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The Economic Panic

August 27, 2012

If you are reading this article then you are one of the growing few who has heard something of the impending economic collapse. Many people are waking up to whats going on I believe, unfortunately for me personally, I dont see too many people waking up around me. Perhaps I need to change my environment.

You may be watching the news and be coming across talking heads getting into the history of economic crises in the United States going back to the Panic of 1873 or 1907, there have been plenty of these panics. The Panics 1873, 1884, 1893, and 1907 and all of these are in large part a result of fractional reserve banking. I will admit at the outset that I have been inspired to write this article by a couple of discussions online by people debating fractional-reserve banking and its dangers. I think the fact that folks online are even having this discussion is a good thing. In my personal environment unfortunately most people don’t even know what fractional reserve banking is, much less how it works. Most people in my surrounding environment dont even know about the concept of specie payment, meaning that most people today dont know that our dollar bills are notes, that is, promises to pay, or at least, thats what they were. Promises to pay, you say? yes that is what the concept “note” means, its a promise to pay, to pay what? To pay the equivalent of gold and silver, historically mostly gold as we used to be on a gold standard prior to 1971.

So what is the point of all this? The point is that our ignorance of the history of monetary policy going back five thousand years is doing us in and it is the reason why we are heading towards an impending economic collapse. I saw one article where an accountant stated that gold backed money is a thing of the past and that we should just accept the fact that nowadays money is just pieces of paper that everyone accepts and has confidence in. Sounds like a logical conclusion if that were the case. In other words, the fallacy of this argument is that the people or rather the markets are not the ones who chose to drop the gold standard and have confidence on pieces of paper, it was the government who made that decision for us. It was the government who made the decision to suspend payment in specie whenever it wanted going all the way back to the Bank of England in 1696. So why were they constantly having to suspend payment in specie if the markets didn’t want to bother with gold? This accountant whether he realizes or not was spreading the propaganda of the globalist bankers and others who promote central banking and I am not surprised because I am sure for him to become a CPA he had to take courses and school courses these days serve as propaganda so that you can be indoctrinated before you go into the field.

So what is the problem with the central bank? Well, it is the welfare office of the other banking institutions. The central bank act as a Santa Claus to the financial institutions as a lender of last resort. The central bank also provides elasticity of the money supply, this is a euphemism for the ability to print paper money at will. So why do banks need a central bank? Why do they need a lender of last resort? I dont see any other reason except to have a monopoly of note issue and reserve requirements to insure even more pyramiding on top of its notes. Yes that is my opinion and its an informed opinion at that. I mean why would you think or better yet delude yourself into thinking that a banking cartel which is what a central bank is would be well meaning? Big bankers such as John Pierpont Morgan, Rockefeller and their associates were greedy, controlling, eugenicists. They are the ones who gave us the Federal Reserve. Of course they did this with the help of government leaders in this case Republican Senator Nelson Aldrich, a Rockefeller kinsman who had headed the pro-central banking studies of the Congressionally created National Monetary Commission; Frank A. Vanderlip of Rockefeller’s National City Bank which is today’s Citibank; Paul M. Warburg of the investment firm Kuhn, Loeb & Company who had emigrated from Germany to bring to the U.S. the blessings of central banking; Henry P. Davison, a partner of J.P. Morgan & Company; and Charles Norton, of the Morgan controlled First National Bank of New York. With these powerful, greedy, eugenicists such as the Morgans, Rockefellers, and German Kuhn, Loeb in basic agreement on a new central bank, why would we ever think it was anything sinister?

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