority of… a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other peoples money.”Rep Charles A, Lindbergh (R-MN)
Louis T. McFadden would have objected.
“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board… This evil institution has impoverished… the people of the United States… and has practically bankrupted our Government. It has done this through… the corrupt practice of the moneyed vultures who control it.”
Rep. Louis T, McFadden (R-PA)
Barry Goldwater would also have objected.
“Most Americans have no real understanding of the operation of the international money lenders… The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and… manipulates the credit of the United States.”
Sen. Barry Goldwater (R-AZ)
Most Americans would object if they knew. The Federal Reserve is the largest single creditor of the United States Government, and they are also the people who decide how much the average person’s car payments are going to be, what their house payments are going to be, and whether they have a job or not.
The three people who passed the Federal Reserve Act in 1913, knew exactly what they were doing when they set up this private bank, modelled on the Bank of England. The fact that The Bank of England had been operating independently unopposed since 1694 must have given them a great deal of confidence.
So there it was, the newly formed Federal Reserve poised to produce any money the U.S. Government might need. All from thin air and with each dollar standing to make a healthy interest.
Nine days after its formation the Federal Reserve founders were wishing each other a Happy New Year.
What good fortune might 1914 bring?
War uses up more materials more quickly than most anything else on earth. In war expensive equipment doesn’t wear out slowly, it gets blown up!
Where there is war, there is money to be made. For example, during the 119 year period from the founding of the Bank of England to Napoleon’s defeat at Waterloo, England had been at war for 56 years, while the rest of the time preparing for it. The Bank of England was well and truly entrenched… and making a lot of money.
Back to 1914. The Germans borrowed money from the German Rothschild’s bank, the British from the British Rothschild’s bank, and the French from the French Rothschild’s Bank.
Remember J.P. Morgan? Amongst other things, he was a sales agent for war materials. Six months into World War I, his spending of $10 million a day made him the largest consumer on the planet.
The Rockefeller’s and the head of President Willson’s War Industries Board, Bernard Baruch, each made some 200 million dollars. But profit was not the only motive for involvement.
Russia had spoiled the money changers plan to split America in two, and remained the last major country not to have its own central bank.
However, three years after the start of the war the entire Russian Royal Family was killed and Communism was ushered in.
You might find it strange to learn that the Russian Revolution was also fuelled with British money. Capitalist businessmen financing Communism?
Author Gary Allen gives his explanation:
“If one understands that socialism is not a share-the-wealth programme, but is in reality a method to consolidate and control the wealth, then the seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead, it becomes logical, even the perfect tool of power-seeking megalomaniacs.
Communism, or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite.”
Gary Allen, Author
W.Cleon Skousen wrote in his book ‘The Naked Capitalist’:
“Power from any source tends to create an appetite for additional power… It was almost inevitable that the super-rich would one day aspire to control not only their own wealth, but the wealth of the whole world.
To achieve this, they were perfectly willing to feed the ambitions of the power-hungry political conspirators who were committed to the overthrow of all existing governments and the establishments of a central world-wide dictatorship.”
Extreme revolutionary groups were controlled by being financed when they complied and cut off, with money sometimes being given to their opposition, when they didn’t.
If you find this hard to believe, listen to what the so called dictator of the new Soviet Union had to say:
“The state does not function as we desired. The car does not obey. A man is at the wheel and seems to lead it, but the car does not drive in the desired direction. It moves as another force wishes.”
Vladimir Lenin – Wurmbrand, “Marx and Satan,” p. 49
Rep. Louis T. McFadden, chairman of the House Banking and Currency Committee throughout the 1920-30s explained it this way.
“The course of Russian history has, indeed, been greatly affected by the operations of international bankers… The Soviet Government has been given United States Treasury funds by the Federal Reserve Board… acting through the Chase Bank. …
England has drawn money from us through the Federal Reserve Banks and has re-lent it at high rates of interest to the Soviet Government… The Dnieperstory Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks.”
