2.10.09: I have received a few comments on the "Ten Humans and a Banker" article (Page 163 - 167 of the first edition of Dishonest Money.) In short, some who have read this article felt I was implying the collection of interest makes the repayment of debt impossible. What I was trying to illustrate is the collection of interest provides a mechanism by which the banker CAN reduce the money supply and put pressure on the economy. (Similar to how "taxes" give the government the ability to "pull money" out of the economy and then "return it" when it serves its goals.) I will clarify this in the next edition. For now, I've included my reply below:
"On the issue of interest, I tried to draw attention to the fact that interest can be spent back into the economy so, interest alone does not technically make repayment of debt impossible...rather, it's the repayment of debts, without new loans, that cause the real problems. (-If all the debt is paid, the community hasn't a single dollar to share.) From the footnote on page 165:
The banker could technically spend ALL of the interest he has collected back into the economy to ease the pressure (quite a deal for him since the dollars he has “earned” will now be worth a small fortune) but this does not change the fact that the debt is inescapable. As the debts are paid, the money supply shrinks. Without new loans (new debt) the economy will grind to a halt and those still holding debt will have no choice but default.
I can see how this isn't very clear from the "Ten humans and a banker" article. In the beginning I point out one way the money supply can shrink (the collection of interest that isn't put back into the economy) but this weakens the larger point that the entire economy being based on debt is the real problem. I can definitely clean that up for the next edition.
The new version is now available here:
http://stopthelie.com/ten_humans_and_a_banker.html
4.30.09: A note on the term Currency drain: Today, the term "currency drain" is almost always used to describe the removal of currency from the banking system and the loss of "excess reserves" that this causes. However, in the book the term is used to describe a problem that banks faced "Pre-Federal Reserve System." (Prior to the creation of the Federal Reserve System, it was not uncommon for reckless banks to "inflate deposits" far more than others. This invariably led to a "drain" on the reckless bank's currency, as described in the book.) To avoid confusion, I will probably change the term to "settlement drain" or "clearing drain" in future editions.
Regarding some of the "famous quotes" in the book.
It's ironic that so much time and energy went into verifying the substantive information contained in Dishonest Money, only to discover some of the quotes that "everyone knows" have turned out hard to source.
It all started when I read of a dispute regarding the authenticity of the following quote which appears near the beginning of the book:
“The few who understand the system, will either be so interested in its profits, or so dependent on its favors that there will be no opposition from that class. The great body of people, mentally incapable of comprehending the tremendous advantages will bear its burden without complaint.” - Rothschild Brothers of London in a letter to fellow conspirators
I spent a couple hours researching this...the quote is attributed to
John Sherman in a
letter written to the Rothschilds in 1863. It is claimed
here that a reference to a particular court case (in an attached "circular") proves the letter is a forgery because the dates don't match.
At the time of this writing, the link disputing the authenticity of the letter is itself inaccurate (as it claims the letters are dated 1862 when in fact they're dated 1863.) Additionally, I looked at the referenced court case and didn't see the information that "proves" this is the same court case mentioned in the letter. That said, I could not find an earlier "Branch V United States" either. So, for now, the quote will be removed from future editions of the book.
The quote below opens Chapter 4:
David Rockefeller at a Trilateral Commission meeting in June of 1991: “We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the world is now much more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries."
First, it appears as if it was most likely a Bilderberg meeting (not a Trilateral Commission meeting) that this quote was taken from. (Knowledge of the Bilderberg Group in 1991 was far less prevalent than today...this could have caused some confusion in initial reports since Rockefeller is the founder of the Trilateral Commission.) Second, there is some controversy surrounding the accuracy of this quote. (There are rumors of a leaked transcript from the private Bilderberg meeting and even of an audio recording…as of this writing; I have not been able to track down either.) That said, to my knowledge the quote has never been publicly denied and it mirrors exactly the ideology expressed in the actions of the Bilderberg elite. Moreover, there is Rockefeller’s admission in Memoirs: "Some believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as “internationalists” and of conspiring with others around the world to build a more integrated global political and economic structure- one world, if you will. If that is the charge, I stand guilty, and I am proud of it” or Carroll Quigley’s admission (in Tragedy and Hope) “I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960’s, to examine its papers and secret records…my chief difference of opinion is that it wishes to remain unknown.” For this reason I am leaving the quote in new editions of the book with a disclaimer similar to what you've just read. The reader can decide if the quote, in any way, conflicts with what is easily established and give it whatever weight they choose. (Emphasis added.)
This quote appears in Chapter 6:
“If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” -Thomas Jefferson
