[Response] The Federal Reserve: A Bankster's Wet Dream
My response to https://steemit.com/economics/@richq11/the-federal-reserve-a-bankster-s-wet-dream
I posted this first as a comment on the OP, but decided it was substantive enough to make a dedicated post as well. Quotes are from the OP.
Lincoln was assassinated because he murdered 675,000 of his countrymen in the name of freedom.
I realize this isn't central to the OP's discussion, but I would like to point out that some law theorists contend that Lincoln was assassinated so that he could not end the period of martial law he declared on 09/15/1863. Under the rules of martial law, only the individual who declared it can end it. Lincoln was assassinated because he was about to end martial law because the war was over, and the deep state did not wish this to happen. Under this framework, we are still under Lincoln's martial law today, though the government prefers not to tout that fact lest it be disputed and defeated. Instead, they operate as though we are under martial law, but use other (perhaps weaker) excuses for why they have the authority to do the unlawful things they do. Everyone can bicker about the overt reasons, and the highest courts sit quietly by, knowing the real justification, which goes uncontested.
Of course, any sane person will note that this is silly: obviously we can't still be in martial law just because of some technicality! But that's not how law works. Law will allow anyone to get away with anything, no matter how silly or absurd, as long as no one challenges it. It's only if it gets challenged that it can be overturned. Until then, it's fair game.
In other words, if the bank is only required to have 10% on hand, it can lend out $9.00 on every $10.00 it takes in.
Something that should be emphasized about this process: the $9 that is lent out probably gets deposited in someone else's account at a different bank (this difference in banks is only for show; all banks in the US are branches of the Federal Reserve. Because the Federal Reserve Act makes up such absurd fantasy-land rules for how the Fed (ab)uses money, no legitimate bank can compete. Monopolism was one of the primary design goals of the Federal Reserve Act), and that $9 deposit becomes cash on hand for that bank to then lend out another $8.10, which then gets deposited somewhere and another $7.29 is lent out... You see how this works? And all of these banks consider those deposits as assets on their books, thus at each step, new dollars are created rather than lending out old ones. This system is massively inflationary, but the Fed doesn't call it inflation, because they don't want to admit what the real rates of inflation are. The numbers you see on the rate of inflation of the dollar are a gross misrepresentation of reality; it's actually far, far worse.
European banks began turning in their American currency for gold and for every ounce that went out...we lost $90.00. So, President Nixon took us off the gold standard- temporarily! This was the break the Fed was looking for.
It might be tempting to think these European banks are meaningfully distinct from the Fed, but this is not the case. Although they're all private banks with closed books, and we don't know for sure who their stakeholders and shotcallers are, we do know with reasonable certainty that all of the world's central banks are controlled by the same collusive group of people (the Rothschilds, who own those European banks, had representatives at the Jekyll Island meeting, provided seed capital for the Fed, etc). This was a concerted and carefully planned move to force the US do untether the dollar from gold, which the people who originally conceived the Fed in the Jekyll Island meeting had wanted to do from the beginning, but couldn't because they knew it would be too much too soon and the people would've rejected their bill.
It took 63 years, but they got their way in the end. Think about that. Do not underestimate these people; our adversaries are well disciplined and extremely patient.
With that being said, that system is finally beginning to collapse under the burden of its own fraud. Be careful, for when the collapse does occur, these banksters will have a wonderfully conveniently prepackaged, easy to use, government-approved, and ready-to-adopt replacement solution waiting in the wings for you. Before you click the OK button, consider: do you really want to support version 2.0 of this system? Maybe you should consider honest and transparent cryptocurrencies (like Steem) instead! :)
With a background in software development and a passion for security, Nathan has identified blockchain technology as his niche. He is dedicated to creating applications which empower individuals to shape a better world for themselves and others.
Thank you...Outstanding! The banksters do indeed have a "golden parachute" already in place...You can count on that! They're very patient, look at how long it took them to get the Fed in place. My point about turning in banknotes for gold was that they saw an opportunity and took it...I'm in no way defending European banks, they're the parents of ours. Rothschilds, Warburgs, et.al., waited decades to get their hands on our economy. What Jefferson, Jackson, Ron Paul and many others realize (d) is that fractional reserve banking is doomed to failure. It is designed to make huge profits for some at the peril of the citizenry. It's a take the money and run ponzi scheme. Thank you for taking the next step...once again, great job!
Oh, no, I hope it didn't read like I thought you were defending the European banks; I didn't think that at all! I was merely pointing out that we have solid reasons to believe that they acted in concert with the Fed to achieve a mutually desired outcome, not that this was just some unfortunate happenstance.
I will nitpick a bit on calling central banking a ponzi scheme, though. Compared to central banking, a ponzi scheme is a clumsy, myopic, and even merciful, fraud. Central banking is a brilliant scheme in which the fraud is so subversive, so covert, that the people being harmed the most (these are always the working poor, as they are the last to receive the new currency, after it has already raised prices) have the least idea of what is being done to them.
