6139008-History-of-Money

them. Congress is willfully blind. Those who are critical of the Fed face severe criticism from the banking industry. TheFederal Reserve Bank intimidates the politicians. The Bankers control everything. He who controls the currency supplycontrols it all. The Federal Reserve Bank shifts losses to the taxpayer in the form of inflation. All of this is done using theFederal Reserve Bank as a “middle-man” between the people and Congress. Congress can spend as much as it wants andthe people remain confused about the process due to the Federal Reserve Bank. It is a bait and switch trick. Thepoliticians are terrified of the Bankers. And they are mortified of Alan Greenspan. Mr. Greenspan is the Grand Pooba of theFederal Reserve Bank. When he speaks, all of the politicians kiss his ass. Seldom will you see a politician criticize him, hisactions or his politics. The vast majority of them are cowards. The Federal Reserve Bank confuses the public about howcurrency is produced to protect the decision makers from accountability. Now, someone may assume that banks areconservative with the depositors' currency. The Federal Deposit Insurance Corporation, the Federal Deposit LoanCorporation and the Federal Reserve System now guarantee that if massive loans to countries or large corporations gointo default, the banks will not need to absorb the losses from these bad loans. And for this reason, banks are not ascautious as you, or I, had hoped.In fact, many loans are not repaid. The U.S. government acts as a co-signer and guarantees the loan. If the loan is notrepaid, the U.S. government pays it. Where does that currency come from? Well, it comes from the additional currencyborrowed from the Federal Reserve Bank. And the taxpayer eventually pays for it through the dilution of his or hersavings and higher prices. U.S. banks provide risky loans to troubled countries and corporations with no risk of lossbecause the U.S. government is a co-signer. When the loan defaults, the U.S. government pays the tab. The cost of thebailout is paid through currency borrowed from the Federal Reserve Bank. The cost of the bank bailout is passed on to thevoters through a devalued dollar. As the dollar decreases in value, prices increase. The difference in prices is what theAmerican consumer pays for the bailout and other government programs. The currency is created from the FederalReserve Bank to guarantee the payment of the large bank loan. The taxpayer bears the eventual cost of the bailoutthrough lost value in savings. Every dollar owned by the taxpayer is worth less than it was before each bailout. It is nodifferent than robbing someone's pocket. The bank's mismanagement is passed onto the taxpayers of the U.S. who arenot aware that all of this is taking place. Politicians know that raising taxes are unpopular. If they needed to raise taxessufficiently to run the federal government, there would be a revolt. Instead, Congress quietly borrows an unlimitedamount of cash from the Federal Reserve System to run the government at the expense of diluting the savings held bythe taxpayer. Most taxpayers don't understand how the banking system, or government, works. Taxpayers are easy andignorant targets.G. Edward Griffin in the book “The Creature from Jekyll Island”: It’s from Alan Greenspan, back in 1966, beforehe was the Chairman of the Board of Governors of the Federal Reserve, “The abandonment of the gold standard made itpossible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... The law ofsupply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangibleassets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of society losevalue in terms of goods. When the economy's books are finally balanced, one finds that this loss in value represents thegoods purchased by the government for the welfare of other purposes... In the absence of the gold standard, there is noway to protect savings from confiscation through inflation. There is no safe store of value. If there were, the governmentwould have to make its holding illegal, as this was done in the case of gold...The financial policy of the welfare staterequires that there be no way for the owners of wealth to protect themselves.”Deficit spending is merely a scheme for the “hidden” confiscation of wealth. On the other hand, gold stands in the way ofthis insidious process. It stands as a protector of property rights. Also See "Gold and Economic Freedom," in Capitalism:The Unknown Ideal, ed. Ayn Rand (New York: Signet Books, 1967), and p.101. As we have noted a critical element ofthe fractional reserve debt-money system - interest on bank-created debt - ensures that without continuousgrowth the system cannot survive. For, when banks create money to lend they do not create any money withwhich the related interest can be paid. Only further borrowing for further production can offer even thepotential that interest might be paid. If the private owners of the central banks decide not to extend anymorecredit, there will be no money to service the interest payments, causing bankruptcies and foreclosures thatthese owners will then purchase for a penny on the dollar just like they did during the great depression of1929! Then, they will continue to collect interest on money issued from nothing and will lend more. Thus,they live in an evergreen World and keep amassing wealth while the rest of the masses keep going deeperand deeper into debt!The result is that the system's potential survival requires continuously escalating levels of total international debt whichaffect every sector of society - local and national governments, business and commerce, and consumers. It also ensuresthe cyclical instability of international economies. As these debts and related interest rise inexorably on an internationalbasis they eventually become so large, as do surpluses of goods, that further growth of debt and output becomesimpossible. The call goes out first for greater efforts to "capture" export markets. Then banks, fearing the prospect oflarge scale debt repudiation, begin to call in their private sector loans or lay claim to the associated "securities". Pressureis brought to bear on governments to cut borrowing and reduce deficits in order to "beat inflation" although incircumstances of large scale unemployment and massive surpluses of unsold goods, any inflation is more likely to berelated to debt, and interest on debt, than an "overheating" economy. The result is cuts in social welfare and publicservices, reductions in infrastructure projects and/or increasing taxation.Debt-write-offs have no capital affect on banks overall since the money was created out of nothing. The only affect is thatthey don’t get to collect interest anymore on the written-off debt. Since all debt is borrowed money, in order to write off aThe Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 391