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

A private banking cartel that is entirely controlled by the Elite has secretly taken away from governments—and consequently, from "the people"—the authority to create money.

What better time is there to write about the scam that is our money supply and banking system than now? The public believes that all money is issued by and controlled by the government, however this is untrue. All money is presently produced by private corporations, i.e., banks, except for coins, which make up less than 0.05% of the total amount of money in circulation. In the USA, the Federal Reserve Bank, a commercial banking institution, oversees issuing notes, whilst the Bank of England—also, perhaps strangely to many, a privately held institution—is responsible for minting your money in the UK.

Amazingly, governments are then given loans of this money, which must be repaid along with interest. Therefore, this is the true cause of our huge and continually growing national debts, not increased public spending or anything else of that sort, as our manipulated governments dishonestly claim. The only way this debt will ever be paid off is by the banking monopoly printing (and subsequently borrowing) an increasing amount of money, each with its own component of interest. All the taxes that we all pay to the government are used to pay off this debt owed to the bankers, contrary to what they would have you believe; they are not used to fund government operations or public services. To further line the pockets of the already incredibly wealthy Elite banking families, including Royalty who are strongly suspected to be major shareholders in the Bank of England, a huge and growing portion of our salaries that are stolen from us in the form of direct and indirect taxation is used. The cycle keeps going throughout the decades and centuries.

“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.”

Coins and banknotes, however, make up just about 3% of the total money supply. The remaining 97% are created by commercial banks as loans, today through the clever input of numbers into a computer screen, and historically through clever bookkeeping. All of these actions, of course, come with their own embedded debt in the form of interest payable.

When a bank extends credit, it simply increases the borrower's deposit balance in the bank by the loan's amount. The money was neither previously paid into the bank by anyone, nor was it removed from anyone else's deposit. It is brand-new money that the bank has created for the borrower to utilize. The commercial banks are their exclusive source of funding. Every dollar they have in circulation, whether it be in cash or credit, has to be borrowed. They succeed if the banks produce enough fake money; if not, they starve.

Undoubtedly, we lack a reliable monetary system. The awful absurdity of our helpless situation is almost unbelievable if one has a full understanding of the situation, but there it is. It is the most significant topic that intelligent people may research and consider.

How did this risky and illegal situation develop without any media attention or inquiries? It should come as no surprise that the corporate Elite, with the aid of its obedient media and propaganda factories, has once again benefited from their money and power. With their seemingly limitless resources at their disposal, it is incredibly easy to mislead 99.99% of the trusting masses about the true situation and pave the way for the swindle of this, or indeed any other millennium.

“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of the government applied by a central power of wealth under leading financiers. These truths are well known among our principal men, who are now engaged in forming an imperialism to govern the world. By dividing the voters through the political party system, we can get them to expend their energies infighting on questions of no importance. It is thus, by discrete action, we can secure for ourselves that which has been so well planned and so successfully accomplished.” — Montagu Norman, Governor of The Bank of England, addressing the United States Bankers' Association, New York, 1924

WELL, ACTUALLY, BANKING WAS NOT AN ELITIST IDEA.

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.

CBDCs — Why Governments Cheer and Humanity Suffers

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 Catholic 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.

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” — Former US President, Woodrow Wilson, several years after signing the Federal Reserve into existence²

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.

The US National Debt is $31 trillion at this writing and growing rapidly. How are these funds ever going to be repaid? They cannot—in any way, shape, or form—ever, is the clear-cut fact. This therefore gives the central bankers the "right" to practically do whatever they want with our lives because we and our offspring are indebted to them and are their slaves forever.

It may seem little, yet this bundle contains $1 million. It is actually small enough for you to hold in your hands and carry with you.

$100 million is a little more respectable, even though $1 million seems a little lackluster. It conveniently fits on a typical pallet.

Additionally, $1 billion. You should be able to U-haul this around.

Let's look at ONE TRILLION dollars next. This is the number that has been doing the rounds lately. Millions of millions and billions of billions make up a trillion. That is a 1 and then 12 zeros.

We are now at $1,000,000,000,000. (The pallets are double stacked.)

Therefore, if you hear someone say the expression "one trillion dollars/pounds" in passing, they are referring to that amount.

Furthermore, would it surprise you to learn that an average human lifetime is significantly less than one million hours—at 657,000 for a span of 75 years—even though figures of one million and much, much more are casually tossed around these days? Or, said another way, slightly less than 40 million minutes. And less than 0.75 million days have transpired since the purported birth of Christ more than 2000 years ago.

Or let’s put you into a basement with the current US national debt in $1 notes. You are then told that you are free to keep all the notes you sign. To make this easier, let’s say you need a second to sign a note, you don’t eat, sleep or do whatever else nature needs you to do. After 20 minutes, you have enough money to buy a top-tier MacBook Pro. After 11 days and 13 hours, you would pass your first million. After around 31 years, you’re a billionaire. And after 982351 years (and that is not a typo) you’d own the current US national debt. I’ll let you do the math as to how much it has grown in that time.

As we now see, banks do not create the interest payable on their so-called “loans” to the government, just the principal in the form of currency. As more money is printed only to pay the interest owed to the banks, this results in an ever-growing deficit. In fact, this means that the money supply must double every 14 years in order to meet the interest payments alone. One pound lent at 5% becomes two pounds in 14 years. Or, to put it another way, every 14 years, the banks rob the government of as much money in interest payments as was in the entire economy the preceding 14 years! Arguably the largest trick ever played on a vulnerable human race. The true cause of inflation is this, which may explain why a loaf of bread that today costs roughly $1.00 only cost about 2 cents in 1911. Still, people think that’s normal and “just how our world works.”

