CWT Ideology

The Earth and humankind are being held hostage to

the political and financial system. This system protects the

interest of financial elites and is bitterly unfair towards people

and destructive towards nature. This system is based on the

colonization and exploitation of people, states, energy, minerals

and technologies. The way global capital is being exploited is at

the root of religious conflicts between people and communities.

For centuries the financial system has been taken control of

the world’s resources and markets, and influenced governments,

mass media, education, medicine and even our food supply. A

few of the world’s richest families and their corporations exert

direct control over the scope of all major human activity.

How could this happen? To answer this question let’s turn

to history.

The history of money extends back over thousands of

years. At the dawn of the human civilization, when there was

no money, only hard work could give you clothing, shelter and

food. Over time the main human occupations (gathering and

hunting) moved to the next level and our ancestors could raise

cattle and grow their own food. As a result, a surplus of goods

and produce started to appear.

A tribe which had a large number of animal skins but short

of grain could exchange with another tribe that had a surplus of

grain. This is how bartering started. As humans developed, the

barter also developed and covered an even greater number of

goods and services.

The most famous example of bartering in human history

is the bargain of Peter Minuit in 1626. For trinkets and beads

costing $24 he obtained the island of Manhattan. In 1993 the

island was valued at $50 billion.

Gradually people realized that carrying a bag of wheat or

dozens of skins for exchange was not very convenient. By trial

and error humans began using silver and gold as an equivalent

for exchange. Gold and silver could not be faked or spoil, so

they served as money for a long time.

Jewelers began minting gold and silver coins. They needed

a reliable storage for gold and silver ushering in the first safes.

Soon, traders and the general population began to rent space in

the jewelers safes to store their coins and valuables. So, long

before credit existed jewelers began to lease shelves in their

safes earning income from that business.

Years later one jeweler began to understand that people

never came for their gold all at once. This occurs because

people were holding onto obligatory bills given by the

jeweler as a proof of the stored gold. These bills were

considered real money in the market instead of the gold

as it was more convenient and easy to exchange. Sellers

of goods accepted them as receipts for payment of goods.

Borrowers began to take loans in this paper form instead

of real gold.

The jeweler came up with another business – he started

to lend his gold at an interest. He used his own and the

stored gold of the merchants and townspeople, who kept it

for safekeeping. But since everyone never come at the same

time, this business grew rapidly. The ability to give loans

was limited only by the amount of gold in the safe. Then

the bankers came up with an even more daring idea. Since

they were the only ones who knew how much gold was in

the safe they could issue obligatory bills for gold that they

did not have. If all the investors would never come at the

same time to collect, then who would find out? They figured

out how to make money out of thin air. This was the origin

of the phrase “to make money out of thin air”. Jewelers

who realized how to make money out of thin air are today’s

bankers.

That principle became the ground of the existing

financial system that began to take shape about 400 years

ago. Bankers began to lend to governments, who used that

money to wage wars of conquest, and to merchants, who

conducted “business” by exploiting new territories. Since

the governments depended on the banks’s money, they not

only allowed them to make money out of thin air but also

legitimized this process by skewing the ratio making it 9

to 1. Today this is called a “fractional reserve” system.

Today this works in most of the worlds banks and

accepted as a part of the banking philosophy. For example,

if you deposit $1000 into an account, the bank can then

turn around and lend someone else $10,000 in the form

of credit based on this fractional reserve system – legally

creating money out of thin air.

State fraud

The first major state endorsement of this financial fraud was

the Bank of England in 1694. That institution was as a result of

the so-called transaction between a nearly bankrupt government

and a group of financiers. The bank was private and so the state

gave it the official title and the right to issue money. The King

of England was in great need of money for the war with France

and willingly agreed to give the bankers this national title and

get the loans he needed.

In the 1690s the banking system of England included

lending bankers, who provided loans out of borrowed funds,

and jewelers receiving gold for deposits and extending loans

as well. Bankers realized that the power over money might

well result in unlimited opportunities. In a couple of centuries

the British Empire became a leading world power due to the

relentless colonization of other peoples and continents.

In 1913 the next leader emerged surpassing the Bank of England

in the scale and scope of using this fraudulent system. This was the

Federal Reserve (FRS) of the United States. But the Federal Reserve

was not a governmental organization. It was a private enterprise

made up of bankers, a joint stock company established by 12 Federal

Reserve banks, which in turn had been created by commercial banks.

The FRS operates as a private bank. The US government issues bonds

to procure the “national currency” and the FRS prints bank notes and

lends them to the state through the sale of the bonds. The state buys the

bonds and the money returns to the FRS with interest.

Thus, the main objective of the FRS was its income through

seignior age – the difference between the face value of the bank

notes and the cost of their production. For example, if a hundreddollar

banknote costs 10 cents to make, the seigniorage will be

99 dollars 90 cents. Like the Bank of England, the FRS is not

part of the state.

