How Federal Reserve (Zionist Illuminati private bank) put US government and its people into debt. (Part 1/2)

That’s right. Federal Reserve is a private bank own by Zionist illuminati. It is not under control by US government. Mmm..lets see now how Zionist Illuminati owned Federal Reserve cheat American government and trapped them into debt.

Well, It is no measure of health to be well adjusted to profoundly sick society.

1.Society today is composed of a series of institutions – from political institution, legal institutions, new recent created religious institutions, to institutions of social class, familiar values and occupation of specialization. It is obvious to a profound influence these traditionalized structure have in shaping our understanding and perspectives.

2.Yet of all the institutions we are born into directed by and conditioned upon it seems to be no system is taken for granted and misunderstood as the MONETORY SYSTEM.

3.Taking on nearly religious proportion the established monetary institutions exist as one of the most unquestioned form of faith there is. How money is created? The policy by which its governed? and how its truly affect society on unregistered interest on a  great majority of population.

4.In a world of 1 % of population and 40%  in a world where 34,000 children die every single day from poverty and unpreventable diseases and 50% of the world population lives in on less of two USD/day.

5.One thing is clear – something is very wrong. And whether we are aware or not, the life blood of all of the established institutions and that society itself is money. Therefore, understanding this institutions and monetary policies is critical to understanding  why our lives are the way there are.

6.Unfortunately, economic is often viewed with confusion and boredom with industries and financial jargon couple with intimidating mathematics quickly deters from the people from an attempt at understanding it. However the fact is , the complexity of the with financial system is a mere maths designed to concealed the most socially paralyzing structure, humanity have ever endured.

7. None are more hopelessly enslaved than those who falsely believe they are free. – Johann Wolfgang von Goethe 1749-1832. A no. of years ago the central bank of the United States called Federal Reserve(Fed)  produce a document entitled Modern Money Mechanics.

8.This publication detailed the institutionalized practice of money creation as utilized by the federal reserves and the web of global commercial banks it supports. On the opening page of a document, state subjected “the purpose of this booklet is to describe the basic process of money creation in a “fractional reserve” banking system”.

9. It then proceeds to describe the fractional reserves process through various banking terminology. It’s translations of which goes something like this: The United states government decides a need some money. So he call a federal reserve and request The Fed reply say sure we buy USD10bil in government bonds from you. So, the government takes some a piece of paper paint an official looking design on them and called them a treasury bond. Then they put a value on these bonds to a sum of USD10bil., and sent them over to the Fed. In turn the people of the Fed draw a bunch of impressive piece of paper themselves only this time calling them a Federal reserve’s notes also to a designated value of USD10bil to the sum. The Fed then takes these notes and trades them for the bonds. Once these exchanges complete the government then take these USD10bil of federal reserve’s notes and deposited into a bank account, and upon these deposit a paper notes officially become legal tender money at USD10bil to the US money supply. And there’s it is , USD10bil of a new money has been created.

10. Of course, this example is a generalization for in reality, these transactions will occur electronically with no use of paper use at all.

11.In fact only 3% of the US money supply exist in physical currency. The other 97% is essentially exist in computers alone. Now, government bonds are by design a instrument of DEBT.

12. And when Fed purchases these bonds with money which is essentially created at out of thin air, the government is actually promising to pay back that money to the Fed, in other words the money was created at a DEBT.

13.This mind naming  a paradox that how money or value can be created out of debt for a liability would become more clear as we further this exercise. *So, the exchange had been made and USD10bil  sits in the commercial bank account.

14.Here is what get really interesting – for a base of a fractional reserves practice that USD10bil deposit instantly becomes part of the bank reserves just like all deposit do and regarding reserves requirements as stated in modern money mechanics a bank must maintain the legally required reserves equal to a prescribed percentage of its deposits. It then quantifies these by stating “Under current regulations, the reserve requirement against most transaction accounts is 10percent.” This means that with the USD10bil deposit 10% or USD1bil is held as the “required reserve” where the other USD9bil is considered as an “excessive’ reserve and can be use a basis for new loans. Now it is logical to assume these USD9bil is literally coming out of the existing USD10bil.deposit, however this is actually not the case.

