Few obtained satisfaction in their work. They were given a reasonable wage, but they lost their identity. They became small cogs in a giant machine.
There was no room for personal initiative, little recognition for effort, their income was fixed and advancement came only when a superior retired or died.
In desperation, the governors decided to seek Fabian’s advice. They considered him very wise and he seemed to know how to solve money matters. He listened to them explain all their problems, and finally he answered, “Many people cannot solve their own problems – they need someone to do it for them. Surely you agree that most people have the right to be happy and to be provided with the essentials of life. One of our great sayings is “all men are equal” – is it not?”
Well, the only way to balance things up is to take the excess wealth from the rich and give it to the poor. Introduce a system of taxation. The more a man has, the more he must pay. Collect taxes from each person according to his ability, and give to each according to his need. Schools and hospitals should be free for those who cannot afford them …”
He gave them a long talk on high sounding ideals and finished up with, “Oh, by the way, don’t forget you owe me money. You’ve been borrowing now for quite some time. The least I can do to help, is for you to just pay me the interest. We’ll leave the capital debt owing, just pay me the interest.”
They went away, and without giving Fabian’s philosophies any real thought, they introduced the graduated income tax – the more you earn, the higher your tax rate. No one liked this, but they either paid the taxes or went to jail.
Merchants were forced once again to raise their prices. Wage earners demanded higher wages forcing many employers out of business, or to replace men with machinery. This caused additional unemployment and forced the Government to introduce further welfare and handout schemes.
Tariffs and other protection devices were introduced to keep some industries going just to provide employment. A few people wondered if the purpose of the production was to produce goods or merely to provide employment.
As things got worse, they tried wage control, price control, and all sorts of controls. The Government tried to get more money through sales tax, payroll tax and all sorts of taxes. Someone noted that from the wheat farmer right through to the housewife, there were over 50 taxes on a loaf of bread.
“Experts” arose and some were elected to Government, but after each yearly meeting they came back with almost nothing achieved, except for the news that taxes were to be “restructured”, but overall the total tax always increased.
Fabian began to demand his interest payments, and a larger and larger portion of the tax money was being needed to pay him.
Then came party politics – the people started arguing about which group of Governors could best solve the problems. They argued about personalities, idealism, party labels, everything except the real problem. The councils were getting into trouble.
In one town the interest on the debt exceeded the amount of rates which were collected in a year. Throughout the land the unpaid interest kept increasing – interest was charged on unpaid interest.
Gradually much of the real wealth of the country came to be owned or controlled by Fabian and his friends and with it came greater control over people. However, the control was not yet complete. They knew that the situation would not be secure until every person was controlled.
Most people opposing the systems could be silenced by financial pressure, or suffer public ridicule. To do this Fabian and his friends purchased most of the newspapers, T.V. and radio stations and he carefully selected people to operate them. Many of these people had a sincere desire to improve the world, but they never realized how they were being used. Their solutions always dealt with the effects of the problem, never the cause.
There were several different newspapers – one for the right wing, one for the left wing, one for the workers, one for the bosses, and so on. It didn’t matter much which one you believed in, so long as you didn’t think about the real problem.
Fabian’s plan was almost at its completion – the whole country was in debt to him. Through education and the media, he had control of people’s minds. They were able to think and believe only what he wanted them to.
After a man has far more money than he can possibly spend for pleasure, what is left to excite him? For those with a ruling class mentality, the answer is power – raw power over other human beings. The idealists were used in the media and in Government, but the real controllers that Fabian sought were those of the ruling class mentality.
Most of the goldsmiths had become this way. They knew the feeling of great wealth, but it no longer satisfied them. They needed challenge and excitement, and power over the masses was the ultimate game.
They believed they were superior to all others. “It is our right and duty to rule. The masses don’t know what is good for them. They need to be rallied and organized. To rule is our birthright.”
Throughout the land Fabian and his friends owned many lending offices.
True, they were privately and separately owned. In theory they were in competition with each other, but in reality they were working very closely together. After persuading some of the Governors, they set up an institution which they called the Money Reserve Center. They didn’t even use their own money to do this – they created credit against part of the money out of the people’s deposits.
