How The Evil Federal Reserve REALLY Works
Thu Oct 13, 2011 9:31 pm » by Thirdwar
I didn't write this, but it is by far the best and simplest explanation I've seen on the Federal Reserve.. Feel free to copy and repost it everywhere you can so people can understand.. End the Fed!!!
___________
In a nutshell, this is how the Ponzi scheme known as the Federal Reserve System operates;
First, it is not "federal". It is a private corporation owned by a handful of individuals. It has been exempted from the Freedom Of Information Act and the identities of the owners of the Fed are, for the most part, a secret.
Next, there aren't any "reserves" of money.
Last, it is not a "system". It is a cartel of bankers who have been given an exclusive banking monopoly and the to power to "print" (i.e.: create) money.
The Federal Reserve Act was passed in 1913. This law took the power to print money away from the government (unconstitutionally, I might add) and gave it to the newly created Federal Reserve System which is actually a privately owned Central Bank.
When the federal government needs more money than it can obtain through taxes or borrowing, it obtains the money from the Federal Reserve which is why it euphemistically referred to as the lender of last resort. The Fed will always lend ANY AMOUNT of money to the government because it can do so by simply "printing" the money. In reality, the Fed simply makes a bookkeeping entry crediting, for example, a trillion dollars to the government's checking account. This "printing" of money is actually a theft of money from American people because it dilutes the value and reduces the purchasing power of all previously existing currency. This is why something that could be purchased for $1 in 1913, now costs more than $50.
Prior to 1913, if the government needed additional money, it could simply print the money itself. Abraham Lincoln did this during the Civil War when "Greenbacks" were issued. These were simply promissory notes like today's Federal Reserve Notes that we think of as money. If you look at the top of any bill, you will see the words Federal Reserve Note. However, after the passage of the Federal Reserve Act, the government must now have a third party, the Fed, print the additional money it needs. This might not be such a horrible thing except for the fact that the government must now pay interest on this newly created money that it has borrowed from the Fed. In addition, this new money is the product of purchasing power that has been stolen from the people of the United States. So, in effect, the taxpayers must now pay interest on money that the Fed has stolen from them, and then loaned back to them.
But wait. It gets worse.
After the government borrows a trillion dollars from the Fed, it writes checks and spends the money. The military gets paid, people receive their Social Security checks, and so forth. After people receive these checks from the government, they deposit them into their bank accounts. Let's say that someone receives a check for $1,000 from the government and deposits it into a savings account. Most people think that the bank will now have $1,000 (minus some percentage set aside for a reserve) that it can loan out. Wrong! Using the magic of something called Fractional Reserve Banking, the bank can loan out $9,000 for every $1,000 in deposits.
Initially, the bank loans out $900 and holds $100 (10%) in reserve. However, the $900 that has been loaned out will ultimately be re-deposited into the banking system. When it is, the process will repeat itself with the bank loaning $810 and holding $90 (10%) in reserve. This process continues to repeat itself until the bank (i.e.: the banking system) has loaned out $9,000 for every $1,000 that was originally deposited. At this point, the bank (i.e.: banking system) is "loaned up" and must look elsewhere for additional money to loan.
To obtain additional money, the bank goes to the Federal Reserve's "Discount Window" and pledges the $9,000 in loans it has made as collateral to borrow money from the Fed. Based on this collateral, the Fed will lend an equal amount to the bank at the Federal Funds rate of 1 or 2% interest. The bank can now loan this money out at a higher rate of interest on loans made to consumers for purchases of cars, homes, credit cards, etc.
Okay, here's the 64 dollar question: Where do you think the Fed got this $9,000 to loan to the bank?
Yes, you guessed it. The Fed created/stole this money. Therefore, the money that you borrowed from the bank for the mortgage on your house is money that the Fed created/stole from the purchasing power of the American people. So, once again, you are paying interest on money that was stolen from you, and then loaned back to you.
You may ask how the Fed is able to do this. Let me remind you that the Fed has a monopoly on the banking system. This means that every check written by anyone for anything must "clear" through a federal reserve bank. Well, if someone theoretically owns ALL the banks, and they say a check is good, its' good because there isn't anyone to say otherwise. Moreover, under the Federal Reserve Act, this fraudulent Ponzi scheme is legal!
The bottom line is that for every trillion dollars the Federal Reserve steals from the purchasing power of the American people to loan to the government, it is able to steal/create an additional 9 trillion dollars that it will loan out to the American people through its' member banks.