Editorial Note -- The remainder of this comment explores that idea further. Once I get going, I have trouble stopping! I hope my discussion is valuable; I do not intend it to be condescending that I spend so many lines developing this rebuttal.
When currency fabrication is performed continuously, as it is now, it creates what I refer to as the treadmill effect, where the money the working poor earn is devalued by the time they spend it, and increasingly so the longer they take to spend it (i.e. they have to keep running faster, or get dumped off the back of the treadmill). Their margins are low, meaning they cannot afford to save, and even if they could, they could save so little that inflation would destroy their savings' value faster than they could accumulate savings. This locks them into a continuous cycle of frantically working harder and harder, creating more and more value, just to continue to meet their basic needs, and exploits the fact that the human brain is inhibited, making holistic understanding and rational thought (such as is needed to understand the currency system) more difficult when basic needs are still a concern, as the brain is continuously distracted by the higher priority needs of food and shelter, rather than the comparatively unimportant endeavor of philosophy and manipulating abstractions. To compound this, they have no time to acquire the knowledge necessary to develop the abstractions, much less to manipulate them.
Finally, although the treadmill effect is greatest for the working poor, it is present for all workers, which causes the middle class to slowly descend into poverty over time as well, as bad luck (job loss, unexpected expenses, etc) slowly picks them off and drags them into deeper poverty.
Central banking, in all of its horrific glory, is one of the most brilliant, complex, and self-preserving inventions of pure evil that I have ever seen or could imagine. It is, however, unsustainable: because the working poor create less value per time spent than the middle class (I can elucidate this phenomenon if necessary), central banking slowly destroys its own energy source as it continuously renders the masses poorer and poorer, and thus less and less productive, until they simply starve off, or get on welfare, which means they become an expense, increasing the burden on the workers. It is a superlative tragedy and travesty that central banking devours its victims first throughout it's prolonged self-immolation, leaving its perpetrators alone stable and healthy when it does at last implode the economy and grind to a halt.
I am often incensed and enraged when I consider the workings of that machine, and understanding its operation has imposed upon me a moral imperative to fight it whenever and however it is in my power to do so.
As always, thanks for reading and engaging! :)
I used ponzi scheme not in a literal sense but to point out the inherent criminality, both in design and execution. Perhaps a bad choice of words. As for acting in concert, I believe we have the exact same cast of characters. All seem to be related somehow, through marriage or some other means...certainly related as far as intent goes, they use the same playbook. The working poor are forced into debt to insure that they own nothing. Next come the middle-class, the one factor necessary to sustain any rational economic system. 50 years ago people in the middle class owned their homes, now they are leveraged out of them by mortgages (most will be lucky indeed to pay off). Our economy is based currently on a debt bubble...when it implodes, the banksters will have what they always wanted...everything!
It's always funny when I show people how money expands through fractional reserve banking.
Also at least the states has a 9-1 ratio, Canada as far as I've read has none. If anyone out there has found Canada's reserve ratio feel free to enlighten me.
All in all, great post dude.
Thanks! That's interesting; I am not familiar with Canada's remix of the Fed. I would also be interested if someone can elaborate. :)
I suspect that there is no true limit to the US's inflation, though, as the government can continue 'borrowing' ad nauseum. If they ever get close to the limit, they just move the goalposts and keep right on destroying.
Isn't that just the most ironic thing in the world. Well we can't pay our debt so let's raise the debt ceiling borrow money to pay the immediate debt but owe more in the long run essentially raising the national debt.... what a perfect symbiotic circle lmao.
That does bring up a question though, how bad does it have to get before the majority realize they pay tax to prop up the bankers lavish lifestyles. 50%... 60%.... 70% income tax? Who knows, gone are the Boston tea party days lol
Nice post.
The interesting thing is that I do not believe we are going to see a collapse.
As more people wake up and notice what's going on, the more the banks are put into the spotlight.
T.H.E.Y. are still trying to milk the system for all they can... While cryptocurrencies are working out all their bugs. And just about the time T.H.E.Y. try to move everyone into digital fiat, someone will come out with superBitcoin, and everyone will flood into it, leaving the banks holding all the paper dollars and all of the debt.
All the pieces are coming together; this is going to be exciting.
I hope so! I do believe that cryptocurrency, and more generally blockchain technology, rank high among the most powerful tools for good that the world has ever seen, particularly in these dark, dark days.
I think you are correct, there is room for cautious optimism, what with the ongoing growth of cryptocurrency, giving people an actionable exit strategy, combined with invaluable work such as the #pizzagate investigations, which shine a spotlight of truth directly into the heart of the black mire of evil that governs the world today. Nevertheless, this is not the time to relax, but to take heart and redouble our efforts, both to build the technology that powers the free world, as well as to lovingly and empathetically show others the path to their emancipation.