Home > This Is What Happens When You Allow Your Country To Become Enslaved To The Bankers

This Is What Happens When You Allow Your Country To Become Enslaved To The Bankers

August 20th, 2012

Michael Snyder: Why are Greece, Spain, Italy, Portugal and so many other countries experiencing depression-like conditions right now?  It is because they have too much debt.  Why do they have too much debt?  It is because they allowed themselves to become enslaved to the bankers.  Borrowing money from the bankers can allow a nation to have a higher standard of living in the short-term, but it always results in a lower standard of living in the long-term.  Why is that?  It is because you always have to pay back more money than you borrowed.  And when you get to the point of having a debt to GDP ratio in excess of 100%, you are basically drowning in debt.  Huge amounts of money that could be going to providing essential services and stimulating your economy are now going to service your horrific debt.  Today, citizens in Greece, Spain, Portugal and Italy are experiencing a standard of living far below what they should be because the bankers have trapped them in endless debt spirals.  Sadly, the vast majority of the people living in those countries have absolutely no idea what is at the root cause of their problems.

The truth is that no sovereign nation on earth ever has to borrow a single penny from anyone.

In theory, there is nothing stopping a government from printing up debt-free money and spending it into circulation.

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But that is not the way our world works.

Instead, our national governments borrow money that has been zapped into existence out of thin air by central banks.

Now what kind of sense does that make?

Why don’t our governments just create the money themselves?

If the government of Greece had been directly issuing debt-free Greek currency all these years, they would have a national debt of zero and they would not be in the middle of a deep depression today.

So why isn’t anyone proposing that they go to such a system?

Instead, everyone is trying to figure out a way that the Greeks can muddle through this depression and keep paying on their unsustainable debts.

Related: More Than 1/2 Of Americans Are At Least Partially Dependent On The U.S. Government

It is such a tragedy what has happened to Greece.  The city of Boston has a larger economy than the entire nation of Greece at this point.

But this is what happens when you allow the bankers to trap your country in debt.  The central banking systems of the world are designed to be endless debt spirals that systematically transfer wealth from the people through the governments and into the hands of the ultra-wealthy.

Just look at what is happening in the United States.  The U.S. national debt is now more than 5000 times largerthan it was when the Federal Reserve was first created.

Greece, Spain, Italy, Portugal and the rest of the nations of the western world did not get into all this debt by accident.

This happened by design.

And we can see what happens when the system starts to unravel by looking at what is happening in Greece and in Spain right now.

The following are 11 things that can happen when you allow your country to become enslaved to the bankers….

#1 At some point nations that are drowning in debt must implement “austerity measures” in an attempt to stay solvent. 

This causes economic slowdown and unemployment skyrockets.  We are seeing this happen in Greece, Spain and a whole bunch of other nations right now.

Over the past four years, the Greek economy has contracted by close to 25 percent.  Just this week it was announced that the unemployment rate in Greece has risen to 23.1 percent.

A year ago it was just 16.8 percent

In Spain, the unemployment rate is even higher.  It has hit 24.6 percent, and some analysts expect it to eventually reach 30 percent.

This would have never happened if these nations had not gotten into so much debt.

#2 Economic progress can actually go backwards in a debt-based system.

In Greece, a very large number of citizens have actually been giving up their cars and have gone back to riding bikes….

The high cost of road tax, fuel and repairs is forcing Greeks to ditch their cars in huge numbers. According to the government’s statistics office, the number of cars on Greek roads declined by more than 40 percent in each of the last two years. Meanwhile, more than 200,000 bikes were sold in 2011, up about a quarter from the previous year.

#3 Your banking system will inevitably melt down at some point.

Every debt bubble eventually bursts, and authorities all over Europe are desperately trying to keep the European banking system from completely imploding.

But despite their efforts, people are pulling money out of banks in southern Europe at a staggering pace.  Just check out the slow motion bank run that is unfolding in Spain….

Capital outflows from Spain more than quadrupled in May to €41.3 billion ($50.7 billion) compared with May 2011, according to figures released on Tuesday by the Spanish central bank.

In the first five months of 2012, a total of €163 billion left the country, the figures indicate. During the same period a year earlier, Spain recorded a net inflow of €14.6 billion.

#4 In all countries with a debt-based system, eventually your taxes will be raised to ridiculous levels.

