By Dr. Mercola
Ellen Brown is a civil litigation attorney who has written 11 books on health and the politics of health, including the Web of Debt: The Shocking Truth About Our Money System (which focuses on the money and banking system itself), and Forbidden Medicine, which traces the suppression of natural health treatment back to the corrupting influences of our financial system.
In the course of writing her books, Brown was asked to join the legal team of Jimmy Keller, an alternative cancer therapist in Tijuana, who was jailed for, as she puts it, “the alleged crime of representing that he had a high rate of cure for cancer.”
“He always showed the movie World Without Cancer to his patients, which is by Ed Griffin,” she says, “so I read the book World Without Cancer, and it linked the cancer industry—the cancer cartel, basically—with the banking cartel. It showed they had the same roots.
It went back to the Rockefeller-Morgan cartel at the turn of the 20th century. Rockefeller, Morgan, and Carnegie supported drugs, funded the medical schools, and basically got the homeopathic schools shut down. (In the 19th century, the homeopathic schools were the leading health treatment.)
… I realized in the course of that that if you wanted to get to crux of the problem, you had to deal with banking, because that was actually where they got their power. They got their power from the power to create money.”
The Shocking Truth about Our Money System, and the Power it Wields Over Your Health
As Brown explains, the shocking truth about our money system is that virtually all of our money is created by banks when they make loans. It’s not created by the government, as most people believe. The way it works is that, while the banks create the principal, they don’t create the interest, so they’re always getting more back than they’re putting out.
“The thing that most people don’t realize is that banks don’t just take in people’s money, and then lend it out again,” Brown explains. “What they do is, literally, every time they make a loan, they create that money on their books. They need the deposits in order to clear the checks, but they’re basically double-counting the money.
… When you’ve put your money in the bank and then you go to withdraw it, they never say, “Sorry, we just lent your money out to your neighbor for 30 years. You’ll have to come back later.” No, they always give you your money. That’s because your deposit’s still there at the same time that they’ve lent it out. So, if you need the money, then they’ll borrow it from somewhere else. But where do they borrow it from? Basically, from the very bank that the check just went into from the loan that they just made.
It’s like a big check-kiting scheme, where you create the money; it goes into another bank; and then you borrow it back. The banks can borrow it back at 0.25 percent at the moment, which is the Fed funds rate. And of course, they lend it out at five percent, or on credit cards 18 percent… or outrageous industry rates. They get a huge spread on money that didn’t actually exist until they created the loan.
… Their control over money is how they manage to corner politics, buy up the media, and basically monopolize the field.”
The Links Between Big Banks and the Drug Industry
Two good primers if you want to learn more about the banking system and the link between the pharmaceutical industry and banking, are The Creature from Jekyll Island, and World Without Cancer.
To me, this link between banking and Big Pharma intuitively makes sense. It was just earlier this year that I came to appreciate what Brown is talking about here. While the focus of this web site is on the damage done by the drug companies, it’s becoming increasingly clear to me that the banking system is the behemoth backing the Goliath-like drug industry.
As explained by Brown, the drug connection goes back to the 19th century. John D. Rockefeller’s father was actually, literally, a snake-oil salesman.
“He was a patent remedy seller. The drugs, of course, are oil-based, and John D. Rockefeller was an oil magnate. He also had a bank. So did J.P. Morgan. The drug industry—the patent remedy industry—was in competition with the natural herbal remedies, and the homeopathic remedies. And the way they prevailed in the whole system was that, first of all, they funded the American Medical Association—the AMA Journal, which got their funding from advertising. And if your drug was advertised in the AMA Journal, then you’ve got the AMA’s seal of endorsement… It was a cartel.”
Where the Federal Reserve Fits in
In this interview, Brown discusses far more than I have included here, so to learn more, I urge you to listen to this fascinating interview in its entirety. Of course, it’s virtually impossible to discuss the financial system without touching on the Federal Reserve. According to Brown, there’s an important distinction that needs to be understood regarding the role of the Federal Reserve, because while both banks and the Fed are creating money out of thin air, there are some differences:
“The Federal Reserve is the lender of last resort, so it is allowed to [create money] without actually backing the money from anywhere… There are basically two banking systems.
This is also very complicated, but there is what’s called ‘base money,’ and that’s created by the Federal Reserve. Those are the banks’ reserves. At one time the reserves were gold. You actually, literally, had to keep a certain amount of gold for your depositors, who could cash in their dollars for gold. But in 1933, everybody stopped trusting the banks, because they knew they didn’t have enough gold, so there were runs on the banks. At that time the dollar was 40 percent backed by gold. So, every time somebody would bring two dollars and cash it in for gold, the bank had to call in three dollars’ worth of loans. The whole money supply was just closing in on itself and collapsing.
That’s why Roosevelt finally took the dollar off the gold standard.
Then, to back the dollar, the Fed created “base money” for the banks to use as reserves. But it’s a separate system. We don’t actually get to borrow the Fed’s reserves. That’s the bankers’ money. The bankers’ bank is the Federal Reserve.” (READ MORE)
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