Guernsey is
an island state located among the British Channel Islands about 75 miles south
of Great Britain. In 1816 its sea walls
were crumbling, its roads were muddy and only 4 1/2 feet wide. Guernsey's debt was 19,000 pounds. The island's annual income was 3,000 pounds
of which 2,400 had to be used to pay interest on its debt. Not surprisingly, its residents were leaving
Guernsey and there was little employment.
Then the
government of Guernsey created and issued new, interest-free, government-issued currency
worth 6,000 pounds. Some 4,000
pounds were immediately used to start the repairs of the sea walls. In 1820, another 4,500 pounds of interest-free
government currency were issued and also put to work. In 1821, yet another 10,000; in 1824, 5,000; in 1826, 20,000. By 1837, 50,000 pounds of interest-free government
notes ("greenbacks") had been issued, interest free, for the primary use of
projects like sea walls, roads, the marketplace, churches, and colleges. This sum more than doubled the island's money
supply during this thirteen year period, but there was no inflation. In the year 1914, as the British restricted
the expansion of their money supply due to World War I, the people of Guernsey
commenced to issue another 142,000
pounds of interest-free, government-created money, over the next four years,
and never looked back. By 1958, over
542,000 pounds of this kind of money had been issued, all without inflation
and without borrowing from private bankers.
In 1990
there were $13 million worth of interest-free government-issued notes in
circulation. A visitor to the island
that year later wrote:
"I returned
from Guernsey last weekend. It is a
fascinating little island. There are
about 60,000 permanent residents on the island.
The average family owns 3.3 cars,
their unemployment rate is zero and their standard of living is very high. There is no public debt. Instead, there is a surplus of public funds
which earn interest. The Guernsey
Treasury increased the money supply of the island by 40% in the last three-year
period, and this increase did not cause
any inflation. The price for a
gallon of gasoline in England translates to about $5US, whereas the price in
Guernsey is about $2US. Contrary to the
teachings of current economics in all higher institutions, inflation is not necessarily
related to the volume of money in circulation but rather to the size of the commercial debt."
What you
have just read is an edited, expanded and clarified excerpt from this article. None of its facts or statistics were changed
in the process of rewriting this excerpt.
"I care
not what puppet is placed on the throne of England to rule the Empire upon
which the sun never sets. The man that
controls Britain's money supply, controls the British Empire. And I control the money supply."
--said by a fabulously wealthy London financier who was one
of the founders of an international and parasitic banking dynasty that has
surreptitiously sucked our blood for a hundred years.
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