Fractional Reserve Banking

The Dynamics of Financial Control

A world system of financial control exists in private hands, exercising dominion over the political systems of individual countries and the global economy as a whole.

This system operates through complex, interlocking networks that control major international institutions, multinational and transnational corporations, banking institutions, central banks, nation-states, natural resources, and populations.

A self-perpetuating group, comprising leading family dynasties from Canada, the United States, Britain, Germany, France, Italy, Japan, Russia, and China, forms the core of this control, manipulating government leaders, consumers, and people across the world. This concentration of wealth and power has been an ongoing process for over two and a half centuries.

The Evolution of Banking Systems

Western civilisation's economic organisation has evolved through six successive stages, with at least four being categorised as capitalism.

The period of financial capitalism, commencing around 1850, reaching its zenith about 1914, and concluding around 1932, was characterised by financial or banker management, a departure from the earlier owner management model. This era saw the rise of the limited-liability corporation and the holding company as typical forms of economic organisation.

Industrial capitalism spurred an immense demand for heavy fixed capital for infrastructure and industry, which individual proprietors' profits and private fortunes could no longer adequately finance. This necessity led to the creation of new financial mechanisms, including limited-liability corporations and investment banks.

These new entities quickly assumed control over the industrial system by becoming its primary capital providers. This development inaugurated financial capitalism, whose influence was then used to consolidate the industrial system into larger, integrated units with interlinking financial controls. This reduced competition and consequently increased profits.

Ultimately, when the industrial system became capable of financing its own expansion from its accumulated profits, financial controls were loosened, leading to the advent of monopoly capitalism.

Fractional Reserve Principles and Money Creation

Within each nation, the money supply operates metaphorically as an inverted pyramid. A foundation of gold and its equivalent certificates supports a significantly larger volume of notes at intermediate levels, and an even greater quantity of deposits at the apex.

Each ascending level relies on the levels below it as its reserves. Should a substantial number of individuals simultaneously attempt to convert their claims to a lower, more tangible form, the existing reserves would be entirely inadequate.

Historically, notes were issued by banks of emission or issue, backed by reserves of gold or certificates held either within their own vaults or in a central reserve.

The specific fraction of the note issue held in reserve was determined by custom, banking regulations, or statutory law. While numerous such banks once existed, this function is now predominantly restricted to a select few, or even a singular central bank, in each country.

These central banks, even in their capacity as national monetary authorities, are private institutions, owned by shareholders who profit from their operations.

Deposits, forming the uppermost layer of the money supply pyramid, comprise two fundamentally different types:

1. Lodged Deposits: These are genuine claims placed by a depositor with a bank, on which the depositor may receive interest. These constitute debts owed by the bank to the depositor. Functioning as a form of savings, lodged deposits exert a deflationary effect on the economy.
2. Created Deposits: These are claims generated by the bank ex nihilo in the form of loans to borrowers, who become "depositors" and incur interest obligations to the bank. As an expansion of the money supply, created deposits are inflationary.

Both categories of deposits contribute to the overall money supply and are amenable to being drawn upon by cheques for payments to third parties. The volume of created deposits is primarily governed by the prevailing interest rate and the demand for credit, factors that significantly influence the total money supply within an advanced economic community, where a large proportion of transactions involve cheques drawn against deposits.

The Role of Central Banks and Private Power

The private banking structure of the Federal Reserve in the United States was established as a direct analogue to the Rothschild banking model, which dominated in the United Kingdom via the Bank of England, and in France through institutions such as the Mirab Bank of France, or the Peribbos system.

The Bank for International Settlements (BIS) in Basle, Switzerland, stands as the apex of this global financial control system. This entity is a private bank, controlled by the world's central banks, which themselves are private corporations.

The leaders of the world's principal central banks are not autonomous powers in global finance; rather, they serve as technical functionaries and agents for the dominant investment bankers of their respective countries. These investment bankers, also known as international or merchant bankers, typically operate discretely from behind the scenes, managing their unincorporated private banks. This forms an international cooperative and nationally dominant system, more private, powerful, and secretive than that wielded by their central bank agents.

The influence of these investment bankers stems from their control over the flows of credit and investment funds, both domestically and internationally. They assert dominance over national financial and industrial systems through their sway over bank loans, the discount rate, and the re-discounting of commercial debts. Furthermore, they influence governments through their control over public loans and the dynamics of international exchanges.

This power is largely exercised through the personal influence and prestige of individuals renowned for their historical ability to orchestrate successful financial coups, maintain their integrity in agreements, remain composed during crises, and share profitable ventures with their associates.

Throughout much of the nineteenth century, the Rothschild Family held preeminence within this system. By the end of that century, JP Morgan began to supersede them, operating from a New York central office that maintained a strong connection to its London origins as George Peabody and Company (established in 1838). After 1924, Thomas W. Lamont assumed increasing responsibility for key decisions within the Morgan firm.

Notable central bankers in this system include Montagu Norman, Governor of the Bank of England from 1920 to 1944, and Benjamin Strong, the first governor of the Federal Reserve Bank of New York.

