Dear Friend of Radio Liberty,
"Everything predicted by the enemies of banks . . . is now coming to pass. We are to be ruined now by a deluge of bank paper. . . ." 
"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." 
Last month's letter dealt with fiat money. When Diocletian became Emperor of Rome in 284 A.D., he embarked on a series of military campaigns. He financed them by debasing the currency, and introduced wage and price controls to control the resultant inflation. Citizens who violated his decrees faced exile, or death. When inflation increased, Diocletian divided the Roman Empire into two regions, and abdicated.  The eastern region was ruled from Constantinople where gold coins were used; the Byzantine Empire survived until 1282 A.D.  The western region continued to debase its currency; Rome fell in 476 A.D. After the chaos subsided, people bartered their goods and services. Later, when gold and silver coins were reintroduced, monetary stability returned, nations were formed, and the Catholic Church preserved the teachings of the Christian faith.  The foundation of our current monetary system was laid in the twelfth century. John J. Robinson discussed that period in his book, Born in Blood:
"The Templar order was founded in Jerusalem in 1118, in the aftermath of the First Crusade. Its name came from the location of its first headquarters on the site of the ancient Temple of Solomon. Helping to fill a desperate need for a standing army in the Holy Land, the Knights of the Temple soon grew in numbers, in wealth, and in political power." The Templars needed money to finance their activities, so they established banks in major European cities and loaned money.
"As mortgage bankers, the Templars loaned money on income property, often avoiding the ban on usury by taking the revenues of the property until it was redeemed. . . . Perhaps their most famous financial service was the issuance of paper for money. The documents were honored at any Templar commandery and as such might be considered forerunners of checks or sight drafts." 
Jewish and Venetian bankers loaned gold to local residents; the Templars loaned "paper money" redeemable in gold, locally or in distant cities. They were the first "International Bankers."
"The Templars were known to maintain intelligence agents in the principle cities of the Middle East and the Mediterranean coast, and they would necessarily have employed covert means of communication. International financial dealings required total secrecy, naval operations required it to hide shipping information from Moslem or pirate forces, and military administration over two continents would certainly require it." 
The Templars cloaked their activities in secrecy, accumulated vast land holdings, and dominated the European economy. Manly P. Hall was a Satanist. He discussed the source of their wealth and power in his book, Lectures on Ancient Philosophy.
"The Mysteries of Egypt and Persia that had found a haven in the Arabian Desert reached Europe by way of the Knights Templars and the Rosicrucians. The Temple of the Rose Cross at Damascus had preserved the secret philosophy of the Rose of Sharon; the Druses of the Lebanon mountains still retain the mysticism of ancient Syria; . . . From the far places of Irak and the hidden retreats of the Sufi mystics, the Ancient Wisdom found its way into Europe. Was Jacques de Molay burned by the Holy Inquisition merely because he wore the red cross of the Templar? What were those secrets to which he was true even in death? Did his companion knights perish with him merely because they had amassed a fortune and exercised an unusual degree of temporal power?. . . . It was not the physical power of the Templars, but the knowledge which they had brought with them from the East, that the church feared. The Templars had discovered part of the great arcanum; they had become wise in those mysteries which had been celebrated in Mecca thousands of years before the advent of Mohammed; they had read a few pages from the dread book of the Anthropos, and for this knowledge they were doomed to die." 
The Templars accessed the Ancient Wisdom, worshipped Lucifer, and discovered how to "create money out of nothing."  That's the basis of modern banking. I believe our monetary system came from the occult. Can that be verified? I've listed some reasons for my conclusion:
1. James Webb discussed the origin of The Protocols of the Elders of Zion in his book, The Occult Establishment; he died shortly after his third book on the occult was published. He claims French occultists wrote the Protocols and smuggled them into Russia in the late 1890s to promote anti-Semitism, and convince the Russian people "the Jews" were responsible for the world socialist revolution.  The 20th Protocol discussed gold, fiat money, and banking: "You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible." "With us the standard that must be introduced is the cost of working-man power, whether it be reckoned in paper or in wood. . . . Every kind of loan proves infirmity in the State and a want of understanding of the rights of the State. Loans hang like a sword of Damocles over the heads of rulers, who, instead of taking from their subjects by a temporary tax, come begging with outstretched palm of our bankers." 
