1913, banks in America would take in money in the form of deposits made by consumers who wanted to make money by investing (saving) it in these banking institutions. These types of deposits used to be called “time deposits”. These deposits are held by the banking institution for a set amount of time and the bank paid their investors (depositors) a specific amount of money (interest), for leaving their money with them. The banker could then turn around and lend that money out to other people and businesses for a variety of reasons. This allowed the bankers to lend money at a specific interest rate. One that would cover the interest the bankers paid for these time deposits, the banks business expenses, and then left a small amount for the bank’s profit. The surprising thing about those bankers was that they knew they couldn’t lend out more money than they received in the form of time deposits.
The citizens of this nation would also put money in those banks that they wanted to use to purchase goods and services by using bank notes. These types of accounts are called demand deposits, because the people that put their money in these types of accounts could demand it back at any time they wished. The bankers would issue bank notes (similar to the checks we are issued today) so that people that had these types of deposits could give their bank notes to merchants when they made purchases. The merchants could then take those notes to the issuing bank and trade them for a portion of the deposits held there on behalf of the person who gave them the bank notes. Unlike paying an interest like they did for time deposits, banks charged a fee for this service as a convenience to both the depositor and the merchants they did business with. Banks knew that they couldn’t make loans against demand deposits simply because they had no idea or guarantee as to how long they would have those funds in their bank. Bankers back then operated under the philosophy that they could not lend out money that they didn’t have.
This is a philosophy that if followed in your nation will need to be changed, and changed quickly. It is absolutely contrary to what your banks will need to do, and if sound banking practices are allowed to remain in effect, they will keep you from stealing much of your nation’s wealth.
As the American socialist implemented the act of borrowing money from its citizens to increase government spending, they had to offer a higher interest rate than banks could offer for time deposits. This put an obvious crunch on the amount of capital the banks could take in, causing a ripple effect as to how much they could lend out. As the economy became debt driven due to government intervention, this government created phenomenon became detrimental to the American socialist plan. It would create a situation in which the economy would start to go into a recession or a depression, if the citizens of their nation did not have access to more debt. The American socialist, being the brilliant thieves that they are, created a number of banking regulations to both mask the effects of their borrowing and inflate the credit supply. Today, this concept, and in fact government imposed regulation on behalf of the privately owned central bank the Federal Reserve is called fractional reserving.
Fractional reserving allows banks to lend out many more times the amount of money than what they hold in actual reserves. Through tricks in accounting, banks today can lend multiple times the amount that they take into their banks in the form of time deposits. While the fractional reserve rate dictated by the Federal Reserve will vary, today banks can usually lend out 8 to 10 times more money than they hold in reserves under this nifty banking regulation. Not only can they lend more than they take in, but they can use demand deposits (money people put in checking accounts) as part of their reported reserves against the loans that they make. They can do this even though they have no way of knowing how long they will have those funds. Today, the majority of savings accounts in America are not even time deposits. They have become demand deposits, allowing people the ability to demand their savings at anytime. Through fractional reserving, the American socialist found a way to usurp most of the available investment capital from the citizens of the nation while at the same time inflating the credit supply. As a result, these banking practices coupled with the Federal Reserves ability to print currency have diminished the purchasing power year over year of their citizens. Through this method the private bankers have been able to reduce each year a percentage of the citizen’s wealth without them becoming aware of it.
To prevent the general public from realizing the full impact of taxation and borrowing, you need to incorporate an ingredient that I have already alluded to: inflation.
Inflate Your Currency
If you thought borrowing from your citizens and getting them to pay back the money they loan you was ingenious, you are going to love what inflation will do for your plan. Once again, in order to implement this ingredient, you must have nationalized your nation’s banking system and have total control of the money supply. Stay focused here because this is critical to increasing your profits while you steal the wealth of your nation. Inflation is the one ingredient that is critical to stealing huge amounts of your nations wealth. In fact if you could only use one ingredient for your plan, this is the one you should choose. I can not stress enough how important inflation is to your success. Every successful nation thief understands the importance of inflation in their recipe. You must protect it, nurture it and above all do whatever it takes to prevent any members of your nation from stopping it once you incorporate it. If you can successfully balance taxation, borrowing and inflation for a period of time, you will have a powerful recipe for a catastrophic depression. These three ingredients will allow you to successfully enslave the entire population’s labor over time. They will support you and actually call for the policies and regulations that you want to impose upon them. They will do this at an ever increasing rate until your depression roars into full swing. Once that occurs, many of them will awaken from their slumber and realize what you did to them, but it will be way too late. They will hate you, but they will realize that you are now a necessary evil in their lives. They will chirp like little birdies in a nest with their beaks pointed high in the air begging for any little crumb you are willing to share with them. (Provided of course that they are not armed, but we will discuss how to take care of that issue later).
Inflation is the act of printing currency with nothing but a philosophy to back it. In other words, if you need more money you fire up the printing presses and print more money. The end result of printing more money is that it will devalue both the new money and the old money in effect making it worth less. This will cause all other things in your nation’s economy to increase in price. It’s not that all those other things are actually going up in price because they are becoming more valuable, it is simply taking more of the newly printed devalued dollars to purchase them.
The benefit to you is that when you print the money, you use it to cover any spending that you couldn’t tax or borrow and since you are the creator of the inflation, you reap the most benefits. The majority of the devaluation isn’t realized until it trickles down to your citizens. This tool will allow you to spend at a much higher rate than ever before. Remember, your goal is to spend as much as possible. Spending will serve to control the economy allowing both you and your cohorts the ability to pillage from the public and amass great personal wealth. At the same time, spending will help you grow the poor dependent sector in order to ensure that you stay secure in your position. Spend, spend, spend, the end result will be that ever so subtly, over a period of time, you will reduce the wealth of your citizens, creating an environment in which it will cost them more to survive. They will seldom if ever blame this on you, because inflation will hide that fact. It just becomes a normal occurrence of life to them. When they walk into a store to buy a gallon of milk and that gallon has gone up a dime, or when a loaf of bread increases a nickel in price, they will never understand that you are the reason for that. They will all think that the milk and the bread has gone up in value never understanding that it has not. It just takes more of their devalued dollars for them to purchase the milk and bread. As time goes on they will get use to prices going up on everything they need to survive while you steal their ability to maintain their lifestyles, never realizing for a moment what inflation
