What Happens During the Cycle of Borrowing and Lending? (Part One)
Under the present financial system the charging of interest on borrowed money can be likened to a barrel of water, which is to be kept full at all times, the fullness of the barrel representing a healthy economy with adequate amounts of money in circulation to meet everyone's needs. This barrel (economy) has a supply line at the top (infusion of brand new currency or capital through public debt acquisition) and a drain line at the bottom (repayment of debts with interest charges).
If the currency controllers were conscientious men seeking the best interests of people of the nation, they would always assure the availability of correct amounts of money available for the supply of everyone's basic needs. And here an oversupply of funds would mean a dislodging of economic balance to create price gouging and profiteering, and an undersupply of funds would generate recessions, unemployment, depression and starvation in the midst of an abundance of material availability (also called "stagflation."
This word is made up of "stagnation," because not enough money goes around to meet the people's needs, and "inflation," because production costs cannot be curtailed when whose costs invariably include rising taxes and escalating interest charges on corporate loans.).
Now, a closed economy with a constant number of workers or business men, say 100,000 in number, would in this case have 100,000 individuals available to go into debt against the money lenders in order to create sufficient funds in circulation to assure a healthily balanced economy for a while.
The supply line has been opened for the barrel to be filled. Everyone works, makes money and spends it back into circulation to supply his or her basic needs. Debts are being repaid successfully, because not all have gone into debt at the same time. For ten years this closed economy has worked well and created much prosperity, for the money lenders noticed, that the amounts of debts and interest paid on loans were equal to the amounts of capital infused through new debt acquisition.
At last, after the lapse of 10 years there were no more people left to go into debt to the money lenders, for everyone who had gone into debt to the credit creator was found in desperate attempts to snatch up from money in circulation whatever he could to firstly meet his financial obligation to the lender lest his property be confiscated.
As time went by money became a commodity in short supply, as people scrambled to pay the banker not only what in funds they owed dollar for dollar, but also the "interest" on their debts.
Now, interest could not be paid in the form of labour, or food, or houses to the banker, rather the banker demanded money as the only legitimate form of payment, something the people should have known they could not do, since the banker never saw it needful to introduce the interest in the form of currency along with the capital.
The barrel of the economy became drained of its cash, as no more new capital could be infused, as there were no more people left to go into debt to provide the guarantee for continued supply of capital.
Of course, eventually our sample community of 100,000 potential debtors collapsed. They all had neglected to check the banker's mathematics, and therefore failed to discover his trick to cheat them out of life and limb.
And so in the end it was the currency creator, who became the legal owner of the assets of the people and the people starved for want of food.
Reni Sentana-Ries - posted 16 May 1999 05:58 AM Jordan
What Happens During the Cycle of Borrowing and Lending? (Part Two)
Interest on any debt can never be paid by the public, because the credit creators never create that cost factor to the acquisition of a debt into circulation!!
Wake up, people of this once mighty nation! wake up, people of the world! Your properties are legally falling into the hands of the money creators, because you are not the one who creates money to pay them the interest on your debts!! Debt repayment is a mathematical impossibility!! The sooner you will discover this most desperately guarded secret of the international financiers, the greater your chance will be to finally throw their yoke off your necks and stop the plunder of your nation by stripping them of the power of their iniquity: usury!!
In our little example the "drain" at the bottom of the barrel was greater than the amount of water piped in at the top. When finally the barrel became empty, the economy collapsed and the banker was the only one left to claim for himself the greatest profit ever in the form of harvesting the people's assets upon their financial demise. In conclusion of this topic, hear what the credit manager of the Federal Reserve Bank of Atlanta, Mr. Robert H. Hemphill, had to say:
"If all bank loans were paid, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit.
If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system. When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is.
It (the banking system) is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse, unless it is widely understood, and the defects remedied very soon!"