This Institution gave the outward appearance of regulating the money supply and being a Government operation, but strangely enough, no Governor or public servant was ever allowed to be on the Board of Directors.
The Government no longer borrowed directly from Fabian, but began to use a system of I.O.U.’s to the Money Reserve Center. The security offered was the estimated revenue from next year’s taxes. This was in line with Fabian’s plan – removing suspicion from himself to an apparent Government operation. Yet, behind the scenes, he was still in control.
Indirectly, Fabian had such control over the Government that they were forced to do his bidding. He boasted, “Let me control the nation’s money and I care not who makes its laws.” It didn’t matter much which group of Governors were elected. Fabian was in control of the money, the life blood of the nation.
The Government obtained the money, but interest was always charged on every loan. More and more was going out in welfare and handout schemes, and it was not long before the Government found it difficult to even repay the interest, let alone the capital.
And yet there were people who still asked the question, “Money is a man-made system. Surely it can be adjusted to serve, not to rule?” But these people became fewer and their voices were lost in the mad scrabble for the non-existent interest.
The administrations changed, the party labels changed, but the major policies continued. Regardless of which Government was in “power”, Fabian’s ultimate goal was brought closer each year. The people’s policies meant nothing. They were being taxed to the limit, they could pay no more. Now the time was ripe for Fabian’s final move.
10% of the money supply was still in the form of notes and coins. This had to be abolished in such a way as not to arouse suspicion. While the people used cash, they were free to buy and sell as they chose – they still had some control over their own lives.
But it was not always safe to carry notes and coins. Checks were not accepted outside one’s local community, and therefore a more convenient system was looked forward to.
Once again Fabian had the answer. His organization issued everyone with a little plastic card showing the person’s name, photograph and an identification number.
When this card was presented anywhere, the storekeeper phoned the central computer to check the credit rating. If it was clear, the person could buy what he wanted up to a certain amount.
At first people were allowed to spend a small amount on credit, and if this was repaid within a month, no interest was charged. This was fine for the wage earner, but what businessman could even begin? He had to set up machinery, manufacture the goods, pay wages etc. and sell all his goods and repay the money. If he exceeded one month, he was charged 1.5% for every month the debt was owed.
This amounted to over 18% per year.
Businessmen had no option but to add the 18% onto the selling price. Yet this extra money or credit (the 18%) had not been loaned out to anyone. Throughout the country, businessmen were given the impossible task of repaying $118 for every $100 they borrowed – but the extra $18 had never been created at all.
Yet Fabian and his friends increased their standing in society. They were regarded as pillars of respectability. Their pronouncements on finance and economics were accepted with almost religious conviction.
Under the burden of ever increasing taxes, many small businesses collapsed. Special licenses were needed for various operations, so that the remaining ones found it very difficult to operate. Fabian owned and controlled all of the big companies which had hundreds of subsidiaries.
These appeared to be in competition with each other, yet he controlled them all. Eventually all competitors were forced out of business. Plumbers, panel beaters, electricians and most other small industries suffered the same fate – they were swallowed up by Fabian’s giant companies which all had Government protection.
Fabian wanted the plastic cards to eliminate notes and coins. His plan was that when all notes were withdrawn, only businesses using the computer card system would be able to operate.
He planned that eventually some people would misplace their cards and be unable to buy or sell anything until a proof of identify was made. He wanted a law to be passed which would give him ultimate control – a law forcing everyone to have their identification number tattooed onto their hand. The number would be visible only under a special light, linked to a computer. Every computer would be linked to a giant central computer so that Fabian could know everything about everyone.
The story you have read is, of course, fiction. But if you found it to be disturbingly close to the truth and would like to know who Fabian was in real life, a good starting point is a study on the activities of the English goldsmiths in the 16th & 17th centuries.
Money is NOT a commodity, it is a system of debit-credit bookkeeping – nothing more.
About the author:
This story was written by Larry Hannigan in 1971 – The sole purpose is to explain the simple maths of reality and the current Banking System – that is – 100 plus NOTHING does NOT equal 105 – and that charging interest on something that is created out of nothing, makes it impossible to repay, giving great power to those who do create money out of nothing – ie the Banks.
It will look like this: Give Me The Earth Plus 5% – Part III