COMMENTS:

May 25, 2017

FRACTIONAL RESERVE WARS PART 1: Kill the Fed, Free the Markets: How to Replace America’s Scheming Central Bank. – Aug. 5, 2016 | Shah Gilani

end the fed3

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The key to the staggering wealth and control the Federal Reserve possesses is their ownership of the fiat money fractional reserve banking system they created and had made into law.

Fiat money is made up money. It’s money because a government decrees it’s money, also known as “legal tender.”

The Federal Reserve Act of 1913 gave the Fed the right to create its own money. Congress blessed the Fed’s fiat money by declaring it legal tender.

The U.S. Treasury doesn’t issue money, it prints Federal Reserve Notes, the Fed’s fiat money. The Treasury is nothing more than a printing press contractor for the Fed.

In a fractional reserve system, which is what the Fed created to self-propagate the money it owns, money is deposited in a bank that has to hold “in reserve” a fraction of the amount deposited.

Reserves held at banks are supposed to comfort depositors that if they come to take out their money there’ll be enough at the bank (because the bank isn’t allowed to lend out all your money).

But here’s how it really works.

If you deposit $100 in a bank and the bank’s “reserve requirement” is 10%, the bank has to put aside 10% of your deposit, or $10, and can lend out the other $90.

The bank could then lend $90 to me, which I might leave on deposit at the bank. It would then have to reserve 10% of my $90 and could lend out another $81.

So, it looks like the bank has a nice little business – but it continually has less and less money to lend out.

Of course, there’s another way to calculate “reserves.”

What if the bank took your $100 and simply said, we have $100, which we are calling our reserve requirement.

Holding $100 as a reserve implies the bank has held 10% of $1000.

That’s what they do.

Instead of having $90 to lend and make interest on, your bank uses your $100 to create $1000 it can then lend out.

Fractional reserve banking is magic for banks. It self-propagates the Fed’s fiat money.

That’s how banks make money. And when they get too greedy and lose out on their profiteering schemes, the Federal Reserve is there to bail them out.

How the Fed’s Scheme Really Works

The fact that the nation’s central bank backstops the big banks that own it, and that that same central bank is the “regulator” of the banks that own it, isn’t widely understood.

But it’s part of how the scheme works.

As far as controlling the government, the Fed can create (sometimes referred to as “printing” although credit is just an electronic check on a digital ledger) any amount of money it wants to buy as much government debt (bonds) as the Treasury issues.

Politicians don’t have to raise taxes to spend money. They rely on the Fed to purchase the debt obligations they issue so they can spend to their hearts content.

The fact that the Federal deficit is growing rapidly doesn’t matter to politicians. They’re more concerned about getting elected and staying in office by giving the public whatever they can to buy votes.

As far as the old fear of “crowding out,” where if the government issues too many bonds and other debt financing issuers are selling bonds there would be upward pressure on interest rates as issuers compete for buyers, that’s been eliminated.

Interest rates aren’t rising because the Fed is buying all the bonds the government issues under the guise of keeping interest rates low to stimulate more borrowing.

It’s not even subtle government capture, it’s the outright buying of our government.

Markets have no idea how to fairly price financial assets any more. That’s because we don’t have free markets any more.

The Fed has manipulated interest rates so low, bought so many bonds and other debt instruments, that normal, healthy market-driven capital allocation and prudent risk-taking has been overthrown by a central-planning board of governors at the Fed who believe they alone know how to manage interest rates, and that their pumping-up of financial assets is in the best interest of the economy, and of course their constituent bank shareholders.

end the fed

**** Replacing the Fed Is Easier Than You Think ****

America’s become a giant banana republic controlled by officers and oligarchs of the banking elite, with the Fed being the head of the snake.

The fix is easy.

The Fed needs to be ENDED and REPLACED with a better, more transparent apparatus.

* This would have to be done in phases, but here’s what should happen:

* The U.S. Treasury has to issue U.S. (public-owned) dollars, interest free.

* Make the “reserve requirement” at banks a flat 50% on all deposits and assets.

* Devise a transparent mathematical model to keep the quantity of money increasing at a rate commensurate with economic growth.

* Make banks into utilities such that with a 50% reserve requirement they wouldn’t fail but could earn interest on loans, earn fees for services, and build “profit-pools” that could be distributed to shareholders at the end of a calendar or fiscal year.

* To “tighten” the money supply if inflation becomes a problem, another mathematical model should be initiated to have banks use their “profit-pools” to take excess money out of the banking system.
All that’s easy to do.

