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Money as debt

Posted on January 6, 2017 by Rob Miodus

As the Central Bank of the United States, The Federal Reserve is no more federal than Federal Express. It took me awhile to digest that. Could a government agency actually be working against it’s own people?
Let’s explore that for a bit, shall we?
The Federal Reserve System, was created in 1913. It buys our debt, controls the Prime lending interest rate and the amount of Fiat (Backed by Nothing) currency in circulation. It has a lot to do with the function of our financial system.
During 1910, under the cover of Darkness and shrouded in secrecy, the frame work of the Federal Reserve System was crafted on a private resort owned by JP Morgan, off the coast of Georgia, known as Jekyll Island.
The reason for all this secrecy, is that if the American people had known that the Law that was meant to protect the American people from the Big Bad Banks, was actually written by those same Big Banks, then the scam would be out in the open.
The Fed was created to establish control related to the interest rate and the amount of currency in circulation. Over the course of the next 3 years The International Bankers won approval from Congress on December 23rd 1913. President Woodrow Wilson would later sign the Bill into Law. In doing so, he positioned the Fed to control the entire economy. Yes, the Great Depression was created by the Fed, which contracted the money supply just as Member banks called in a new type of loan called Margin loans from depositors. This type of Demand Note was due within a 24 hour period and drove many citizens into bankruptcy.
As US citizens, we pay interest on money created on behalf of the Fed and loan to the treasury. So, if The fed prints every dollar in existence and every dollar that is created, already has a debt payment due on it, where does the additional currency to pay that debt come from? Well that’s right, We have to go back to the Fed for the additional currency. And that my friends is not on the ABC nightly news or taught in schools.
What is Monetary Theory?
Where does money come from? The vast majority of the money in circulation is created from the banking system. It is created in huge amounts every day by private corporations called banks. Banks make money by lending to others,
Most believe that banks, lend money from the trusted deposits of the bank. Easy to picture but not true. New money is created not from the banks own earnings, or from the deposits of customers but directly from the signature of the borrower.
The promise to repay by the signature of the borrower obligates the signer to pay the bank back plus interest or lose the house, the car, whatever asset was pledged as collateral. That’s a big commitment. What does the same signature require of the bank? Simply to conjure the amount of the loan and just write it in the borrowers account. Surely that can be true right?
Banks can produce as much money as we can borrow… Bank credit money is being created and destroyed every day as new loans are being created and old ones are being repaid. Banks can only proceed in this fashion with the cooperation of the governments. The laws and regulations enforce the current system without doing anything to inform the public.
To quote Henry Ford: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
“The rational person has to ask is this sustainable. Isn’t a collapse inevitable?
Well that’s right a currency correction is on the horizon, when it will happen is uncertain. However, ask you self this, Wouldn’t it be a better strategy for my family and I to continue to save our hard earned labor in the form of a paper based wage or in Gold. Ya know there is a reason that Gold Bullion has been real money for the last several years. If you have a connection with a bullion dealer, great! But If you don’t have a relationship with a Gold dealer, I can help you see how to use Real Gold money not loony to save an earn on your savings but how you and safeguard it and even use it in daily life transactions. Wouldn’t that be great?
Preserving your wealth without the erosion of inflation.