Ireland Can Be Prosperous And Debt Free – Without The Banksters!

by Gabriel Donohoe

The world’s economy is in a state of chaos because of the unbridled greed of bankers. Their recklessness and deception has brought many economies to the brink of ruin, including our own.

But now, because of unprecedented public scrutiny, people are beginning to uncover a banking secret so astonishing, so simple, and so brazen that it takes their breath away. It is a secret that the powerful moguls of banking have assiduously kept from the public for centuries.

The secret?…

Banks don’t lend hard cash from their vaults as most people think, neither their own money nor their depositors’ money – they just create new money out of thin air!
“The modern day banking system manufactures money out of nothing,” said Sir Josiah Stamp, Director of the Bank of England, 1928-41. “The process is perhaps the most astounding piece of sleight of hand that was ever invented…”

This type of monetary magic is known as the Fractional Reserve System which allows banks to create, lend out, and collect interest on money that didn’t previously exist. This is done with the full knowledge and complicity of governments. Over the years some courageous politicians have opposed the system but they invariably ended up silenced or murdered, including three U.S. presidents.

But just how do the banks create money out of nothing?

In days of old, when gold was the currency of barter, people deposited their gold in the local goldsmith’s vault for safekeeping. The goldsmith gave them paper receipts or claim cheques which, because of their convenience, were freely exchanged for goods and services in the marketplace.

Whenever the goldsmith loaned out his own gold the borrower usually preferred to accept a claim cheque instead, for ease of handling. Goldsmiths’ claim cheques were then universally accepted and traded.

But greed would get the better of the goldsmith and he soon began to lend out and charge interest on claim cheques issued against his depositors’ gold, without their knowledge. When the depositors eventually found out what he was up to, he was forced to pay them part of the interest.

Then it dawned on the goldsmith that no one but himself knew how much gold was in his vault so he began creating claim cheques for gold that wasn’t even there. He knew there was little danger in being caught out because people never came in all at the same time to withdraw their gold. Soon he was making a huge fortune.

This was the foundation of the banking system as we know it today.

In 1694, the modern era of lending began when the newly formed Bank of England received a Royal Charter of Fractional Lending with a ratio of 2 to 1. This meant that the Bank could lend out twice as much money as its own shareholders had actually invested in the business.

But greed prevailed and the ratio was soon pushed out to 9 to 1. Banks could then lend out nine times as much as their shareholders had placed on deposit with the Central Bank. Later it would go to 20:1, 30:1, and beyond.

The Fractional Reserve System worked like this…

All banks in the U.K. worked within a system controlled by the privately owned Bank of England – the Central Bank. Operating on a ratio of, say, 9:1, each bank needed to deposit with the Central Bank only one ninth of the money it wanted to lend its customers. Therefore, for every £1,111 a bank had on deposit with the Central Bank it could create and issue a loan of £10,000, without touching its ‘power money’ on reserve at the Central Bank.

And it gets better… Whenever a borrower received this newly created loan money of £10,000 he would pay it to a creditor for goods or services he had purchased. The creditor would then deposit it in his U.K. bank which was now empowered to divide the £10,000 by the reserve ratio and create 90% of the amount, £9,000, as further new loan money. When this £9,000 was then loaned out to a different borrower and deposited by another creditor in yet another bank, that bank too could then create a further 90%, or £8,100, in new loan money. And so on, and so on.

This could go on through the central banking loop until almost £100,000 was created. Imagine that! Charging interest on almost £100,000 of electronically created money with an initial untouched investment of £1,111.

Because all banks worked together under the control of the Central Bank the system worked as if it all happened within a single bank. This was all made possible by the government allowing banks to provide loans and pay debts in a country’s paper fiat currency, made legal tender by government decree. A government also compelled businesses and individuals to use this fiat currency – and no other – to discharge debt.

