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Monetary system part 4
What happened to our country?
America used to be an amazing place. Everything was made in America. America was the leader in innovation. America was the leader in everything. All major manufacturing was from America. America was proud and rich. America was the richest nation in the history of the world. There was over 100 years in America's history where there was NO inflation. The dollar was backed by gold. 20 dollars per ounce. You could go to the bank and exchange a 20 dollar bill for an ounce of gold. From the 1700's to 1913. All the biggest buildings were in America. All the best innovation. We were the leaders in everything.
America was owned by Americans. All the land was owned by Americans. If you owned the land it was yours. No property taxes, no income tax. You were free. You were not a 14th amendment citizen subject to the jurisdiction of the federal govt. As a matter of fact, there was NO federal govt. America was a republic. The states were like individual countries. All the individual states had their own laws and Govt. There was no Federal govt. The states leaders would gather from time to time and talk about how things were going in the states. The capital was in Philadelphia. There was no FEDERAL power. The states all had their own rights. The states had the power.
The act of 1871 changed that. They created a federal govt. out of the district of columbia (Which is not a part of the US) And at that point the federal govt took control of our country. The states became subject to the jurisdiction of the federal government and so did the 14th amendment citizens.
Abraham Lincoln knew what was happening:
"I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe."-
Abraham Lincoln
The civil was was not about slavery, it was about the country losing states rights and being taken over by a federal govt run by bankers.
The federal reserve was created in secrecy in 1913. The American people had no idea what happened. The bankers had been trying multiple times in the past to get their private banking system into America. As a matter a fact the fed is the 3rd private bank attempt in America. Andrew Jackson killed the bank.:
https://www.dailykos.com/stories/2006/12/7/278792/-
These bankers are parasites. They are relentless. And they destroyed our country.
Now since the debt based ponzi scheme started in 1913 let me give you some ideas of what has happened to our great country.
In 1912 the Titanic sank. JP Morgan was supposed to be on that trip but called in sick. All the opposition towards the creation of the federal reserve was on that ship. After that ship sank in 1912 along with all the opposition toward the creation of the fed the fed was created in 1913.
In 1914, what happened? WW1. There is no way that WW1 could have happened or have been funded without the Fed. Impossible.
In 1933 our country went bankrupt. FDR abolished the gold standard. Remember at that time you could take a 20 dollar bill and go to the bank and get an ounce of gold for it. Because our economic system was a debt based interest bearing ponzi scheme they had to end the gold standard. 20 dollar convertibility.
FDR then did a gold confiscation. The American public was told to turn in their gold to save the nation.
So we had to turn in our gold and they gave us 20 dollars per ounce. Remember all this happened because you can't have a sound currency backing a ponzi scheme. We had to continue to create more and more dollars to create the interest money to pay the bond holders. (Which at the time were bankers and elites)
Now after they stole all the Americans gold they revalued gold to 35 dollars per ounce. The revalued the gold higher AFTER they stole all our gold. They did this because we created so many more dollars we needed to adjust the price of gold accordingly. So the bankers just decided to adjust the price of gold. That is the first example of the bankers controlling the price of gold. The just waved their wand and made the price of gold 35 per ounce. Of course after they stole all the Americans gold and gave them 20 for it.
So in 1933 the US went bankrupt to the bankers. That is the time when the US govt. collateralized all the countries land. Prior to that time there was no property tax. But then suddenly, the land in America wasn't ours anymore. You had to pay tax to rent the land. All the land in America became federalized. Even back then they were creating debt. Massive debt. The new deal! Growth and expansion of the federal govt. Starting in 1913 the ponzi scheme DEMANDED growth. And expansion of the govt was mandatory.
https://en.wikipedia.org/wiki/New_Deal
Once you understand the monetary system this all makes sense. You don't know history unless you know monetary history. Follow the money.
So it only took 20 years from 1913 to 1933 for the private bankers to destroy and bankrupt our nation.:
https://www.federalreservehistory.org/essays/emergency-banking-act-of-1933
1933 was the year the US CODE was enacted.:
https://www.loc.gov/item/uscode1934-002015002a/
The US code gave the bankers even more control of the United states.
