History of Money Part III

To continue on with the history of money, the progress that England experienced during medieval times was about to change. In 1694 when the Bank of England was formed, individual private shareholders bought shares of the bank. They ignored the tally stick system because it rivaled they own banking system. They used the same system the goldsmiths used by lending out many times more than they had in reserve and collecting interest on the money they created.

The English Revolution of 1642 was financed by the money changers backing Oliver Cromwell's successful attempt to purge the parliament and kill King Charles. 50 years of costly wars followed - costly to those fighting them and very profitable to those financing them. This left England in financial ruin. When government officials went looking for funds to rebuild, they had no choice but to beg for loans from the money changers at interest. This resulted in a government sanctioned legal counterfeiting a national currency where a private bank created money from nothing and collected interest. The politicians could borrow whatever they needed, and the debt was secured against public taxes.

Incredibly, no one saw through this except those that benefited from it. The could use their own money and owe no interest, but no one objected to this new system. The Bank of England became the model and now nearly every nation has a central bank with fractional reserve banking at its core.

These central banks have the power to take over a nation's economy and become the real governing force because they control the money. This is actually a hidden tax for private concerns, a scam of mammoth proportions. The nation will sell bonds to the bank in return for the money it can't raise in taxes. The bonds are paid for money produced from thin air. The government pays interest on the money it borrowed by borrowing more money the same way - issue more bonds. There is not a way the debt can ever be paid, it has and will continue to increase. (Does this sound familiar to today?)

If the government ever did find a way to pay off the debt, the result would be that there would be no bonds to back the currency; so in effect, to pay the debt would be to kill the currency.

The Bank of England flooded Britain with money. Inflation reigned and prices doubled. By 1698, the national debt expanded from £1,250,000 to £16,000,000; and up went the taxes the debt was secured on.

During times of economic upheaval, wealth is rarely destroyed. Instead it is just transferred. Guess who benefits when money is scarce? That's right, the money changers, the ones controlling what everyone else wants. Depressions are created for this reason. They can create money from nothing, so they wait until prices are rock bottom, and then expand the money supply. This system again has been the model for every banking system since then.

Tomorrow, I'll continue with the dominance of the bankers and who took it to a whole new level of control. Stay tuned ...

Deliver me and rescue me
from the hands of foreigners
whose mouths are full of lies,
whose right hands are deceitful. Psalms 144:11 (NIV)

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Email: DeltaInspire@panama-vo.com