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.


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