[Editor’s Note: The following article on the Debt Based Banking System by Hans J. Krampe appeared in the 1st Edition of The Radical newspaper which hit the streets of the Cariboo and soon the country back in June of 1998.
Hans Krampe was the feature writer for the newspaper throughout its short lived history (it ran from June of 1998 to June of 2002 when I took it online and it became the RadicalPress[.]com).
To commemorate this event I’ve reproduced the article along with the original graphics that appeared in the paper; one’s which Hans drew for the occasion. Tragically we lost Hans Krampe on December 14, 2014 when he succumbed to diabetes.
The article is relatively long and is an excellent overview of how the global banking system works. The final part toward the end gives Canadians a clear and cogent explanation as to how it applies to Canada and our Bank of Canada and what we, the people, can do to take back the bank from the global moneylenders and put it to work for the nation in a positive way.
It’s highly recommended that readers share this important article with their friends and associates.
One further note. Certain words within the article have been censored. This is due to legal restrictions which I am forced to obey. Most readers will likely be able to put 2+2 together and figure out the answer.]
The Fox in Charge of the Perfect Golden Goose
The Debt Based Banking System
by Hans J. Krampe
These days concerned citizens are well advised to supply themselves with a copy of the Canadian constitution and check for themselves if our government complies with its principles.
Nowhere is vigilance more necessary than in the area of monetary policy because for almost a century the Canadian government has knowingly operated on the basis of rules that are totally incompatible with Section 91 which gives the Canadian parliament the exclusive authority to control the issue and circulation of money. Any legislation that diminishes or transfers this control is illegal since all legislation has to comply with the spirit of the constitution.
Most Canadians are deliberately misled to believer the government exercises its authority through the institution of the Bank of Canada, a Central Bank.
“The Bank of Canada, like all
Central Banks, is neither a
government bank nor is it
controlled by government.”
It is, in fact, a private corporation, operating solely to profit its shareholders which are private international moneylenders. Yet it controls our money supply.
To people like you and me it doesn’t make any sense that the federal government must borrow non-existent Canadian money from foreign moneylenders and pay usurious interest to them, when on the basis of our constitution only it can legally create and circulate Canadian currency – which would be, of course, interest free. For bankers, however, it makes not only sense but it amounts to a positively enriching experience.
In 1914, presumably in cooperation with the U.S., and despite widespread objections, an apparently ignorant and, at least, partially corrupt parliament passed the Canadian Bank Act. It represented everything international moneylenders had conspired, deceived, blackmailed and murdered for in the U.S. during the preceding century. With this act they were able to establish the Bank of Canada, their private Central Bank, which gave them total control over our money supply, our government, and the riches of our entire country. It also allowed them to operate legally their fraudulent and devastating Fractional Reserve Banking System and, as well, put our money supply on the gold standard – gold the moneylenders control.
There were, however, some objections raised concerning the legality of the Act because it conflicted blatantly with the British North America Act (B.N.A.), as it does with our current constitution. The full implementation of the Act was temporarily put on ice with the outbreak of the first World War.
Then, in 1933, the bankers and their agents in government decided that the time was ripe for implementation. With R.B. Bennett, their front man, in the position of Prime Minister they had no trouble at all to generate enthusiastic agreement in cabinet with the idea that it was better to borrow at interest what one could otherwise create interest free. Through vigorous arm twisting from R.B. Bennett, whose callous and merciless conduct towards the multitude of the unemployed is a matter of history, the establishment of the Bank of Canada was approved sat the height of the Depression and the slow drowning of our country in a sea of debt and taxes had begun.
Monetary policy of the bank is decided by its officers who meet in secrecy and keep no minutes. One wonders what makes them so shy of public exposure.
At the end of his term as Prime Minister R.B. Bennett retired to Britain to enjoy the fruits of his labour.
The following is the sixth statement statement of Thomas Jefferson, a knowledgeable and staunch opponent of privately controlled Central Banks. It illustrates what R.B. Bennett had entered our country into. Note that his language uses the word ‘people’, not taxpayers or consumers:
Ever since our country’s inception unprincipled politicians endeavored to serve our nation – on a golden platter – to the foreign moneylenders, lock, stock and barrel; guided by greed, corruption and sinister intentions. And the moneylenders have been laughing all the way to the bank. In fact, our national debt [In 1998 – Editor], of $1 trillion dollars consists of 5% money that was illegally borrowed and 95% of illegally compound interest the bankers claim are owed to them. This demonstrates the quintessential meaning of the word “usury”, which implies a criminal act. It’s also called the Debt Based Banking System, which is another fancy term for the bankers control over our government. Power and control is the name of the game, and the bankers seem to have it.