As though all of this wasn't bad enough, I now have even worse news for you. When the Fed creates/steals $10 trillion and loans it out to the government and consumers, the loans must, of course, be paid back. Well, there's no problem paying back the $10 trillion. The same money that was created/stolen can be used to pay back the principle amount of the loans. But, what about the interest? No additional money has been created/stolen to pay the interest. Where does the money come from to pay the interest on the loans?
Think about that for a minute. If no additional money has been created/stolen to pay the interest, where will the money to pay this come from?
It will come from all of the real wealth that exists in the world. Can't make the payment on your car? Maybe you should sell your diamond ring. Can't make your mortgage payment? Maybe you should sell your car and use the money to pay your mortgage. You already sold your car? No problem. The bank will be happy to take your house away from you.
Government can't pay the interest on the national debt? Well, maybe it will have to raise taxes. Can't raise taxes? No problem. The Fed will be happy to loan more money to the government that it will create/steal from the American people.
Are you starting to see the big picture? Eventually, the handful of people who own the Federal Reserve, will own everything! And, they will accomplish this by charging us interest on loans made to us with money they stole from us! THIS is the scandal. THIS is what they don't want the people to know.
As I said above, the Federal Reserve is actually a privately owned Central Bank. There are Central Banks in other countries around the world. And, when countries go to war, they are desperate to borrow whatever amount of money it takes to fight the war. The vast sums required to fight a war are impossible to obtain through taxes or borrowing. Therefore, each country borrows what it needs from its' Central Bank. And, the dirty little secret is that, usually, the winner of the war agrees to pay back the money loaned to the loser by the loser's Central Bank.
Hmmm. Do you think that there might be some common ownership of the different Central Banks? Could it be that the same bankers are financing both sides of a war? Hmmm. Could these bankers actually be involved in instigating these wars? Was Viet Nam really necessary? Are the wars in Iraq and Afghanistan really necessary? A Republican President got us into these wars and a Democratic President, who promised while campaigning that he would begin to bring the troops home IMMEDIATELY after he was elected, is keeping these wars going. Is it possible that someone else is calling the shots? Why was Tim Geitner, the former President of the New York Federal Reserve Bank selected as Secretary of the Treasury? If this isn't putting the fox in charge of the chicken coop, I don't know what is.
With just the little information you now have, you can begin to understand why you are hearing prominent individuals (including President Bush, Sr.) use the term "New World Order". The "new world order" means a one world government with a Central Bank Of The World and a cashless society. If this happens, the owners of the Central Bank will be the ruling elite of the world, everyone else will be impoverished, and there will be nowhere to escape to.
So, there you have it - the Federal Reserve in a nutshell. And, if this information is new to you, you must surely be thinking that I am some kind of nut. Well, read Ron Paul's book, read Griffin's book, watch The Money Masters, and get The Red Pill Project DVD from RealityZone.com. These are not the only sources of information on this topic. There are other books and, of course, information on the web. Read the books and watch the videos. Then, decide for yourself. However, I should caution you that all this stuff is extremely well documented. So, if what I have described to you above is something that you would rather not believe, don't go any further because, if you look into this, you will find that what I have told youi is true. And, frankly, knowing that this is true is rather unnerving.
___________
In a nutshell, this is how the Ponzi scheme known as the Federal Reserve System operates;
First, it is not "federal". It is a private corporation owned by a handful of individuals. It has been exempted from the Freedom Of Information Act and the identities of the owners of the Fed are, for the most part, a secret.
Next, there aren't any "reserves" of money.
Last, it is not a "system". It is a cartel of bankers who have been given an exclusive banking monopoly and the to power to "print" (i.e.: create) money.
The Federal Reserve Act was passed in 1913. This law took the power to print money away from the government (unconstitutionally, I might add) and gave it to the newly created Federal Reserve System which is actually a privately owned Central Bank.
When the federal government needs more money than it can obtain through taxes or borrowing, it obtains the money from the Federal Reserve which is why it euphemistically referred to as the lender of last resort. The Fed will always lend ANY AMOUNT of money to the government because it can do so by simply "printing" the money. In reality, the Fed simply makes a bookkeeping entry crediting, for example, a trillion dollars to the government's checking account. This "printing" of money is actually a theft of money from American people because it dilutes the value and reduces the purchasing power of all previously existing currency. This is why something that could be purchased for $1 in 1913, now costs more than $50.
