Zeitgeist Moving Forward - Unofficial Trailer

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Money = debt = slavery

“It is no measure of health to be well adjusted to a profoundly sick society.” J. Krishnamurti Of all the social institutions we are born into, directed by, and conditioned upon, there seems to be no system as taken for granted, and misunderstood, as the monetary system. Taking on nearly religious proportions the established monetary institution exists as one of the most unquestioned forms of faith there is. How money is created, the policies by which it is governed, and how it truly effects society are unregistered interests of the great majority of the population. In a world where one percent of the population owns forty percent of the planets wealth. In a world where thirty-four thousand children die, every single day, from poverty and preventable diseases, and where fifty percent of the worlds population lives on less than two dollars a day. One thing is clear. Something is very wrong. Whether we are aware of it or not, the life blood of all our established institutions and thus society itself, is money. Therefor understanding this institution, and monetary policy is crucial to understanding why our lives are the way they are. Unfortunately economics is often viewed with confusion and boredom. Endless streams of financial jargon coupled with intimidating mathematics quickly deters people from attempts at understanding it. However the fact is, the complexity associated with the financial system is a mere mask. Designed to conceal one of the most socially paralysing structures humanity has ever endured. “None are more hopelessly enslaved than those who falsely believe they are free.” Johann Wolfgang von Goethe – 1749-1832 A number of years ago, the Central Bank of the United States, the Federal Reserve, produced a document entitled Modern Money Mechanics. Link to Modern Money Mechanics This publication detailed the institutionalized practise of money creation as utilized by the Federal Reserve, and the web of global banks it supports. On the opening page the document states its objective. “The purpose of this booklet is to describe the basic process of money creation in a “fractional reserve” banking system.” It then proceeds to describe this fractional reserve process through various banking terminology. A translation of which goes something like this. The United States Government decides it needs some money. So it calls up the Federal Reserve and requests say ten billion dollars. The Fed replies saying sure we will buy ten billion in Government bonds from you. So the government takes some pieces of paper, paints some official looking designs on them, and calls them Treasury Bonds. Then it puts a value on these bonds to the sum of ten billion dollars, and sends them over to the Fed. In turn the people at the Fed. draw up a bunch of impressive pieces of paper themselves, only this time calling them Federal Reserve Notes. Also designated a value of ten billion dollars to the set. The Fed then takes these notes and trades them for the bonds. Once this exchange is complete the government then takes the ten billion in Federal Reserve Notes, and deposits it into a bank account, and upon this deposit the paper notes officially become legal tender money adding ten billion to the U.S. money supply. There it is. Ten billion in new money has been created. Of course this example is a generalization, for in reality this transaction would occur electronically, with no paper used at all. In fact only three percent of the U.S. Money supply exists in physical currency. The other ninety-seven percent exists in computers alone. Now government bonds are by design instruments of debt, and when the Fed purchases these bonds with money it essentially created out of thin air, the government is actually promising to pay back that money to the Fed. In other words the money was created out of debt. This mind numbing paradox of how money or value can be created out of debt or liability will become more clear as we further this exercise. So the exchange has been made, and now ten billion dollars sits in a commercial bank account. Here is where it gets really interesting, for as based on the fractional reserve practise that ten billion dollar deposit instantly becomes part of the bank reserves. Just as all deposits do, and regarding reserve requirements as stated in Modern Money Mechanics, a bank must maintain legally required reserves equal to a prescribed percentage of its deposits. It then quantifies this by then stating, “Under current regulations, the reserve requirement against most transaction accounts is ten percent”. This means that with the ten billion dollar deposit ten percent, or one billion is held as the required reserve while nine billion is considered an excessive reserve, and can be used as the basis for new loans. Now it is logical to assume that this nine billion is literally coming out of the existing ten billion dollar deposit. However this is actually not the case. What really happens is that the nine billion is simply created out of thin air on top of the existing ten billion dollar deposit. This is how the money supply is expanded. As stated in Modern Money Mechanics, “Of course, they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts.” They = the bank Promissory notes = loan contracts Credits = money In other words the nine billion can be created out of nothing simply because there is a demand for such a loan, and that there is a ten billion dollar deposit to satisfy the reserve requirements. Now lets assume somebody walks into this