Rep. Louis T.McFadden (D-PA) – United States Congressional Record, June 15, 1934
Even when Communism collapsed in the Soviet Union, Boris Yeltsin revealed that most of the foreign aid was ending up, quote: “straight back into the coffers of western banks in debt service.”
Remember those words of warning by Amschel Rothschild in 1790:
“Let me issue and control a nation’s money and I care not who writes the laws.”
Mayer Amschel Rothschild
World War I concludes and the stage is set for the money changers to make their first roaring run at World Domination.
World War I concludes in 1918. With Russia taken care of, the money changers now had control of every major national economy. Like a steam roller moving and a wolf gathering its pack, there was only one thing left to do and that was to go global.
The first attempt was the proposal to set up the League of Nations at the Paris Peace Conference. The Paris Peace Conference was the meeting of the Allied victors following the end of World War I to set the peace terms for Germany and other defeated nations, and to deal with the empires of the defeated powers following the Armistice of 1918. It took place in Paris in 1919 and involved diplomats from more than 30 countries.
But old habits die hard, and even what they called ‘the war to end all wars’ was not enough to convince nations to dissolve their boundaries, the League of Nations died.
If politicians really were being controlled, you would think at least one would break ranks and cry out against it. Many did. One was no less than former New York City Mayor John Haylan:
“These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government….
The warning of Theodore Roosevelt has much timeliness today, for the real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over City, State, and nation… It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and every agency created for the public protection…
To depart from mere generalisations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interest and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes.
They practically control both parties, write political platforms, make catspaws of party leaders, use the leading men of private organisations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business…
These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country.”
John Hylan, Mayor of New York 1927, speaking in Chicago and as quoted in the March 27, 1927, New York Times
These warnings fell on deaf ears, drowned out by the music and excitement of the roaring 20′s.
People don’t tend to complain much in times of prosperity. So the money changers used this boom time, they had created, to defuse any complaints about their growing control.
But further controls were needed, so along came the Great Depression.
Stack in front of you the biographies of all the Wall Street giants, J.P. Morgan, Joe F. Kennedy, J.D Rockefeller, Bernard Baruch, and you’ll find they all marvel at how they got out of the stock market and put their assets in gold just before the Stock Market Crash of 1929.
On February 6, 1929, Mr. Montagu Norman, Governor of the Bank of England, came to Washington and had a conference with Andrew Mellon, Secretary of the Treasury. Immediately after that mysterious visit, the Federal Reserve Board abruptly changed its policy and pursued a high discount rate policy, abandoning the cheap money policy which it had inaugurated in 1927 after Mr. Norman’s other visit.
The stock market crash and the deflation of the American people’s financial structure was scheduled to take place in March. To get the ball rolling, Paul Warburg gave the official warning to the traders to get out of the market. In his annual report to the stockholders of his International Acceptance Bank, in March, 1929, Mr. Warburg said:
“If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country.”
During three years of “unrestrained speculation”, Mr. Warburg had not seen fit to make any remarks about the condition of the Stock Exchange. The New York Times, not only gave the report two columns on its editorial page, but editorially commented on the wisdom and profundity of Mr. Warburg’s observations.
With control of the press and the education system, few are aware that the Federal Reserve caused the depression. It is however a well known fact among leading top economists.
“The Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933.”
Milton Friedman, Nobel Prize winning economist
“It was not accidental. It was a carefully contrived occurrence… The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.”
Rep. Louis T.McFadden (D-PA)
“I think it can hardly be disputed that the statesmen and financiers of Europe are ready to take almost any means to re-acquire rapidly the gold stock which Europe lost to America as the result of World War I.”
Rep. Louis T.McFadden (D-PA)
40 Billion dollars somehow vanished in the crash.
It didn’t really vanish, it simply shifted into the hands of the money changers. This is how Joe Kennedy went from having 4 million dollars in 1929 to having over 100 million in 1935.
“FDR is probably best remembered for the New Deal. Of courser, since a large portion of the work force was unemployed, there was not enough tax revenue to pay for these programs. So the government turned to its other source–borrowing. In effect, the international bankers, having created the Depression, now loaned America the cash to recover from it. Naturally, the interest on these loans would be borne on the backs of taxpayers for years to come.”