Prior to 1913, if the government needed additional money, it could simply print the money itself. Abraham Lincoln did this during the Civil War when "Greenbacks" were issued. These were simply promissory notes like today's Federal Reserve Notes that we think of as money. If you look at the top of any bill, you will see the words Federal Reserve Note. However, after the passage of the Federal Reserve Act, the government must now have a third party, the Fed, print the additional money it needs. This might not be such a horrible thing except for the fact that the government must now pay interest on this newly created money that it has borrowed from the Fed. In addition, this new money is the product of purchasing power that has been stolen from the people of the United States. So, in effect, the taxpayers must now pay interest on money that the Fed has stolen from them, and then loaned back to them.
But wait. It gets worse.
After the government borrows a trillion dollars from the Fed, it writes checks and spends the money. The military gets paid, people receive their Social Security checks, and so forth. After people receive these checks from the government, they deposit them into their bank accounts. Let's say that someone receives a check for $1,000 from the government and deposits it into a savings account. Most people think that the bank will now have $1,000 (minus some percentage set aside for a reserve) that it can loan out. Wrong! Using the magic of something called Fractional Reserve Banking, the bank can loan out $9,000 for every $1,000 in deposits.
Initially, the bank loans out $900 and holds $100 (10%) in reserve. However, the $900 that has been loaned out will ultimately be re-deposited into the banking system. When it is, the process will repeat itself with the bank loaning $810 and holding $90 (10%) in reserve. This process continues to repeat itself until the bank (i.e.: the banking system) has loaned out $9,000 for every $1,000 that was originally deposited. At this point, the bank (i.e.: banking system) is "loaned up" and must look elsewhere for additional money to loan.
To obtain additional money, the bank goes to the Federal Reserve's "Discount Window" and pledges the $9,000 in loans it has made as collateral to borrow money from the Fed. Based on this collateral, the Fed will lend an equal amount to the bank at the Federal Funds rate of 1 or 2% interest. The bank can now loan this money out at a higher rate of interest on loans made to consumers for purchases of cars, homes, credit cards, etc.
Okay, here's the 64 dollar question: Where do you think the Fed got this $9,000 to loan to the bank?
Yes, you guessed it. The Fed created/stole this money. Therefore, the money that you borrowed from the bank for the mortgage on your house is money that the Fed created/stole from the purchasing power of the American people. So, once again, you are paying interest on money that was stolen from you, and then loaned back to you.
You may ask how the Fed is able to do this. Let me remind you that the Fed has a monopoly on the banking system. This means that every check written by anyone for anything must "clear" through a federal reserve bank. Well, if someone theoretically owns ALL the banks, and they say a check is good, its' good because there isn't anyone to say otherwise. Moreover, under the Federal Reserve Act, this fraudulent Ponzi scheme is legal!
The bottom line is that for every trillion dollars the Federal Reserve steals from the purchasing power of the American people to loan to the government, it is able to steal/create an additional 9 trillion dollars that it will loan out to the American people through its' member banks.
As though all of this wasn't bad enough, I now have even worse news for you. When the Fed creates/steals $10 trillion and loans it out to the government and consumers, the loans must, of course, be paid back. Well, there's no problem paying back the $10 trillion. The same money that was created/stolen can be used to pay back the principle amount of the loans. But, what about the interest? No additional money has been created/stolen to pay the interest. Where does the money come from to pay the interest on the loans?
Think about that for a minute. If no additional money has been created/stolen to pay the interest, where will the money to pay this come from?
It will come from all of the real wealth that exists in the world. Can't make the payment on your car? Maybe you should sell your diamond ring. Can't make your mortgage payment? Maybe you should sell your car and use the money to pay your mortgage. You already sold your car? No problem. The bank will be happy to take your house away from you.
Government can't pay the interest on the national debt? Well, maybe it will have to raise taxes. Can't raise taxes? No problem. The Fed will be happy to loan more money to the government that it will create/steal from the American people.
Are you starting to see the big picture? Eventually, the handful of people who own the Federal Reserve, will own everything! And, they will accomplish this by charging us interest on loans made to us with money they stole from us! THIS is the scandal. THIS is what they don't want the people to know.
As I said above, the Federal Reserve is actually a privately owned Central Bank. There are Central Banks in other countries around the world. And, when countries go to war, they are desperate to borrow whatever amount of money it takes to fight the war. The vast sums required to fight a war are impossible to obtain through taxes or borrowing. Therefore, each country borrows what it needs from its' Central Bank. And, the dirty little secret is that, usually, the winner of the war agrees to pay back the money loaned to the loser by the loser's Central Bank.