The establishment of privately controlled Central Banks in North America has been controversial and hotly contested, to say the least. The push for Central Banks was aggressively applied by the principle shareholders of the Bank of England, one of the first Central Banks and the most influential in Europe and the English speaking world. They were an exclusive club of international moneylenders which initially concentrated their efforts on the U.S. in order to gain control over the riches of the North American continent. They succeeded in the early 1800’s temporarily with the establishment of the First Bank of the United States through bribery, deceit and the use of their Fractional Reserve Banking System.
The Canadian banking system descended directly from the First Bank of the U.S. with the adoption of its charter by the Bank of Montreal. Since then its been the ambition of Canadian governments not only to copy U.S. monetary policy, along with British guidelines, to a T, but to do it one better by creating greater opportunities for Canadian banks to form monopolies which, these days, is called free enterprise. Now the Canadian public can be fleeced much more efficiently. In other words, Canadian and the U.S. Central Bankers have the same goals, use the same methods, have a common past and pursue a common future.
Before we say ‘so what?’, let’s examine what a variety of statesmen, based on their experience, had to say about the machinations of international moneylenders and their relentless and often violent drive for the establishment of a Central Bank which raged, particularly in the U.S., back and forth for two centuries.
Again, Thomas Jefferson:
President Andrew Jackson, ‘Old Hickory’, considered it his life’s greatest achievement that he had killed the Second Bank of the U.S. in 1836 which had been operating since 1816 as a private Central Bank with disastrous effects on the economy. His statement is almost identical to Jefferson’s sixth statement:
“Controlling our currency,
receiving our public monies,
and holding thousands of our
citizens in dependence
would be more formidable and
dangerous than a military power
of the enemy.”
James Madison, fourth president of the U.S. equated the private moneylenders with the biblical moneylenders and had this to say about them:
“History records that the
moneychangers have used
every form of abuse, intrigue,
deceit and violent means
possible to maintain their
control over governments by
controlling money and its
Abraham Lincoln wrote in 1864, shortly before his assassination, in a letter to a friend:
“The money power preys
on the nation in times of peace
and conspires against it in
times of adversity. It is more
despotic than monarchy, more
insolent than autocracy, more
selfish than bureaucracy.”
Napoleon Bonaparte, whose contempt and distrust of the moneylenders and their Bank of France is a matter of record, refused their offer of credit and financed his European war campaigns with the proceeds from the sale of France’s North American colonies (the Louisiana Purchase). This is how he perceived them:
“The hand that giveth is
above the hand that takes.
Money has no motherland.
Financiers are without
patriotism and without
decency. Their sole object is
President James Garfield knew how the economy was being manipulated. As a congressman he had been chairman of the appropriations committee and a member of the banking and currency. After his inauguration in 1881 he publicly exposed the moneylenders conduct in a passionate indictment:
“Whosoever controls the
volume of money in any
country is absolute master of all
industry and commerce…. And
when you realize that the entire
system is very easily controlled,
one way or another, by a few
powerful men at the top, you
will not have to be told how
periods of inflation and
Within a few weeks of making this statement, on July 2nd, 1881, James Garfield was assassinated.
Those of us who believe that periods of boom and bust (i.e. the “business cycle”) are an act of God, should really submit to a reality check. Depression, inflation and recession are planned and executed by those who control the money supply. And the do it ruthlessly without conscience or any regard for life, and even brag about it. The increase of the money supply beyond the smooth function of exchange causes inflation, i.e. decline in purchasing power. Contraction of the money supply means depression, unemployment and suffering for most of us. For the moneylenders it means cheap acquisition of assets due to forfeiture, for a penny on the dollar.
The following is an unconcealed threat of blackmail that illustrates the criminal mindset of the proponents of privately controlled Central Banks. Nicholas Biddle, a Central Banker, threatening to cause a depression by contracting the money supply if President Andrew Jackson would not re-charter the Second Bank of the U.S., a Central Bank, in 1836 openly declared:
“This worthy President
thinks that because he has
scalped Indians and
imprisoned judges, he is to
have his way with the bank.
He is mistaken.
widespread suffering will
produce any effect on
congress… our only safety is in
pursuing a steady course of
firm restriction [of money] –
and I have no doubt that such a
course will ultimately lead to
restoration of the currency and
the re-charter of the bank.”
By ‘currency’ Biddle meant money based on the gold standard – gold which the Central Bankers controlled.
Money doesn’t have to be based on a gold standard to be an effective medium of exchange. History shows us that anything upon can be used as a medium of exchange – even pieces of wood, such as the tally sticks of the Middle Ages in England, which were used for 700 years as the longest lasting medium of exchange in the world.