James Perloff, Author of, “It was not accidental: The Shadows Of Power”
During this time the Federal Reserve caused a 33% reduction of the money supply, causing deeper depression. How do they do that?!
First of all, here is how the Federal Reserve makes money out of thin air:
- The purchase of bonds is approved by the Federal Open Market Committee.
- The Federal Reserve buys the bonds which it pays for with electronic credits made to the sellers bank. These credits are based on nothing.
- The receiving banks then use these credits as reserves from which they can loan out ten times the amount.
To reduce the amount of money in the economy they simply reverse the process.
- The Federal Reserve sells bonds to the public and money is drawn from the purchasers bank to pay for them.
- Each million withdrawn lowers the banks ability to loan by 10 million.
The Federal Reserve in this way has overall control of the US money supply. Each country’s central bank does it in the same way
. The bankers, through the magic of fractional reserve banking have been delegated the right to create 90% of the money supply.
This control makes a mockery of any elected government. It places so called leaders behind a toy steering wheel, like the plastic ones, set up to amuse small children.
Or as Rep.Charles Lindbergh father of famous aviator Lucky Lindy puts it when commenting on the Federal Reserve Act:
“This act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalised.
The people may not know it immediately, but the day of reckoning is only a few years removed… The worst legislative crime of the ages is perpetrated by this banking bill.”
Rep. Charles Lindbergh (R-MN)
Or as Woodrow Wilson put it:
“We have come to be one of the worst ruled, one of the most completely controlled governments in the civilised world – no longer a government of free opinion, no longer a government by… a vote of the majority, but a government by the opinion and duress of a small group of dominant men.
Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organised, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.”
In order to clearly establish that this is not a conspiracy theory, but is actually how things are controlled, we further quote Charles Lindbergh. From the house of representatives, Lindbergh was well placed to see exactly what was happening back then and continues to happen even today.
“To cause high prices all the federal reserve board will do will be to lower the re-discount rate…, producing an expansion of credit and a rising stock market; then when… business men are adjusted to these conditions, it can check… prosperity in mid-career by arbitrarily raising the rate of interest.
It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by greater rate variation, and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down.
This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed.
The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.
They know in advance when to create panics to their advantage. They also know when to stop panic. Inflation and deflation work equally well for them when they control finance…”
Rep. Charles Lindbergh (R-MN)
With the US government with their backs to the wall, the money changers dig in hard to cement their position.
“Franklin D. Roosevelt is probably best remembered for the New Deal. Of courser, since a large portion of the work force was unemployed, there was not enough tax revenue to pay for these programs. So the government turned to its other source–borrowing. In effect, the international bankers, having created the Depression, now loaned America the cash to recover from it. Naturally, the interest on these loans would be borne on the backs of taxpayers for years to come.”
James Perloff , Author of “The Shadows Of Power”
Remember that just before the crash, the money changers had transferred their wealth into gold. Now how to keep the gold and buy back all those shares at low low prices. It was time to create Fort Knox.
In 1933, the new President, Franklin D. Roosevelt, signed a bill forcing all the American people, to hand over all their gold at base rate. With the exception of rare coins. He disowned himself from the bill claiming to not have read it and his secretary of the treasury claimed this was “what the experts wanted”.
Bought at bargain basement price with money produced from nothing by the Federal Reserve, the gold was melted down and stacked in the newly built bullion depository called Fort Knox. Once collected in 1935 the price of gold was raised from $20.66 up to $35 per ounce, but only non American gold qualified to be sold. This meant those who had avoided the crash by investing in gold they had shipped to London could now nearly double their money while the rest of America starved.
By the end of WWII Fort Knox did hold 70% of the world’s gold, but over the years it was sold off to the European money changers while a public audit of Fort Knox reserves was repeatedly denied.
Rumours spread about missing gold.
“Allegations of missing gold from our Fort Knox vaults are being widely discussed in European circles. But what is puzzling is that the Administration is not hastening to demonstrate conclusively that there is no cause for concern over our gold treasure – if indeed it is in a position to do so.”