And without a buyer of first and last resort to absorb government issued debt, politicians would have to raise taxes to be able to spend, which would instill fiscal discipline.

America’s been held hostage far too long by the capitalist cronies who run the Federal Reserve System and its big banks.

It’s time to free ourselves and our economy.

Sincerely,

Shah

Aug 5th, 2016 | By Shah Gilani

The public doesn’t know that America’s central bank is a private banking corporation that creates money out of thin air to enrich its big-bank shareholders and finances government deficits so politicians can pay for votes with handouts without having to raise taxes.

I told you that the only way to free markets and capitalism from the central-planning board at the Fed and free America’s hijacked democracy is to kill the Federal Reserve scheme and replace it with something altogether different.

Here’s why the Fed has to be replaced and what should replace it…

This Is the Key to the Fed’s Control.

SOURCE w/ CITIZEN COMMENTS: [ wallstreetinsightsandindictments.com ]

end-the-fed-rally-in-okc-nov-22

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Banking – the Greatest Scam on Earth

Uploaded on Sep 11, 2011
The Greatest Scam on Earth – The Money Scam! The Money Scam is hidden right out in the open, yet buried in complication and confusion.

A retired banker describes simply, the world’s Money Scam and the reason every country is now going bankrupt. Private bankers have stolen the money creation process, and whereas once our money was created by the governments, debt-free, it is now created out of thin air and issued as debt with interest charges.

In today’s banker controlled world, money = debt, debt = slavery and therefore money = slavery — our monetary systems have become systems of enslavement. Money is created out of nothing, issued as debt, not enough money is created for the future interest payments and inflation steals our savings.

The money creation process should be taken away from the banks and given to the governments who can create money debt-free, interest-free. This is how it used to be done and we needed no income taxes. Finally, it is explained what we should do to stop supporting the money scam.

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Money As Debt – Full Length Documentary
Uploaded on Feb 15, 2012
Essential viewing on money and the banking system. Money As Debt is a fast-paced and highly entertaining animated feature by artist & videographer, Paul Grignon. It explains today’s magically perverse DEBT-MONEY SYSTEM in terms that are easy to understand.

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Who Controls the Money Controls the World
Uploaded on Nov 13, 2011
All facts in this movie have been independently confirmed.

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The Collapse of The American Dream Explained in Animation

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The reasons of the past are the same reasons today to END the Central Banker Monopoly of our Currency.

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The veto of the 2nd Central Bank Of America was penned by George Bancroft on behalf of President Andrew Jackson and outlined key points which draw parallels to Americas present day scenario:

– It concentrated the nation’s financial strength in a single institution.

– It exposed the government to control by foreign interests.

– It served mainly to make the rich richer.

– It exercised too much control over members of Congress.

– Banks are controlled by a few select families.

– Banks have a long history of instigating wars between nations,
forcing them to borrow funding to pay for them.

CENTRAL BANKING QUOTES:

“The bank hath benefit of interest on all moneys which it creates out of nothing.”
William Paterson, founder of the Bank of England in 1694,

“If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations.” -Andrew Jackson

“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world– no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” — President Woodrow Wilson

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — James A. Garfield, President of the United States

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.” — James Madison

[Note – From 1913 until now inflation of the dollar has been 2950%. A 1913 dollar would now be worth $.034. When I became a wage earner in 1950 I could buy a full breakfast, eggs, sausage, hashbrowns, shortstack, juice, and coffee for $.39. This morning I paid $9.60 for the same, an inflation of 2460%]

“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.”
From now on, depressions will be scientifically created.” — Congressman Charles A. Lindbergh Sr. , 1913

“We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system…. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied.” — Robert H. Hamphill, Atlanta Federal Reserve Bank

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.” — Congressman Louis T. McFadden (Rep. Pa)

“I believe that banking institutions are more dangerous to our liberties than standing armies.” Thomas Jefferson

The modern theory of the perpetuation of debt has drenched the earth with blood and crushed it’s inhabitants under burdens ever accumulating.
Thomas Jefferson

“It is no coincidence the the century of total warfare has coincided with the century of central banking”. Ron Paul

“The bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of a pen, they will create enough deposits to buy it back again.”
Sir Josiah Stamp

“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.” Leo Tolstoy, Russian writer.

Comments

  1. Fed who believe they alone know how to manage interest rates, and that their pumping-up of financial assets is in the best interest of the economy, and of course their constituent bank shareholders.