Strong's career was significantly aided by the Morgan Bank. Norman and Strong forged a collaborative alliance, aiming to leverage the financial might of Britain and the United States to impose the gold standard on all major countries. This standard was to be administered by central banks free from political oversight. All international financial matters were to be resolved through agreements between these central banks, without governmental interference.

The bankers' viewpoint was articulated consistently in various governmental reports and international conferences between 1918 and 1933. These included, among others, the reports of the Cunliffe Committee of Great Britain (August 1918), the Brussels Conference of Experts (September 1920), the Genoa Conference of the Supreme Council (January 1922), the First World Economic Conference (Geneva, May 1927), the Macmillan Committee on Finance and Industry (1931), and statements from the World Economic Conference (London, 1933).

These documents uniformly advocated for a free international gold standard, balanced national budgets, the restoration of pre-1914 exchange rates and reserve ratios, reductions in taxation and government expenditure, and the cessation of all governmental interference in economic activity, both domestic and international. Notably, these analyses overlooked the profound changes in economic, commercial, and political life that had occurred since 1914, implicitly asserting that the financial system itself should compel adaptation to such changes.

Global Financial Dominance and Political Control

The ultimate objective of financial capitalism is the establishment of a world system of financial control in private hands, capable of dominating the political systems of every nation and the global economy.

This system operates in a feudalist manner, with the world's central banks collaborating through secret agreements made in frequent private meetings and conferences. The Bank for International Settlements (BIS) functions as the apex of this structure.

Central banks, being private corporations, maintain accounts with the BIS, enabling international payments through mere bookkeeping adjustments between these accounts. This consolidates the BIS's role as the central bank for central banks. The BIS is a private institution, not a public one, and its governing board, comprising the heads of major central banks (such as those from the G7/G8 nations), concludes agreements on all significant global financial, economic, and political issues, particularly regarding loans, payments, and the economic future of key regions.

This sophisticated mechanism, often perceived as complex, is in essence a consistent application of the same fundamental financial strategy, adapted and repeated across different periods and geographical locations.

The history of Western civilisation, extending up to 1914, demonstrates the banking elite's strategic funding of revolutions. The power of fiat gold notes and fractional reserve banking, particularly through gold notes, has been central to this overarching process. The Bank of England, and subsequently the Federal Reserve, have adopted this power structure, aligning themselves with both the British and American establishments to expand their influence globally.

Mechanisms of Control: Debt, Inflation, and Deflation

A primary mechanism of financial control involves the deliberate creation of periods of inflation and deflation to facilitate the confiscation and consolidation of global wealth. Money and public debt are systematically brought under the control of a strictly limited commodity, typically a gold standard, and responsibility for monetary affairs is transferred from government oversight to private banking institutions.

However, even a gold standard is readily manipulated by elites who control gold reserves, allowing them to depress prices by releasing gold onto the market or to manipulate prices through other strategic actions.

At the commencement of World War I, British bankers clandestinely devised a scheme to settle financial obligations using fiat money in the form of Treasury Notes. Once the immediate crisis subsided, these bankers then insisted that the government finance the war through a combination of taxation and high-interest loans from private banking entities, vigorously opposing the continued use of fiat money, which they consistently condemned as immoral.

The decision to utilise Treasury Notes to meet bankers' liabilities was reached on 25 July 1914, with the first notes being printed on 28 July 1914. The customary August Bank Holiday was extended, and Treasury Notes were substituted for gold in bank payments. To counteract inflationary pressures, the Bank of England's discount rate was increased from 3 percent to 10 percent.

At the outbreak of the war, most belligerent nations suspended gold payments and adopted their bankers' counsel that war finance should rely on a combination of bank loans and consumption-based taxation. Contrary to expert predictions that the war would cease due to limited financial resources, hostilities intensified. Governments employed various methods to fund the war: taxation, the issuance of fiat money, borrowing from banks (which created credit for this purpose), and selling war bonds to the public.

During the New Deal era, a banking scam predicated on engineered boom-bust cycles was implemented. Public works programmes initiated by President 02_ARCHIVE/05 people/Franklin D Roosevelt were financed by incurring debt, which placed future generations in financial obligation to bankers. This approach fostered a debt-based economy and contributed to mass inflation. President Roosevelt also criminalised private gold ownership through Executive Order 6102.

This systematic accumulation of national debt is not a result of incompetence, but rather an intentional strategy to assert control over nations. The International Monetary Fund (IMF) and Bank for International Settlements (BIS) systems prohibit member states from adopting a gold standard, as this would diminish their capacity for control.

The Boom-Bust Cycle and Economic Warfare

The economy is characterised by engineered boom-bust cycles that are primarily designed to benefit bankers. These cycles are manipulated to generate profits and to subject future generations to debt. Even the gold standard, traditionally a symbol of financial stability, is easily controlled by elites who manage gold reserves, allowing them to influence market prices by releasing or withholding gold.

Keynesian economic ideology, which generally promotes war inflation and discourages saving, significantly contributes to these prevailing economic conditions. Furthermore, a clear link exists between fiat debt and the instigation of warfare.