Gold was the basis of the world monetary system prior to World War II. During the war the United States accumulated most of the world's gold, and sold it to foreign Central Banks after the war ended. They sell small quantities periodically to keep the price down, and to convince the public gold is an archaic relic of the past. Currencies aren't backed by gold today, so we must use fiat money, and let the Central Banks control our economy.
2. When I went through Colonel House's papers at Yale University, I found a copy of the Protocols of the Elders of Zion; Colonel House was involved in the occult. 
3. Most international banking families have strong ties to the occult. The Rothchilds were high-level Masons, J. P. Morgan was involved in astrology, and the Rockefellers and their Foundation financed socialism, communism, environmentalism, occultism, and the United Nations. 
4. Bill Schnoebelen is a frequent guest on Radio Liberty. He claims Manly P. Hall inducted him into Satanism, and told him that the Rothchilds, many Rockefellers, and other international bankers worship Satan. 
5. The Chairman of our Central Bank almost always comes from the Council on Foreign Relations which is a front for Cecil Rhodes' occult movement. 
Professor Quigley discussed international banking in his book, Tragedy and Hope: A History of The World In Our Time; it was published five years before President Nixon took the world off the Gold Standard:
"Credit had been known to the Italians and Netherlanders long before it became one of the instruments of English world supremacy. Nevertheless, the founding of the Bank of England by William Paterson and his friends in 1694 is one of the great dates in world history. For generations men had sought to avoid the one drawback of gold, its heaviness, by using pieces of paper to represent specific pieces of gold. Today we call such pieces of paper gold certificates. Such a certificate entitles its bearer to exchange it for its piece of gold on demand, but in view of the convenience of paper, only a small fraction of certificate holders ever did make such demands. It early became clear that gold need be held on hand only to the amount needed to cover the fraction of certificates likely to be presented for payment; accordingly, the rest of the gold could be used for business purposes, or, what amounts to the same thing, a volume of certificates could be issued greater than the volume of gold reserved for payment of demands against them. Such an excess volume of paper claims against reserves we now call bank notes." "In effect, this creation of paper claims greater than the reserves available means that bankers were creating money out of nothing. . . ." (underlining added) 
The Federal Reserve System is a privately owned Central Bank; it was created to enrich bankers and impoverish people. Fractional reserve banking lets banks loan 5-10 times their deposits, secure loans with property, and charge interest on money they created out of nothing. The system is based on debt. If people don't borrow, there's no debt; if there is no debt, there is no money. Fiat money is created in two ways:
(1) The U.S. Treasury prints paper money and gives it to the Federal Reserve Bank which uses it to buy T-Bills. The Treasury spends the money and puts it in circulation.
(2) Banks create money based on debt; it is lent into circulation.
If you want to understand our monetary system, read The Creature From Jekyll Island. We carry the book. 
Professor Quigley explained modern banking:
"In 1852 Gladstone, chancellor of the Exchequer (and later prime minister - ed), declared, 'The hinge of the whole situation was this: the government itself was not to be a substantive power in matters of Finance, but was to leave the Money Power supreme and unquestioned.'" [19
] "The power of the Bank of England and of its governor was admitted by most qualified observers. In January, 1924, Reginald McKenna, who had been chancellor of the Exchequer in 1915-1916 as chairman of the board of the Midland Bank told its stock holders: 'I am afraid the ordinary citizen will not like to be told that the banks can, and do, create money. . . . And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hands the destiny of the people.'" 
Central Banks control their governments:
". . . the powers of financial capitalism had another far-reaching aim, 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 arrived at in frequent private meetings and conferences. . . . Each central bank . . . sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world." 
Fiat money creates temporary prosperity, but eventually impoverishes the people. When Phillipe II was regent of France in 1716, the government was insolvent because it spent more money than it received in taxes. John Law, a Scottish financier, went to France and convinced Phillipe II he could solve his problem by issuing bank notes backed by royal revenues, landed securities, and accepted in payment of taxes.  The Encyclopedia Americana describes what happened:
"Law's bank, known at first as the Banque Generale . . . was the first bank founded in France, and its notes soon rose to a premium. In 1717, Law established a company for the development of Louisiana which had the privilege of exclusive trade on the Mississippi. . . . He . . . was made director general of French finances (in 1720); but in that year the combined bank and company failed, having issued paper far beyond the necessary security, for which the regent appears to have been mainly responsible . . . . Law was driven from France and his estates were confiscated." 
