What is Money?

An Excellent History on the Ability to Create it Out of Thin Air

I rarely highlight a post in its near entirety on substack, but this one was very well worth the read. If you ever wanted a primer on how the monetary system works, this is the best one I have ever seen:

A Short History of Central Banking — The biggest Scam ever invented

Lily gives an on the ground history that is rarely read or considered for this greatest scam in history.

“Interest has always been the Money Power's main instrument. It took control of the planet by starting wars, financing both sides, and having Governments go deeply into debt. Interest is a wealth transfer from the poorest 80% to the richest 10%. The global numbers are not known, but in Germany, a billion dollars a day is paid by the poorest 80%. Extrapolated to the world, this means the Plutocracy drains anywhere between $5 trillion and $10 trillion per year.”

This is one of the best explanations I’ve ever read for how this started:

Around 500 years ago, in Renaissance Europe, the history of modern money begins. At that time, there was no paper money and most of the cash was made up of gold and silver coins. Gold coins were, of course, extremely resilient and had intrinsic value in and of themselves (unlike paper money), but they were also heavy, cumbersome to move in large amounts, and if not stored properly, they were vulnerable to theft. People began to deposit their coins with goldsmiths who had strong rooms and safes where they could store them safely and without worrying about theft as a result. These goldsmiths offered paper receipts that could be exchanged for the specified amount of gold at any moment. Over time, these handy receipts started to replace the less handy currencies they stood for in trade.

The goldsmiths eventually realized that only about 10% of these receipts were ever converted into actual gold at any given time. As long as they made sure to keep 10% of the value of their outstanding loans in actual physical gold on hand to satisfy any demand, they could lend the gold they had in their possession with interest time and time again. Paper money (notes), which were actually receipts for loans of gold, was created using this procedure. Now, notes and loans up to ten times the value of their actual gold holdings might be issued. The same gold might be given out ten times at a 20% interest rate, earning a 200% annual return on gold that didn't even exist! The goldsmiths, who were naturally cautious not to overextend themselves, made a lot of money at the cost of the public without creating anything of actual value.

Only the principal was lent into the money supply, which resulted in a debt that finally exceeded the combined wealth of the population. They had to keep borrowing fresh paper money to make up the gap, which forced the wealth of the cities and finally the nation to be funneled into the goldsmiths' vaults, who were by this point known as "bankers," as the nation gradually sank deeper and deeper into debt.

CUE, “THE ELITE”

The Bank of England was established in 1694 as a result of a long-planned coup by “the Elite,” in order to launch their eventual global appropriation of the money generation process. Their Dutch branch was the first to establish a "central" bank to aid in this con. In 1609, the Bank of Amsterdam, the world's first "central bank," was established. William III, the Prince of Orange, and his wife Mary (the daughter of James), were seated on the British throne in 1688 after the Protestant King James II had been usurped by English Elite forces working with their Dutch counterparts. This was made possible by the fact that William's invading force landed in Brixham Harbour in Devon, South West England, and that high-ranking English Protestants, including Parliament, supported his claims to the throne. In the end, James was compelled to flee to France, where he remained until his demise in 1701.

However, one of William's mandates after becoming king of England was to establish the same economically precarious conditions that had prevailed in Holland for almost a century. The Bank of England was created and established in 1694 as a result of the elite banking classes' clamor for a chance to obtain the same outrageous profits in England that were available to the Dutch bankers. The plan's patron was London merchant banker and Order of the Orange initiate William Paterson, a member of the Merovingian dynasty. In 1693, he submitted a petition to Parliament requesting that it create a firm to lend the government one million two hundred thousand pounds at 8% interest plus the power to issue notes. This was duly authorized after "great debate," and the construction of the institution that has contributed more than any other to the economic slavery of people in not only Britain but also the rest of the world, began after a few false starts and some protests were overpowered. (We all know the British are actually world champions in classic slavery and atrocities against humanity as well, but that’s up for another day.)