Finally in 1981, President Ronald Reagan was convinced to have a look into Fort Knox with a view to re-introducing the Gold Standard. He appointed a group called, The Gold Commission. They found that the US Treasury owned no gold at all.
All the Fort Knox gold remaining is now being held as collateral by the Federal Reserve against the national debt. Using credits made from nothing. The Federal Reserve has effectively robbed the largest treasure of gold on earth!
The Federal Reserve is a power accountable to no one. They can do what they want, when they want.
Still don’t believe? Remember that wars are good for the money changers… well then, let’s explore who financed Adolf Hitler and look a little into World War II.
Most all will be aware of Adolf Hitler’s rise to power. What you may not know is that he was almost completely financed by money drawn from the privately owned American Federal Reserve.
In his book, Wall Street and the Rise of Hitler, Professor Antony Sutton, provides a thoroughly documented account of the role played by Morgan, Rockefeller, General Electric Company, Standard Oil, National City Bank, Chase and Manhattan banks, Kuhn, Loeb and Company, General Motors, Ford, and other industrialists, in helping to finance the Nazis. To prove his point, Professor Sutton provides bank statements, letters from U.S. ambassadors, mainstream media sources, Congressional Records, excerpts from Congressional Investigations, and statements from the Nuremberg trials. Wall Street’s funding of the Nazis is part of authentic history.
“General Motors, Ford, General Electric, DuPont, and other U.S. companies intimately involved with the development of Nazi Germany were … controlled by the Wall Street elite, such as the J.P. Morgan firm, the Rockefeller Chase Bank and to a lesser extent the Warburg Manhattan bank.”
Professor Anthony C. Sutton, Author of, “Wall Street And The Rise Of Hitler”
“The deal bringing Hitler into the government was cut at the home of banker Baron Kurt von Schroeder on January 4, 1933,”
Jim Marrs, Author of “Rule By Secrecy”
Other notable figures that are said to have appeared at this meeting include Council on Foreign Relations members John Foster Dulles, and Allen Dulles, of the New York law firm Sullivan and Cromwell, which represented the Schroeder bank. Allen Dulles would eventually become a member the Bilderbergers and director of the CIA.
“Max Warburg, a major German banker, and his brother Paul Warburg, who had been instrumental in establishing the Federal Reserve System in the United States, were directors of Interssen Gemeinschaft Farben or I.G. Farben, the giant German chemical firm that produced Zyklon B gas used in Nazi extermination camps.”
Jim Marrs, Author of “Rule By Secrecy”
“The financing for Adolph Hitler’s rise to power was handled through the Warburg-controlled Mendelsohn Bank of Amsterdam and later by the J. Henry Schroeder Bank with branches in Frankfurt, London and New York. Chief legal council to the J. Henry Schroeder Bank was the firm Sullivan and Cromwell whose senior partners included John Foster and Allen Dulles.”
Gary Allan, Author of, “None Dare Call It Conspiracy”
Business is business… money changers know no bounds in their pursuit.
“After WWI, Germany fell into the hands of the international bankers. Those bankers bought her and they now own her, lock, stock, and barrel. They have purchased her industries, they have mortgages on her soil, they control her production, they control all her public utilities.
The international German bankers have subsidised the present Government of Germany and they have also supplied every dollar of the money Adolph Hitler has used in his lavish campaign to build up threat to the government of Bruening.
When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission…
Through the Federal Reserve Board over $30 billion of American money has been pumped into Germany. You have all heard of the spending that has taken place in Germany…
Modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories. All this was done on our money. All this was given to Germany through the Federal Reserve Board. The Federal Reserve Board has pumped so many billions of dollars into Germany that they dare not name the total.”
Congressman Louis T.McFadden (D-PA) who served twelve years as Chairman of the Committee on Banking and Currency.
World War II saw the US debt increased by 598%, while Japan’s debt went up by 1,348%, with France up by 583% and Canada up by 417%.
When you hear this, what is your first impression? Do you automatically think this is bad or this is good? Most of us feel a well programmed sense of desperation when we hear figures like this, but remember, to the money changers, this is music to their ears.
