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to the material; and Toni Decker, who purports to know nothing about
banking, spotted issues Alan Greenspan might have missed. Important
insights were also added by Nancy Batchelder, Eddy Taylor, Richard
Miles, Bruce Baumrucker, Paul Hunt, Bob Poteat, Nancy O™Hara, Tom
Nead, David Edgerton and Bonnie Lange. Among the experts, Ed
Griffin, Ben Gisin, and Reed Simpson clarified the mysteries of
“fractional reserve” banking; Sergio Lub, Tom Greco, Carol Brouillet
and Bernard Lietaer illuminated community currency concepts; and
Stephen Zarlenga did exhaustive research on the Greenback solution.
Valuable insights for revisions were provided by Alistair McConnachie,
Peter Challen, Rodney Shakespeare, Frank Taylor, Glen Martin and
Roberta Kelly. Cordell Svengalis was responsible for formatting,
Charles Montgomery experimented with graphics, and David Dees
captured the theme in a brilliant cover. Cliff Brown made this book
possible. Acknowledgment is also due to Michael Hodges and
babylontoday.com for the charts, and to all those researchers who
uncovered the puzzle pieces assembled here, who are liberally cited
and quoted hereafter. Thanks!

Banker and Developer

I have been a banker for most of my career, and I can report that
even most bankers are not aware of what goes on behind closed doors
at the top of their field. Bankers tend to their own corner of the bank-
ing business, without seeing the big picture or the ramifications of the
whole system they are helping to perpetuate. I am more familiar than
most with the issues raised in Ellen Brown™s book Web of Debt, and I
still found it to be an eye-opener, a remarkable window into what is
really going on.
The process by which money comes into existence is thoroughly
misunderstood, and for good reason: it has been the focus of a highly
sophisticated and long-term disinformation campaign that permeates
academia, media, and publishing. The complexity of the subject has
been intentionally exploited to keep its mysteries hidden. Henry Ford
said it best: “It is well that the people of the nation do not understand our
banking and monetary system, for if they did, I believe there would be a
revolution before tomorrow morning.”
In banking schools and universities, I was drilled in the technology
of money and banking, clearing houses, the Federal Reserve System,
money creation through the multiplier effect, and the peculiar role of
the commercial banker as the guardian of the public treasure. This
idealized vision contrasted sharply with what I saw as I worked in
the U.S. banking sector. Although there are many financially sound
banks that follow the highest ethical standards, corruption is also
rampant that flies in the face of the stated ethical objectives of the
American Bankers Association and the guidelines of the FDIC, the
Comptroller of the Currency, and other regulators. This tendency is
particularly evident in the large money center banks, in one of which
I worked.

In my experience, in fact, the chief source of bank robbery is not
masked men looting tellers™ cash tills but the blatant abuse of the
extension of credit by white collar criminals. A common practice is
for loan officers to ignore the long-term risk of loans and approve
those loan transactions with the highest fees and interest paid
immediately “ income which can be distributed to the principal
executives of the bank. Such distribution is buried within the bank™s
owner/manager compensation and is distributed to the principal
owners as dividends and stock options. That helps explain why, in
my home state of Kansas, a major bank in Topeka was run into
bankruptcy after its chairman entered into a development and
construction loan involving a mortgaged 5,000 acre residential
development tract in the “exurbs” far outside of Houston, Texas. The
development included curbs, gutters, pavement, street lighting, water,
sewer, electricity “ everything but homes and families! If the loan had
been metered out in small phases to match market absorption, the
chairman of that once-fine institution would not have been able to
disburse to himself and his friends the enormous up-front loan fees
and interest owing to that specific transaction, or to the many loans
he made just like it. During the 1980s, developers from across the
country beat a path to sleepy Topeka and other areas sporting similar
financial institutions, just to have a chance to dance with these corrupt
lenders. The managers and developers got rich, leaving the banks™
shareholders and the taxpayers to pay the bill.
These are just individual instances of corruption, but they indicate
a mind-set to exploit and a system that can be exploited. Ellen Brown™s
book focuses on a more fundamental fraud in the banking system “
the creation and control of money itself by private bankers, in a debt-
money system that returns a steady profit in the form of interest to the
debt-money producers, saddling the nation with a growing mountain
of unnecessary and impossible-to-repay debt. The fact that money
creation is nearly everywhere a private affair is largely unknown today,
but the issue is not new. The control of the money system by private
interests was known to many of our earlier leaders, as shown in a
number of quotes reprinted in this book, including these:
The real truth of the matter is, as you and I know, that a financial
element in the large centers has owned the Government ever since the
days of Andrew Jackson.
-- President Franklin Delano Roosevelt, November 23, 1933,
in a letter to Colonel Edward Mandell House

