Understanding the creation of money and the fractional reserve banking system has never been more important. A lot of people think that the system is too complicated for them to understand, but in reality it is all a smokescreen used to stop the public knowledge of the financial system. For if everyone knew the horrifying truths that are built into the fabric of our system the there would be civil outrage. Once you understand how money is created, you too will understand why we need to put an end to this madness.
I will briefly go into how money is created according to Modern Money Mechanics by the Federal Reserve.
When the government wants to increase spending they go to the private banking company referred to as the Federal Reserve. The government tells the Federal Reserve how much new money they would like to have. The Government prints up fancy looking pieces of paper called Treasury Bonds, then the Federal Reserve prints up equally fancy looking pieces of paper called money. They exchange shady brief cases in a dark ally and that is how money is created. Except for the last part. Everything is now done electronically and only 3% of money exists in physical form. That means that the other 97% exists in computers alone.
There is one VERY important concept we must consider, the concept of interest. The Federal Reserve accepts the treasury bonds only with the agreement of an interest payment to be made on the top of the principle amount. But since they only created the principle amount of new money that means the bond has to be repaid with money from the existing money supply. Money is created with debt. This is why our system works like a big game of musical chairs so when the music stops someone is left out to dry.
“If there were no debts in our money system, there wouldn’t be any money.” – Marriner Eccies, Governor of the Federal Reserve, Sept 30th, 1941
The very creation of money itself has lost all integrity and honesty. The banking system controls the world through the use of debt. Debt is a powerful weapon and when used by corrupt men in an effective manor the results are as catastrophic as our world issues today. We must remember our founding fathers and their views on these issues. They were all aware of the dangers of the banking system and the only time in history when America was debt free was in 1835 after Andrew Jackson closed the central bank that proceeded the Federal Reserve. Unfortunately we did not take Thomas Jefferson’s advice because the Federal Reserve took control of our money supply in 1913.
“Every generation needs a new revolution” Thomas Jefferson
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt” – John Adams, 1735-1826
There is much more to this story including buying T-bonds on the open market, the gold standard, and fiat currency but I think Peter Joseph does a pretty good job of explaining the basic idea during the first 15 minutes of Zeitgeist: Addendum. I strongly recommend that you watch this 15-minute video and check out the full documentary Zeitgeist: Addendum, which is available on YouTube and Netflix.
What do you think? Please let me know by leaving a comment in the comment section.