bank, and borrows the newly available nine billion dollars. They will then most likely take that money and deposit it into there own bank account. The process then repeats. That deposit becomes part of that banks reserves. Ten percent is isolated, and in turn ninety percent of the nine billion or eight billion one hundred million is now available as newly created money for more loans. Of course that eight billion one hundred million can be loaned out and redeposited, creating and additional seven point two billion, to six point five billion, to five point nine billion, and so on. This deposit money creation loan cycle can technically go on to infinity, the average mathematical result is that about ninety billion dollars can be created on top of the original ten billion. In other words for every deposit that ever occurs in the banking system about nine times that amount can be created out of thin air. So, now that we understand how money is created by this fractional reserve banking system a logical yet elusive question might come to mind. What is actually giving the newly created money value? The answer, the money that already exists. The new money essentially steals value form the existing money supply. For the total pool of money is being increased irrespective to demand for goods and services, and as supply and demand finds equilibrium prices rise diminishing the purchasing power of each individual dollar. This is generally refereed to as inflation, and inflation is essentially a hidden tax on the public. “How in the world can we expect to solve the problems of inflation, that is the increase in the supply of money, with more inflation?” Rep. Ron Paul Of course it cant. The fractional reserve system of monetary expansion is inherently inflationary. For the act of expanding the money supply without there being a proportional expansion of goods and services in the economy will always debase a currency. In fact a quick glance at historical value of the U.S. dollar vs the money supply reflect this point definitively. For the inverse relationship is obvious. value of the U.S. dollar vs the money supply One dollar in 1913 required twenty-one dollars and sixty cents in 2007 to match value. That is a ninety-six percent devaluation since the federal reserve came into existence. Now if this reality of inherent and perpetual inflation seems absurd and economically self defeating, hold that thought for absurdity is an understatement in regard to how our financial system really operates. In our financial system money is debt, and debt is money. Here is a chart of U.S. money supply and value of currency from 1959 to 2004, near bottom of the page. Here is the National debt of the United States from 1940 – 2008 part way down the page. Notice the trends are very similar. The more money there is, the more debt there is, the more debt there is, the more money there is. To put it a different way, ever single dollar in your wallet is owed to somebody by somebody. For remember the only way that money can come into existence is from loans, therefor if everyone in the country were able to pay off all debts including the government there would not be one dollar left in circulation. “If there were no debts in our money system, there wouldn't be any money” Marriner Eccles Governor of the Federal Reserve September 30th, 1941 House Committee Hearing on Banking and Currency In fact the last time in American history the national debt was completely paid off was in 1835 after President Andrew Jackson shut down the Central Bank that preceded the Federal Reserve. In fact President Jackson's entire political platform essentially revolved around his commitment to shut down the Central Bank. Stating at one point. “The bold efforts the present bank has made to control the Government... are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it.” President Andrew Jackson 1767-1845 Unfortunately his message was short lived, and the international bankers succeeded to install another Central Bank in 1913. The federal Reserve, and as long as this institution exists perpetual debt is guaranteed. Now so far we have discussed the reality that money is created out of debt through loans. These loans are based on a banks reserves, and reserves are derived from deposits, through this fractional reserve system any one deposit can create nine times its original value. In turn debasing the existing money supply, raising prices in society, and since all this money is created out of debt, and circulated randomly though commerce, people become detached from their original debt and a disequilibrium exists. Where people are forced to compete for labour in order to pool enough money out of the money supply to cover their costs of living. As dysfunctional and backwards as all of this might seem there is still one thing we have omitted from this equation, and it is this element of the structure which reveals the truly fraudulent nature of the system itself. The application of interest. When the government borrows money from the Fed. or when a person borrows money from a bank it almost always has to be paid back with accrued interest. In other words almost ever single dollar that exists must eventually be returned to a bank with interest paid as well. But if all money is borrowed from the Central Bank, and is expanded by commercial banks through loans, only what would be referred to as the principal is being created in the money supply. So then where is all the money to cover all the interest that is charged coming from? Nowhere, it doesn't exist. The ramifications of this are staggering for the amount of money owed back