With the hot war over, the cold war began, the arms race causing more and more borrowing. Now the money changers could really concentrate on global domination.
Step one, the European Monetary Union and the North American Free Trade Agreement (NAFTA).
Step two, centralise the global economy. This is achieved through the World Bank, the International Monetary Fund (IMF) and the General Agreement on Tariffs and Trade (GATT), since replaced by the World Trade Organisation (WTO).
In Washington, the headquarters of both the World Bank and the International Monetary Fund (IMF) face each other on the same street. What are these organisations, and who controls them?
To find out we need to look back to just after WWI. At this point the money changers were attempting to consolidate the central banks under the guise of peacemaking. To stop future wars they put forward the formation of a world central bank named the Bank of International Settlements, a world court called the World Court in the Hague, and a world executive for legislation called the League of Nations.
President Clinton’s mentor Carroll Quigley wrote in 1966 a book entitled, Tragedy and Hope. In it he states:
“The powers of financial capitalism had [a] far-reaching [plan], nothing less than 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 level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.”
Carroll Quigley, Professor, Georgetown University
They got 2 out of 3. The League of Nations failed largely owing to the suspicions of the people. However, while opposition concentrated on the League of Nations, the other two proposals slipped into place.
It would take another war to wear the public resistance down. Wall Street invested heavily to rebuild Germany, as the Chase bank had propped up the Russian revolution.
Now the Chase Bank merged with the Warburg’s Manhattan Bank to form the Chase Manhattan Bank which would later merge with the Chemical Bank to become the largest bank on Wall Street.
In 1944, the US approved its full participation in the IMF and the World Bank. By 1945, the second League of Nations was approved under the new name, ‘The United Nations’. The war had successfully dissolved all opposition. The methods used in the National Banking Act of 1864 and the Federal Reserve Act of 1913 were now simply used on a Global scale.
The Federal Reserve Act allowing the creation of Federal Reserve notes is mirrored by the IMF’s authority to produce money called Special Drawing Rights (SDR’s). It is estimated the IMF has produced $30 billion dollars worth of SDR’s so far. In the United States SDR’s are already accepted as legal money, and all other member nations are being pressured to follow suit. With SDR’s being partially backed by gold, a world gold standard is sneaking its way in through the back door, which comes with no objection from the money changers who now hold two-thirds of the worlds gold and can use this to structure the worlds economy to their further advantage.
We have gone from the goldsmith’s fraud being reproduced on a national scale through the Bank of England and the Federal Reserve, to a Global level with the IMF and the World Bank.
This radical transfer of power has taken place with absolutely no mandate from the people.
Nations borrow Special Drawing Right from the International Monetary Fund in order to pay interest on their mounting debts. With these SDR’s produced at no cost, the IMF charges more interest. Contrary to bold claims, this does not alleviate poverty or further any development.
It just creates a steady flow of wealth from borrowing nations to the money changers who now control the IMF and the World Bank.
The permanent debt of Third World Countries is constantly being increased to provide temporary relief from the poverty being caused by previous borrowing.
These repayments already exceed the amount of new loans. By 1992 Africa’s debt had reached $290 billion dollars, which is two and a half times greater than it was in 1980. A noble attempt to repay it has caused increased infant mortality and unemployment, plus deteriorating schools, and general health and welfare problems.
As world resources continue to be sucked into this insatiable black hole of greed, if allowed to continue the entire world will face a similar fate.
As one prominent Brazilian politician, Luis Ignacio Silva, put it.
“Without being radical or overly bold, I will tell you that the Third World War has already started – a silent war, not for that reason any the less sinister. This war is tearing down Brazil, Latin America and practically all the Third World. Instead of soldiers dying there are children, instead of millions of wounded there are millions of unemployed; instead of destruction of bridges there is the tearing down of factories, schools, hospitals, and entire economies . . . It is a war by the United States against the Latin American continent and the Third World. It is a war over the foreign debt, one which has as its main weapon interest, a weapon more deadly than the atom bomb, more shattering than a laser beam…”
Luis Ignacio Silva, at the Havana Debt Conference in August 1985, quoted by Susan George, A Fate Worse Than Death p 238
If a group or organisation had used its hard earned money to help these developing nations, then we might sympathise that there should be a real effort to repay these loans. But the money used was created from fractional reserve banking. The money loaned to the Third World came from the 90% the banks allow themselves to loan on the 10% they actually held. It didn’t exist. It was created from nothing. Now people are suffering and dying in an effort to pay it back.
