The economic system in America is so crazy, sane people will have trouble grasping it. Various “experts” explain it by using jargon and rows of numbers so our brains go numb and we change the channel. This is deliberate. We’ll leave it to the bean counters and watch Dancing with the Stars. For example “Quantitative easing” is just BS-jargon for “inflation.”
But it’s not that complicated and I’m going to explain it right here. You’ll know you got it when you say, “That’s crazy!” and then “That ticks me off.” Here goes:
The U.S. government does not produce anything, we do, and we send our tax money to the government for them to manage. Right? When they want more money, they ask the Federal Reserve for a loan. The Federal Reserve is a group of private bankers who run the U.S. economy. I know, I know, you thought the Federal Reserve was a government entity, maybe in the Treasury Department or something. But no, it was created in 1913 in a rather sneaky fashion and has been running things ever since. They chose the name Federal Reserve because it sounds pretty reassuring, but its not Federal and doesn’t reserve anything. Still with me?
To get a loan from the Fed, the U.S. government gives them an I.O.U in the form of a bond. The U.S. government (ultimately us) now owes the Fed, let’s say $20 million. It will have to be paid back someday and we will have to pay it, since the government itself produces nothing but rather uses our money.
Now we owe the Fed $20 million and they give us $20 million. Where does the Fed get the $20 million to give us? Fasten your seat belt. They make it up out of thin air. Poof. Voodoo money. No kidding. They give us voodoo money and we owe them $20 million. Do you need some time to digest this? It took me a year to grasp this, not because its complicated, but because its freakin’ insane. “That can’t be right,” I’d say. “Where’s the catch?” “Why would we agree to such a stupid deal?” But it’s right, it’s just that stupid and it gets worse.
So the U.S. takes the voodoo $20 million and deposits it in a bank, a Federal Reserve bank, of course. Will the bank store it safely in a vault? No, banks don’t do that, they make loans with their deposits. But they have to keep some money on hand, right? In case Uncle Sam comes along with his red, white, and blue ATM card and makes a withdrawal. They do have to keep a reserve, and how much do you think that is? 90%? 75? They have to keep only 10% of depositors money handy and they loan the rest out with interest.
The amount of money circulating covers the amount of the loans and does not cover the interest borrowers are expected to pay. Where will that money come from? Regular people can’t make voodoo money like the Fed does. There is not enough money to repay all the loans with interest. It’s just not there. Some people will always have to default, go bankrupt, have their home foreclosed on. Its like musical chairs, someone is going to be left standing alone. It doesn’t matter how hard they work, or any of those moral things we are told-someone, lots of someones are going to lose. It is built into the system.
The Fed can also sell the U.S. bonds (IOUs) to foreign nations. Then we owe China, for example. The Fed made voodoo money, plumped the U.S. loan money into a bank, and the bank loaned it out knowing that some will have to default. Too many defaults? No problem, the U.S. taxpayers will prop up the bank so the whole obscene show can continue.
The Fed refuses to be audited. The Fed was supposedly created to insure jobs, hold back inflation, and prevent recessions. They tell us we must have the Fed to do these things. The Fed has not done these things, but it has transferred wealth from regular taxpayers to big bankers since 1913. They promote smaller government and “free markets” so we will be reluctant to simply kill the Fed and put the whole process back into the hands of the government, where it (constitutionally) belongs.
We’ve been blind sheeple, so easily decieved. Here are some who warned us long ago:
Thomas Jefferson: “If the American people ever allow private banks to control the issue of their money,first by inflation and then by deflation,the banks and corporations that willgrow up around them (around the banks),will deprive the people of their property
until their children will wake up homeless on the continent their fathers conquered.”
“By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.” — British Lord John Maynard Keynes
“The Federal Reserve banks, while not part of the government,…” — United States budget for 1991 and 1992 part 7, page 10
“The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863
“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — James A. Garfield, President of the United States
“From now on, depressions will be scientifically created.” — Congressman Charles A. Lindbergh Sr. , 1913
“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.” — James Madison