Tuesday, November 1, 2016
The Federal Reserve Bank is frankly the biggest scam in the history of the world and by default probably the most crooked institution that has ever existed next to the Church of Scientology. First it is entirely privately owned although it wants the world to see it as or on equal footing to a governmental agency/institution and it has the right to print and issue money just like Kings did some 300 plus years ago. But the worse thing about it outside of its money making Ponzi schemes in my opinion is that it exist as a money monopoly given it alone has the power over all the money and credit of the people in the United States and frequently beyond. Since its inception (which I hope to discuss in a bit more detail in a few paragraphs to come) what is clear is that the U.S. government had no debt when the Federal Reserve Act was passed in 1913. What may be more astonishing is that it is as I noted previously, a private entity with stock which is not traded openly and no one except the elite of the elite can own only through inheritance singularly.
Through the actions of the Federal Reserve Bank and U.S. treasury, it is no wonder they have the majority of U.S. citizens using the words “currency” and “money” interchangeably when they are not the same thing. First, money is a store of value and has the ability to maintain its value in the form of purchasing power for a very, very long period of time. Money is durable (meaning it never changes over time and it is fungible (meaning it is the same no matter where you are also interchangeable). Money traditionally has been some commodity such as gold, silver or land. Money is created, not printed.
On the other hand currency is simply paper. It is paper money used a tool for trading your time and labor and although it too is fungible and a medium of exchange, currency has no intrinsic value. It is just an official monetary instrument used in commerce. Currency must be “legal tender,” which means the government will accept it in payment for taxes. Currency is NOT money, but merely represents money. And it is printed on paper or minted from metal.
What we spend is currency (base money). It is put into circulation by the Federal Reserve, with the assistance of our banking system via buying and selling of securities (mostly bonds). As the money Gods, the Federal Reserve can control the amount of loot in the U.S. economy and at the same time; give loans on money that don’t exist just by adding a few zeros to the books and boom – profit making Ponzi. It's called base money because it is the money deposited by the customer, by which money generated through fractional reserve banking is created from.
The main problem with currency is that the Federal Reserve can print more and more of it whenever they want. Each time they do, it just results in more currency flooded into circulation. Each time the want or need to do this, the more currency added into global circulation, the less value said currency has because the more of it there is the less valuable it becomes. And each time this happens, whether through selling IOUs in the form of Bonds to banks or quantitative easing, the Federal Reserve is unremittingly taking loot out of your pocket directly to the government and their pockets (banks).
Why is this you may ask, well since the Federal Reserve Act was signed by President Wilson on December 23, 1913, today, what we call money and or consider our base currency is really just a receipt – an IOU on a government created and traded bond. How can this be? Well to begin with, when you deposit your loot in a bank, you are not putting it in an account of your own for safe keeping. Instead you are loaning the bank your currency which means they can do whatever they want with it once you do. If the banks want to take your money and gamble with it on the stock, ETF or commodity markets, they can, or if they desire (which is more often the case), they will likely loan it out. And not just loan it out, but loan it out with interest, which is a profit for them through what they call fractional reserve lending.
Through this mechanism, banks are allowed to lend what they don’t own and even what they don’t even possess ten to twenty times over. In simple terms, Fractional reserve lending is the process whereby banks make up currency by adding zeros to computers and lend that created money that doesn’t even exist to make a profit. Fractional reserve banking is the ultimate hustle and exists to drain the common laborer of all their work without paying them for it. See, when a bank accepts your deposit, they give out loans, the loans become another deposit, which becomes another loan, and this cycle repeats itself in perpetuity. And when banks do this, they don’t ask us if they can or tell us that are going to do this. Look at it this way, if was a bank, and was required to keep only $1 of the $10 you deposited with me, and loaned the other $9 out, and charged X interest on the loan, but only have only how ca make a profit of plus $10 when there is only 10$ that exist to start with? This is in essence “fractional-reserve” banking (for every $1 the Federal Reserve bank prints the banking system created an additional $9 out of nowhere which equals fraud.
Gone are the days of a family being able to live off of a single pay check. In the past our paper money was just a claim check. It was just a paper representation of real money that you could take to a bank and claim for gold or silver (gold and silver being real money of intrinsic value. The way, in which the U.S. Treasury and Federal Reserve banks operate in concert, the reality is that what they call currency today isn’t even paper money, but rather a claim check. To understand this you have to understand the way banks turn deposits into loans and understand how Federal Reserve Bank policies affect the supply of money in general. This entire scheme is called fractional reserve lending and/or banking.
The Federal Reserve Bank is the main culprit of income inequality. Constantly the prices we pay for stuff is soaked up by the Federal Reserve like a sponge because our currency supply is forever growing and expanding. Thus the more currency the more prices will keep on going up which leads to inflation (all because the treasury and Banks swap IOUs in the form of bonds on behalf of the Federal Reserve Bank). And even worse is that this circle continues because the money they get from us in the form of taxes is used to pay interest on IOUs carried by bonds; meaning there is always more DEBT in our system than currency in circulation to pay the debt.
We need to wake up and understand the difference between currency and money and play real close attention to the practices of the Federal Reserve Bank, for they don’t serve nor care about us, we the people.