Following is a series of quotations, with explanatory comments, on why the control of the “money system” is so important in modern societies. I put it together in 2008 but revisions and cross-checking references took me into early 2009 before I printed it and distributed it amongst friends and colleagues (having no blog to publish it on at that time).
Looking at it today, there are naturally a number of things I would change, for example the next-to-last quote from Professor Yunus’s speech would be deleted. Micro-lending to impoverished villages and communities in so-called ’emerging economies’ has turned out to be a not-so-hot idea as the recipients have found themselves gouged by extortionate interest rates. This is not to cast doubt on Mr Yunus’s original intentions but the idea seems to work better in developed economies as they (at least sometimes) have more controls on usurious lending.
Nevertheless, I’ve decided to put the text online in its original form since the core message remains the same: whoever controls the issuance of a currency and related credit mechanisms for its distribution (read “where it goes” and “at how much interest,”) controls the economy. Which is to say they determine to a considerable degree if you work, in what sort of job you work, how hard you work, how many years you work what, if any, benefits you get and whether or not you receive a pension when you retire, among other things. That’s our debt-based, ‘fractional-reserve’ banking system in a nutshell.
And that’s real power! Unfortunately, today, most people still labor under the misconception that governments create money in the proportion that their economies need it … and can pay for it (don’t forget the interest)! The reality is that banks create between 93 and 97% of money in virtually every country that has a central bank. The coins and paper money that you handle daily are created by governments and represent only the remaining 3 to 7%. The reality is that central banks are not government entities representing ‘we the people.’ They are controlled by private interests and that includes the Federal Reserve of the United States. As one of the quotes shows, it is neither federal nor does it have audited reserves.
Should you find this hard to believe, that is entirely understandable. All I ask is that you have a look through this thumbnail history and then get back to me. To access it, click on the second drop-down on this Monetary Madness page, called “text.”