James Dines discussed the tragedy:
"The paper money Law created was first backed by confiscated church lands, later by French land in Louisiana, and finally by hot air from politicians' lungs. People felt they could trust this land-backed paper, but when the King needed more money, he had Law print more. Louis XV (the King) thus impoverished the French middle class, which eventually ended his family's reign during the subsequent Revolution. This mishandling of gold, a true precipitant of the French Revolution, was washed away by blood." 
During the American Revolution, the Continental Congress issued "Continental money" to finance our army. The Encyclopedia Americana covered what happened:
"It is the indisputable lesson of history that sooner or later . . . all paper money declines in quality . . . credit money becomes fiat money, and fiat money becomes the epitome of worthlessness. Even to this day, the "not worth a Continental" term which arose from the extreme depreciation of the Continental currency of revolutionary times, indicates complete lack of value. The final destruction of value, of course, comes from the excessive issue of the paper 'money.'" 
After the French Revolution, the National Assembly issued paper money backed by land confiscated from the Catholic Church. The new currency brought immediate prosperity, the stock market boomed, everyone had a job, and prices soared. Within a few months officials had to issue more currency to maintain the economy. That worked for a time, but within five years the French currency was worthless, and the middle class was impoverished again. People demanded a leader who could restore order and a sound monetary system. They chose Napoleon Bonaparte. 
Thomas Jefferson understood fractional reserve banking when he wrote:
"Everything predicted by the enemies of banks . . . is now coming to pass. We are to be ruined now by a deluge of bank paper, as we were formerly by the old Continental paper. It is cruel that such revolutions in private fortunes should be at the mercy of avaricious adventurers. . . . Prudent men must be on their guard in this game of Robin's alive, and take care that the spark does not extinguish in their hands. I am an enemy to all banks discounting bills or notes for anything but coin. But our whole country is so fascinated by this Jack o'lantern wealth, that they will not stop short of its total and fatal explosion." (This took place four years later) 
Forty years later, Daniel Webster warned:
"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." 
President Woodrow Wilson wrote:
"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." 
I have a copy of a letter President Roosevelt wrote to Colonel House on November 21, 1933. He noted:
"The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned government ever since the days of Andrew Jackson - and I am not wholly excepting the Administration of W.W." (Woodrow Wilson) 
When President Nixon took the United States off the Gold Standard on August 15, 1971, the Dow Jones Industrial Average (DJIA) was 898, our federal debt was about $600 billion, our total debt was $1.753 trillion, our Gross Domestic Product (GDP) was $1.125 trillion, our trade deficit was $3 billion, and our budget deficit was $25.3 billion. 
On December 2, 2002, the DJIA was 8,645, our federal debt was $6.2 trillion, our total debt was $30.984 trillion, our GDP was $10.503 trillion, our trade deficit was $487 billion, and our budget deficit was $185 billion; if we include the $250 billion taken from the Social Security fund and the Medicare fund, our current deficit is almost $500 billion.  That's only part of the story. A recent article in The Wall Street Journal notes that the federal government owes an additional $20 trillion that hasn't been budgeted:
"A top U.S. Treasury official last week likened the U.S. government to a profligate insurance company that can't afford to make good on promises it has made. The cost of benefits the government vows to pay in the future exceeds projected tax revenues by roughly $20 trillion, he said. And that's no typo. . . . 'Think of the federal government as a gigantic insurance company with a sideline business in national defense and homeland security. . . . This particular insurance company, it turns out, has made promises to its policyholders that have a current value $20 trillion or so in excess of the revenues that it expects to receive'. . . ." 
Our current debt is over $50 trillion, and growing. How will it be funded? The FED has two options; (1) They can print money, and destroy our currency, or (2) let the economy collapse. They will print money. The Wall Street Journal reports:
"The shake-up of the Bush administration's economic team was intended to help push through a new growth package expected to include measures to boost the struggling economy that could cost up to $300 billion over 10 years." 
Why are we going to war with Iraq? The conflict will cost $100-$200 billion, and stimulate the economy. The Wall Street Journal reports:
"With a weak economy, temporary war spending would be welcome. In fact, the dirty truth is that war, if it goes as planned, is a great stimulus package. It would pump needed money into the economy and remove the uncertainty that has been holding down business investment. If lower oil prices emerge at war's end, that'll be icing on the cake." 
