THE FOLLOWING ARTICLE, BY LEE CHENEY,
APPEARED IN "BRITAIN & OVERSEAS",
THE QUARTERLY JOURNAL
OF THE ECONOMIC RESEARCH COUNCIL, LONDON,
ON PAGE 19-21 OF THE SPRING 1999 ISSUE (VOL.29, NO.1):
There is an old saying that "if people are told a lie often enough they
will come to believe that lie to be true". The truth is, that it is an
outright lie to tell people that banks do not print money when banks make
loans. (Actually Hitler said this.-JB)
Every even half educated person in economics and finance understands the
accounting process of "loan created deposits" (bank printed money in the
context of M1, M2, M3, C, L, etc.). Some people try to tell us that "the
notion that banks create money by lending is a fallacy" (T.B. Haran, B&O
p.24, Vol.21 No2, Summer 1991). But everybody who knows anything at all
about bank accounting knows that banks do, in fact, print (create) money
by making loans. Then, of course, there are those who play word games with
us and try to tell us that banks do not print (create) money because what
banks actually do is simply create "credit" (which is interest, debt, and
tax slavery for everybody else, including the government). And there are
those who try to tell us that "the debt/tax slavery scenario is an illusion"
-- (T.B. Haran, B&O p. 20, Vol.21, No.3, Autumn 1991).
Everybody who know anything about income and expenses knows that when a
person (or business or government) has more interest, debt and taxes to pay
than they have income to pay it with they are bankrupt. Bankrupt simply
means "insolvent". "Insolvent" means to be so heavily burdened with
interest, debt, and taxes that there is no hope of paying them, so you're
"bankrupt". Well, here are some hard facts that even Mr. Haran can not
deny or play word games with: THE UNITED STATES OF AMERICA IS BANKRUPT
(INSOLVENT). It is common knowledge in America that the American people
must pay 47% of their income in taxes and, according to the Federal Reserve Bank
of St. Louis, the American people must pay 81% of their income to pay debt.
Now it doesn't take a genius to figure out that 47% + 81% = 128%. And that
doesn't even consider the burden of paying interest on that debt. In simple
language, it is humanly impossible for the American people to pay the
interest, debt and tax burden levied on them by the American Federal Reserve
debt/tax slavery money printing banks. This is the bottom line of the
debt/tax slavery sceario that Mr. Haran says "is a fallacy". Internationally,
the IMF/World Bank interest/debt/tax slavery money system has the whole world
in the same interest/debt/tax slavery mess.
Of course, Mr. Haran can propose his "bilateral money theory" from now
until doomsday and no doubt there will be those gullible enough to support
him and believe him but before people get sucked in too far, they should at
least consider that p.3 of "Modern Money Mechanics", published by the Federal
Reserve Bank of Chicago, says, "the actualy process of money creation takes
place in the banks". And if that doesn't convince Mr. Haran and his gullible
followers that our interest/debt/tax slavery nightmare is a bank caused
problem at least consider the statement in "Government Debt and Credit
Creation", Research Report No.9, published by the Economic Research Council,
December 1981 which says, "the commercial banking net contributions to M1 is
called 'creation of credit...'"
It is pathetic that people actually believe that banks do not print money
when banks make loans and that the debt/tax slavery scenario is an illusion.
But it is even more pathetic that The New World Order is ready to trigger
WWIII in order to expand this evil IMF/World Bank interest/debt/tax slavery
money system into Eastern Europe.