The three pillars of Evil

Book : Satanic Finance
Writer : A.Riawan Amin
Publisher : Celestial publishing
Focus on : Chapter 1 The three pillars of Evil

I bet most of us including those who work in financial area are not aware about this , or maybe, they aware but keep it as a secret since they earn benefits from this system. or some group of 'people' are trying hard to hush up this thing so that the society remain unknown

The three pillars of evil' is a figurative phrase to the systems in financial world. The pillars mean that this systems work simultaneously as a one effective system that we call it Capitalism and run by the Bank!.

The pillars are :
1.Fiat money
2.Reserve fractional requirement (RFR)
3.Interest

1. Fiat Money, type of currency issued by governments as legal tender, the value of which is based solely on decree or law rather than on actual coin or precious-metal reserves (called specie), and the redemption of which is not guaranteed by the government. Such money was issued in quantity in the United States during the American Revolution and during the American Civil War. The Civil War currency, known colloquially as greenbacks, was made redeemable in specie by the Specie Resumption Act of 1875.

Near the end of World War II (1939-1945) most of the Allied nations joined together in a conference held at Bretton Woods, New Hampshire, to set up a new international monetary system, replacing the international gold standard that had collapsed during the Great Depression. The conference also provided for the establishment of the International Monetary Fund (IMF). The U.S. dollar played a key role in the new system, becoming, in effect, the world’s currency. This was true, first, because all IMF members defined the value of their own currencies in terms of the dollar and, second, because the United States agreed to convert all dollars held by foreign governments into gold on demand and at the exchange rate agreed on when the IMF was established. Officially, this meant that the world was on a “gold exchange standard” since governments could change their currencies into gold via the U.S. dollar. (35 US Dollar equal to 1 ounce of Gold)

On December 18, 1971, the major nations of the world signed the Smithsonian Agreement, so named because it was worked out in a conference held at the Smithsonian Institution in Washington, D.C. President Richard M. Nixon called it ‘the most significant monetary agreement in the history of the world'. The agreement did bring to a close a four-month period of currency floats that had begun on August 15, 1971, when Nixon unilaterally ended the Bretton Woods system by cutting the tie of the U.S. dollar to gold for international purposes.This closing of the “gold window” effectively ended all ties between the U.S. dollar and either gold or silver. Since then the United States has had a fully managed currency system, one with no metallic base whatsoever.

2. Reserve fractional requirement is policy apply by the government to any bank that operate within the country. The policy enforced bank to have minimum fraction of the money stored by the depositor as reserve. The reserve fractional requirement usually below 100%, its why they call it fractional. For example If Bank A RFR is 10%, this mean, if deposit in Bank A is RM100, the bank is only obligate to have minimun RM10 as a reserve. The remaining 90% (RM90) bank can offer it as a loan to those who need it. Logically there are no problems in this policy, BUT practically this policy make the Bank one of the agent that have influence in 'Money supply'. Bank also played part in "issuing" money. Just imagine if the deposit in the bank is RM100,000,000 and the RFR is just 10%. How much bank can 'produce' money from that?.Bear in mind that money supply has big influence in economic stability. This i will explain later.

3. Interest. When the bank loan some money to the borrower they charged it. This in what we call Interest. The secular capitalist make an excuse claiming that everything have a price. Price of money or capital is necessary for the lose of opportunity to gain profit when lending their money to other.

What happen when this 3 pillar works simultaneously, the answer i quoted from the economist Joseph A schumpeter " Economic progress in capitalist society means turmoil ".

Let me explain in simple way. To attain stability in economy, the economist usually refer to 'equation of exchange'

MV = PY

M: money supply
V: velocity of money distribution
P: price of the output
Y: real output (quantity goods or services)

When the bank 'creating' fiat money by multiplying deposit (RFR+interest), the value of M will increase!,let assume the value of V are equal. The price output (P) and the quantity output(Y) must also rise in order prevent economic collapse. If the quantity of output cannot compensate the price of goods will increase. This phenomena is Inflation (money >> goods).

This is what happen in southeast asia economic crisis 1997. Most of the country in this region suffer a disastrous economic meltdown which until now irreparable. And now 2008/9 it occur again involving the whole region in world, Yet "someone" make huge profit from this catastrophe.

“Capitalist society” is an arena where individuals compete with one another under very harsh and ruthless conditions just like that described by Darwin, where only the "strong" survive, where the weak and powerless are crushed and eliminated.

- Origin of Banking -

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