to the banks will always exceed the money that is available in circulation. This is why inflation is a constant in the economy for new money is always needed to help cover the perpetual deficit built into the system caused by the need to pay the interest. What this also means is that mathematically defaults and bankruptcy are literally built into the system and there will always be poor pockets of society that get the short end of the stick. An analogy would be a game of musical chairs, for once the music stops somebody is left out to dry, and that is the point. It invariably transfers true wealth from the individual to the banks, for if you are unable to pay for your mortgage they will take your property. This is particularly enraging when you realize not only is such a default inevitable due to the fractional reserve practise, but also because of the fact that the money the bank loaned to you didn't even legally exist in the first place. In 1969 there was a Minnesota court case involving a man named Jerome Daly, who was challenging the foreclosure of his home by the bank who provided the loan to purchase it. His argument was that the mortgage contract required both parties, being he and the bank, each put up a legitimate form of property for the exchange. In legal language this is called consideration. Consideration: A contracts basis. A contract is founded on an exchange of one form of consideration for another. Mr. Daly explained that the money was in fact not the property of the bank, for it was created out of nothing as soon as the loan agreement was signed. Remember what Modern Money Mechanics stated about loans. “What they do when they make loans is to accept promissory notes in exchange for credits” “ Reserves are unchanged by the loan transactions. But the deposit credits constitute new additions to the total deposits of the banking system.” In other words the money doesn't come out of their existing assets, the bank is simply inventing it putting up nothing of it's own except for theoretical liability on paper. As the court case progressed the banks president Mr. Morgan took the stand, and in the judges personal memorandum he recalled that the plaintiff admitted that it, in combination with the Federal Reserve Bank, did create the entire $14,000.00 in money or credit upon its own books by book keeping entry. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Status existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note. The jury found there was no lawful consideration and I agree. He also poetically added, Only God can create something of value out of nothing. Upon this revelation the court rejected the banks claim for foreclosure and Daly kept his home. The implications of this court decision are immense, for every time you borrow money from a bank weather it is a mortgage loan or a credit card charge, the money given to you is not only counterfeit, it is an illegitimate form of consideration and hence voids the contract to repay. For the bank never had the money as property to begin with. Unfortunately such legal realizations are suppressed and ignored, and the game of perpetual wealth transfer and perpetual debt continues, and this brings us to the ultimate question. Why? During the American civil war President Lincoln bypassed the high interest loans offered by the European banks and decided to do what the founding fathers advocated. Which was to create an independent and inherently debt free currency, it was called the Greenback. Shortly after this measure was taken an internal document circulated between private British and American banking interests stated, slavery is but the owning of labour and carries with it the care of the labourers, while the European plan... is that capital shall control labour by controlling wages. This can be done, by controlling the money. It will not do to allow the Greenback... as we cannot control that. The Hazard Circular July, 1862 The fractional reserve policy perpetrated by the Federal Reserve which has breed in practise to the great majority of bank in the world is in fact a system of modern slavery. Think about it, money is created out of debt, and what do people do when they are in debt? They submit to employment to pay it off, but if money can only be created out of loans, how can society ever be debt free? It can't, and that's the point. It is the fear of losing assets coupled with the struggle to keep up with the perpetual debt and inflation inherent in the system, compounded by the inescapable scarcity within the money supply itself. Created by the interest that can never be repaid that keeps the wage slave in line. Running on the hamster wheel with millions of others, in effect powering an empire that truly benefits only the elite at the top of the pyramid. For at the end of the day, who are you really working for? The banks. Money is created in a bank and invariably ends up in a bank. They are the true masters, along with the corporations and governments they support. Physical slavery requires people to be housed, and feed. Economic slavery requires people to feed and house themselves. It is one of the most ingenious scams for social manipulation ever created, and at its core it is an invisible war against the population. Debt is the weapon used to concur and enslave societies, and interest is its prime ammunition. As the majority walks around oblivious to this reality the banks in collusion with governments and corporations continue to perfect and expand their tactics of economic warfare spawning new bases, such as the World Bank and International Monetary Fund. Excerpt from Zeitgeist Addendum