“I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply." Nathan Mayer Rothschild

Could someone kindly explain to me why a government would accept such conditions and so give up the ability to issue money at zero interest, while also agreeing to pay a private company 8% interest on a loan that it would not even have needed had it preserved the ability to issue its own currency? There can only be one explanation, and this, in my opinion, says a lot.

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin. Bankers own the earth. Take it away from them but leave them the power to create money and, with a flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.” — Sir Josiah Stamp, Chairman of the Bank of England and the second-richest man in Britain in the 1920

Thanks, Josiah. Private banks in nineteenth-century America created their own banknotes in amounts up to ten times their actual gold reserves, adopting the Bank of England model. This type of banking is referred to as “fractional reserve,” which means that just a portion of the total deposits managed by a bank are held in reserve to meet depositor demands. However, “runs” on the banks, where clients all demanded their gold at once, led to the failure of several banks and created instability in the system. Since the Federal Reserve Bank is a privately held organization, it has the authority to produce Federal Reserve Notes and lend them to the US government at interest. As a result, the private banknote system was combined into a national banknote system in 1913. These notes, which were printed solely to cover costs, eventually became the foundation of the American national currency.

The Bank of the United States was an early 19th-century attempt to establish a central bank in the United States before the establishment of the Federal Reserve Bank. Here are some comments made on it by the US President at the time.

“Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out. If only people understood the rank injustice of our banking and money system, there would be a revolution before morning.” — Andrew Jackson, former US President¹

The Federal Reserve Act was enacted by Congress in the wee hours of December 23, 1913, with no opposition because the majority of Congressmen had already left for their Christmas vacation. The Act itself was a large document that had only just been introduced to Congress the day before, leaving almost no time for even a cursory read through, much less a thorough examination.

INFLATION IS THEFT

The terrible result of increasing the money supply is that prices rise as a result of having to perpetually print more money to pay interest on the money that already exists. Neither is that good for poor people and bad for rich people, nor is it transitory. It’s a continuous process that has been going on for centuries, and just an unnecessary afterbirth of a profoundly repugnant system. More money competing for the same items drives up prices, therefore the value of the currency falls and consumers lose out on the value of their savings and money. The financial Elite then accuses the government of inflating the currency to support its extravagant expenditures. Coins are the only form of money that governments really print. This is a cute little trick that the bankers and their media poodles are using.

All of the little people are specifically taught to look away from this. They are taught to work really hard, go to school, get a good job, live responsibly and then they can start a family. Interest payments are considered some sad inevitable fact of life.

I thought exactly like that at one time in the not too distant past. This is a Storytime With Amy Special about why I didn’t complete my Master’s Degree.

In late 2006 I came back to America from Thailand with my boyfriend and our newborn baby. I wanted to complete my Master’s Degree at BGSU. The graduate credits would expire after the Spring semester and all I had left to do was finish my Master’s Thesis.

My Aunt Sharon had pushed me hard in that direction. I was working for peanuts online as a staff writer for FinancialWire and she thought it was time for me to move past the lower working class. I was long past my starving artist stage and seemed to have my head put on straight.

“They are hiring clinical therapists at Bruce’s VA hospital in La Jolla with a starting salary of 65 thousand per year.” She told me. “I think you would be really great working with PTSD veterans like him. But you need your Master’s Degree.”

I went back to BGSU and talked to the chair of the Sociology Department about rejoining in the Spring semester. Dr. Cernkovich signed off on it. I would need to fund it myself, but I had squirrelled away a bit of money and could pay the 5K semester dues with a little bit of help from my boyfriend. His elderly father in Centerline, Michigan needed a live in caretaker so he could stay not too far away and I had my brother’s house in Toledo 30 miles away from campus that I could stay at too. I figured that as all I needed was the Master’s thesis to complete my degree program I wouldn’t need to actually physically go to BGSU more than once or twice per week. A lot of the work was moving online, so I doubted writing my thesis would be much different from the online writing for FinancialWire that I was already doing. The commute was well within my capabilities.

