b. Fractional Reserve Lending

We’re now going to go over how fractional reserve lending works, which is how a majority of the money in use today in the world is created. Money first originates with the central banks, but what happens after it leaves the central banks and goes into the national banking system is pure madness. It is nothing more than a giant pyramid scheme, that if you or I tried to execute, we would be thrown instantly in jail. This isn’t a problem, however, when you literally own and control the government. Fractional reserve lending historically came about in 16th century Europe, but I believe it actually originated with the Knights Templar and I’ll leave it at that. As trade increased dramatically, it became cumbersome, not to mention dangerous, for merchants to lug around large quantities of gold. So, instead they would deposit their gold with a known goldsmith and get a receipt for the gold. These receipts would then be traded around instead of the gold---with the merchants knowing that they could go and get the actual, physical gold whenever they wanted.

Here’s how it went awry back then, just as today: The goldsmiths noticed that hardly any merchants ever came to exchange their receipts for the physical gold---they were just using the receipts for their gold to trade with. The goldsmiths caught on to this fact and started loaning out the gold they held for the merchants to other businesses and private parties, and collected interest on the money that they really should have kept locked up in their vault. Not only this, but they began to generate receipts

for gold that they didn’t even possess, just like today.

This was the start of fractional reserve banking, and it is how the banking system works today. There are many, many, MANY more “receipts” (dollars) than there is anything tangible, such as gold, to back them up with. This is a VERY important method of societal manipulation you need to understand here, and it will be worth reading and re-reading this section on money until the seriousness of this scam sinks in.

Fractional-reserve banking is the banking practice in place today, sanctioned by the government, in which banks keep only a fraction of their deposits in reserve as cash and other highly liquid assets, and lend out the remainder. This fraction they keep in the “vault” is usually only about 10% of total deposits. This means if everybody that had money in a particular bank went to withdraw their money, only 10% of the money that is spoken for by the general public would be available for withdrawal…..and that is the truth. Your money is not really there, it exists only as numbers on a piece of paper, a computer screen, or in your mind.

By the mechanism of its action, the practice of fractional reserve banking expands the money supply beyond what it would otherwise be---and this creates artificial growth and retraction cycles in the economy, or “bubbles” and “busts”. Because of the prevalence of fractional reserve banking, the broad money supply of most countries is a multiple much larger than the amount of base money created by the country's central bank. That multiple (called the money multiplier) is determined by the reserve requirement or other financial ratio requirements imposed by financial regulators, and by the excess reserves kept by commercial banks.

Central banks like our Federal Reserve are the entities that mandate reserve requirements that require banks to keep a minimum fraction of their demand deposits as cash reserves---again, usually

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around 10%. This both sets a limit to the amount of money creation that occurs in the commercial banking system, and ensures that banks have enough ready cash to meet normal demand for withdrawals.

Now, this is where fractional reserve lending gets tricky, and unbelievable, so follow closely: Let’s say “Edward” goes to Bank of America and gets a loan for $10,000 for whatever---the usage by Edward of this money is irrelevant to our scenario. He takes his check for 10 grand from Bank of America and takes it to another bank he has an account at, Chase Bank. Chase takes his deposit and credits his account. Chase is then able to take $9,000 of the $10,000 deposit and loan it out--keeping $1,000 not in the vault, but “on hand” in the form of a mere computer entry. Let’s say a man named “George” walks in right after Edward and borrows that 9 grand, and takes it to another bank he has an account at, Bank of America, and deposits the money. The process then can repeat itself nearly indefinitely---creating purely monopoly money back and forth just between these two banks. This is a very simple analogy, but it is a fact. Not only do situations like this happen, but then you throw in a second, even more maddening situation: how the money came into existence in the

first place.

The money at the base of this pyramid scheme was literally created out of nothing---through a mere computer entry by the Federal Reserve. This “money”, which came from nothing and is backed by nothing, is called “fiat” currency. Fiat currency is money that is not backed by gold or silver, which was the sole intent of paper money to start with. Today our money is not backed by gold or silver, and is only worth something because the government tells us it is. This “money” that originates with a Federal Reserve computer entry---if you even want to call it money---IS THEN LOANED at FACE VALUE PLUS INTEREST TO OUR FEDERAL GOVERNMENT. You and I are paying National Debt interest on monopoly money to the Illuminati that they created out of thin air. It is complete enslavement, there is no other word for it, and slavery was the intent by the proponents of the New World Order all along.

Again, under the Federal Reserve System, when a new dollar is issued, we pay taxes to pay for the dollar as the principal (debt) plus interest on the created-out-of-nothing dollar. We as American taxpayers pay for each new dollar twice, and who gets the money? The Illuminati, who control this money. According to the Constitution, the taxpayers should only pay taxes for the paper, ink, and printing costs of new money, and should reap the benefits of its usage. Why should we give bankers the right to print money on a printing press and screw us over? That is exactly what is happening. And that’s not even the worst part. We are hit with the hidden tax called inflation---which is the intentional devaluing of our money. The Federal Reserve has to constantly pump more base money into the economy in order to cover the interest and principle on the original money “loaned” out to the government plus the INTEREST on the INTEREST of said monopoly money. And then they have to print more money to pay the interest on the interest on the interest. It is a total scam, engineered to enslave us and the world as a whole, and this is a fact.

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