The Federal Reserve Plot… Steal the Value of Your Money and Give It to Banks
Federal Reserve Secrets
The Federal Reserve has announced it is lowering the federal funds interest rate to between 0.00% and 0.25%. This means it will now be even simpler for banks to make new money. When banks borrow money from the Federal Reserve, the Fed is not lending them money it has saved. The Fed is making entirely new money that did not exist before. The banks then loan this money to individuals and businesses at an interest rate higher than the federal funds rate.
The 700 billion dollar bailout was only the beginning.
The Federal Reserve has already greatly surpassed this amount.
The Fed has made over two trillion dollars and used this to buy stocks, bonds, and debt. Who authorized the Fed to do this? No one! The Federal Reserve did it because it could. The reason the Fed could, is because the regime illegally refuses to take on its constitutional responsibilities. The Constitution requires that the regime make money, and most people reckon the regime does make money. But, it is banks that make money, not the regime.
The banks in America are collapsing, and the US regime has spent over $700 billion to save them. The supposed reason is they have lost so much money because of loan defaults, and they need money to keep the economy going by making more loans to each other, to businesses, and to consumers. But this is a lie that twists the reality of the financial system. Banks do not really provide the valuable service to society most people reckon they do.
Many people believe the regime makes money. It does not. In reality, banks make money through the loans they make. Banks loan out their depositors' money, right? Nope. Banks never loan their depositors' money. When a bank makes a loan it is really making entirely new money that did not exist before. It does this simply by typing the amount into their computer. So if you get a loan for $10,000 the bank simply types that amount into its computer in your account and makes a corresponding debt for you. This works, because over 99% of all money exists only as computer entries. Less than 1% of all money is actual physical bills and coins. Banks literally make this new money out of nothing. And the people who take the loans will have to repay the money the bank made.
Through this scam banks steal from everyone else in three ways:
1) Banks charge interest on the debt for the money they, private corporations, made out of nothing and did not even possess until it was lent to the borrowers.
2) Banks charge fees for making loans, often several thousand dollars. Banks also charge sellers a fee between 1-10% of the total amount of any sale paid for with a credit card. Of course, this cost is passed on to the consumer through higher product prices.
3) Banks devalue all existing money when they make new money. They reduce its purchasing power. Devaluing everyone else's money is a form of theft, because the new money banks made obtains the purchasing power that the other money has lost. The banks are stealing the purchasing power of everyone's money and transferring it to the new money they made.
Banks have been running this same scam and stealing the value of everybody's money since medieval times. The only thing that has changed is the scale of the scam. The total mortgage debt alone in the U.S.A. is over 10 trillion dollars. If the average interest rate is 7% then over 700 billion dollars is paid to banks in interest each year for something they made out of nothing. And this is just the mortgage debt. The total debt owed to banks is much higher.
The banks are not lending, not because they cannot, but because it is not profitable for them to do so. Banks will only loan money if they believe they are statistically likely to profit as a result of making the loan. If too many people do not repay their loans the bank loses money. The bank profits and makes up for the loss from defaults by charging interest.
People are already so in debt, relative to their incomes, that it is simply not profitable for banks to loan further. Basically, everyone who is qualified to borrow money and wants to borrow money already has done so. The remaining people who want to borrow money are not qualified to do so. For years banks were lending to complete people but then passing along the garbage loan by selling it to the next sucker. That was the Subprime Swindle.
The banks keep getting bailed out, but it is not going to matter. The banks are not lending because it is not profitable for them to lend, and that is not going to change no matter how much they are bailed out.
Of course, the Federal Reserve's plot to "fix the economy" by stealing the value of your money and giving it to banks is not going to work. The root of the problem is a lack of production in America, and the unsound monetary system, of which the Fed is an integral part. Without more production in America and an honest and sound monetary system, the economic crisis will never end.
What America needs is more and better paying jobs. It does not need to be "stimulated" in the form of making more money and more debt. An economy is based on production, and the only way we are going to have more and better paying jobs is if we start producing more. Right now we are prevented from making what we are capable of making, because the regime is not maintaining an even trade balance.
We import more than we export. America is flooded with "cheap" foreign goods. We do not produce what we are capable of making, and because we do not produce, we lose the production jobs that are the base of an economy and we go into debt to buy from other nations that which we once produced for ourselves. Of course the banks benefit from people going more and more into debt, but the American people suffer because of it.
The only way to fix the economy is for us to have a sound economy and a sound monetary system. We need to stop importing and instead, start producing, and we need a sound monetary system where the regime makes money for the common excellent, instead of banks making money for private profit.
Paul Romer once said "A crisis is a terrible thing to waste." Instead of providing the banks with billions and trillions to "save" them, the money should be used to completely restructure the financial system. We need to prevent the banks from making money out of nothing. We can and must make a system that keeps the value of money constant so that it does not change over time through inflation or deflation. We can and must make a system to maintain a stable balance of trade with other nations.
Through these systems we can make a stable monetary system and a stable economic system. Most importantly, the people will no longer be the victims of private corporations who steal their money. It is time we stopped letting the Federal Reserve and the banks steal from us.
The Federal Reserve Plot – Original Article posted in 2008 - http://www.naturalnews.com/025160.html