Some people think the Federal Reserve Banks are U.S. government
institutions. They are not . . . they are private credit monopolies
which prey upon the people of the U.S. for the benefit of themselves
and their foreign and domestic swindlers, and rich and predatory
money lenders. The sack of the United States by the Fed is the greatest
crime in history. Every effort has been made by the Fed to conceal its
powers, but the truth is the Fed has usurped the government. It
controls everything here and it controls all our foreign relations. It
makes and breaks governments at will.
-- Congressman Charles McFadden, Chairman, House
Banking and Currency Committee, June 10, 1932

Web of Debt gives a blow by blow account of how a network of
private bankers has taken over the creation and control of the
international money system and what they are doing with that control.
Credible evidence is presented of a world power elite intent on gaining
absolute control over the planet and its natural resources, including
its subservient “human resources” or “human capital.” The lifeblood
of this power elite is money, and its weapon is fear. The whole of
civilization and all of its systems hang on this fulcrum of the money
power. In private hands, where it is now, it can be used to enslave
nations and ensure perpetual wars and bondage. Internationally, the
banksters and their governmental partners use these fraudulent
economic tools to weaken or defeat opponents without a shot being
fired. Witness the recent East Asian financial crisis of 1997 and the
Russian ruble collapse of 1998. Economic means have long been used
to spark wars, as a pretext and prelude for the money power to stock
and restock the armaments and infrastructure of both sides.
Brown™s book is thus about more than just monetary theory and
reform. By exposing the present unsustainable situation, it is a first
step toward loosening the malign grip on the world held by a very
small but powerful financial faction. The book can serve to spark an
open dialogue concerning the most important topic of our monetary
system, one that is practically off limits today in conventional economic
circles due to intimidation and fear of the consequences an honest
discourse might bring. Brown is not afraid of stepping on the black
patent leather wingtips of the money power and their academic
economist servants. Her book is a raised clenched fist of defiance and
truth smashing through their finely spun web of disinformation,
distortion, deceit, and boldfaced lies concerning money, banking, and

economics. It exposes the covert financial enemy that has gotten inside
the gates of our Troy, making it our first line of defense against the
unrestricted asymmetrical warfare which is presently directed against
the people of America and the world.
This book not only exposes the problem but outlines a sound solution
for the ever-increasing debt and other monetary woes of the nation
and the world. It shows that ending the debt-money fractional reserve
banking system and returning to an honest debt-free monetary system
could provide Americans with a future that is prosperous beyond our
imagining. An editorial directed against Lincoln™s debt-free
Greenbacks, attributed to The London Times, said it all:
If that mischievous financial policy which had its origin in the North
American Republic during the late war in that country, should become
indurated down to a fixture, then that Government will furnish its
own money without cost. It will pay off its debts and be without debt.
It will become prosperous beyond precedent in the history of the
civilized governments of the world. The brains and wealth of all
countries will go to North America. That government must be
destroyed or it will destroy every monarchy on the globe.