The third US President Thomas Jefferson (1772—1782)

said: “Banking institutions are more dangerous to our

liberties then standing armies. If the American people ever

allow private banks to control the issue of their currency, first

by inflation, then by deflation, the banks and corporations

that will develop around them will deprive the people of all

property until their children wake up homeless in the country

their fathers built”.

Deception, fraud and racketeering are the modus operandi

of the bankers. You’ve heard of names like Rothschild and

Rockefeller. What do they have in common? They both became

rich and powerful using these unfair and corrupt methods and

the law never stopped them as they achieved their goals.

During the great Anglo-French battle of Waterloo in 1815 the

London Stock Exchange was thrown into disorder. If Napoleon

won, the market would be ruined, but if he lost, the market would

be enriched. Rothschild saw this battle as an opportunity to make a

fortune for himself. Using messenger pigeons and signals from boats

along the English Channel he was the first to learn that Napoleon

lost. He quickly spread false information that Napoleon had won to

the London Stock Exchange. He started selling his shares with others

following him and the price of securities went spriraling downward.

Rothschild and his partners, knowing that England had

actually won, bought all the shares for a pittance. A day later,

when the London Stock Exchange learnt about the victory of

England, those shares skyrocketed and were worth a fortune.

Nathan Rothschild earned 40 million pounds on this information

flip. This fraud went down in history as one of many examples

showing the impropriety bankers and their principles.

Rothschild Rockefeller

Rothschild was a great deceiver, however Rockefeller often

used openly criminal methods for doing business ruining the

businesses of his competitors. His criminal infamy reached such

a level that mothers used his name to frighten their misbehaving

children.

The ability to print money without constraint is the dream

of any financier allowing him or her to print as much he desires.

This large supply of money was used to seize the treasures and

resources of others from around the world. Millions were robbed

of the opportunity to share the wealth of the world. The Federal

Reserve engaged in the bribing of politicians, the take-over of

competition and the buying of entire governments in order to

strengthen its position. And in order to protect its position it

financed the world’s strongest army, that of the United States of

America.

What does an ambitious entrepreneur do if he can obtain

a surplus of money? He expands his business. And that is

what the bankers did. In order to increase their earnings

they began to give out loans. This also began to happen

on a governmental level giving out massive loans to build

up armies through the sale of arms and pitting one country

against the other. This led to the destruction of countries,

which gave the banks the opportunity to turn around and

begin giving loans for the rebuilding of these countries, and

the cycle repeated itself. The First and Second World Wars

were examples of this scenario.

Shortly after the FRS was established, the First World

War began. It culminated in the collapse of two currencies

secured with gold – the Russian ruble and the German mark.

However, many American businessmen opposed the bankers

and realized the real motives of the financial robber barons.

In 1929 the Great Depression began. The discount rate of

the FRS suddenly increased and almost half the money

supply was withdrawn from the economy making the credit

cost skyrocket.

Companies that relied on credit went bankrupt and

the regular investors’ lives were ruined by the gratuitous

consumer loans. Securities were not worth a penny and

millions people became unemployed and idle. Some

people flaunt the idea that during the depression in the

United States all of the country’s assets were lost. But this

is not what happened, when someone loses value – another

receives it. The well-kept secret is who had bought those

assets. Those who control the FRS bought them, the same

people who organized the economic depression with the

help of the FRS.

In 1932 Franklin Delano Roosevelt was elected president

of the US. He began “fighting the crisis”. US citizens were

barred from possessing precious metals and had to hand

them over to the authorized banks, or the owner would face

a prison sentence. Soon after the expropriation the price of

gold went up significantly.

At the same time American industry was being procured

by the bank clans and the FRS. This was not only about

saving American industry.

Not everybody kept silent, congressman and banker from

Pennsylvania, Louis McFadden, gave a famous speech that exposed

the Great Depression. In a highlight he said: “It was no accident.

It was a carefully contrived occurrence. The International Bankers

sought to bring about a condition of despair here so they might

emerge as the rulers of us all”. In 1936 the politician suddenly died

at the age of 50.

World War II made the United States the world’s richest

country. Investments in the construction plans of the Third Reich

were successful. The list of American backers of Hitler included

names like Rockefeller and Morgan. In the summer of 1929, at a

special meeting of bankers, representatives of the Morgan Financial

and industrial group acknowledged the need to support the German

Nazi movement.

At the end of the war, in 1944, all States signed the

Bretton Woods agreement, which made the dollar the only

legitimate global reserve currency. Since 1944 these green

papers, printed by a private organization and unsecured,

were supposed to be used for all the settlements and storage

of foreign-exchange reserves. However, the US suddenly

experienced problems.