Here is a classical illustration of the subservient manner in which the established media rides on the coattails of corporate wealth. In 1862, in an extraordinary bout of frankness, the London Times had this to say about the U.S. government which, under Lincoln, created its own debt free money supply by issuing a totally fiat currency, the famous ‘Greenback’:
“If this mischievous
financial policy, which has its
origins in North America, shall
become indurated down to a
fixture, then that government
will furnish its own money
without cost. It will pay off
debts and will be without
debts. It will have all the
money necessary to carry on its
commerce. It will become
prosperous without precedent
in the history of the world. The
brains and wealth of all
countries will go to North
America. That country must be
destroyed or it will destroy
every monarchy on the globe.”
In 1864 Lincoln’s former Secretary of the Treasury, Salmon P. Chase, regretting his role in the passage of the National Banking Act a year earlier, lamented:
“My agency in
promoting the passage of the
National Banking Act was the
greatest financial mistake in my
life. It has built up a monopoly
which affects every interest in
As an aside, here’s what [censored-Ed.], the quintessential moneylender, pronounced in 1790 from his bank in Frankfurt, Germany:
“Let me issue and control
a nation’s money and I care not
who writes the laws.”
History has born out the validity of all these statements.
One thing needs to be stressed: yes, we do need a Central Bank, but we don’t need it under the control of private and anonymous financiers, operating in secrecy.
Under private control a Central Bank becomes a dangerous instrument of exploitation which a relatively small and exclusive number of anti-social individuals use to enrich themselves without risk, without limits and without commitments.
In the hands of the people (i.e. government), however, it becomes an empowering institution that potentially facilitates and protects the endeavors of a nation for the benefit of all society.
The goldsmiths of the Middle Ages were acting as bankers by keeping the people’s gold in safe storage for which they would issue a paper receipt. This was the birth of paper money. Observing that people never came at the same time to withdraw all their gold the goldsmiths started to cheat on the system. They would loan more paper receipts than they had gold in storage and collect interest on them. Thus they had created the Fractional Reserve Banking System.
In a nutshell, here is how it works today.
Let’s say the government needs $1 million. It simply issues government bonds – which are, in fact, I.O.U.’s – in that amount and offers them as security. Without actual money changing hands the Central Bank accepts the bonds and credits the government with $1 million. Loans to the government are covered by our taxes, as is the interest, which is usually somewhere between 24% and 35%. In other words government loans are virtually risk free and yield the highest interest, for which you and I are paying through the nose with our taxes, via our government and the Central Bank, right into the pockets of the moneylenders.
Through the magic of Fractional Reserve Banking the bank is permitted to use government bonds as reserve as if they were money, and lend ten times the amount, all at interest. Hence the term “Fractional Reserve”. The bank now collects, arbitrarily, any interest that it figures the market will bear. For example, 8% interest on $1 million x10 on non-existent money they lend to the public equals 80%, plus 35% on $1 million amounts to a profit of 115% in interest that the bankers have created out of nothing, all at no risk. If you or I did this kind of thing we would be charged with fraud – a felony.
All banks operate under this system. This way they create money out of nothing, lend it and collect usurious interest. It is obvious that Fractional Reserve Banking is rooted in fraud. It causes widespread poverty and reduces the value of everybody else’s money, causing 90% of all inflation.
The diligent application of the Fractional Reserve Banking System combined with control over Europe’s Central Banks made the legendary [Censored-Editor] clan the richest family on earth, owning by the turn of the century, over half the world’s wealth. There is no indication that their wealth has ceased to grow since then.
Throughout history Canadian governments have been dominated by members of the wealthy establishment to ensure the entrenchment and expansion of their financial interests. It is reasonable to assume that humanitarian issues played only a secondary role when they formulated our constitution which isn’t couched in a language of the people but rather in the uninspired and opaque wording of business and law. It is riddled with amendments which the various governments seem to have hatched secretly and in collusion with corporate lawyers who insured that the wording is ambiguous enough to facilitate easy circumvention of the humanitarian rules on the surface. Corporate lobbyists routinely monopolize government’s time in an effort to erode the unassailability of our constitutional protection and, in general, they meet with enthusiastic cooperation since our governmental positions have become home to corporate imposters for decades.
Today, in terms of fiscal decisions, the question of conspiracy has been raised repeatedly by alert citizens, compelled by their gut feelings and their observations of the implications and effects of government policies before the background of history. The possibilities of Prime Ministers as well as Cabinet Ministers conspiring with international moneylenders or acting treasonously on their behalf is routinely and facetiously shrugged off by the established media, as if such ridiculous allegations couldn’t possibly be true in the pristine political climate of today. Yet, the involvement of conspiracy of recent PM’s and cabinet ministers is glaringly implied by the speedy and well executed implementation of disastrous policies they didn’t dare mention during their election campaigns.