What can you do? How can you survive?
Hopefully you took seriously TIP#1
… skipping the first step will not set the grounding for the information that now follows.
Throughout the items you read, there were some components that had the Golden Key Unlocking the Puzzle Piece (picture left). These are key building blocks. Understanding those keys creates the paradigm shift required.
While we may see how simple it could be to undo the hold money changes have over us and our country, and the desire for our Government to open its eyes to the manipulation of the money changers, the reality is that it will be next to impossible. Most who are in Parliament are there because big business got them there… and can take them out. The financial back room brokers and control of the media will ensure this.
And to be honest, what politician has time to really take this on when they are so busy tied up with the symptoms and not the root cause. They are like people so busy tending the gaping bloodied wounds appearing on a man being stabbed with a large knife instead of being a person stepping in to intervene and stop the man still stabbing him.
Cynical? Well, maybe. But to unravel the financial system would take a movement prepared to to it. It is greater than one man in power. It would need all politicians to be on board and to push it through swiftly and decisively. Any half-hearted attempts are doomed to failure. And the money changers will bring a lot of pressure to bear that will initially cripple any person, group or country prepared to take them on. History bears witness to the lengths they will go to. If you have any serious ideas on how to bring about the necessary change at a government level, let me know.
So what can you do?
I will begin a series on Wealth Wisdom. Here is the first couple:
The rich rule over the poor, and the borrower is slave to the lender.
The key weapon used by the money changers is to enslave you in debt. You can disarm them and be free if you have no debt.
Get rid of debt!
Better still, don’t go into debt in the first place.
Again, the reality is that we live in a society that pressures you from every side to conform or at least live by its rules… that costs money, you don’t have, and debt shackles you to “living the dream”.
I must admit that the marketing ploys and messages that pound us daily, say just one thing: Buy me! Buy me! Buy me! But if you want to “Live the Dream”, here are Two Keys to get your every dream.
If you are in debt, it is time to seriously get yourself free of it. This will take a thing, not widely popular, called discipline. It will require you to deny yourself some short term pleasures for long term gain…freedom.
Here is the plan:
- Apply the 3 Steps to Debt Elimination
- Simultaneously, you need to Budget. There are plenty of ways to learn how to do this: Google, “How to make a Budget”, is a place to start. Budgeting is not a one off, once a year, activity. It requires constant review. Payday is a good day to do the review.
- Resist the desire to purchase “more things”. Necessities only. How do you determine that? Ask yourself, “Can I do without this for 1 more week?” If the answer is “yes”, then wait 1 more week and ask the question again. This will help you breakthrough the ‘desire’ and marketing pull of great advertising. I know this works. I’m a gadget man. Love gadgets. I’m a sucker for newest technology. It takes me sometimes several weeks to break the desire and override the tantalising cry of, “Buy me!”
Convert Currency to Wealth.
You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” But remember the LORD your God, for it is he who gives you the ability to produce wealth…”
Wealth will always hold value and can be the best currency, especially in times of turmoil. Do not get it confused with cash. Cash is just Fiat Money!
Currency is the means of purchasing through trade.
In a specialized society, most of the things you need, you can’t make for yourself. If you want a potato or a pencil or a place to live, you have to get it from someone else.
How do you get the person who grows the potatoes to give you some? By giving him something he wants in return. But you can’t get very far by trading things directly with the people who need them. If you make violins, and none of the local farmers wants one, how will you eat?
The solution societies find, as they get more specialized, is to make the trade into a two-step process. Instead of trading violins directly for potatoes, you trade violins for, say, silver, which you can then trade again for anything else you need. The intermediate stuff– the medium of exchange– can be anything that’s rare and portable… Currency.