“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

So, where are all the street protests, the public trespasses on the Bank of England, the ECB in Frankfurt, the Federal Reserve Bank in New York, and the vociferous calls for financial reform from the press and the government? Unfortunately, we are fooled and controlled into thinking that everything is fine and that the current system is the "only way" through the mind-control procedure also known as state education, propaganda spread by the media, and the self-policing syndrome that affects the entire population from top to bottom. We are conditioned to think that we are powerless and unable to significantly alter the “way of the world,” even when it becomes blatantly clear that something is amiss. Nothing to see here, everyone. Get back to work. Everything is in order.

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.

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.

The true account of a significant court case that occurred in Minnesota, USA, in 1969 is worth telling. It is hardly surprising that First National Bank of Montgomery v. Daly was not widely covered at the time or afterward. However, this epic courtroom drama is actually crucial. Lawyer Jerome Daly, the defendant, said that there wasn't any “consideration” for the loan when the bank tried to foreclose on his $14,000 mortgage. Consideration is a term used in legalese to refer to “the item exchanged” and is a crucial part of every legal transaction. Daly argued that the bank had provided no consideration for his loan because they had effectively “created” the money through bookkeeping, “out of thin air,” and had not, therefore, experienced a loss (another key legal point) as a result of his rejection or inability to repay the money.

Associate Justice William Drexler, who was recording the proceedings, had given the defense absolutely no credit until Mr. Morgan, the bank's president, took the witness stand. Morgan casually acknowledged under cross-examination that the bank frequently manufactured money “out of thin air” for all of its loans and mortgages, and that this was, in fact, a standard procedure in all banks, much to the amazement of Drexler and everyone else there. Martin Mahoney, the presiding justice, said, “It sounds exactly like fraud to me,” to which the jury members all nodded and murmured their agreement. Justice Mahoney stated the following in his summary of the case: “Plaintiff (the bank) admitted that it, with the Federal Reserve Bank of Minneapolis, did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964, and the Mortgage of the same date. The money and credit first came into existence when they created it. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.”

The defendant kept his home after the court properly rejected the bank's attempt to foreclose. This case should have had gigantic ramifications. A ruling declaring bankers' loans worthless might bring down the financial and banking systems across the world if it is true that they are providing credit without consideration, or backing it with money they truly possessed in their vaults and were authorized to issue.

Later, Jerome Daly stated in a local news article: “This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all US and State bonds held by the Federal Reserve, National and State banks to be null and void. This amounts to an emancipation of this Nation from personal, national, and state debt purportedly owed to this banking system. Every American owes it to himself to study this decision cautiously, for upon it hangs the question of freedom or slavery.”

Even while the judgement was never formally challenged or overturned, it is perhaps unnecessary to mention that it completely failed to influence accepted practice. Unsurprisingly, Justice Mahoney passed away less than six months after the trial in a highly suspicious “accident” that involved some sort of poisoning. Justice Mahoney had vowed to sue and expose the bank. Anyone who opposes these individuals and their evil methods should be avoided.

Since this case set a precedent, many other defendants have attempted to have loans and mortgages voided using the same defense as Daly, but with little success. In fact, one judge unofficially said: “If I allowed you to do that, you and everyone else would bring down the system. I will not permit you to enter the bank by the back door. We won't enter that room behind that curtain!”

At this point in the narrative, it is also important to point out that the way that money production has been designed to work results in the surprising fact that, believe it or not, the act of signing a mortgage or loan application actually creates the amount of money being requested. The only real difference is that if the finance company determines that the applicant has a sufficiently high credit rating for them to take a chance on lending the money that was initially created by the process, then they can also profit from the interest that will result from this. If the application is rejected, they are left with nothing more than the capital sum. This then is why it is by no means 'immoral' to renege on the payments of mortgages or loans. The money would not have been forcibly conjured into existence if the application had never been submitted in the first place. To be clear, the applicant's signature is what makes the “money” out of nothing.

Now, some witty “educated” smartypants are going to tell you: “The banks are not creating money ‘out of thin air’. That is ridiculous. They create it out of assets! And assets are far from nothing!” Yeah, assets that are owned by them and that have already be paid with money that didn’t really exist are now being used as something of worth to justify the creation of money. It does not matter what you do or how you put it: Money is being created out of nothing. And even if you consider the asset-narrative compelling: Money is still being created and the cycle continues.

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“When a group of men who live in a civilization adopt plunder as a way of life, they eventually build a legal framework that permits it and a moral code that elevates it.” — François Bastiat (1801–1950)

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.

Lily 🦆 alilybit.substack.com @ALilyBit

The Fed has stated that it will not bail out the banks but that all depositors will be reimbursed. Including those with more than $250k guaranteed to be insured by the FDIC. However, my theory is that these deposits will be paid back with a US CBDC.

In conclusion: If you work for a bank, and I am sorry to say that but, you are a criminal — or at least complicit it one of the greatest crimes against humanity.

If you like this article, please leave a like. It costs you nothing and helps spread the word. Thank you!

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1. Jackson survived an attempted assassination when the would-be assassin's gun jammed shortly after making this declaration and the Bank of the US's subsequent annulment. No one was taken into custody. ↩︎

2. Since this alleged quote became popular, fact checkers rushed to say that it is either untrue that Wilson ever said that or it was misinterpreted. I leave it up to you what you want to believe, I honestly don’t really care. ↩︎