Chapter 1 – The History of
Money
The few who understand the (money) system will either be so
interested from its profits, or so dependent on its favors, that
there will be no opposition from that class.
– Rothschild Brothers of London, (1773-1855)
When you or I write a check there must be sufficient funds in out
account to cover the check, but when the Federal Reserve writes
a check there is no bank deposit on which that check is drawn.
When the Federal Reserve writes a check, it is creating money.
– From Putting It Simply by the Boston Federal Reserve
Bank (1984)
There’s no limit to central bank expanding its balance sheet in
theory.
– Dennis Lockhart, Chairman of the board of the Federal
Reserve Bank of Atlanta (2012)
Inflation is a more fundamental danger than speculative invest-
ment. Some countries seem to be in the unusual situation where
they are trying to create inflation. They will come to regret that.
– Paul Volcker (2013)
The old saying is that ‘figures will not lie,’ but a new saying is ‘liars
will figure.’ It is our duty, as practical statisticians, to prevent the
liar from figuring; in other words, to prevent him from perverting
the truth, in the interest of some theory he wishes to establish.
– Carroll D. Wright, statistician addressing the Convention
of Commissioners of Bureaus of Statistics of Labor (1889)
INTRO
Although we talk about money on a daily basis and most of us
work hard for it, few stop to reflect on what money actually is and
what it means. Even people working in the world of finance often
do not comprehend what money is all about. The fact that money
is created out of thin air and in the form of credit is quite difficult
to understand. This important little secret is not taught at most
schools and is actually only understood by a confined group of
financial insiders. This is not necessarily a bad thing. According
to Henry Ford, the famous car manufacturer, a revolution would
break out before dawn if people got wind of how our money
system really works
The Big Reset: War on Gold and the Financial Endgame by Willem Middelkoop