To clarify a little, let’s say you get a mortgage from your bank for €500,000. The bank does not give you €500,000 of its own money nor does it give you €500,000 of depositors’ funds. It simply keys in a new account in your name as bank credit, thereby creating €500,000 that didn’t previously exist. Hey presto!

Borrowers are only given such loans when they sign a Pledge of Indebtedness to a bank, backed by an asset like a house or a car or whatever. This is the only thing of value in the whole transaction. Without this Pledge of Debt banks have nothing to lend. In other words, banks are using your asset and your Pledge of Debt to create large profits for themselves.

Our entire economy is now based on debt. The more money people borrow, the more money will be in circulation. If people stopped borrowing, or if everyone paid off their debts at the same time, there would be no money in circulation and the economy would collapse.
Banks only create the principal out of nothing, not the interest. Somehow, the interest has to be paid out of the same pool as the principal, an apparently impossible task.

For example, a debt pool of a newly created billion Euro, with interest over time, would need to be repaid as several billion Euro. The only way borrowers can do this is to keep borrowing more so that there will always be an increasing amount of debt money in circulation.

In this way, we can never get out of debt. Debt can only grow larger and larger and spiral into a ever-growing mountain. We borrow more and more and try to catch up, but we never will. It is impossible.

Another little-known reality is that most central banks are privately owned or controlled, even though they cleverly give the impression that they belong to the State. This means that their huge profits go to private bankers and not to the government or to taxpayers.

When governments borrow money, they issue bonds. These bonds are purchased by the Central Bank (Federal Reserve in the U.S.) or by commercial banks who pay the government with money they have just created out of nothing. Lenders usually regard their loans as risk-free because debtor governments can levy taxes on their citizens to make repayments and are most unlikely to default.

Why don’t governments print money instead of bonds? Bonds allow the banks to make huge profits and pass on the costs to the taxpayers. By printing its own money a government can by-pass the banks and create debt-free and interest-free money which would remove a huge burden from the taxpayers. According to Thomas Edison, if a government can issue a dollar bond it can issue a dollar bill. What makes one good makes the other good also. Both are backed by the full Faith and Credit of the U.S. Government.

“I have never yet had anyone who could, through their use of logic and reason, justify the Federal Government borrowing the use of its own money…[The people] will actually blame…Congress for sitting idly by and permitting such an idiotic system to continue.” Wright Patman, Chairman, [U.S.] Committee on Banking and Currency, 1963-75.

The U.S. Federal Reserve is a privately owned Central Bank. It is not Federal and does not have any reserves. It is believed to be owned by a covert group of private international bankers and was set up by stealth on December 23rd, 1913, when most congressmen had left Washington for the Christmas holidays. The Federal Reserve Act was then voted on and passed without opposition.

President Woodrow Wilson (1913-21) would later lament, “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit…[We are] no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

But now the jig is up.

People are beginning to see that they’ve been duped. However, on the bright side, the current financial crisis now presents a gigantic opportunity. People can see that by eliminating the moneychangers, i.e., the central banks, and printing their own money, entire nations can quickly become debt free and prosper as never before. By printing and issuing its own interest-free money a government can work to benefit its citizens, not the bankers.

Abraham Lincoln, after turning down bankers’ demands for up to 36% interest on war loans, printed almost 450 million dollars of interest-free government ‘greenbacks’ to fund the Union Army in the Civil War. It worked so well that the bankers became infuriated. Here is an astonishingly candid excerpt from an editorial in the London Times in 1865…

“If this mischievous financial policy, which has its origin in North America, shall become endurated [sic] down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”

Lincoln intended to implement his new financial system after the War but was assassinated only weeks into his second term.

Central banks exert tremendous power and control. Credit crunches can be caused by central banks calling in loans and refusing to issue new loans. In such a scenario stocks, shares, and property can be snapped up for a fraction of its value. Milton Friedman, Nobel Prize winning economist said, “The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one third from 1929 to 1933.”

And Senator Barry Goldwater (R-AZ) said, “The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and… manipulates the credit of the United States.”