The imposition of reparations on Germany following World War I, and subsequently after World War II, served to entangle the nation in unpayable debt for generations. This economic burden, which included annual interest payments of 2.5 billion marks on an initial 50 billion mark obligation, constituted a deliberate act of economic warfare by the London banking establishment against a key rival.

The creation of the Bank for International Settlements (BIS) in 1930 was initially presented as a mechanism to manage these reparations. However, its true purpose quickly evolved to foster cooperation among member central banks, serving as a pretext for advancing global governance through monetary means.

A consistent objective within this overarching strategy has been the deliberate weakening of Germany and Russia. The promotion of free trade by these power structures functions as a form of economic terrorism and warfare.

This "free trade" predominantly serves the commercial interests of the United States and solidifies the dollar's position as the world's reserve currency. The BIS provides a mechanism for exerting "soft power" economic pressure on nations that diverge from the globalist agenda, reinforcing the perceived notion that sovereign nations pose a long-standing impediment to their objectives.

The Emergence of International Institutions

The League of Nations, established after World War I, was conceptualised by Fabian Socialists as a proto-world government. However, it encountered significant opposition in the United States and did not fully achieve its initial goals.

Following World War II, the United Nations was erected as the successor structure for proto-world government. Concurrently, other economic institutions were founded, notably the Bank for International Settlements (BIS), which functions as the central bank of all central banks. These entities, alongside steering committees, non-governmental organisations (NGOs), foundations, and think tanks, collectively work towards the establishment's objectives.

The International Monetary Fund (IMF) and the World Bank also arose during this period. These institutions impose rigorous financial conditions on nations, a pattern observed in countries such as Greece, Spain, and Ireland following economic destabilisation or coups, which are frequently instigated by the same underlying powers. This process aligns with Joseph Stiglitz's concept of IMF shock doctrine, entailing a multi-stage banker plan designed to reorganise countries into subsequent phases of their economic programme.

This intricate system is driven by a third-wave ideology, which embodies a fusion of communism and capitalism. This ideology, supported by the monetary elite, promotes soft socialism, Fabian socialism, and progressive agendas, not out of humanitarian concern, but for the purpose of social engineering towards a top-down technocracy. Marxism itself is presented as a banker-funded philosophy, originating in London.

The Anglo-Saxon tradition, characterised by pragmatic, materialistic, positivist, and empiricist liberalism, has profoundly influenced industry, government, philosophy, and economics. This framework invariably leads to centralised bureaucratic technocratic control, whether under the guise of monopoly capitalism or Marxist socialism.

The Anglo-American Establishment and World Order

The Anglo-American establishment, and the Atlanticist power block it embodies, played a pivotal role in shaping the twentieth century. This group, which Carroll Quigley (a military historian and archivist for the Council on Foreign Relations) affirmed, saw the World Wars as a tragedy, yet viewed the resulting democratic capitalist free market order as a beacon of hope for the future. However, the democratic claims of this order are admittedly a fiction, often serving as a façade for banker oligarchy.

The structure of control extends historically to the East India Company and the American Revolution, rooted in private banking power, fiat gold notes, and fractional reserve banking.

The British elite, including figures such as the Rothschilds, Rhodes, Ruskin, and Milner, established secret societies, notably the Circle of Initiates, which progressively adopted a strategy of Fabian Socialism. This network initially aimed to federate the English-speaking world and expand the British Empire. Following the failure of this initial plan, the strategy shifted towards a Fabian Socialist model, supported by prominent figures like Lord Rothschild.

The establishment, particularly after the two World Wars, has consistently aimed to create a New World Order, a scientific dictatorship that erodes freedom despite its promise under the banner of liberalism.

This transition involves a shift from nationalism and isolationism towards global governance, driven by the perceived necessity of global security and an interconnected global economy. The underlying philosophical corruption is evident in a shift from objective truth and metaphysics to Materialism, pragmatism, and situational ethics.

This intellectual trajectory, stemming from Enlightenment empiricist philosophers, concludes that all reality is in flux, devoid of objective truth, thereby facilitating the creation of new ideologies such as Darwinism, Marxism, and socialism by institutions like the Royal Society in London. London is a global hub for witchcraft, Satanism, and World Freemasonry, all of which serve as instruments for influencing global politics.

The military-industrial complex and the rise of cybernetics and Game Theory are integral to this technocratic model, with science assuming the role of a new deity, leading towards Transhumanism and Artificial Intelligence.

This system seeks to reorganise societies according to a technocratic blueprint, imposing pervasive surveillance and control over individuals throughout their lives.

The Cold War, framed as a conflict against international Communism, was a deliberate strategy of tension designed to justify massive expenditures on the national security state and facilitate the transition to this global order. The "communism" that figures like Senator McCarthy expressed concern over was a sophisticated misdirection, as the Anglo-American establishment itself directed the Communists to centralise wealth and control.

Centralisation, bureaucratic expansion, and rule by experts define this envisioned future, despite these characteristics being the very issues that liberalism supposedly aimed to address. The long-term objective is social engineering, steering society towards a top-down technocracy, thereby creating a new form of imperial system.