When the income tax was introduced in the United States back in 1913, the vast majority of Americans were in the 1 percent tax bracket.

Throughout the years there have been countless promises that taxes would be limited, but those promises always end up getting broken.

Even when they give us “tax cuts” with one hand, they usually end up raising taxes ten different ways with the other hand.

In the United States today, we are literally taxed in dozens and dozens of different ways.

Our politicians love to come up with new and inventive ways to tax us without us really even feeling it.

In the end, they are going to take as much away from us as they can possibly get away with.

Just look at what is happening in France. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!

The newly elected socialist president of France says that his party plans to raise the top tax rate in France to 75 percent.

But even though our politicians tax us to death, they still manage to run up gigantic mountains of debt on top of that.

#5 Your currency slowly but steadily becomes worthless.

Most people don’t realize that inflation is a tax.  Every dollar you currently have in the bank is constantly losing value.  That is because in a debt-based system like we have, the total amount of money and the total amount of debt is supposed to keep perpetually expanding.

Since the Federal Reserve was created, the U.S. dollar has declined in value by well over 95 percent.

This did not happen by accident.  Every other major currency around the globe has been steadily declining in value as well.

#6 When things get bad enough, there will be rioting in the streets. 

A few weeks ago, a total of more than a million public employees took to the streets in more than 80 different Spanish cities.  You can view footage of some of the violent clashes with police that took place right here.

#7 When a debt-based economy crashes, money becomes very tight and shortages tend to happen.

Just look at what is happening in Greece.  Medicine shortages have become a tremendous problem.  The following is from a recent Bloomberg article….

Mina Mavrou, who runs a pharmacy in a middle-class Athens suburb, spends hours each day pleading with drugmakers, wholesalers and colleagues to hunt down medicines for clients. Life-saving drugs such as Sanofi (SAN)’s blood-thinner Clexane and GlaxoSmithKline Plc (GSK)’s asthma inhaler Flixotide often appear as lines of crimson data on pharmacists’ computer screens, meaning the products aren’t in stock or that pharmacists can’t order as many units as they need.

“When we see red, we want to cry,” Mavrou said. “The situation is worsening day by day.”

The 12,000 pharmacies that dot almost every street corner in Greek cities are the damaged capillaries of a complex system for getting treatment to patients. The Panhellenic Association of Pharmacists reports shortages of almost half the country’s 500 most-used medicines.

#8 Your population will eventually become so desperate that they will start banding together to loot food and supplies from stores. 

When people have no work and they cannot feed their families they often find themselves doing things that they never imagined that they would do.  Just check out what is happening in Spain right now….

Unemployed fieldworkers and other members of the union went to two supermarkets, one in Ecija (Sevilla) and one in Arcos de la Frontera (Cadiz) and loaded up trolleys with basic necessities. They said that the people were being expropriated and they planned to “expropriate the expropriators”.

The foodstuffs, including milk, sugar, chickpeas, pasta and rice, have been given to charities to distribute, who say they are unable to cope with all the requests for help they receive. Unemployment in the Sierra de Cadiz is now 40%.

#9 If things get bad enough, even essential services may start shutting down.

Authorities in Greece are legitimately concerned that there may be interruptions in the supply of natural gas and electricity.  Suppliers are leaving bills unpaid for extended periods of time, and one day millions of Greeks may wake up to find that the power to their homes has been cut off….

Greece’s power regulator RAE told Reuters on Friday it was calling an emergency meeting next week to avert a collapse of the debt-stricken country’s electricity and natural gas system.

“RAE is taking crisis initiatives throughout next week to avert the collapse of the natural gas and electricity system,” the regulator’s chief Nikos Vasilakos told Reuters.

RAE took the decision after receiving a letter from Greece’s natural gas company DEPA, which threatened to cut supplies to electricity producers if they failed to settle their arrears with the company.

#10 In an economic depression, many people begin to totally lose hope.

An increasing number of parents in southern Europe are facing such desperate situations that they are actually abandoning their babies.

The following is from a recent CNBC article….

According to SOS Villages, a European charity that attempts to help families in financial hardship before abandonment occurs, in the last year alone 1,200 children in Greece and 750 in Italy have been abandoned. That is almost double the 400 children abandoned in Italy a year ago, and up from 114 children abandoned in Greece in 2003.

#11 Just like we saw during the Great Depression of the 1930s, there is a spike in suicides when an economy crashes.