But today, as we approach economic and financial meltdown, we need a new system. We need to think outside the box. This calls for revolution and innovation. Our wretched politicians are unable or unwilling to innovate – but we, the people, must become the driving force.

A government can and should issue its own money. It can do this without incurring interest charges. Abraham Lincoln did it with amazing success and economy. Why borrow money and pay exorbitant interest to a private bank?

The American colonists printed their own money before the Revolution – it was called Colonial Scrip. It was debt-free paper money and facilitated the smooth exchange of goods and services. It was backed neither by gold nor silver and there was no inflation because money was printed only in proportion to the needs of commerce. No interest was payable to the banks and prosperity abounded in the colonies.

But the Bank of England put an end to colonial prosperity by forcing the passing of the Currency Act of 1764 which made it illegal for the colonists to print their own money and compelled them to pay taxes to the Crown in gold or silver.

Almost immediately prosperity ended, a depression set in, and unemployment increased dramatically. These abject conditions directly led to the Revolution of 1776.

Today, our new economic system should not be based on debt nor should it be gold-backed (two thirds of the world’s gold is in the hands of private bankers). A new economic system could be based on VALUE.

Examples of a value based economy would be creating better infrastructures like roads, schools, hospitals, ports, harbours, urban regeneration, green energy, etc.

Recycling would help preserve our natural resources from intensive consumer consumption and waste. And green projects like planting trees, etc., would also play a huge part in a new system and give us a sustainable economy. Four decades ago we sent a rocket to the moon powered by hydrogen (energy from water). The oil companies don’t want us to know that we can power our cars and public transport and heat our homes and factories with hydrogen power, at only a fraction of the cost of today’s fossil fuels.

The first thing Ireland needs to do is withdraw from the Euro Monetary System and return to the Punt. Then we can print our own money which would be based on something of value like the projects mentioned above. The money would be spent into the economy at a pace to match the supply of goods and services and would not cause inflation. This money would be debt-free and interest-free and would allow us to become masters of our own financial recovery and prosperity. The only ones to squeal would be private banksters.

The Government of Guernsey does not borrow money for capital projects – it prints its own. Guernsey has no national debt but has a surplus which it invests in international markets. It has 100% employment and most of its citizens are very well off, each one owning an average of 3.3 cars. It has very low taxes, something equivalent to a flat rate of 20%.

That could be Ireland in a very short time, perhaps in as little as 18 months.

Let us get these bold new ideas out in the public forum for discussion and improvement. Let us find new, well-informed leaders who will take us into a new age of affluence. This is all easily achievable. We just need the will to do it.

We leave the last word to Sir Josiah Stamp, Director of the Bank of England, 1928-41, when he spoke of the Central Bank’s power to create money…

“Take this great power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit.”


About Fools Crow

Gabriel Donohoe is a Writer and Natural Health Therapist who lives in Co. Louth, Ireland. He sometimes uses the name “Fools Crow”, in honour of a Lakota holy man and healer who dedicated his life to his people and to all of humankind. Website: Wakan tanka nici un mitakola (Walk in Peace, My Friends).
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20 Responses to Ireland Can Be Prosperous And Debt Free – Without The Banksters!

  1. well done. I scanned the article to see if you were about to go down the Gold backed money dead end, but you did not. You are right, we can create our own money, and we can do it now. I would suggest we do not wait for political consensus, it won’t happen. It will be better that we create an alternative currency now, among the people. It can circulate in parallel with the euro. Once it reaches 30% of transactions, it will become a real alternative to the euro. There are systems ready to go, we just need a small group of people to get started.

    • Fools Crow says:

      Thanks Cathal. Hard to believe I wrote this almost 6 years ago. A lot of new information has come to light since then. For example, banks don’t even need reserves any more; they don’t even need a fraction of their “loan book” deposited with the Central Bank…

  2. Paul Connaughton says:

    Thank you for this article it encourages to know that there are others who believe in a better economy; a freedom from the debt ladden slavery of us all from the greed of a minority of powerful bankers. Interesting campaign of Bernie Saunders; imagine a political movement in Ireland to create a revolution of equality and prosperity for all.

