6. THE BANK OF ENGLAND
By the end of the 1600s, England was in financial ruin. Fifty years of more or less ontinuous wars with France and sometimes the Netherlands had exhausted her.
Frantic government officials met with the Money Changers to beg for the loans necessary to pursue their political purpos The price was high - a government-sanctioned, privately-owned central which could issue money created out nothing, as loans.
It was to be the modern world's first privately-owned, national central bank in a powerful country, the Bank of England, though earlier deposit banks had existed in Venice (1361), in Amsterdam (1609), and Sweden (1661) which issued the first bank notes in Europe that same year - 1661. Although it was deceptively called the Bank of England to make the general population think it was part of the government, it was not. Like any other private corporation, the Bank of England sold shares to get started.
The investors, whose names were never revealed, were supposed to put up one and a quarter million (British pounds) in gold coin to buy their shares in the Bank. But only £750,000 pounds was ever received.
Despite that, the Bank of England was duly chartered in 1694, and started out in the business of loaning out several times the money it supposedly had in reserves, all at interest.
In exchange, the new bank would loan British politicians as much as they wanted. The debt was secured by direct taxation of the British people.
So, legalization of the Bank of England mounted to nothing less than legalized countfeiting of a national currency for private gain. Unfortunately, nearly every nation now has a privately controlled central bank, the local Money Changers using the Bank of England as the basic model.
Such is the power of these central banks that they soon take total control over a nation's economy. It soon amounts to nothing but a plutocracy - rule by the rich, and the bankers soon come to be the dominant super-rich class. It is like putting control of the army in the hands of the mafia. The danger of tyranny is extreme. Yes, we need a central monetary authority - but one owned and controlled by the government, not by bankers for their private profit.
Sir William Pitt, speaking to the House of Lords in 1770 stated:
"There is something behind the throne greater than the king himself."
This reference to the Money Changers behind the Bank of England gave birth to the expression "the power behind the throne."
In 1844, Benjamin Disraeli, in a veiled allusion to this same power wrote:
"The world is governed by very different personages from what is imagined by those who are not behind the scenes."
On November 21, 1933, President Franldin D. Roosevelt, in a letter to a confidant, wrote:
"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned government ever snce the days of Andrew Jackson…"
The central bank scam is really a hidden tax, but one that benefits private banks more than the government. The government sells bonds to pay for things for which the government does not have the political wisdom or will to raise taxes to pay. But about 10% of the bonds are purchased with money the central bank creates out of nothing. The government then spends this new money. Once deposited, private banks use these new deposits to create ten times as much in new fractional reserve loans. This provides the economy with the additional money needed to purchase the other 90% of the new bonds, without drying up capital markets and forcing up interest rates.
By borrowing the money (i.e. selling new bonds), the government spreads the inflationary effects out over the term of the bonds. Thus there is little to no immediate inflation.
More money in circulation makes your money worth less. The politicians get as much money as they want, and the people pay for it in inflation, which erodes the purchasing power of their savings, fixed income and wages. The perverse beauty of the plan is that not one person in a thousand can figure it out because it's deliberately hidden behind complex-sounding economics gibberish. The full effects of the infiation are only experienced much later - too late to stop.
With the formation of the Bank of England, the nation was soon awash in money. Prices throughout the country doubled. Massive loans were granted for just about any wild scheme. One venture proposed draining the Red Sea to recover gold supposedly lost when the Egyptian army drowned pursuing Moses and the Israelites.
By 1698, just four years later, government debt had grown from the initial 1-1/4 million pounds to 16 million. Naturally, taxes were increased and then increased again to pay for all this.
With the British money supply firmly in their grip, the British economy began a wild roller coaster series of booms and depressions exactly the sort of thing a central bank claims it is designed to prevent, as Eddie George, Governor of the Bank of England, stated:
"There are two things which are intrinsic not just to the Bank of England, but to central banking generally. The first is an involvement in the formation of monetary policy with the specific objective of achieving monetary stability."
Acknowledgement and credits
The Money Masters: How International Bankers Gained Control of America
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998