Today, currency generally refers to printed or minted money. Sometimes only paper notes (cash) are thought of as currency, while other times coins are included. Currency involves the exchange of goods or services for cash.
Exchange rates refer to a country’s price for the trade of items. Floating currency means that a country’s exchange rate is not fixed or set in place by a main bank, but fluctuates. Fixed currency, on the other hand, is set and is the opposite of floating currency. Fixed currency is also called pegged currency and it is not commonly used, although it is often associated with the Euro and the US Dollar (USD).
The term legal tender means currency that is legally permitted to be used to obtain goods or services in a particular country. Legal tender is usually the country’s own unit of currency such as the AUD in Australia (USD for the United States), but sometimes a country may use the currency of another country as legal tender. For example, the United States once used silver coins from Spain and Mexico as legal tender. These pre-Revolutionary War silver dollars were also known as pieces of eight.
Before cash was used as currency, other items considered valuable were used in trade exchanges. For instance, Aztecs in the fourteenth century used cocoa beans as currency to trade for tools and clothing. Gold dust was traded for European goods in some African countries in the seventeenth century. Salt was used in many ancient civilizations, and is actually the basis for the English word salary.
So while we use Currency to purchase through trade, we must transfer that currency into true wealth. Then when ‘cash’, ‘shares’, or an economy collapses (e.g. Greece, 2010), wealth will remain consistent and hold its value.
So what is wealth?
Wealth is the abundance of valuable resources or material possessions or the control of such assets. The word wealth is derived from the old English ‘wela’, which is from an Indo-European word stem. An individual, community, region or country that possesses an abundance of such possessions or resources is known as wealthy.
The American Heritage Dictionary of the English Language, 4th ed., Houghton Mifflin Company. Accessed 21 Feb. 2009.
‘Wealth’ refers to some accumulation of resources, whether abundant or not. ‘Richness’ refers to an abundance of such resources. A wealthy (or rich) individual, community, or nation thus has more resources than a poor one. Richness can also refer to at least basic needs being met with abundance widely shared. The opposite of wealth is destitution. The opposite of richness is poverty.
True Wealth means you have an abundance of valuable resources or material possessions or the control of such assets. This means no one has any hold over it; no debt associated with it. You own it. You have control over it.
For example, you may have a mortgage for you home and land. Do you own it? No. This does not constitute wealth until it is free of the mortgage. Don’t believe me? Remember to have a look at your Mortgage Contract. The lender can place a call on your loan at anytime. The collateral of the loan is your house and land. If the lender wants, albeit a desperate act, they can ‘fire-sale’ it all for just the amount you owe them. Therefore, there is no inherit wealth in this asset as you hold no control over it until the debt is cleared.
From what I observe, valuable material possessions or resources are items like silver, gold or limited/rare physical items with perceived value – it will have come out of the ground or is the land itself. It is a limited resource…there is just so much of it that exists. It can’t be just created when more is needed (like printing more cash!) and therefore supply and demand will keep it valuable. When confidence fails in all else (cash, shares, etc) these resources can always be traded. Just look at any stock market shake-ups and you will always see the gold price soars as investors run to it.
So whatever ‘currency’ you use to trade with, make sure you convert some of it into valuable material possessions or resources (wealth) and keep stored away safely for a ‘rainy day’.
My son, if you accept my words and store up my commands within you, turning your ear to wisdom and applying your heart to understanding— indeed, if you call out for insight and cry aloud for understanding, and if you look for it as for silver and search for it as for hidden treasure, then you will understand the fear of the LORD and find the knowledge of God. For the LORD gives wisdom; from his mouth come knowledge and understanding. He holds success in store for the upright, he is a shield to those whose walk is blameless, for he guards the course of the just and protects the way of his faithful ones. Then you will understand what is right and just and fair—every good path.
I don’t have all the answers. Neither does anyone else… but we can collectively share.
If you would like to share some of your pieces of the puzzle, or even improve mine, please let me know.
I am happy to add more about Wealth and Wisdom to this post.
