Freedom for the human race begins with freedom from slavery to corrupt money.
The global financial system, is organized around centrally managed, privately owned, fiat fractional reserve currencies, an engineering tool of the world’s banking elite that, by design, enslaves the public to inflation and the impossibility to pay off debt. The attempt of the money masters to take control of the world with their debt-backed money has paid off wildly for them, and the resulting economic imbalances and fiscal atrocities can be seen in every corner of the economy and shows up in every nation on earth. While poverty is being globalized, the banking cartel and their 1% elite are reaping riches greater than the wildest imaginations of history’s most scrupulous Kings and Rulers.
Under a fractional reserve banking system, banks can make loans in multiples to the amounts they have in customer deposits. Under such a system, banks do not maintain sufficient legal tender notes (cash) to satisfy the withdrawal requests of all their depositors. If many, not necessarily all of their depositors, were to request their cash, the banks would not be able to meet their demand. Therefore, fractional reserve banks rely on government insurance and the faith and confidence of their depositors that their money is there when they need it. If confidence is lost, and too many depositors request their cash, that is called a ‘bank run’, banks can go bankrupt and bank bailouts/bailins will become necessary.
Long term, fractional reserve banking leads to an oversupply of money and to consumer price and asset inflation. Consumer price inflation is THEFT by the government, and hurts the less wealthy, by raising their costs of living, while asset price inflation benefits the wealthy by increasing the value of their assets.
The privilege of creating money is an added funding to the banking sector. Because banks collect interest over money created out of thin air that doesn’t cost anything, the entire society pays in the form of taxes that should pay for the interest on government debt that subsist out of thin air. In short, the Khazarian owned private banks are the direct beneficiaries of the current fractional reserve system at the expense of citizens, and the criminals that have caused today’s financial crisis.
So its obvious that in this system the currency cannot hold its value. When a currency holds its value, governments have fewer incentives to lie about its performances. It can honestly state that its money is sound and that its citizens’ savings are becoming a little more valuable each year. Savers are rewarded for their thrift while borrowers are punished for their spending fancy.
When fractional reserve banking is outlawed banks are no longer the distributors of a torrent of newly printed currency, they are far less powerful, have fewer incentives to make unwise loans for immediate fee income, and control fewer resources.
Fractional reserve flaws:
The fractional reserve system has three flaws that distort the feedback mechanism, essential to free markets. These errors are:
- If too many depositors want their money back at the same time, they’ll be disappointed, and the bank will fail because it cannot turn its outstanding loans into currency quickly enough to meet depositor’s demands. Eventually leading to mistrust, and bank runs – the system fails.
- The system inevitably destroys its currency. It can create virtually unlimited amounts of credit, but credit is not wealth. The result is debasement of the currency that turns progressively less in relation to the real wealth of the economy, resulting in inflation, certainly not an acceptable storage of value.
- It distorts markets and misallocates resources. In order to perpetuate the myth that paper currency is as good as gold and silver coin, bankers prevailed on governments by require that both the original trust money and their created debt money circulate at ‘equivalent value’ while the later should only have been accepted at a discount because of the risk it entails.
Is fractional reserve banking essential?
How could a banking system function without fractional reserve lending, in accommodating depositors’ demand that their money be there when they want it, and borrowers’ desire for 30-years mortgages that would tie up those deposits for decades? And could this market operate without the need for government oversight and management?
Imagine the banking system is to be divided in two types of banks:
- “Banks of Commerce” would take deposits and keep them safe for a fee. These banks would offer checking accounts where payments are made by transferring depositors’ currency in return for goods or services without putting depositors’ money at risk.
- “Banks of Credit” would pay interest on deposits and lend out money, but would have to match the duration of deposits with duration of loans, while informing depositors of the risks so they can decide whether the interest they earn is worth the risk they are taking.
Deposits that can be withdrawn anytime could only be used to fund a loan, which the bank can call back on demand, while longer-term deposits would be matched with longer-term loans, like a 5-yaer mortgage.
Depositors parting with their money for much longer would receive higher interest rate as the corresponding mortgages would carry a high enough rate to provide the bank with a small profit, which would make 30-years mortgages both expensive and hard to get.