Hmmm. Do you think that there might be some common ownership of the different Central Banks? Could it be that the same bankers are financing both sides of a war? Hmmm. Could these bankers actually be involved in instigating these wars? Was Viet Nam really necessary? Are the wars in Iraq and Afghanistan really necessary? A Republican President got us into these wars and a Democratic President, who promised while campaigning that he would begin to bring the troops home IMMEDIATELY after he was elected, is keeping these wars going. Is it possible that someone else is calling the shots? Why was Tim Geitner, the former President of the New York Federal Reserve Bank selected as Secretary of the Treasury? If this isn't putting the fox in charge of the chicken coop, I don't know what is.
With just the little information you now have, you can begin to understand why you are hearing prominent individuals (including President Bush, Sr.) use the term "New World Order". The "new world order" means a one world government with a Central Bank Of The World and a cashless society. If this happens, the owners of the Central Bank will be the ruling elite of the world, everyone else will be impoverished, and there will be nowhere to escape to.
So, there you have it - the Federal Reserve in a nutshell. And, if this information is new to you, you must surely be thinking that I am some kind of nut. Well, read Ron Paul's book, read Griffin's book, watch The Money Masters, and get The Red Pill Project DVD from RealityZone.com. These are not the only sources of information on this topic. There are other books and, of course, information on the web. Read the books and watch the videos. Then, decide for yourself. However, I should caution you that all this stuff is extremely well documented. So, if what I have described to you above is something that you would rather not believe, don't go any further because, if you look into this, you will find that what I have told youi is true. And, frankly, knowing that this is true is rather unnerving.
Check me out if you like underground conscious hiphop - http://www.youtube.com/OfficialThirdWar
- Garciaface
- Posts: 981
- Joined: Thu Sep 02, 2010 9:27 am
Fri Oct 14, 2011 12:23 am » by Garciaface
I was really getting a full on robot chubby reading this post, until you said the name Ron Paul. Freemason scum. I hate you for posting such a smart post, then you fuck it up by promoting that 33rd Degree Scottish Rite Freemason. I hope you get fucked up by a train or something!
Edit out the last paragraph, and I'll blow you! In public. Otherwise, fuck you.
Is every single member of DTV a hired Ron Paul campaign worker?
Edit out the last paragraph, and I'll blow you! In public. Otherwise, fuck you.
Is every single member of DTV a hired Ron Paul campaign worker?
Fri Oct 14, 2011 12:51 am » by Muchtyman
garciaface wrote:I was really getting a full on robot chubby reading this post, until you said the name Ron Paul. Freemason scum. I hate you for posting such a smart post, then you fuck it up by promoting that 33rd Degree Scottish Rite Freemason. I hope you get fucked up by a train or something!
Edit out the last paragraph, and I'll blow you! In public. Otherwise, fuck you.
Is every single member of DTV a hired Ron Paul campaign worker?
Ron Paul for President ......................
Fri Oct 14, 2011 1:24 am » by Corsair
Great post thirdwar! And it should be stated for garciaface's benefit that 2 of the first things that Ron Paul would do as president are 1: return to constitutional money by giving the Fed the boot), and 2: disband the IRS, also known as the Rothschild Collection Agency.
Ron Paul for President!
Ron Paul for President!
Fri Oct 14, 2011 1:31 am » by Thirdwar
As I said, garciaface, I didn't write this. I was looking at book reviews for Ron Pauls "End The Fed", and saw this explanation as one of the reviews.
So with that said, I didn't say ANYTHING about Ron Paul, I just copy and pasted this... BUT, even know I didn't say anything about him, I DEFINITELY support him 100%.
Whether he's freemason or not, I do believe he will abolish the federal reserve, stop IRS, bring the troops home, among countless other things that he's stood for, for over 20 years now.
Even if you don't like him (I don't see why you wouldn't), there is absolutely NO DOUBT that he is the best choice for president out of all of our choices.
So with that said, I didn't say ANYTHING about Ron Paul, I just copy and pasted this... BUT, even know I didn't say anything about him, I DEFINITELY support him 100%.
Whether he's freemason or not, I do believe he will abolish the federal reserve, stop IRS, bring the troops home, among countless other things that he's stood for, for over 20 years now.
Even if you don't like him (I don't see why you wouldn't), there is absolutely NO DOUBT that he is the best choice for president out of all of our choices.
Check me out if you like underground conscious hiphop - http://www.youtube.com/OfficialThirdWar
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