-- REED SIMPSON, M.Sc., Overland Park, Kansas
American Bankers Association Graduate School of Banking
London School of Economics, Graduate School of Economics
University of Kansas Graduate School of Architecture
-- November 2006

Web of Debt


Through a network of anonymous financial spider webbing only a
handful of global King Bankers own and control it all. . . . Everybody,
people, enterprise, State and foreign countries, all have become slaves
chained to the Banker™s credit ropes.
-- Hans Schicht, “The Death of Banking” (February 2005)1

P resident Andrew Jackson called the banking cartel “a hydra-
headed monster eating the flesh of the common man.” New
York Mayor John Hylan, writing in the 1920s, called it a “giant octopus”
that “seizes in its long and powerful tentacles our executive officers,
our legislative bodies, our schools, our courts, our newspapers, and
every agency created for the public protection.” The debt spider has
devoured farms, homes and whole countries that have become trapped
in its web.
In “The Death of Banking,” financial commentator Hans Schicht
states that he had an opportunity in his career to observe the wizards
of finance as an insider at close range. Their game, he says, has gotten
so centralized and concentrated that the greater part of U.S. banking
and enterprise is now under the control of a small inner circle of men.
He calls the game “spider webbing.” Its rules include:
Making any concentration of wealth invisible.
Exercising control through “leverage” “ mergers, takeovers, chain
share holdings where one company holds shares of other
companies, conditions annexed to loans, and so forth.
Exercising tight personal management and control, with a
minimum of insiders and front-men who themselves have only
partial knowledge of the game.
Dr. Carroll Quigley was a writer and professor of history at
Georgetown University, where he was President Bill Clinton™s mentor.

Professor Quigley wrote from personal knowledge of an elite clique of
global financiers bent on controlling the world. Their aim, he said,
was “nothing less than to create a world system of financial control
in private hands able to dominate the political system of each country
and the economy of the world as a whole.” This system was “to be
controlled in a feudalist fashion by the central banks of the world
acting in concert, by secret agreements.”2 He called this clique simply
the “international bankers.” Their essence was not race, religion or
nationality but was just a passion for control over other humans. The
key to their success was that they would control and manipulate the money
system of a nation while letting it appear to be controlled by the government.
The international bankers have succeeded in doing more than just
controlling the money supply. Today they actually create the money
supply, while making it appear to be created by the government. This
devious scheme was revealed by Sir Josiah Stamp, director of the Bank
of England and the second richest man in Britain in the 1920s. Speak-
ing at the University of Texas in 1927, he dropped this bombshell:
The modern banking system manufactures money out of nothing.
The process is perhaps the most astounding piece of sleight of
hand that was ever invented. Banking was conceived in inequity
and born in sin . . . . Bankers own the earth. Take it away from
them but leave them the power to create money, and, with a
flick of a pen, they will create enough money to buy it back
again. . . . Take this great power away from them and all great
fortunes like mine will disappear, for then this would be a better
and happier world to live in. . . . But, if you want to continue to be
the slaves of bankers and pay the cost of your own slavery, then let
bankers continue to create money and control credit.3
Professor Henry C. K. Liu is an economist who graduated from
Harvard and chaired a graduate department at UCLA before becom-
ing an investment adviser for developing countries. He calls the cur-
rent monetary scheme a “cruel hoax.” When we wake up to that fact,
he says, our entire economic world view will need to be reordered,
“just as physics was subject to reordering when man™s world view
changed with the realization that the earth is not stationary nor is it
the center of the universe.”4 The hoax is that there is virtually no
“real” money in the system, only debts. Except for coins, which are
issued by the government and make up only about one one-thousandth
of the money supply, the entire U.S. money supply now consists of debt to
private banks, for money they created with accounting entries on their books.

Web of Debt

It is all done by sleight of hand; and like a magician™s trick, we have to
see it many times before we realize what is going on. But when we
do, it changes everything. All of history has to be rewritten.
The following chapters track the web of deceit that has engulfed
us in debt, and present a simple solution that could make the country
solvent once again. It is not a new solution but dates back to the
Constitution: the power to create money needs to be returned to the
government and the people it represents. The federal debt could be
paid, income taxes could be eliminated, and social programs could be


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