Conspiracy: A Biblical View, by Gary North - EntreWave

THE CONSPIRACY'S THEOLOGYwhich the manipulators can use to their advantage because theycontrol the mechanism by which it is created: the money supply. 9This is not the place to go into the details of the process by whichfractional reserve banking produces counterfeit money, and whygovernments exempt the banking system from prosecution againstcounterfeiting. Murray Rothbard has described the process moreclearly than anyone ever has in his classic little booklet, What HasGovernment Done to Our Money?, which you can (and should) buyfrom the Mises Institute, Auburn, Alabama. I've never read anythingbetter on money. Let me simply say that the monopoly of fractionalreserve banking is inherently corrupt, inherently a process of legalizedtheft, and inherently power-seeking.When you deposit, say, a check for $100 into your bank, the banktakes about $10 of that money and sends it to the Federal ReserveSystem, our nation's partially private and partially governmentalcentral bank. The FED pays no interest on the money. This $10 servesas a legal reserve for the money. Now, your banker makes money bylending money. He takes the $90 and loans it out. The fellow whoborrows it then spends it. The recipient takes the $90 and deposits it inhis bank. His banker takes $9 and sends it to the FED. Then he loans$81 to some borrower, who spends it, and the recipient takes the $81to his bank.You get the picture. In theory, $900 can come into circulation on thebasis of your original deposit of $100, if the reserve ratio is set at10%. This is the "genius" of fractional reserve banking. If you wonderwhy we have inflation in the modern world, here is a good place tobegin looking.Who, then, controls the Federal Reserve System? And why was itestablished? Why was it, in the words of Thibaut de Saint Phalle, anintentional mystesy? 10Again and again, the story of Establishment conspiracy returns to thebig New York banking firms. For centuries, the plans of theconspirators have originated in conference rooms of the great banks,or in conjunction with the banking establishment. 11 Why? Becausemoney is the central institution in a division-of-labor economy;therefore, control over the issue of money becomes thesingle-most-important grant of monopoly privilege that the nationalhttp://freebooks.commentary.net/freebooks/docs/html/gnco/html/3.htm (7 of 11) [5/26/2000 1:48:07 PM]