15.What really happens is that the USD9bil is simply created out of a thin air on top of the existing USD10bil  deposit. This is how the money supply is expanded. As stated in Modern Money Mechanics, “of course they (the bank) do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers’ transaction accounts. (Promissory notes =loan contracts, credits=money), in other words a USD9bil could be created out of nothing, simply because that there is demand for such a loan (loan demand), and that there’re 10bil deposit to satisfy the reserve requirements(money created).

16. Now lets assume that somebody walks into the bank and borrows a new valuable USD9bil, they will then most likely take that money and deposited into their own bank account. The process than repeats, for that deposit becomes part of the bank reserve,. 10% is isolated and turn 90% of a USD9bil or USD 8.1bi is now available for as newly created money for more loans. And of course that USD8.1bil can be loan out and re-deposited creating the additional 10% of it to USD7.2bil to USD6.5bil to USD5.9bil etc.

17. These deposit money creation loan cycle can technically go on to infinity. The average mathematical resolves is about USD90bil can be created on top of the original USD10bil. In other words for every deposit that ever occurs in banking  system about 9x that  amount can be created out of thin air.

18. *So, we now that we understand how the money is created by the Fed fractional banking reserve system. A Logical yet elusive logical question might come to mind. What is actually  giving a new created money value? The answer: the money that already exist. The new money is essentially steals value from the existing money supply, for a total pool of money is being increased irrespective to demand for a good and services. and as supply demand find an equilibrium prices rise diminishing the purchasing power of each individual dollar.

19.This is generally refer to as an inflation. And inflation is sensually  a hidden text from the public. What is the advice you can get in…they don’t say it base of currency they don’t say devalue the currency they don’t say … they say lower the interest rates, they…the real deception is when we distorted the money…when we distort the value of money we created money out of a thin air we, they get from what so-called ‘capital’ …the question is this – how in the world can we expect to solve a problem…the power of of inflation. i.e. increasing supply money with more inflation.

20. Of course it can, the fractional reserve system monetary expansion is  inherently inflationary for the act of extending the money supply without they’d been a proportional expansion of good & services in the economy will always debase the currency. In fact a quick glance of the historical values of the USD vs the money supply reflects  this point definitively for the inverse relationship is obvious. USD1 in 1913 required USD21.60 in 2007 to match value…That is 96% devaluation since the federal reserve came into existent in 94 years.

21. Now, if this reality of inherent and perpetual inflation seems absurd and economically soft feeding, hold that thought, for absurdity is understatement in regards of how our financial system really operates,  for in financial system, money is DEBT. And DEBT is MONEY. (Check the chart of US money supply from 1950 to 2006 and US National Debt within the same period)

22. How interesting it is that the trend are virtually the same for the more money there is, the more debt there is. The more debt there is, the more money there is. To put it in different way, every single dollar in your wallet is owed to somebody by somebody, remember the only money could come into existent is from loans, therefore if everyone in the country were able to pay off all debts the  including the government, there would not be 1 dollar in circulation.…”If there were no debts in our money system, there wouldn’t be any money”- Marriner Eccies – Gioverner of the Federal Reserve Sep 30^th 1941 House of Committee Hearing on Banking and Currency.

23. In fact the last time in history the American national debt was completely paid off was in 1835 after, President Andrew Jackson shut down the central bank that preceded the federal Reserve. In fact Jackson entire political platform essentially revolve around his commitment to shut down central bank, stating at one point that “ The bold efforts the present bank has made to control the Government…are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it.”(President Andrew Jackson 1767-1845).unfortunately his message was short-lived and international bankers succeeded to install another central bank in 1913 – the Federal Reserve, and the more of these institutions exist, the perpetual DEBT is guaranteed.

(globalbackpacker to be contd-  part 2/2)