This is a short and simple story. It may be called a fable, but it is true in its portrayal of how our present money system evolved.
Many years ago, a certain rich man wanted to go abroad for a two-year vacation. He owned, in cash, ten thousand shekels of gold. He could not take gold with him because of its weight and danger of being robbed; so he went to a goldsmith to ask if he could leave his gold with him for safekeeping. The goldsmith, who had a large secure storage facility similar to a vault, wanted to be paid to keep rich man’s gold. He asked for 10% or 1000 shekels to which rich man agreed. The rich man “deposited” his gold with goldsmith, obtained a “receipt” for it and then left on his trip abroad.
As soon as rich man had left his gold and departed, goldsmith told his helper to go and spread word that his master had a few shekels of gold to loan to financially secure customers at 15% interest. Soon borrowers came. One wanted 50 shekels; another wanted 100 shekels and so on.
To goldsmith’s surprise, most borrowers did not take delivery of gold. Instead, all they wanted was goldsmith’s receipt saying, “I owe you X number of gold shekels” which could be used to claim gold when they wanted it. In modern terms, they had what we call a demand deposit.
As days proceeded, goldsmith had loaned out all of his 1000 shekels, which were drawing 15% interest. Yet, nearly all of shekels were still in vault. The only people who took their gold were a few of small borrowers, others only wanted receipts (IOU’s) showing goldsmith held their gold and that they could have it whenever they needed it.
As time went on, goldsmith found that people were accepting his receipts in payment of goods and services rather than using gold. When occasional person did claim his gold and used it in payment of goods etc., one who received gold brought it back to goldsmith for safekeeping and accepted an IOU.
This gave goldsmith a “terrific” idea.
The goldsmith’s “terrific idea” of 300 years or so ago has grown into international bankers’ “one world order” of today.
This letter will not be concerned with all history between goldsmith of years ago and today. It is enough to know that almost from that day to this private moneylenders (banks) have implemented a plan that has made them fiscal agents of virtually every country in world. This plan was The Private Debt Money System. Under that system it is never possible for a country to pay off its debt. The debt will forever increase. The following three points may be difficult and even impossible to believe at first. Our understanding of present world situation will never be complete until we come to know them as true. The following statements are spoken about countries of United States and Canada, but they can be taken as true for most countries in world today.