The government must eventually tax the citizens to repay the money it owes to the central bankers. As time goes on, the tax burden grows and grows until the peasants can’t be taxed anymore and the government can’t borrow any more. So you will go to work…work 5 days a week…and at the end of the week, a bigger and bigger chunk of your earnings will go to repay the debt that the central bank says you owe to it. You work for the central banks mystery shareholders. What…didn’t they tell you?

If you have wondered why your taxes are rising and the services you get seem to be getting worse and worse as you get hit with more and more punitive charges from the state for everything from fuel to fines to everything else…now you know. The money has to go to the central bank’s shareholders.

But where does all the money that the central bank makes in profits go to? Well, like any bank, it goes to the shareholders. The Treasury of the UK owns half of the bank of England and the other half is owned by other parties, who are not publically known. So these guys collect half the interest on our national debt, which they supply out of thin air and have a legal monopoly on. WE can’t buy shares in the central bank….if we could, I’d sell everything I own and do it! 

 The second is that the central bank is a fantastic business model and an exceptional means of social control. All you do is create a few bits of paper and send it to the government and then wait until new houses, yachts, bars of gold and anything else you want comes flowing back in through the door! 

More importantly, you can regulate the economy through the creation and destruction of credit, the imposition of tight or lax lending standards over the population. Best of all, you get to play the stock markets and the property markets knowing the future….because you create it! What a wonderful scam…I just wish I’d thought of it first. The best part is….no one knows anything about it….people are completely oblivious to the existence of the other shareholders and the money creation process. I remember sitting in economics class when I was 15 having parts of this explained to me and I immediately thought that I had to become a banker…so I did. Now…don’t tell anyone!

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Tags: Bank of England, Central Bank, Money, National Debts, Tax, The Treasury

If you take this to its logical conclusion, 2 things become pretty clear. The first is that the government can’t repay the money it owes to the central bank. If the central bank creates it first transaction at £100m….and if the government never does another transaction, where does the money come from to pay back the interest owed to the central bank? The answer is that it cannot ever be repaid. The only legal currency comes from the central bank so the principle can never be repaid.

If all the money was taken out of the UK financial system tomorrow and given back to the central bank, there wouldn’t be enough because of the debt that has accumulated and which is legally owed to them.

This is why central banks must continue to print more and more money. The extra printing of money is called “inflation” and it must be built into the system in order to repay the bankers the interest that the government (the tax payers) owe to them. Mr Browns current planned spending binge will mean that inflation goes way up as the banks print more money.

Now….if you have been paying attention, you will wonder and scratch your head. How on earth can these central bank guys just print money from thin air and then be able to buy companies, houses, gold…you know, real stuff….stuff that’s actually worth something with little pieces of paper that they create out of thin air?

Well, the politicians have done a little deal with the bankers. You see, the politicians don’t like taxing you because then you will vote them out of their nice job, big post-politics boardroom pay packets and very important positions. The politician’s number one rule is to get re-elected. They just accept the way the whole system works and to be honest, not many of them have figured it out. The end result of the scam is bankruptcy and a hyper inflationary bust as the central bank must print more and more money to give to the government to repay the debts that the government has accrued to the central bank in the interest on the money on the principle it has borrowed from the central bank.

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Tags: Central Bank, Gordon Brown, Hyper Inflation, Inflation, Money, UK Financial System

Central banking is the most ingenious scam in the world. Here’s how the scam works. Firstly, let’s look at a situation where the fiat currency system is just starting. The government needs money. It goes to the bankers who create the money out of thin air by taking some pieces of paper and putting a lot of official looking writing on them. This writing is called a government bond or gilt. It basically means that the government promises to pay the bankers the money back, with some interest, let’s say 5% per annum. The government sends the notes over to the central bank and the central bank sends back a suitcase full of other printed pieces of paper called banknotes equal in amount to the bond they were sent by the government. All that has happened is that a few pieces of paper have changed hands. This is basically the start of the money creation process.

Now…if this was the start of a fiat money system and the government wanted to make their first transaction with the central bank or let’s say £100m, they would send £100m of bonds to the central banks and the central bank would send them £100m in notes…with an interest understanding attached to each of those notes.

Now….the government deposits this money into their bank account and the money is then available to the retail financial world to make loans with. The financial system, the retail banks, know that they can lend out 9 times the amount of this deposit, so they lend £900m to customers who want to borrow for businesses, cars and homes etc. This is how money is created, out of thin air, from the central bank.

Now….I DO wish I was a central bank…because this is a great business. What the central bank does is that it gets interest each year from the government who collect it from the banks who collect it from the borrowers. The people who own the central bank can then go out and buy houses, cars or anything else they want with the interest on the money they create out of thin air! How cool is that!

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Tags: Bank Account, Central Bank, Fiat Money System, Money