Forty-eight states have budget deficits. California, the 5th largest economy in the world, has a $34.5 billion deficit. Germany's economy is contracting, Japan's economy has collapsed, Venezuela is paralyzed by general strikes, Argentina is bankrupt, and Brazil can't pay its foreign loans. Since the U.S. guaranteed the loans, tax payers will compensate J.P. Morgan, and other banks, if Brazil defaults.
Many major industries have moved, or are moving, their factories to other countries; telemarketing, answering services, and other jobs are going overseas. The FED, Fannie Mae and Freddie Mac tried to counter the deflationary spiral by infusing $5 trillion into our economy during the past three years. In July 1999, our "total debt" was $25,695 trillion. In December 2002, our "total debt" was $30,984 trillion, and our economy is still contracting. 
How can you protect yourself and your assets? Get out of the stock market, and get out of debt. Purchase precious metals, invest in gold and silver stocks, buy a supply of food and medical supplies, and prepare spiritually for the difficult times that lie ahead. Continue to warn people, and get ready to help your neighbors when the crisis comes.
Although the Christmas season is over, never forget the message it brings:
"The greetings and carols have ended,
The glad celebrations have ceased
With the angels ascended to heaven,
The Wise Men returned to the East.
But the light that once shone on a manger
Still brightens the world from afar,
And listening hearts still hear angels,
And wise men still follow a star." 
Look upward, for our Lord is the source of our strength.
Thank you for your support and your prayers.
1. Benjamin Catchings, The Master Thoughts of Thomas Jefferson, The Bar of New York City, 1907,
2. James Dines, The Invisible Crash, James Dines & Company, Inc., Belvedere, CA , 2003, p. 8.
3. "Diocletian," The Encyclopedia Americana, International Edition, 1966, Volume 9, p. 132.
4. Dines, op cit., p. 7.
6. John Robinson, Born in Blood, M. Evans & Company, New York, 1989, p. xiii.
7. Ibid, p. 75.
8. Ibid, p. 77.
9. Manly P. Hall, Lectures On Ancient Philosophy, Philosophical Research Society, Inc., Los Angeles, 1984, p. 438.
10. Carroll Quigley, Tragedy and Hope: A History of the World In Our Time, Macmillan, New York, 1966, p. 48. Quigley reveals bankers create "money out of nothing."
11. James Webb, The Occult Establishment, Open Court, La Salle, Illinois, 1946-80, pp. 213-245.
12. Victor Marsden, The Protocols of the Meetings of the Learned Elders of Zion, Emissary Publications, Clackamas, Oregon, 1934, p. 214. I suggest you avoid the document.
13. Copies are available to researchers.
14. John Daniel, Scarlet and the Beast, Volume I, JKI Publishing , Tyler, TX, p. 937: See also, Corrine McLaughlin et al, Spiritual Politics, Ballantine Books, New York, 1994, p. 278.
15. Personal communication with William Schnoebelen.
16. Carroll Quigley, op cit., p. 951-952.
17. Ibid, p. 48.
18. G. Edward Griffin, The Creature From Jekyll Island, American Media, Westlake Village, CA, pp. 168-9.
19. Carroll Quigley, op cit., p. 61.
20. Ibid, p. 325.
21. Ibid, p. 324.
22. Encyclopedia Americana, Volume 17, op cit., p. 109.
24. Dines, op cit., p. 8.
25. Encyclopedia Americana, Volume 19, p. 347.
26. Dines, op cit., p. 8.
27. Catchings, op cit., p. 169.
28. Dines, op cit., p. 8.
29. Woodrow Wilson, The New Freedom, Doubleday, Doran & Company, Inc., Garden City, New York, 1913, pp. 13-14.
30. Dennis Cuddy, Secret Records Revealed, Hearthstone Press, Oklahoma City, OK, 1994, p. 53.
31. FED statistics 1920-2002: copies available to researchers.
33. David Wessel, "U.S. Promises Are $20 Trillion in the Hole," The Wall Street Journal, Nov. 20, 2002, p. A2.
34. John McKinnon, "White House Plans $300 Billion Stimulus Package for Economy," The Wall Street Journal, Dec 9, 2002, p. A1.
35. Alan Murray, "Biggest Job Facing Bush's New Advisers: Win the Recovery," The Wall Street Journal, Dec. 10, 2002, p. A4.
36. FED Statistics, op cit.
37. The Afterglow, by Ellis Rowsey.