The young and charismatic president John Fitzgerald

Kennedy – a representative of a large Irish clan – started a

crusade against the FRS. In his speech about the “secret

societies” the president called for the construction of an

alternative power system. The Government began emission

of banknotes, secured with precious metals through

the Ministry of Finance, under the presidential decree

No. 11110. Those dollars were endorsed under the name

“United States Note” not “Federal Reserve Note”. That

is they were reprinted and endorsed by the State, not a

private entity. They were secure.

Six months later Kennedy was killed. Then his brother

Robert was also killed. Some believe for knowing more than

he should. The Kennedy rebellion was suppressed. Banknotes

were withdrawn. Now the two- and five-dollar bills of 1963

are rare.

As president, John Kennedy felt like a puppet of the FRS,

and he did not like it. Thus, Kennedy fought for the interests

of the American people and actually tried to make a coup

d’etat from above.

There remained a detail that got in the way of the

banker’s ultimate objective. This was the problem of

Bretton Woods and the issuing of money. Remember that

money had a gold equivalent and could be exchanged for

gold under the Bretton Woods agreement at any time.

However, the bankers had printed one thousand times

the amount money than they had gold in stock. But the

bankers were legally obliged to make such an exchange if

demanded. If all the bank customers came at the same time

requiring the exchange of money for gold, their system

would collapse there and then.

So they decided to change this obstructive law with

the help of the then president of the US, Richard Nixon.

He implemented a series of economic reforms in 1971

known as the “Nixon shock”. The most significant reform

was the refusal of the US to secure the dollar rate with a

gold equivalent, which resulted in a virtual collapse of

the Bretton Woods system. The bankers were now free to

produce as much paper money as they needed. Money truly

became paper, as the Nixon decision gave the dollar note a

value which was not backed by anything.

The way to organize

and control crisis

The same banking system caused the mortgage crisis

of 2007—2008, which gave hundreds of thousands of US

households to the banks. A huge number of Americans were

unable to pay their financial obligations to the bank. The

banks took the debtors’ houses and put them up for sale.

Why had lots of Americans suddently become insolvent?

The reason is that the creditors gave loans to questionable

borrowers who defaulted on these loans.

This play started in 2001, the bankers began to give money

to all takers. They were considerable amounts, as it was for

real estate purchases. Some banks offered loans with a floating

interest rate, adjusted yearly from the start of the third year.

At the beginning the rate was unusually low. Others advertised

loans that pushed even the first payment for a new house into

the future. No first payment or security was needed.

The seductive conditions that they offered Americans

were tempting to those who were not even considering

buying real estate. Everybody began to take loans trying to

improve their living conditions. People, who had no money,

took out loans from institutions, who also had no money

but borrowed and raised the funds in order to loan them out

under this scheme.

One debt caused another one, debt was everywhere. But

the system of selling debt had its industrial logic. The sale

of mortgage bonds and loans was performed like this: the

rating agencies assessed the degree of credit non-repayment

risk and depending on that degree, the securities had various

degrees of “freshness”. Extra Grade and Grade I were more

expensive but had less risk and found their buyers quickly.

However, second and third grade ratings were also quite

popular. The price of the risky mortgage “package” was low

and had a large demand.

Everybody was satisfied. Banks ended contracts with

private persons, got its money from investors and could start

the affair again. Investors had invested and were waiting for

profits as skeptical yet willing customers could apply for

loans again.

The hilarity of the situation was that investors, or

speculators, who bought cheap “second-rate” mortgage

obligations on the so called scientific basis propagated by

rating agencies divided them into more grades. This time

the “highest grade” (reliability rating) was not the best of

the best but the best of the worst.

This went on for 6—7 years! The US economy was

growing, GDP was increasing, everyone was happy. Many

people were not only kept occupied but also made large amounts

of money, but produced nothing. This debt pyramid was supported

with constant growth of real estate prices, which enabled attraction

of new players with new financial resources to the housing and

mortgage market.

Banks, major reputable companies with many years or even

a century or two of operation started the same game, let’s call it

“give everybody as much of your money as you can”. This resulted

in filled postal boxes but no prospectuses of some productive and

beneficial business opportunity, only thick envelopes with bank

contracts. Each envelope contained a credit card. Its activation

required nothing. Just take it and start to buy, the agreement was

straightforward and endorsed by the bank. “Real” money has been

sent out by mail, carelessly, to everyone en masse.

The logic of this mailing system was straightforward:

mass non-payment of debt on credit cards. The USFRS

data stated the cumulative “plastic debt” of Americans

amounting to approximately $950 billion at the beginning

,the rate of nonperforming

card loans increased from 4.61% to 6.82% from

August 2007 to August 2008 which is a growth amounting to a

48% increase. Withdrawals from credit cards during the