Because of my extended absence I needed approval from several departments for my continuing education plan. The graduate department signed off and the financial aid department signed off. My graduate coordinator called me one day with bad news though. “The associate dean of BGSU won’t sign off on your application.” He told me. I scratched my head at this as I had no idea who this person even was.

So I called the associate dean. She couldn’t let me return to graduate school for morality reasons. “It will be impossible for you to complete your studies with a newborn baby at home.” She told me adamantly.

I had broken one of the biggest usually unspoken rules of colleges and universities and many corporate grinds as well. As a woman you sacrifice motherhood until you are at least well into your 30’s. That was just the way it had to be.

I argued back to the dean that this was ridiculous. I had several people who were willing and able to take care of my baby during my absences from her. I thought I was in a better place to take on the arduous task of writing my thesis than I had ever been. My relationship was stable and as I was breastfeeding my baby I basically never drank alcohol. There were no parties. This was all in sharp contrast to my days at graduate school before. I was laser focused and willing to do whatever it took to get my all important certification to join the ranks of the upper middle class.

The conversation lasted for almost 30 minutes and grew heated. The Associate Dean told me at least 30 times how arduous my Master’s Thesis would be. I would have to write a grant proposal and secure funding and there’d be approval committees and a thesis defense. Ultimately she said no. I was in tears after I hung up the phone.

It occurred to me later that the conversation about the impossibility of completing my thesis with a baby on board was actually about her, not me. I was sure she had an abortion or two in her background. She was using all of her own justifications for why she couldn’t keep her baby. My application threatened her and had to be stopped.

These are the types of games that go on when somebody else makes all of the money. Hierarchies form and there’s unspoken rules of conduct. Everybody polices themselves.

I think a subtle trick that is used here is to instigate a class war between the “producers,” you know, the hard working IT guy making 100K per year who pays $30K in taxes and the nonproductive class, i.e. the welfare queen, the person who fakes a disability and so on. From the government perspective it actually does not matter at all who the money goes to and I’ll tell you why.

They just need to accrue their 8% interest payments to pay back to the Federal Reserve. Useless eaters actually create as many jobs and economic activity as the producers do at least. Your 93 year old incontinent grandma with a feeding tube needs a horde of Medicare approved and insurance paid nursing aides to take care of her. She is not paying the taxes anymore herself, but she is generating economic activity that does pay the taxes from other people supporting her. The same can be said for schools, hospitals, social services, charity work and the like. That poor useless disabled person or that poor single mother with five kids she can’t support is indirectly supporting a lot of jobs. But the shell game is to make it a class war, a race war, a war between team red and team blue and so on, to forever distract the masses from looking up and seeing who is creating all of that fake money to get their real money back in return.

“World bankers, by pulling a few simple levers that control the flow of money, can make or break entire economies. By controlling press releases of economic strategies that shape national trends, the power elite are able to not only tighten their stranglehold on this nation's economic structure, but can extend that control worldwide. Those possessing such power would logically want to remain in the background, invisible to the average citizen.” — Aldous Huxley

The absolute source of all worldwide poverty and economic servitude that characterizes the deplorable state of the globe today is the seizing of the ability to produce money by these arch-criminals. These Elites are responsible for widespread genocide since they control the world's resources, kill millions of people through starvation and disease, and exercise total control over us all. This reality cannot in any way be denied.

“The Federal Reserve was set up in 1913 to finance both sides of two subsequent world wars. In other words, these wars were funded by the credit of the US taxpayer. Apart from profiting from it, the Illuminati bankers use war to enslave us with debt, enact social change and consolidate their power.” — Dr. Henry Makow, researcher and author, 2011

Some individuals believe that the Federal Reserve Banks are branches of the American government. They are not. They are private credit monopolies that prey on American citizens for the profit of their own wealthy and predatory moneylenders, as well as their domestic and foreign con artists. The biggest crime in history was the Fed's sacking of the United States. The Fed has made every attempt to hide its authority, but in reality, it has hijacked the executive branch. It rules everything in this place and all of our international relations. Governments can be made or broken at will.