Greece has never seen anything like what is happening now.  The suicide rate has been absolutely soaring.

The following is from a Reuters article back in April….

On Monday, a 38-year-old geology lecturer hanged himself from a lamp post in Athens and on the same day a 35-year-old priest jumped to his death off his balcony in northern Greece. On Wednesday, a 23-year-old student shot himself in the head.

In a country that has had one of the lowest suicide rates in the world, a surge in the number of suicides in the wake of an economic crisis has shocked and gripped the Mediterranean nation – and its media – before a May 6 election.

If you live in the United States, you need to watch what is happening in Europe very closely, because similar conditions will come to the United States soon enough.

Just like Europe, we have allowed ourselves to become enslaved to the bankers, and now we will suffer the consequences.

Sadly, most Americans do not even realize how we got into this mess.  The following is from a recent article by Professor Steven Yates….

It should have been clear that the country—indeed, Western civilization itself—was on the wrong trajectory as governments and central banks, working in tandem, severed ties between their currencies and precious metals, allowing massive credit expansion to run rampant and the national debt to skyrocket—making, e.g., the pseudo-prosperity of the roaring 1990s possible. Nixon had “closed the gold window” on August 15, 1971; our national debt was around $400 billion. Slightly over ten years later, the debt crossed the $1 trillion threshold. Ten years after that, it reached $6 trillion. When George W. Bush left office having been the biggest spending Republican in U.S. history, it had risen to over $11 trillion. Today, under the watch of the catastrophic Obama presidency, by the time this reaches print the national debt might have surmounted $16 trillion with no end in sight.

The United States has accumulated the greatest mountain of debt in the history of the world and it will totally crush us at some point.

Unfortunately, the vast majority of Americans are living paycheck to paycheck and are totally unprepared for the economic chaos that is coming.

One study found that 64 percent of all Americans have less than $1000 in the bank.


Even though we could be on the verge of another global food crisis, most Americans do not have enough food in their homes to last a single month.

Even though the U.S. economy is on the verge of another recession, most Americans are still running out and buying toys that they don’t need and paying for them with credit cards that they should not be using.

If you want to see where we are headed, just look at Greece and Spain.

They are going through economic hell, and we will be joining them soon enough.

Get ready while you can.

Written By Michael Snyder

Michael has an undergraduate degree in Commerce from the University of Virginia and a law degree from the University of Florida law school.   He also has an LLM from the University of Florida law school. Michael has worked for some of the largest law firms in Washington D.C., but now is mostly focus on trying to make a difference in the world.

Economy, Financials

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  1. Ahamburger
    October 27th, 2012 at 22:28 | #1


    Exactly, these countries are in debt because of SOCIALISM! The political class over the last 60 yrs has created a debt based system for social spending. James Warburg wrote a book called the road to hell, everyone should read it.

    The Govt DID try to create money out of thin air Mr. Synder, that’s why there is 16 trillion in public debt in the USA alone. The Federal Reserve returns all profits back to the UST, not to some secret banker cabal. If the debt based system goes that the politicians have created goes, all the bankers lose everything as well. My God, read a book people. :(

  2. OhioRiver
    September 25th, 2012 at 00:06 | #2

    “Sadly, the vast majority of the people living in those countries have absolutely no idea what is at the root cause of their problems.”

    In the USA, in 1963, JFKennedy signed E.O. 11110 to start the dismembering of the Federal Reserve and return money printing back to the Dept. of Treasury. Then, six months later JFK was assassinated & the E.O. was ignored by LBJ & all following presidents.

    Having the DOTreasury printing money meant the USG would not have to pay interest to the Federal Reserve & Americans would be better off.

    It’s time you just read this book cause it’s about Americans taking a stand against federal tyranny. It’s a thriller so I recommend it.


    We could delete the federal deficit by not pay interest to the Federal Reserve & return to the Dept. of treasury again.

  3. Mr Rick Carufel
    September 24th, 2012 at 19:58 | #3

    @Dave The money is owed to those who own the central banks. The hidden trillionaires who actually think they own this world. Names like Rothschild, Hapsburg, Rockefeller, DuPont. Ancient entrenched families that own all the highest level of banks on the planet. They have imposed a system by which they create personal wealth out of thin air. here’s how it works in the US. The federal Reserve banks, which are privately owned, prints whatever amount of money the US Treasury needs. This in turn is loaned to the treasury with interest. So If on a given day there is $300b needed it is sold to the US on credit with compounded interest. So the hidden owners have made a minimum of $300b on a single day that over a 30 year payback period will actually be closer to 700 billion. these are the people that need to be rooted out and this is why most financial institutions need to be outlawed.