Buying a house – or anything else – that requires tying up capital for extremely long periods, should require a hefty down payment giving the bank the ability to foreclosure by seizing more than the value of the loan, to protect its ability to repay its depositors, offering the needed safety to convince depositors to tie up their money for longer periods.
A society in which banks operate this way would be less prone to excessive debt accumulation and inflation, while failure would be less frequent, and government deposit insurance less necessary.
Investment banks and hedge funds would be set free to speculate with their investors’ money, making fortunes when they succeed and collapsing when they fail, with no public stake in either outcome. No more ‘to big to fail’ – TBTF -situations whatsoever! No need for ‘lenders of last resort’, and last but not least; no Central Banks are necessary. Booms and busts will be fewer and less devastating once these occurs. It will be a more sustainable and modest world with miniscule debt levels, not only attractive but quite feasible too.
The conclusion is justifying; fractional reserve banking is more damaging than supporting economies. It turns out that Switzerland is going to held a referendum on this subject:
“Banks won’t be able to create money for themselves any more, they’ll only be able to lend money that they have from savers or other banks,” said the campaign group known as the Vollgeld initiative.
Money issuing must be restored to the people:
The dire warning from the third President of the USA (1801–1809), Thomas Jefferson (1743 –1826) was neglected; no one in charge in government could say we didn’t know, they all were bribed by the banking cartel to look the other way.
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Simply put, the bankers control the government, and the world. This has been the case ever since the formation of Central Banks and the Federal Reserve, and it was further solidified with the removal of the connection with kind of gold standard in 1971.
Dilemma around Gold manipulation:
The fact that the East stands ready to buy all their gold at manipulated rock-bottom prices presents the Western manipulators with a dilemma: They can continue their manipulations, in which case they will eventually sooner than later run out of gold. Or they can step back – like they did when the London Gold Pool collapsed in 1968 – and let the market forces set the exchange rate, which certainly will be far higher.
To understand the larger scenario that may occur, consider the current asset base of the money management institutes that covers at least over 100 trillion of liquid wealth in mutual funds, hedge funds, insurance, sovereign wealth, and pension funds, etc. that owns virtually no gold.
According to precious metal expert McGuire, who estimates that pension funds have allocated 1/3 of one per cent of their 30 trillion of assets in gold. If they were to make this just 1% – still extremely low – that would represent new demand for about $200 billion worth of gold, or about 5,000 ton, which is more than 5-times the weight of gold that today resides in GLD, the biggest gold ETF, and about 125% of the market capitalisation of the entire gold mining sector. If pension funds allocate 5% – still low against historical records – the resulting $ 1.4 trillion increase in demand would overwhelm the market, virtually guaranteeing shortages, resulting in default that almost took place in 2013. Add that China’s reserves are 10.000 ton, quite probably double that figure, and intents to back the Yuan and simultaneously Russia the Rubble with gold and use both currencies for international trade, certainly resulting in even more interest in gold and loss of faith in the US dollar that is going to rocket the gold exchange rates against all paper currencies.
At some point, current paper assets investors will start buying physical gold and silver to protect wealth before the collapse of the Greatest Ponzi Scheme in history will begin in earnest. It will only take a few percentage points increase of buyers, to totally overwhelm the precious metal market.
Because gold is stable in terms of a tangible asset, its value in dollars, euro’s, or yen has nothing to do with gold itself, but on changes in demand for those fiat currencies and the perception of viability and future value.
The biggest threat:
As the RKM is loosing ground, they certainly will clutch to every false flag straw, to destroy whatever they get their hands on. They very likely will resort to the biggest threat of all people’s wealth, yet so far known, nobody is talking about – a large-scale cyber attack that will cripple the entire financial system. Just to have an argument to blame the collapse of the financial bubble on something else, instead to put the blame on the money cartel.
If you keep most of your money in digital form, you must take steps to protect yourself and your family before such an attack happens. – The first step is to store a sizable amount of cash in a safe place you can easily access. Recommending at least three to six months’ worth of living expenses. Store the cash in a safe at home, or in a storage facility outside the banking circuit, or bury it in a waterproof container in your garden. But never talk about with others.