In order to uncover this crime, where are the legions of lawmakers, economists, financial specialists, City analysts, and media financial pundits? The reason there aren't any is that the majority of them can only see as far as the tip of their noses, and they just accept the strong and persuading hype that is being fed to them from above by the propaganda mill that is our so-called “education” system and the complicit media.

Those who are aware of it already believe it to be a foolish conspiracy theory put forth by “crazies” or “loony lefties” or “right-wing conspiracy theorists”, and the limited number of those who are truly knowledgeable will keep quiet out of concern for their own well-paying positions or even because they fear for their lives and those of their loved ones. This is the actual operation of the system. As a species, we must all “wake-up” soon.

The Elite finally used this fake monetary system to create the perfect environment for them to deceive the people into engaging in extreme materialism, another horrific swindle. And their next masterpiece is just around the corner: CBDCs. The ultimate enslavement of every human being.

The banks are allowed to create the money out of nothing and charge interest for turning the trick, while the masses have to earn it. The right to create money is the right to leverage, and it's that financial leverage that hoists them to the top of the pyramid. Without this leverage, they would not be able to create such massive amounts of wealth and control. The only way to destroy this system and create fair money is by raising awareness. Once people understand the “trick’” the whole house of cards begins to collapse.

There are disagreements in the cryptocurrency space. Is Bitcoin and the like really the game changer due to its permissionless blockchain? Or will those currencies simply become owned and manipulated largely by the same bankers that already own all of the rest of everything?

At the very least, and if the idea of decentralizing currency is too far-fetched for you because you still like someone governing and controlling you, governments must reclaim their legal authority to print and issue money in order to solve this situation. By doing away with fractional reserve banking, banks would be forced to lend just their available cash. Governments could pay off all national debts immediately, taxes could be cut or even eliminated, and social programs supported by the government could be started, benefiting the entire population rather than just a small elite clique. Despite what is popularly believed, all of our taxes are used to pay off the banks' debt, not to provide services for the general public.

I believe that Lily’s entire insightful and thought provoking article is well worth the read. It is an eye opener and an excellent explanation. I was unaware of the actual history of fractional reserve banking and I read a lot. This stuff is designed to be forever treated as too complex for commoners to grasp for good reason. It is the head of the hydra.

Something that bothers me though in the post jab landscape of higher deaths and lower births in virtually every developed nation on Earth is the real world implications that follow on from this. Negative population growth is actually deflationary by its nature and this is colliding with a system that must forever keep growing. Death taxes might be owed but the actual dead won’t pay taxes. Less babies born means less strollers, car seats, foster care workers, maternity specialists, pediatricians, nannies and on and on. I think some degree of mass poisoning has been done to actually grow the medical system to keep the bubble inflating. The permanently infertile will probably see a lot of specialist and pay a lot of money before they give up and the permanently vaccine injured will need a lot of services before their demise. But there are additional knock on effects like needing less homes or cars or consumer goods.

So how does a system that must forever inflate handle the deflationary impacts of depopulation goals? Here we see clown world emerge. It’s why the US just can’t stop bombing Yemen or giving money to Ukraine. We need to blow up buildings so people can be paid to rebuild them. We need to fund more medical research into long Covid and vaccine hesitancy. We need to give one bajillian dollars to anyone who can fake a spreadsheet and then tell a happy story about all of the ESG hires at our company. We need to destabilize whole countries and send their populations to other countries to destabilize those countries. The entire system is built on these premises.

The clown world disconnect is becoming far too obvious. It seems like fake money because it is fake money. All the while my mother is supposed to believe she needs to count the number of potatoes she serves at dinnertime. One of these seems fake because it is. But it is all backed by your real blood, sweat and tears.

Why can’t we just have peace?

Buy me a ko-fi