The reason why the U.S. government is 36 trillion dollars in debt and our society as a whole is 102 trillion dollars in debt is because we have a system that was designed to create colossal amounts of debt.
This from discernreport.com.
But if you ask most Americans about this, they cannot tell you what the Federal Reserve is or why it is at the heart of our economic problems.
The following are 19 reasons why the Federal Reserve is at the heart of our economic problems.
#1 The Federal Reserve is the central pillar of our debt-based financial system.
When a new dollar is created, it is borrowed from the Private Central Federal Reserve—a private entity. And with the borrowed dollar comes debt in the form of interest.
This is a Ponzi scheme that is designed to drain wealth from the American people and transfer it to the elite.
#2 The Federal Reserve and the bankers have a monopoly on the creation of this debt-based money.
In the United States today, the only people that can create money are the bankers. Even the U.S. government is not permitted to create money.
Although the U.S. Constitution specifically gives Congress the power to create money, the U.S. Congress has relinquished that power to the Federal Reserve.
This gives the Federal Reserve an enormous amount of power. If you pull out a dollar bill, you will notice that it says ‘Federal Reserve Note’ right at the top. In the financial world, a ‘note’ is an instrument of debt.
Our financial system is nothing but a giant pile of debt. Ultimately, the entire system is designed to drain our wealth and put it into the hands of the bankers.
#3 The power of money creation and debt creation is in the hands of private banks—not the government.
The Federal Reserve has claimed that it is an “entity within the government, having both public purposes and private aspects.”
This is not true. The Federal Reserve is a legalized banking cartel that is privately-owned.
The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public.
While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends.
#4 The Federal Reserve itself is not a profit-making institution. Rather, it is a tool that enables others to make obscene amounts of money.
The Fed was not designed to make money. Rather, the system was set up so others could make an obscene amount of money from all of the debt that the system creates.
The Federal Reserve system is about getting the U.S. government enslaved to debt and using that debt to transfer trillions of dollars of our wealth into the hands of others.
Some people out there are becoming fabulously wealthy at our expense.
#5 The Federal Reserve is a perpetual debt machine.
As mentioned above, the U.S. government is enslaved to debt. So how did it become enslaved?
Well, instead of printing up and spending the money that it needs, the U.S. government borrows it through the Federal Reserve system at interest.
The only way the U.S. government can inject more money into the economy is by going into more debt. And when new government debt is created, the amount of money to pay the interest on that debt is also created.
In this way, it was intended by the international bankers that U.S. government debt would expand indefinitely and the U.S. money supply would also expand indefinitely.
#6 The Federal Reserve system is designed to cause inflation.
As U.S. government debt expands at an exponential pace, it inevitably causes inflation.
Most Americans believe that inflation is a fact of life, but the truth is the United States has only had a major, ongoing problem with inflation since the Federal Reserve was created back in 1913.
And, the U.S. dollar has lost about 99 percent of its value since the Federal Reserve was created.
#7 The Federal Reserve has decided to play bizarre games with our money supply.
In recent years the Fed has been resorting to a trick called “quantitative easing,” which means the Federal Reserve zaps massive amounts of money into existence out of thin air and injects it into the financial system. This has primarily been done by purchasing large quantities of U.S. Treasuries.
This is known as “monetizing the debt,” and it is a blatant Ponzi scheme. However, what is even more alarming is what this is doing to our money supply. Just look at what has happened to our monetary base since the later stages of 2008….
Now we are in a cost-of-living crisis that has no end in sight, and most Americans still do not understand who is responsible.
#8 The Federal Reserve is undemocratic.
What makes the central economic planning that the Federal Reserve does different from the central economic planning that communist China does?
Sadly, there really is not much of a difference. Only in our case, the central planners do not have to answer to anyone.
President Trump cannot order the Federal Reserve to do anything. The Federal Reserve does not have to answer to Congress either. It has been called “our fourth branch of government,” and it is totally out of control.
#9 The Federal Reserve runs the U.S. economy.
Most Americans want to blame the president or the U.S. Congress for the state of our economy.
But the truth is the Federal Reserve sets interest rates, determines the size of the money supply, sets the “target rate” of inflation, determines if unemployment is too high or too low, and watches over all of our banks.
#10 The Federal Reserve favors the big banks.
The big banks (particularly those in New York) are treated with great favor by the Federal Reserve.
During the global financial crisis, the Federal Reserve made over $9 trillion in overnight loans to major banks and large financial institutions.
Most of the “help” from the Federal Reserve goes to the big boys.
When “small enough to fail” banks need assistance, they are usually told to go sell themselves to one of the big banks.
#11 The worse the debt problems caused by the Federal Reserve become, the more money the IRS needs to collect from the rest of us.
If the U.S. government could issue debt-free money, it is conceivable that we would not even need the IRS. If the Federal Reserve was shut down, it is entirely possible we would be able to shut down the IRS as well.
The only way the current system works is if massive amounts of wealth continue to be drained from the American people.
#12 The Federal Reserve creates artificial financial bubbles.
As we look back over the last several decades, we see financial bubble after financial bubble. It was the Federal Reserve who created all of those bubbles.
The ridiculous policies of the Fed have wrought disaster after disaster and yet most of our politicians still will not even consider major changes to the Federal Reserve.
#13 The Federal Reserve is anti-free market.
In a true free market system, the marketplace would determine what interest rates are. In a true free market system, the marketplace would determine which financial institutions survive. In a true free market system, artificial financial bubbles would be far less likely. But we do not have a true free market system.
#14 The Federal Reserve tells the rest of the banks what to do.
The Fed is the chief regulator of the banking system, and that is extremely unfortunate. The following comes from the Fed’s official website:
The Federal Reserve’s supervision activities include examinations and inspections to ensure that financial institutions operate in a safe and sound manner and comply with laws and regulations. These include an assessment of a financial institution’s risk-management systems, financial conditions, and compliance.
That paragraph makes it all sound so benign. But the truth is that the Fed can be quite tyrannical.
For example, Fed officials once walked into one bank in Oklahoma and demanded they take down all of the Bible verses and all of the Christmas buttons the bank had been displaying.
#15 The people currently running the Federal Reserve pretty much have no idea what they are doing.
Noticeably, Federal Reserve Chairman Jerome Powell has a very long track record of incompetence.
Nearly every major judgment he has made since taking over that position has been dead wrong.
#16 Even though the Federal Reserve has such extraordinary power over the financial system, the American people are not permitted to examine their books.
The Federal Reserve claims it is regularly audited, but when members of Congress attempted to push through a true comprehensive audit Federal Reserve officials objected.
The truth is the Federal Reserve has never undergone a true comprehensive audit since it was created back in 1913.
#17 The Federal Reserve has way too much power.
If the Fed did not exist, we would not have an unelected, unaccountable “fourth branch of government” that has become completely and totally out of control.
#18 The Federal Reserve is dominated by Wall Street and the New York banks.
The New York representative is the only permanent member of the Federal Open Market Committee, while representatives from the other regional banks rotate.
#19 The Federal Reserve has brought us to the brink of economic collapse.
If the Federal Reserve had never been created, the American people would not be so enslaved to debt.
In 1922, Henry Ford wrote the following:
The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present system which put nations and peoples under control of the few.
Thomas Jefferson said that if he could add one more amendment to the U.S. Constitution it would be a ban on all government borrowing:
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.
We owe our future generations a correction to the debt problems we have created. This is one of President Trump’s promises. Trust The Plan.