This might sound extreme, but think about it. If the financial system is compromised, all debit and credit cards become useless. People will need enough cash on hand to pay for groceries, gasoline, and other daily necessities. Otherwise, they are in a vulnerable position, because as Bill Holter it expresses:
“This is going to be a complete financial collapse. You are going to see some deflation, but it’s not going to be deflation against dollars or euros. It will be deflation against gold.”
Meaning, the value of everything will devalue against gold.
Watch Bill Holter’s economic prediction for 2016, here.
More reasons to expect gold to rally:
The ‘short’ position in gold is almost always a positive number – meaning that commercial traders are usually shorting the metal. That makes sense, since most commercial short positions are hedges against future declines in price.
But when commercial traders expect the price of gold to increase, the COT -Commercial Trade – the ‘short interest’ often drops to less than 50,000 contracts. This almost always leads to short-term rallies in the price of gold. However the most recent COT report, which includes data through December 15, showed that commercial traders’ net short position in gold is less than 6,000 contracts. That’s the lowest level in more than 15 years.
There are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that are in excess of 30 trillion dollars. Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts. That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment. According to the Bank for International Settlements, globally the estimated value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars.
And, if gold manipulation isn’t enough, gold smuggling is even more profitable for the insiders. – A gold-trading company at the nexus of what may have been the world’s biggest gold smuggling ring in history has imploded seemingly overnight, vaporising countless tons of physical gold and unknown amounts of client cash, even more questions remain. Read the developing story here.
Powerful noble forces are coming to help us:
Is there any hope of overcoming the banking cartels and the moneychangers without the end of life, as we know it? Can the human race go from a completely corrupt economy to an honest economy practically overnight without suffering the total devaluation of everything so many have worked for?
It may seem unlikely, but outspoken powerful noble forces are at work behind the scenes helping us to defeat the RKM cabal. In order to bring about honest money for the world as a replacement to the fiat fraud and financial plunder and ending the repression people live under now. World peace should be possible in 2016. However, this cannot be done by passively observing world events; everybody must do what they can to ensure universal liberation this year.
SO MANY MORE AWAKEN PEOPLE are needed to overthrow all local governments implicated in these scandalous frauds, which basically are all known Western government leaders, foreign- and financial- ministers, and off course all their predecessors, those have to be brought to justice and convicted for their collaboration with the Jesuit Khazarian Mafia. Otherwise our future will be like in this video.
First Time In History Major Ships have deserted Atlantic Ocean, while the BDI (Baltic Dry Index) is crashing, this explains, a “clear and potent” signal of a coming Western economic/banking collapse as was evidenced in the 2007-2008 Crisis that was the last time these two factors accurately indicated what was coming—and has, likewise, led to all of the world’s stock markets crashing during the first week of this new year.
Look forward in 2016. In the midst of all the chaos and darkness, there will be great opportunities to do well and to make a difference. When the great shaking-out arrives, people go looking for answers. This could be the year when millions more of people start to WAKEUP and understand that our governments, politicians and the mainstream media are not telling them the truth. Be convinced, great challenges are coming. This is not a time to hide you from the truth. Instead, this will be a time for those that have prepared in advance to love others, help others and show them the TRUTH.
What about you? Are you ready to be a light during the dark times that are coming? Feel free to join this conversation by posting a comment below, to learn about initiatives to WAKEUP THE WORLD and defeat the RK Mafia.
Learn in 5 minutes how the Elite is able to stay in power, and how easy it is to break their power. Question; in what world do we want to live in? It is our choice, but a choice we have got to make together.
Fed’s Financial Fraud:
140 years of Monetary History In Ten Minutes.
By the end of this video you’ll be able to answer for yourselves:
- Are we overdue for a new monetary system?
- Is war good for an economy?
- Why did Nixon sever the link between all currencies and gold?
Treasury Secretary John Connelly after Nixon closed the gold window in August 1971: “said to the G-7, it’s our currency, but it’s your problem. (Now) we’re saying the same thing to emerging markets.”