Tuesday, January 22, 2008

Money, Debt, the Fed and Usury

If you don't understand the Federal Reserve, you don't understand the world you live in. Draw your own conclusions...

This is the best presentation I've ever seen on the Federal Reserve. It is made to be understood by anyone, regardless of knowledge of The Fed.

Money as Debt 1
Money as Debt 2
Money as Debt 3
Money as Debt 4
Money as Debt 5

Another take:
Federal Reserve Part 1
Federal Reserve Part 2
Federal Reserve Part 3
Federal Reserve Part 4
Federal Reserve Part 5

A Cliff's Notes-type version:

A History of Money and Banking Secrets That Banks Dont Want Published A History of Money and Trade
To start with a history of money and debt, we must go back many years ago when people used to trade their wares for the things they wanted and needed.In place of money or Federal Reserve Notes, you could trade a well made pistol for a cow, which you could eat or trade a remainder of for other items like clothing.It didn't take long for people to realize there needed to be a more efficient means of trade. If you were a farmer, it was too difficult to carry baskets of fresh corn around to trade for a new horse. And, the person selling the horse might not want any corn at all.

A History of Money and Gold
So, people used gold for cash money, which always had a stable value, to trade for the items they wanted and needed... Gold was very heavy to carry and hard to conceal. In the beginning of our banking history what people would do is leave their gold with a goldsmith.The goldsmith would then give them a note, or paper money, that stated how much gold they had on deposit with the goldsmith (bank).The farmer could then take this paper money note... ...the note would continue to trade hands and very few people would ever go redeem it for the gold it was backed by.It didn't take long for the goldsmith to understand this reality. So, here he is storing all of this gold for other people. Let's give it a value to make this next principle clear.Let's say the gold he is storing is valued at $1,000 and there are $1,000 in real cash money notes backed by this real gold being circulated.

A History of Money and Loans
When many people wanted a loan for say a total of $1,000, he decided no one would notice and it would be real easy to lend them someone else's gold... And, he'd only charge 10% interest... ...why not lend out to anyone who looks like they can repay? And, that year he lent out a total of $10,000 worth of newly created or you could say counterfeit, funny money notes.

A History of Money and Inflation
...There is now ten times as much currency/notes floating around then there is real gold to back it. This causes the value of the original $1,000 to loose 90% of its value...Everyone now has way more money then they did the year before, they feel rich...This means there is still $1,000 of real cash money notes backed by REAL gold. $9,000 in funny money loans outstanding, $9,000 in total notes circulating and the goldsmith has pocketed $2,000.So, the goldsmith is now up $2,000 out of thin air...

A History of Money and Recession
People tighten up their spending for no apparent reason, but it is soley because there are less notes in circulation. So, prices start to fall... RECESSION...Year five, the borrowers paid back $1,400 worth of principal and $600 in interest. There is still only $1,000 in gold. $4,000 in loans outstanding, $1,000 in total notes circulating and the goldsmith has pocketed another $2,000, totaling $10,000 thus far, but $4,000 is still owed.With only $1,000 in total notes circulating, people obviously cannot continue to pay, so there is one thing left and that is the confiscation of their assets, and the remaining $1,000 in total notes circulating. Can you say BANKRUPTCY...

A History of Money and the FED
Oh, I know says the goldsmith, I'll just have to keep lending this counterfeit money backed by nothing so they can work hard for me for free, and I will own every asset on this planet for free. So the goldsmith starts to lend out money again and lends out $10,000 the first year which again causes the BOOM. And, on and on it goes....the goldsmith's are now called the Federal Reserve System and the funny money counterfeit notes are called Federal Reserve Notes. In the 1930's there was roughly $30 Billion in gold at Fort Knox, and now we owe $7,937,046,735,823.So, then I ask you fellow American, is this a history of money and debt that you thought was going on when you borrowed from Capital One or Providian?...

1 comment:

  1. If you want people to actually read your blog, please change the color scheme to one which does not induce a headache and annoy the eyes.

    The black background is a bad idea to begin with. The text in a rainbow of colors is even worse.

    I recommend a white background and black text.


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