1939 WW2 As you learn this stuff you learn that all these wars are bankers wars. They all begin with a false flag to get America into the wars. WW1, WW2, Gulf of Tonkin, 9/11. All of them.
All wars are bankers wars:
Monetary system part 3
Wrap your heads around this.
"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." - Henry Ford
Every asset is a debt and every debt is an asset.
You now know that the national debt is our money supply and it is exchanged for interest bearing bonds. Only principal was created and interest was not. So we need to continuously go further and further in debt to create interest money. The only way that dollars come into existence is by borrowing them into existence. So if we need more dollars the govt needs to spend them into existence. How does the govt spend dollars into existence?
Think hard about this......
In 1971 Henry Kissinger created the Petro Dollar. You see, because our economic system is a ponzi scheme, we can't have sound money backing it. So they did away with the gold standard. In 1933 and in 1971. And both times for the same reason. You can't have a dollar that is devaluing linked to something sound. If they are continuously creating more dollars (because they have to) and they are linked to gold. The value of gold goes down with the dollar in terms of other currencies. Dollar linked to gold. Dollars being devalued = gold being devalued. (In other currencies around the world) So other countries around the world started buying our gold and exporting it out of the US because it was on sale in their currencies.
This happened both times in 1933 and in 1971. The dollar was linked to gold and the dollar was being devalued. (Because it had to be ----Ponzi scheme) So in turn gold was cheaper in other currencies around the world. So they abolished the gold standard. Gold was flying out of our country. We were selling all our gold.
Now because we as a country had to continue creating dollars due to the system, and these guys knew that if all the dollars stayed in the country, we would have HYPERINFLATION. So they needed to figure out a way to EXPORT dollars.
Enter Kissinger.
They made a deal with OPEC:
https://www.investopedia.com/terms/p/petrodollars.asp
All oil transactions around the world were traded in dollars. MANDATORY! Backed by the US military. So the US at that time had a way to export dollars OUT of the US so they could control inflation. Less dollars in the US = less inflation. (Much more on that later)
Remember the only place that dollars come from is our national debt. And the only way they are created is by spending them into existence.
Look at this chart:
Look at what happened in 1971........2 reasons for this increase in the national debt. 1 the gold standard ended. 2 the US needed to spend the dollars into existence to spread around the world for oil transactions.
If every country in the world needed to hold dollars for oil transactions where did all those dollars come from? How did they get created? Where did those dollars come from? The world DEMANDED dollars for all oil transactions and the only place they could come from is our national debt. The US had to SPEND those dollars into existence. All dollars have to be SPENT into existence.
So how did the US create all the dollars necessary to spread around the world? We have to spend them into existence.......
WAR!
I seem to remember a war around that time that the US was not suppose to win that kept going on and on for years for no apparent reason.
Now if you can wrap your head around this system, the world we live in makes a lot more sense. The dollar and the current system controls the world. There is a reason why we spend so much money on wars OUTSIDE of the US and those dollars are sent OUTSIDE of the country. We are EXPORTING inflation. We have to get dollars outside of the US. If they all stayed inside the US inflation would skyrocket.
So we know that we always have to go further in debt to keep the system going. And the more dollars there are the more inflation there is. So they have to come up with ways to spend money into existence to keep the system going, but also export the dollars outside of the US to control inflation.
Now how many dollars will we need to create in the near future to keep the bond payments flowing?
https://www.cnn.com/2023/02/14/politics/interest-payments-federal-debt/index.html
"The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022"
213 bil per quarter for interest only. 213 X 4 852 billion in 1 YEAR just for interest payments on the bonds due. Remember those bonds are an asset that are being held in portfolios around the world. That interest is an asset and a liability.
So the US needs to create nearly 1 trillion in a year just to cover interest payment on the bonds. That does not include unfunded liabilities and the cost of operating the government.
So we have to SPEND all of those dollars into existence. Currently that total expenditure is 6.3 trillion dollars per year:
https://en.wikipedia.org/wiki/United_States_federal_budget
https://www.cbo.gov/publication/56309
But you know that that figure has to grow. I've shown you that. And the more it grows the more it has to grow.
