This information provided by The Federal Observer, http://www.federalobserver.com
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"The abandonment of the gold standard made it possible for the welfare statists (government bureaucrats) to use the banking system as an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation... Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process." Alan Greenspan (1967)
(statement made by Greenspan BEFORE he was head of Federal Reserve)
Inform America - The process whereby banks create a nation's money supply through fake loans is perhaps the most astounding sleight-of-hand ever developed. It is clearly revealed in the following fable, written by the late Robert Hemphill, embellished slightly by L.E. Fleischer, and modified further by Gordon Phillips:
The wily Greenspawn coughed loudly and covered his countenance with a cloth lest the rich Oomah the Third observe his great joy to have this treasure in his possession. When he was calm and could look serious he said to Oomah, "It is a very great responsibility and risk but I will undertake it for a tithe which will be one shekel in every ten."
Then said the Chief Oomah, "It is a deal." And forthwith his slaves delivered many bags containing in all a thousand shekels of gold for which Meyer Greenspawn, the goldsmith, gave the chief a parchment deposit writing payable to whomsoever, and thereupon Chief Oomah departed happily upon his journey.
As soon as he was well out of the country, the shrewd Greenspawn called his confidential scribe and bade him thus: "Go thee to the merchants whom I tell thee of and secretly say to each that thy master hath a little gold for hire upon good security." And the servant departed swiftly.
Soon there came to him a great merchant who said, " Greenspawn, you old crook, I am in a jam for a few shekels of gold. Wilt lend me?" And Greenspawn replied, "Money is very tight these days, but it might be arranged. What is they need?" The merchant answered, "Two hundred shekels."
Then said Greenspawn, "It is much money. What security couldst thou pledge for so great a sum?" Then the merchant showed Greenspawn a writing of his possessions of merchandise to the amount of a thousand shekels. Greenspawn said, "It is not enough. Thou must also pledge thy dwelling and thy slaves and thy raiment." Whereupon the merchant, after much protest, pledged all his possessions, even unto his innermost raiment from the Fruit of the Loom.
Then said he to Greenspawn, "I have no place to store so much gold. Keep it safe for me and give me a writing, give me a deposit writing, which I may deliver to whomsoever I will." And Greenspawn did even so. (NOTE: Lender and borrower owe each other equally, so NO DEBT EXISTS BETWEEN THEM.)
The next day came another merchant, and another, and still another. And to each Greenspawn loaned a portion of the gold of Chief Oomah the Third, taking from each as security his entire possessions, including his innermost personal raiment, and gave to each a writing upon parchment showing that each had on deposit the gold he had borrowed, until upon the tenth day he had given parchment deposit writings for the whole of the thousand shekels.
But he still had all the gold.
Greenspawn reflected much upon this curious state of affairs, and said to himself, "These birds know not how much gold I possess. They don't want the actual gold itself; what they really want is credit, that is, a deposit writing which they may pass from hand to hand as money. Actually, all they need is the figure that appears on the gold just a figure to pass from buyer to seller. I have a grand idea!"
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| OBVIOUSLY ALAN DOESN'T ANYMORE! |
On the next day came another merchant, and another, and still another. And to each Greenspawn showed the great store of gold of Oomah the Third, and to each he pretended to loan a portion, although he had previously loaned it all to the first ones who came.
And it came to pass that at the end of another ten days Greenspawn had pretended to loan to many more merchants and had given writings of deposit for a second thousand shekels, making 2,000 shekels in all, although he had only 1,000 shekels of Oomah the Third.
And still he had all the gold.
Whereupon Greenspawn reflected to himself, "What a cinch; what a leaden pipe cinch! I wonder I did not think of this before. I can collect just as much interest, just as much usury, for the phony deposit writings as for the genuine. Verily, I am a financial wizard."
Thereupon Greenspawn caused to be noised about that he possessed a vast store of gold for hire, and many more merchants came to borrow. And to each Greenspawn delivered writings of deposit and collected generous usury and demanded pledges from each of all his possessions, even unto his innermost raiment, until he had issued writings of deposit for 10,000 shekels and held mortgages on substantially the whole city.
Then went Greenspawn to the wise man of the city and said unto him, "Verily, I have discovered the greatest secret of all time. I have learned the magic of making gold out of baloney through fake loans and incidentally creating the nation's money supply. The process is as follows:
"A man cometh unto me to borrow. I give him a writing upon parchment which
sheweth how much money I owe unto him. He likewise giveth me a writing which sheweth how much money he owes unto me. My writings then pass from hand to hand as money, gathering for me (through him) a perpetual ransom in usury. Meanwhile his writing lies in my strongbox, gathering for him only dust.
"This is my fake-loan formula. And if I can keep it secret for a few years, I'll collect a fortune that will make Solomon's treasury look like a third-rate piggy bank. Now tell me how I may keep secret this bonanza for mine own profit."
Then said the wise man, "Look wise and say little and only upon little known matters afar off. Obtain the ear of the town crier. Engage him to spread the impression that money is a mysterious Subject which no one understands save thee alone. Be friendly with the king's counselors and grant their favors, that the king may smile upon thee."
And Greenspawn did as he was bid and collected much usury from the phony loans and built for himself a mansion, collected works of art, and clothed his wives and concubines in fine linen and jewels. And when his fake-loan business had grown to many times its humble beginnings, he took over the entire temple and by way of a sly joke called it The First International Bank, the same being from an obscure language and meaning "place of imaginary money."
And that is the reason most banks have great marble pillars and bronze doors, so they may resemble outside as well as internally the "place of imaginary money" which Meyer Greenspawn, the goldsmith, built with phony loans on the gold of Oomah the Third in the Temple of the Thirteen Suns.
P.S. Greenspawn eventually discovered an even more potent method of dispossessing the public on a grand scale; he learned how to create the fleecing cycle known as the "Business Cycle." Here is how he explained it to his sons:
"By increasing or decreasing the flow of fake loans to the public, I increase or decrease the volume of money and cause a boom or a depression. I buy up and foreclose on property during the depression, then sell out later at high inflation prices during the following boom which I create by rapidly increasing the flow of fake loans, thus expanding the money supply. I repeat the cycle again and again, alternatively granting and then withholding the phony loans. The public is like unto a great flock of sheep, which I thus periodically fleece."
They who say all men are equal speak an undoubted truth, if they mean that all have an equal right to liberty; to their property, and to their protection of the laws. But they are mistaken if they think men are equal in their station and employments, since they are not so by their talents.
Voltaire
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