The Government does not create money.
They issue bonds to banks who loan money to “the people”. It’s a ridiculous system that makes every citizen a slave to the banks.
On three significant occasions in history, a government has told the bankers to go to hell and created money without borrowing it from a syndicate of bankers. All three times it was an unquestionable success.
When Hitler came to power, Germany was hopelessly broke. The Treaty of Versailles had imposed crushing reparations on the German people, demanding that Germans repay every nation’s costs of the first world war. These costs totaled three times the value of all of the property in Germany. Private currency speculators caused the German currency to plummet, precipitating one of the worst runaway inflations in modern times. A wheelbarrow full of 100 billion-mark bank notes could not buy one loaf of bread. The national treasury was empty. Countless homes and farms were lost to speculators and to private banks. Germans lived in hovels and were starving.
Nothing like this had ever happened before – the total destruction of the national currency, plus the wiping out of people’s savings and businesses. Then came a global depression. Germany had no choice but to succumb to debt slavery under international bankers until 1933, when the National Socialists came to power under Adolph Hitler.
After that point, the German government thwarted the international banks by issuing its own money. Hitler began a national credit program by devising a plan of public works that included flood control, repair of public buildings and private residences, and construction of new roads, bridges, canals, and port facilities. All these were paid for with money that was no longer borrowed from international bankers.
To pay for all of this, the German government issued bills of exchange called Labor Treasury Certificates. In this way the NAZIs put millions of people to work, and paid them with Treasury Certificates. Germany’s money wasn’t backed by gold (which was owned by the international bankers). It was essentially a receipt for labor and materials delivered to the government.
Hitler said, “For every mark issued, we required the equivalent of a mark’s worth of work done, or goods produced.” The government paid workers in Certificates which served as currency. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the German people climbed out of the crushing debt imposed on them by the international bankers.
Within two years, the unemployment problem had been solved, and Germany was back on its feet. It had a solid, stable currency, with no debt, and no inflation, at a time when millions of people in the United States and other Western countries (controlled by international bankers) were still out of work.
Within five years, Germany went from the poorest nation in Europe to the richest. Germany even managed to restore foreign trade, despite the international bankers’ denial of foreign credit to Germany, and despite a global boycott by Jewish-owned industries. Germany succeeded in this by exchanging equipment and commodities directly with other countries, using a barter system that cut the bankers out of the picture. Germany flourished, since barter eliminates national debt and trade deficits. (Venezuela does the same thing today when it trades oil for commodities. Hence the bankers are now trying to squeeze Venezuela.)
This economic freedom made Hitler extremely popular with the German people. Germany was rescued from English economic theory, which says that currency must be “borrowed” from a private banking cartel – such as the Federal Reserve, the Central Bank of Europe, or the Bank of England – rather than issued by the government for the benefit of the people.
The main reason why the bankers pushed for war against Germany was that Hitler sidestepped the bankers by creating his own money, thereby freeing the German people. Worse, this freedom and prosperity threatened to spread to other nations. Hitler had to be stopped! Hitler had taken over the privilege of manufacturing money from the banks, and put it to work for the benefit of the people. Imagine what would happen if this revolutionary idea infected a number of other states!
Economist Henry C K Liu wrote of Germany’s remarkable transformation:
“The Nazis came to power in 1933 when the German economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies, into the strongest economy in Europe within four years, even before armament spending began.”
Germany issued debt-free and interest-free money from 1935 on, which accounts for Germany’s startling rise from the depression to a world power in five years. The German government financed its entire operations from 1935 to 1945 without gold, and without debt. It took the entire Capitalist and Communist world to destroy the German revolution, and bring Europe back under the heel of the international bankers.
These facts do not appear in any textbooks today. What does appear is the disastrous runaway inflation starting in 1923 under the Weimar Republic, which governed Germany from 1919 to 1933. The Weimar financial crisis began with the impossible reparations payments imposed at the Treaty of Versailles. These debts were “financed” by international bankers, and the interest kept piling up until Germany was buried in debt to the banks.
So Hitler, when he came to power, revolted against the bankers and Germany very quickly became the most prosperous nation on Earth in the midst of the Great Depression.
But Hitler was not the first leader to break the yoke of slavery imposed on the civilized world by the elite community of international bankers.
The first case occurred right here in the United States. In late 1861 President Abraham Lincoln and his Treasury Secretary, Salmon P. Chase, went to the New York Bankers to borrow money to finance the Civil War.
The bankers told Mr. Lincoln that war was a risky business, and they could loan the money to the government at 24-36% interest. Outraged, Lincoln returned to Washington, where he soon ordered the Treasury to print “greenbacks”.
But as soon as Lincoln began issuing the greenbacks, the bankers and money changers saw that unless they could stop that sort of thing they were ‘sunk’ as far as ever being able to issue money again themselves. The banksters had been able to fool and hoodwink England, and keep her in bondage for 168 years, and they wanted very much to continue, and to add the balance of the world to their conquest; making the people everywhere economic serfs, working for them.
From the London Times of March 19, 1862:
“If this mischievous financial policy should become a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without debts. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”
The Civil War could not have been fought and won by the Union without the $60 million in greenbacks issued under Lincoln, and even if it had, the country would have been saddled with so much debt that our national economy would have suffered a crippling depression – instead of the great expansion that ensued after the war ended.
As soon as Lincoln was dead, Congress revoked the Greenback Law and enacted in its place the National Banking Act. The national banks were to be privately owned and the national bank notes they issued were to be interest bearing. The Act also provided that the Greenbacks should be retired from circulation as soon as they came back to the Treasury in payment of taxes.
After Lincoln, no United States president dared to go against the system and create his own money. Roosevelt could have done it, and the Depression would have ended immediately, but he chose not to battle with the banks, which grew stronger and stronger during and after the war. There were no more threats to their cash-printing monopoly until President John F. Kennedy came into office.
President Kennedy was not afraid to “buck the system” – he understood how the Federal Reserve System was being used to dominate the United States. As a just and honorable man, he could not tolerate such a system – it smelled of corruption from top to bottom. He was well aware of the Greenbacks which Abraham Lincoln had created when he was in office.
On June 4th, 1963, President Kennedy signed a presidential document, Executive Order 11110. This Order gave Kennedy, as President of the United States, legal authorization to create money to run the country, money that would belong to the people, interest-free and debt-free money. He then printed United States Notes, completely ignoring the notes issued by the private banks of the Federal Reserve.
Kennedy issued $4 billion in cash money. In today’s world, that’s over $60 billion. Suddenly, the stagnant US economy roared to life.
It was only a few months later, in November of 1963, that the world received the shocking news of President Kennedy’s assassination. During his second term, President Kennedy had it in mind to repeal the Federal Reserve Act of 1913, and return to the United States Congress the power to create money. It is interesting to note that, one day after Kennedy’s assassination, all the United States notes which Kennedy had issued were called out of circulation. All of the money President Kennedy had created was destroyed. And not a word was said to the American people.
Abraham Lincoln was the first man who proved that government could issue its own money, legally, honorably, and rightfully, and make it full legal tender for all debts, both public and private. As much as I would hate to see Obama printing his own money, I would rather have that than see him borrowing money from the Federal Reserve Bank – which is not Federal, has no Reserves, and is not even an actual Bank…
It is time to return to Lincoln’s, Kennedy’s (and Hitler’s) successful monetary policies.