Lies, deceit and the casual breach of important election promises have become routine tools of the trade in Canadian politics which indicates that politicians were already in league with the felonious money interests before they got elected. In this scenario the charge of treason and conspiracy is simply common sense.
So, what happens when a government creates its own debt free money? The moneylenders, of course, will hate it and make all sorts of dire noises. After all, fear-mongering, deceit, lies and even the resort to violence are second nature to them.
But let’s look at the Island of Guernsey in the English Channel. For 200 years the Guernsey government has been financing all its capital expenditure projects with debt free money they created out of nothing. As a consequence their economy is stable, with no sharp declines and very little inflation. Prosperity and peace are the result.
In the early 1700’s the British colonies in North America were relatively poor until they started to issue their own paper money, which they called ‘Colonial Scrip’. Very quickly the standard of living rose, there was full employment, and people prospered until the British government forbade Colonial Scrip and demanded its taxes in gold. Within a year the colonies plunged back into poverty, the streets were filled with the unemployed, and the people again struggled to survive.
The coliseum in Rome, the aqueducts, the great roads of the Roman Empire, were all built under Julius Caesar who used debt free silver coin to pay for it. Caesar made sure money was plentiful by using silver and the people prospered and loved him for it. The moneychangers hated his guts. One of the main reasons for his assassination was probably his monetary policy.
Last, but not least, there is the famous Greenback which Lincoln used to finance his armies and the civil war. It was debt free money, not based on the gold standard and was used until 1994, when it was taken out of circulation and replaced with money borrowed from the U.S. Federal Reserve, another private Central Bank, whose interest is compounding into the stratosphere.
Here is what Abraham Lincoln had to say about governments’ control over the issue of money:
“The government should
create, issue and circulate all
the currency and credit needed
to satisfy the spending power
of governments and the buying
power of consumers.
“The privilege of
creating and issuing money is
not only the supreme
prerogative of government, but
it is government’s greatest
“By the adoption of these
principles… the taxpayer will
be saved immense sums of
interest. Money will cease to
be master and become the
servant of humanity.”
History shows us that Lincoln’s opposition to the charter of the Central Bank and the establishment of a gold based currency seems to be the most likely reason for his assassination by John Wilkes Booth. Evidence that has been deleted from the public record and that the Canadian attorney G. G. McGeer obtained from secret service agents who had been present at Booth’s trial revealed in 1934 that Booth was a mercenary in the empty of the international moneylenders.
Chancellor Otto von Bismarck, the creator of the German nation and the first statesman to introduce a national social program, observed closely the activities of the moneylenders in the United States. Here is the almost clairvoyant assessment he made of the assassination of Lincoln:
“The death of Lincoln
was a disaster for Christendom.
There was no good in the
United States great enough to
wear his boots… I fear that
foreign bankers with their
craftiness and tortuous tricks
will entirely control the
exuberant riches of America
and use it to systematically
corrupt modern civilization.
They will not hesitate to
plunge the whole of
Christendom into war and
chaos in order that the earth
shall become their inheritance.”
In retrospect we can discern in the last two decades a clear demonstration of how the moneylenders control governments via their Central Banking system. We have also seen the consequences of their control. Buzz words like “global economy’, ‘restructuring’, [the Great “RESET” of the WEF today. Editor] and ‘decentralization’ are merely fancy rhetoric that try to conceal conditions of merciless exploitation, spread destitution and relentless environmental degradation.
The triumph of corporate crime over human decency cannot be tolerated by an enlightened society that desires to live in peace and dignity. Hopefully, a threshold of patience is reached soon that compels the Canadian public to call for an in-depth investigation into the Bank of Canada, its officers, and their activities.
It will be necessary for citizens to form a unified front to force government into a conduct not only in compliance with principles of our constitution but also with acceptable measures of integrity, decency and compassion that can and will be expected from representatives of our society.
Here are three basic suggestions on which meaningful monetary reform can be expanded:
1.) Cancel the Bank Act of 1914 and put the control of the Bank of Canada where it legally belongs… in the hands of the people, our federal government.
2.) Amend the constitution, forbidding the government to borrow money – anywhere. This would force government to exercise its exclusive prerogative to create and circulate money… at no interest.
3.) Phase in a new bank act which permits chartered banks to operate only under a 100% reserve system, while replacing the present gold based money with a fiat currency.
2 thoughts on “$BANKS$ The Debt Based Banking System”
GREAT ESSAY ! Many thanks !
However, Canadians should all see this short video by 12 year-old Victoria Grant in which she explained the scam very clearly and simply (in 2012):
* * *
Thanks so much for sending that url Patrick. I recollect watching it back in 2012 but had forgotten about it over the years. I’ve posted it on my Twitter account now as well.