  3. realhealthylifestyle says:

    I scanned it to see if it was on target. And it is. The answer is interest free currency. Debt is not actually the problem as such. It is interest, usury. I am involved in setting up an interest free mutual credit currency for ireland. Please contact me if interested to learn more. Or see fair money ireland on facebook..

  4. David says:

    Hey, good article. If you want an in depth view of this subject a great book is “the Lost Science of Money”

  5. Nicholas Pataka says:

    Thank you Gabriel for your insight I am in New Zealand and we are part of a group who want to know more about this subject of the elite wealth and how they are robbing the world

    • realhealthylifestyle says:

      very good book written by a New Zealander called The Banking Swindle by Kerry Bolton. You should meet him if you can, he knows his stuff. Im in Ireland, working with the man who wrote the foreword to that book, Anthony Migchels. He has an interest free mutual credit currency with a convertibility facility. We need such currencies all over the world right now!

  6. Very impressed by the knowlege shown in this article. Everybody needs to know more about the real nature of money. I have little to add except to say that I wrote a very similar article in my blog and those interested may learn something from reading them both
    I have also developed the idea a bit more in a subsequent entry about Financial warfare at

    I hope that we can all co-operate to help each learn more about this vital topic.

  7. David Cleary says:


    I’m totally convinced about the need for debt- free money but why would we have to leave the euro? Guernsey uses Pounds Sterling- so it obviously received the blessing of the Bank of England to create its debt-free money system. Could we not do the same? This is especially urgent now with our national debt spiraling out of control and us having to pay over Irish bond yeilds rising to over 6.1%. Staying within the euro would keep the multi-nationals and everyone else trading with the continent happy. One of the biggest benefits of the euro is our ability to trade with the other 15 member states without incurring currency exchange risks or costs. Bringing back the Irish pound would leave us at the mercy of speculators.

    • Fools Crow says:

      We would have to leave the euro in order to be fully in control of our own currency. We can’t print euros, nor can we devalue or change euro interest rates. In Guernsey, the national currency is linked to and works alongside Sterling. Guernsey pounds are only legal tender in Guernsey, but all other Sterling notes are accepted in commercial transactions (Manx, Scottish, N. Ire., Jersey). The States of Guernsey have printed and issued their own debt-free money for capital projects in the past but the banksters seem to have curtailed this to a large degree. Even so, there are still tens of thousands of debt-free Guernsey pounds still in circulation, just as many of Lincoln’s ‘Greenbacks’ were still circulation into the 1960s.

      As for currency speculators, there are ways and means to guard against this. But the big issue is to print and control our own debt-free, non-interest bearing currency. This should be the goal of the Irish people and the peoples of all nations who cherish independence, justice, prosperity, health, and the pursuit of happiness. I’m going to address this in a new article shortly.

      In the interim, Ireland can make great strides to prosperity by playing the banksters at their own game. A national bank would go a long way to getting us out of the mess they’ve landed us in. See more info in the article on this blog, “Cops Charge Irish Government With Treason”. This is expanded in “Irish Government To Auction National Assets: Criminal Stupidity Or National Sabotage?” which will be published here in the next few days.

      A National Bank is not the most desirable answer to Ireland’s financial woes – but it would be an important step in the right direction.

      Thanks for your comment.


  8. Ragnarok says:

    This is just one of many hidden mechanisims created by the financial overlords to enslave the human being. If you are not already aware of the secrets surrounding the utter scam that is the “legal” system i would encourage you to do some investigating. There are many places on the web you can get the information, it is shocking at first but strangly not surprising considering the commerce orientated society we live in.

  9. Pingback: Ireland Can Be Prosperous And Debt Free – Without The Banksters! | RSSMORTGAGE.CO.UK

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