Click HERE to see what wisdom has since been added or is available.
Click HERE to see more about Wealth.
Great! You want to eliminate debt. Well, the good news is that you can.
Now, this may seem self-evident, but the reason your debt is out of control is that you keep adding to it. Therefore,
Stop using credit.
Don’t finance anything. Cut up your credit cards. Ouch…that last one can be tough. But don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need them. You don’t need credit cards for a safety net. You don’t need credit cards for convenience. You don’t need credit cards for cash-back bonuses.
You don’t need credit cards at all. If you’re in debt, credit cards are a trap. They only put you deeper in debt. Later, when your debts are gone and your finances are under control, maybe then you can get a credit card.
After you destroy your cards (or cut a milk carton in half, fill with water and sink your credit card in it and stick it all in the freezer – try getting your credit card out of a block of ice!), Halt any recurring payments.
If you have a gym membership, cancel it. If you automatically renew your World of Warcraft account, movie subscription, etc., cancel them. Cancel anything that automatically charges your credit card. Stop using credit.
Once you’ve halted recurring payments, call each credit card company in turn. Do not cancel your credit cards (except for those with a zero balance). Instead, ask for a better deal. Find an offer online and use it as a bargaining wedge. Your bank may not agree to match competing offers, but it probably will. It never hurts to ask.
Establish an emergency fund.
This will probably take several months to achieve. For some, this is counter-intuitive. Why save before paying off debt? Because if you don’t begin to save first, you’re not going to be able to cope with unexpected expenses. Now, don’t convince yourself to keep a credit card for emergencies. Don’t allow yourself to be dependent on a credit card. The key is to SAVE cash for emergencies.
How much should you save? Ideally, you would save $1,000 for starters. Remember, this money is for emergencies only. It is not for take-away. It is not for going out on the town. It is not for shoes. It is not for a new Playstation 3, iPad, iPhone, etc. It is to be used when your car dies, or when you break your arm in a game of touch footy.
Keep this money liquid, but not immediately accessible. Don’t tie your emergency fund to a debit card as this will only sabotage your efforts by making it too easy to spend the money on non-essentials. Consider opening an online savings account. When an emergency arises, you can easily transfer the money to your regular everyday account or go physically into the bank/Credit Union and withdraw it over the counter. Making it a bit inconvenient to access will ensure that it will be there when you need it, but you won’t be able to spend it spontaneously.
Implement a Debt Reduction Plan
This may take several years. However, after you have stopped using credit, and after you’ve saved an emergency fund, then attack your existing debt. Attack it with vigor. Throw whatever you can at it.
Using a Debt Snowball offers big payoffs. There are at least two approaches to debt elimination using the concept of a Debt Snowball.
Approach #1: Pay your high interest debts first.
- Order your debts from the highest interest rate to lowest interest rate.
- Designate a certain amount of money to pay toward debts each month.
- Pay the minimum payment on all debts except for the one with the highest interest rate .
- Throw every other cent at the debt with the highest interest rate.
- When that debt is gone, do not alter the allocated monthly amount used to pay debts, but throw all you can at the debt with the next-highest interest rate.
There’s no question that this makes the most sense mathematically. But if money were all about math, you wouldn’t have debt in the first place. Money is as much about emotion and psychology as it is about math.
Approach #2: Pay your lowest balance debts first.
Psychologically, if you can eliminate a debt really quickly and move on to the next one, it can spur you on to further debt reduction as you are encouraged by the number of diminishing debt obligations.
Here’s how you do it:
- Order your debts from lowest balance to highest balance.
- Designate a certain amount of money to pay toward debts each month.
- Pay the minimum payment on all debts except for the one with the lowest balance.
- Throw every other cent at the debt with the lowest balance.
- When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-lowest balance.
You will see results almost immediately.
The fundamental rules are this:
- pay off debt, or save money, or accumulate wealth,
- curb spending,
- relearn frugal habits,
- and at all times, you must spend less than you earn.
The most important thing is to start now. Don’t start tomorrow. Don’t start next week. Start tackling your debt now. Your older self will thank you.