So I hope now you can start to understand WHY we spend as much as we do. And WHY we send dollars to Ukraine and Israel etc. We NEED to spend the dollars into existence but also we need to try to EXPORT them OUTSIDE of the US.
Now think of all the ways that the US creates dollars necessary to keep the system going. The system demands wasteful spending. The system demands war. The system demands growth. How will the govt. spend the dollars into existence in the future to keep the system going? Wrap your heads around this. It may take some time. But there is a reason that cars still only get 20 MPG in fuel economy.
Monetary system part 2
I am going to continue to explain how the economic system works here by replying to my original post so that people that are watching and are willing to learn can simply look at the replies to see the posts.
In the first post I explained how the actual physical federal reserve supply is created. That started in 1913. At that point we needed to borrow all our currency into existence. Federal reserve notes = Bonds. Once the bonds are exchanged for FRN's interest is due on the bonds. So we need to borrow more dollars into existence to pay for the interest. You should have that down at this point. We need to borrow our currency into existence AND we need to continuously borrow MORE to create the interest dollars.
Now after the physical dollars are borrowed into existence those dollars end up in all the local commercial banks. Remember the Fed is a private for profit corporation that has shareholders. The newly created FRN's get put into banks. The banks then fractional reserve lend more currency into existence. The majority of our currency is lent into existence through our local private banks.
Here is how that works:
You can see in the example above at a 15% reserve requirement an initial deposit of $1,000 after 10 transactions turns into $5,354.17.
So to explain this simply. Say you go to your bank and deposit 1,000 dollars. At a 10% reserve requirement, the bank only has to hold 100 physical dollars in the bank and they can lend out the other 900. Then when they lend out the other 900 and the customer deposits that 900 into the banks, the bank only has to hold 90 in reserve and can lend out the remaining 810. And so on and so on and so on.
Every deposit and loan constantly expanding the money supply.
So if every person in the US went to the bank to withdrawal their cash, only 10% of it would be there. There is not enough cash in the banks to pay everybody because only 10% of the deposits exist in physical cash. The rest is simply digits. The physical cash supply has been fractionally reserved.
Another example:
So in part 1 and part 2 you get the total explanation of the way that the private banks create dollars. Dollar creation is completely in the hands of private banks. Step one the Fed creates federal reserve notes in exchange for bonds. Then in step 2 the FRN's go to commercial banks and the commercial banks lend more dollars into existence via fractional reserve banking.
Keep in mind that when commercial banks lend cash into existence, they are also only lending the principal into existence. They are not lending the interest into existence. So again, where do the dollars come from to pay the interest on the loans?
And after there is a bankruptcy because a loan holder can't pay the loan that the banks create out of nothing, where does the physical asset go? To the bank.
Get a car loan and own the car? You don't own it unless it is paid for. If you can't pay the loan the bank takes your car and sells it and takes the proceeds. But when they created the loan, they created money out of thin air. When banks create loans they are creating dollars. But your signature collateralizes the dollar creation. The dollars are backed by your labor. Your promise to pay. But if half way through the loan you can't pay, they take your stuff.
This is the system that we live in and it was created by bankers for bankers. This is how the bankers accumulate wealth and acquire physical assets. especially land. Like after the great depression, which they caused. All the land that got foreclosed on, they took.
The federal reserve caused the great depression and Bernanke admits it:
https://thecyberdaily.com/2014/02/bernanke-admits-the-federal-reserve-created-the-great-depression/
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again." - Ben Bernanke
The bankers have complete control of the economy due to the ability to create dollars. And control the quantity of the dollars in circulation via interest rates. They can cause recessions and depressions. And there is nothing the government can do about it.
"The Borrower Servant to the Lender"
"There are two ways to conquer and enslave a country. One is by the sword. The other is by debt."
John Adams
Hey look at this.
Here is the world population chart:
Here is the worlds dollar supply chart:
What would happen if the dollar supply didn't increase while the population increases?
Don't we need more dollars if we have more people?
The central banks are in complete control of the economy.
AI
