Can we really trust the Federal Reserve (Fed)? For such a mysterious organization you’d be amazed how much absolute control they have over financial policy.
History has proven the most successful and prosperous economies are those that are not under the influence of overbearing central control. But that is just what the Fed is…the appointed US Central Banking System with vast amounts of control over financial policy and money creation.
But the Federal Reserve isn’t what it appears to be. The very name itself implies a central baking system for the People and by the People doesn’t it? FEDERAL…it sounds so prestigious right? Well the truth of the matter is the Federal Reserve is just as much a federal institution as Federal Express.
Beginning of the Federal Reserve:
The Fed’s beginnings sound so dark and ominous that you might think I’ve made this up for dramatic effect but I’m afraid its true.
Back in 1910, a few of the largest Wall Street banks of the time got together for a highly secretive meeting held on Jekyll Island located on the Georgian coast.
This small, exclusive group of 7 men represented approximately one fourth of the world’s wealth. This meeting was hosted by Senator Nelson Aldrich, who was not only a banking insider, but Assistant Secretary of the US Treasury at the time.
Sound a little suspicious? Ah….yeah I think so.
This meeting was the conception of the Federal Reserve Act of 1913 that would eventually lead to the creation of the Federal Reserve Banking System.
The Federal Reserve Act was presented and passed by Congress as a means to break up tight financial control (monopoly) held by a handful of powerful Wall Street banks and bring more financial stability.
But what was hidden from Congress and the public was that the Act’s architects were the very powerful Wall Street banks that it was intended to reign-in.
The true intentions behind the Federal Reserve Act was to secure their dominant positions in the banking system. These high powered banks colluded together to form a true banking cartel that we now call the Federal Reserve Banking System.
Does that sound outlandish or what? Well just see how our banking system works and you’ll see why this is true.
I’ve had a handful of revelations in my life and discovering how the banking system really works is one of them.
Part of the reason this banking scam has gone on for such a long time is that it’s a very complicated system that’s difficult to explain thus expose but I’ll do my best…
Another reason this scam has perpetuated is that not only does it benefit the banking system, but also our Federal Government so many powerful groups have it in their best interest to make sure this system sustains.
Our Modern Banking System
So everyone knows how governments tend to spend way more than what’s collected through tax revenue right? When using a controlled, closed, monetary system like real money backed by gold and silver, in order for governments to spend over budget they have to raise taxes.
Well nobody likes raising taxes and especially for unpopular reasons. So how does the government and politicians avoid painful tax raises but still get the funds to spend over budget? Well they simply borrow it and pass the loan payment to future generations.
Although politicians think they’re not raising taxes, in reality they’re giving us the worst tax of all…inflation tax.
And the mechanism used to borrow US dollars is through the issue of Treasury Bonds, or Bills, or Notes. Through this process of creating Treasury Bonds, the Federal Government is able to spend more than they take from taxes. You can imagine this is quite a popular practice by our short-sighted politicians up on Capitol Hill.
So when Treasury Bonds are issued they are bought by countries, like China, and other Central Banks around the World. These institutions buy the US Treasury Bonds and are paid back over a set period of time along with interest.
But very often our government wants to spend even more over budget and this is where the Federal Reserve steps in. The Fed will buy the Treasury Bonds and they too are paid back over a period of time along with interest.
Well that sounds fine but where does the Fed get all this money to buy $ billions and now $ trillions of Treasury Bonds? They create it into existence, that’s how.
Creating money out of thin air is already a criminal practice that you and I would be thrown in jail for but the most despicable aspect of all this is that the Fed too collects interest on the payments.
Pretty good racket right? Lend out billions dollars you don’t have and then collect interest on the loan payments. Unbelievable.
And who gets all this cheap money first? Well our government and then the “too big to fail” banks. Then these same banks lend it out at high interest rates that you and I pay. Usury at it’s highest level.
I don’t think there’s anything wrong with lending money…its an important process of a modern society. However the money lent should be real money based off deposits or the bank’s own savings. Charging interest on money that is created out of thin air is morally wrong.
And by the time this new money trickles down to the majority of society, it has lost a significant amount of its purchasing power due to inflation.
You’d have to be an idiot not to make money in this racket. They have access to basically unlimited funds at extremely low interest rates and then turn around and lend it out at high interest rates.
But now instead of lending it out to small business and regular people, the big banks gamble with their cheap, newly-created Fed money on risky, highly leveraged investments like complicated derivatives and packaged real estate assets.
And when their risky bets turn out to be bad investments, they simply get bailed out by our government via the Federal Reserve to cover their losses AND still pay for outrageous bonuses. This is what exactly happened after the financial crisis of 2008.
It appears to me the Fed is more interested in providing big banks easy credit and then bailing them out when their irresponsible bets go south.
So can we really trust the Federal Reserve? I say ABSOLUTELY NOT!
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