  4. skylight
    August 22nd, 2012 at 02:11 | #4

    In reply to the poster above who spoke of aliens,
    have you seen these aliens with your own eyes?

    I think that saying things like that discredits those of us who want to sensibly solve this awful problem.

    The problem isn’t aliens, it is criminally-minded, endlessly greedy psychopaths – just simply BAD PEOPLE, who we only obey because they have the army and police to enforce their so-called ‘legislation’ that ‘legalizes’ their crimes against us 99%.
    This problem is actually quite simple to solve, but it will take some old-fashioned courage from us all. We don’t need to get violent or anything like that – just walk away in great numbers from the hopelessly corrupted system they have invented for us, and start over, creating new communities separate to the existing State. We outnumber then a million to one, and what’s more, many of the police and army will refuse to shoot at unarmed, peaceful dissenters.


  5. skylight
    August 22nd, 2012 at 02:04 | #5

    In reply to the last poster,
    have you seen these aliens with your own eyes?

    I think that saying things like that discredits those of us who want to sensibly solve this awful problem.

    The problem isn’t aliens, it is criminally-minded, endlessly greedy psychopaths – just simply BAD PEOPLE, who we only obey because they have the army and police to enforce their so-called ‘legislation’ that ‘legalizes’ their crimes against us 99%.
    This problem is actually quite simple to solve, but it will take some old-fashioned courage from us all. We don’t need to get violent or anything like that – just walk away in great numbers from the hopelessly corrupted system they have invented for us, and start over, creating news communities separate to the existing State. We outnumber then a million to one, and what’s more, many of the police and army will refuse to shoot at unarmed, peaceful dissenters.


  6. Rick
    August 22nd, 2012 at 01:51 | #6

    Unfortunately, utter choatic bloodshed is what they want…the population of the world is over 7 billion people, and the Georgia Guidestones explain that for a NEW WORLD ORDER you need less than 500 million….that’s a 92 or 93 percent decrease!!

  7. Jack
    August 22nd, 2012 at 01:32 | #7

    If you think few bankers can hold ransom to the entire race so consistently all at the same time with so much precision that the subjects are hopeless to the point of committing suicide….you haven’t digged long enough..

    The bankers are just puppets, the shadow rulers of this world are complete non-human aliens who are ruling and guiding humanity to hell through these puppets for 1000′s of years atleast..

    Aliens don’t rule us, they absolutely, ridiculously rule us to the point that, all things looks natural….we don’t see it coming….99.999% of humanity are sacrificed this way to these gods..Its all about sacrifice …how much you suffer and the pain that counts in the end for them….

    unless at least 40% of human race starts believing in the aliens..there is no freedom for humanity from planet earth…no matter where you go from US to Paraguay to china…They are already there and already devised a plan to enslave you in your new home

  8. Dave
    August 21st, 2012 at 22:47 | #8

    The US owes 16 trillion dollars to whom? To whom are you indebted? Who had 16 trillion in assets to lend you the money? No-one – and obviously no-one. We’re all going to suffer for a generation to repay a debt to some anonymous nobody – a nobody who didnt actually have the money to lend in the first place. Its madness. The system needs a reset. We need to scrap every debt in existence and start again – any one have any ideas as to how to do this without utter chaotic bloodshed?:

  9. August 21st, 2012 at 21:12 | #9

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  10. Ken
    August 21st, 2012 at 16:40 | #10

    …So the sooner EVERYONE in the world is informed of truth, this possibility of interest free money and truly jailing the criminals in charge, the sooner hope and improvements to all life on planet earth will happen and then maybe we can all take a trip to Mars!
    There are ways to do a 180 degrees turn without killing people or land but until we end fractional reserve banking, central banks, interest and corporations, we will always repeat the boom and bust cycle, dialed up by bankers for the profit of bankers.
    The government can create money and spend it on social projects, government business can be processed by privates banks and on an elective process to help banking industry stay competitive, banks could be paid a fee for providing services instead of interest, corporations were invented by banks to socialize losses and privatize profits (that is why in the beginning corporations were mostly towns and cities intending the profits go back into the community)
    A small honest business knows that it lives on it’s reputation and works hard to maintain such a position, it can never dream of becoming ‘too big to fail’. Business thrives in stable, peaceful and cooperative atmospheres; chaotic, insecure and fearful times do not, but some few creating the later can profit from controlling it’s outcome.

