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HISTORY OF BANKING

In the old days there was no paper money. Precious metals coins were accepted as token of exchange. In the Christian world the coins were introduce as medium of exchange for business transaction and the issuers of such coin were either the Church or the Crown which is the King. As there was limited amount of gold and silver available, the economic life of the nation had regularity and control on the business activities. The Christian world had the greater restriction. Interest charging was in prohibition. The Church clearly defines the interest dealing to be a serious sin and the policy was supported by the state. There were insensitive penalties for those who broke the law that restrict money transaction on interest.

Money is not a good, it is a measurement. Interest is making money from money. This is exactly what is happening today on a massive scale.

Jews are the pioneer in the middle Ages who began to specialize in money-lending and other practices which were forbidden in the Christians societies. They exploited the lower and upper class of Christian's community who finally realized that they being loose their blood due to money lenders on interest. Finally there were irregular uprisings of sentence and expulsions of Jews throughout Europe.

It is one reason why King Edward I expelled these disloyal people from England in 1290. Oliver Cromwell allowed Jews back when the moral authority of the Church was damaged and the King was beheaded in 1649.

Secondly, gold coins, jewels and other valuables were deposited with people who held strongboxes. These facilities were usually available with goldsmiths and money-lenders that were more often not goldsmith in business but a kind of custodians who also act as lenders. These loan-sharks and scrivener s realized that, secretly and without knowing to any they could charge people for looking after their deposits and then use those deposits to make lending to needy people on interest. With the passage of time they became rich and powerful in the society.

Gold coins are heavy and uncomfortable to carry all around. As a result the money-lenders started issue credit notes to depositors who began to trade these notes between themselves in commercial transactions. This give birth to Paper money and with the passage of time paper took over on metal.

A new form of interest developed when two-faced money-lenders realized the benefits that could be obtained from corrupt practice in this situation. It became apparent to these pilfers that they could go one step further by using depositors money for financial gains at no cost to themselves. They invented money from absolutely nothing. They started issuing credit notes with nothing to back them up and put them into circulation as interest-bearing debts. They calculated that they could safely issue notes for up to ten times more than the gold deposits they held, because the depositors would never ask for their deposits back all at the same time.

The principle of modern banking was thus established with the invention of money from nothing and put it into circulation as "running cash notes". These notes become the payment as real wealth that is produced from effort. The money lenders sit back and become unbelievably wealthy and powerful class of the society and regarded as the hidden rulers of nations.

In England this system was officially sanctioned in 1694. The William of Orange overthrew the legitimate King James II with the financial backing and plotting of powerful Jewish financiers in Amsterdam. In return he gave the sovereignty of England to a group of financiers by means of a Charter allowing them to call themselves the Bank of England, the Charter for issuing the nation's money. Within minutes of signing the new Bank officials were discussing the form of their "running cash notes." The same system was adopted in every country by a process of Masonic revolution and management.

THE SITUATION TODAY

Nowadays banking has become extremely sophisticated but the hidden and exploiting mechanism behind it remains the same. After a big enquiry, whispered up as much as possible on the corrupt monetary practices end up finally with the Bank of England nationalization in 1946. Just in theory the control on Bank of England passed from a group of private individuals to the British Government. In reality it was not the case as Nationalization only added a thin covering of decency.

The British Treasury, in conjunction with the Bank of England's advisers to the Government, determines how much paper money and coin will be issued each year. This has to accord with the wealth of the nation for that year. But because banknotes and coins only account for a tiny percentage of financial transactions,