297

dollars. While Federal Reserve Board Chairman Paul Volcker tightens 

credit against the domestic economy, British-controlled banks in the 

Cayman Islands (such as the European American Bank--Ed.) a British 

possession 200 miles off Florida, and in the Bermudas and a dozen 

other "free banking" computer terminals create hundreds of billions of 

American dollars. How is this done? There are no reserve ratios or other 

restrictions on the creation of dollar-denominated credits in the 

Empire’s "free enterprise" banking. A $1 million bona fide credit coming 

from the United States can be turned into $20 to $100 million in dollar-

denominated credits as it passes through the British system without 

reserve ratios."*

Not only the financial power, but also the legal power, has remained 

seated in Britain. The Washington Post commented on June 18, 1983 

that after the American Revolution, all the old laws remained in effect 

in the new United States: Some of these laws of "English common law" 

dated back to 1278, long before America was discovered.

This enormous financial power of "the City" is revealed in many areas. 

Dean Acheson states, in "Present at the Creation", 1969, W.W. Norton, 

New York, p. 779, "We stayed at the embassy residence, the old J.P. 

Morgan mansion, 14 Prince’s Gate, facing Hyde Park." How many 

Americans are aware that the U.S. Embassy residence in London is the 

J.P. Morgan home, or that Dean Acheson, a former Morgan 

employee, described himself as Secretary of State on p. 505, "My own 

attitude had long been, and was known to have been, pro-British." No 

one commented on an American Secretary of State’s open bias in 

favor of England.