  11. Big Al K Ida
    August 21st, 2012 at 16:12 | #11

    “The most sinister and anti-social feature about bank-deposit money is that it has no existence. The banks owe the public for a total amount of money which does not exist. In buying and selling, implemented by cheque transactions, there is a mere change in the party to whom the money is owed by the banks. As the one depositor’s account is debited, the other is credited and the banks can go on owing for it all the time. The whole profit of the issuance of money has provided the capital of the great banking business as it exists today. Starting with nothing whatever of their own, they have got the whole world into their debt irredeemably, by a trick. This money comes into existence every time the banks ‘lend’ and disappears every time the debt is repaid to them. So that if industry tries to repay, the money of the nation disappears. This is what makes prosperity so ‘dangerous’ as it destroys money just when it is most needed and precipitates a slump. There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. An honest money system is the only alternative.” – Frederick Soddy, Nobel Prize winner (Chemistry), 1921

    “You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury. In the colonies, we issue our own paper money. It is called ‘Colonial Scrip’. We issue it in proper proportion to make the goods pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control it’s purchasing power and we have no interest to pay to anyone.”
    - Benjamin Franklin, speaking at the London Parliament

    “The colonies would gladly have borne the little tax on tea and other matters, had it not been that England took away from the colonies their money, which created great unemployment and dissatisfaction. Within a year, the poor houses were filled. The hungry and homeless walked the streets everywhere. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the International Bankers was probably the Prime reason for the Revolutionary War.”
    - Benjamin Franklin, as quoted from his autobiography

    “Your money’s value is determined by a global casino of unprecedented proportions: $2 trillion are traded per day in foreign exchange markets, 100 times more than the trading volume of all the stockmarkets of the world combined. Only 2% of these foreign exchange transactions relate to the “real” economy reflecting movements of real goods and services in the world, and 98% are purely speculative. This global casino is triggering the foreign exchange crises which shook Mexico in 1994-5, Asia in 1997 and Russia in 1998. These emergencies are the dislocation symptoms of the old Industrial Age money system.” – Bernard Lietaer, former Central Banker (Belgium), in his book “The Future of Money”

    “Permit me to issue and control the money of a nation and I care not who makes the laws.”
    - Mayer Amschel Rothschild, founder of the Rothschild international banking dynasty, 1790

    “We are the intruders. We are disturbers. We are subverters. We have taken your natural world, your ideals, your destiny, and played havoc with them. We have been at the bottom of not merely the latest Great War but of nearly all your wars, not only of the Russian but of nearly every other major revolution in your history. We have brought discord and confusion and frustration into your personal and public life. We are still doing it. No one can tell how long we shall go on doing it.” – Marcus Eli Ravage, the authorized Jew biographer for the Rothschild dynasty wrote this in an article in The Century Magazine, January 1928, volume 115, no. 3 pp 346-350

  12. August 21st, 2012 at 11:36 | #12

    This article says: “Why don’t our governments just create the money themselves??” “Why isn’t anyone proposing that they (Greece) go to such a system?”

    The answer is very simple: A combination of bribing, threatening, blackmailing, and killing all those politicians who were too caring and too intelligent to say or do nothing. Bankers and their main shareholders control this world.
    Google: ‘Louis McFadden’ The 3rd assassination attempt succeeded.
    He was by long not the only one.

  13. August 21st, 2012 at 07:27 | #13

    Mr. Snyder is either a tool or a fool for he does not understand money.

    Search out PfMPE. You can’t just print money out of thin air — that is just counterfeiting. Money is a promise to pay.

    When banks make “loans” the “money” is created by the buyer and seller of the note. The bank merely publishes the transaction. A house is real enough and the sweat to pay off a note is real enough, but how much does the bank bring to this deal? Very little and yet they claim interest over the life of the loan.

    There is your culprit, Mr. Snyder — INTEREST. Eliminate that cheat first.

  14. August 21st, 2012 at 06:30 | #14

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