Bank cartels plague our society with their ability to create, destroy and control money – the Federal Reserve. It must be abolished and replaced by a more reasonable and fair system.
Money is the lifeblood of modern civilization. This allows you to establish contracts, assess the value of your goods and services, and trade efficiently. But exactly what is the money and who creates the US dollar?
Our monetary system is a mechanism for transferring wealth to elites in cities that produce nothing.
The first step in understanding money is to dispel the concept that precious assets like gold support it.
The dollar is worth it for two reasons. First, it is supported by “the full faith and credibility of the US government,” meaning that its value stems from its ability to tax people to pay their debts. Second, the federal government accepts only tax payments in US dollars, creating an inherent demand for currency.
Despite these factors, the federal government makes little money for us. The US Treasury prints paper bills and mintcoins, but physical cash only accounts for about 10% of our total money supply.
The hidden mechanism of money creation
Most of our money comes from debt – that's a problem.
Modern money is almost entirely created by lending. All non-cash dollars must ultimately be repaid to private banks with interest. In other words, most US money is simply a collection of Ious paid to private financial institutions.
Commercial banks operate under a system called “Fractional Reserve Banking.” They are private companies that only hold small amounts of cash reserves and often issue loans that exceed 900% of the small amount of cash reserves. When the bank issues a loan and deposits it into the borrower's account, a new “money” is created from a thin air.
Unselected financial cobalt
More than a century ago, a group of powerful investors met on Jekyll Island off the coast of Georgia to plan to control the American financial system. The result was the Federal Reserve Act of 1913, creating the Federal Reserve System. This is a private banking cartel disguised as a government agency.
The Federal Reserve is not part of the US government. It is a private bank consortium and is liable only to its shareholders. Federal Reserve transactions have never been fully audited, and the decision does not require approval from government officials. Congress outsourced the constitutional rule of America's money supply to some of the world's wealthiest people. It is undoubtedly the biggest financial crime in the country's history.
If the federal government spends more than it collects taxes, it borrows the difference. Issuing a Ministry of Finance bill to borrow money from investors or Social Security Trust Funds. In some cases, the Treasury bills are issued directly to the Federal Reserve. The Fed then creates money by adding numbers to the account without any concrete backing. This process will be responsible for the government, and ultimately taxpayers, to repay the Federal Reserve with interest.
Using monopoly to create money, private banks earn huge amounts of money from loan interest that is far greater than what they have in the reserve. US banks currently have a reserve of $3.3 trillion, but have $12.5 trillion outstanding loans. The borrower pays real interest on imaginary money and concentrates around $50 trillion per year in the banker's pocket.
This is why skyscrapers have the name of banks. Bankers become rich in money that doesn't belong to them. Our financial system transfers wealth to elites in cities that produce nothing. The interest they gather is one-way streets paved with gold.
Fed and inflation
Since the creation of the Federal Reserve, the federal government has been continuously eroding the US dollar through reckless borrowing. We now accumulate $38 trillion in debt, and since 1913 inflation has skyrocketed to over 3,000%, eroding the purchasing power of ordinary Americans.
The newly created tide wave of “magic money” inflates the total supply of money, devalues existing dollars, and makes daily goods even more expensive. Federal Reserve shareholders collect interest on government-issued debts while still making profits because they are related to bureaucrats, lobbyists and cash related to rakes of federal spending. But the rest of us pay for their legademain, with higher taxes and devaluing our wealth.
Over the past two years alone, the wealth of the bottom 50% of Americans has grown at just $1.5 trillion, while the wealth of the top 1% has won $11.8 trillion. The wealthiest elites empowered to control money have integrated ownership of media conglomerates, major industries and political influences. The elite equipped the system to ensure that the magical geese laying golden eggs would never be threatened by ordinary people.
Boombust – Banker's best friend
Large government borrowing coincides with the creation of huge money and creates an economic boom. Speculative bubbles form in stock and real estate, but these booms always lead to busts.
If debt-in-law consumers default on their loans, money supply will shrink and the economy will halt. Armed with insider knowledge, bankers and politicians navigate these cycles easily – profit from economic expansion and Collapse. Meanwhile, the average American suffers from unemployment, foreclosure and financial ruin.
We do not choose the elite who controls this system. We are simply drones that ultimately pay it through higher taxes, inflation and economic instability. The top 0.1% of America currently controls wealth as much as the bottom 90%.
As Thomas Jefferson wrote in 1816“Banking institutions are more dangerous to our freedom than standing armies.” He foresees the threat posed by the private banks that control the country's currency, predicting that “children will take people from all their wealth until they awaken homeless on the continent that their father conquered.”
It's time to end this financial serf system. The power to issue money should be returned to those to which it is legitimate.
