Money and the Banking System in America Allow the Federal Reserve and the Banking Elite to Make Profits Out of Nothing at the Cost of the United States Taxpayer.

Money and the banking system of the United States is based on a process where debt creates more money.

The main goal of banks is to create more money, money that makes only an elite few in the country wealthy at the expense of the US taxpayer.

Banks use the money American citizens deposit to make more money in a process called fractional reserve banking.

If you deposit $100,000 dollars into the bank, this money is going to be used to create loans for other customers.

Banks are required by the Federal Reserve to retain part of your $100,000 deposit on reserve, with this reserve rate varying anywhere from 3 to 10 percent.

This means that from the $100,000 you deposited, the bank can use up to $97,000 to loan out to other customers, depending on what the reserve rate is.

Interest is paid back to the bank on every loan they give out, interest that is recorded as profit.

There is no end to the potential amount of money a bank can create, provided of course that people keep applying for loans and keep depositing money.

The $97,000 can be loaned to other customers who will deposit it, the banks can make additional loans on that money and the cycle carries on.

Both the principal and interest are paid back by the consumer, again and again.

Anyone growing up in America has been programmed to learn as little as possible about the banking system of the country.

They leave money matters to experts who supposedly understand these things and who will surely manage our finances with honesty and integrity.

It’s becoming clear that this ignorance has been a serious mistake and money and the banking system of the United States has made record profits while the losses have been passed off to American citizens.

This is done by the banking elite in their quest to gain more money and power throughout the world.

Federal Reserve and Monetary Policy

Money is put into circulation by banks through the creation of debt.

It’s the interest and principal paid back on this debt that makes banks, bankers, and investors so wealthy.

If you can’t afford to pay back the loan, the bank will take your home, business, or car and record it as an asset.

In this way, banks own a higher percentage of the money and property in circulation in America today.

But who is it that controls the money and the banking system of the United States and gives banks all this power?

The Federal Reserve Act of 1913 gave the Federal Reserve the central banking authority in this country.

This not only gives the Fed the power to control policies but also the power to maintain the stability of the financial system.

The regulation of banking procedures is in the hands of an elite few because the Federal Reserve isn’t an organization that is government controlled.

The Federal Reserve is a private monopoly that directly controls the people of the United States.

The Fed is made up of private banking monopolies that continue to make financial decisions for America.

Scheme of Money from Debt

If you think about the fact that banks don’t lend real money, they simply create it from debt, what’s wrong with the system if it’s been going on for so many years? Hasn’t it been working just fine?

The first problem is the people who are creating the goods and wealth in the country are in debt to those who lend out the money in the first place.

We’ve been programmed to believe that paying off our debt is good for our credit rating and great for the economy.

We think that if all debts are paid off, the economy will get better and that money and the banking system will run smoothly. This may be true about the individual debt that we owe, but not true about the economy.

Americans are dependent on credit to create more money, bank credit that comes from loans and holding a credit card.

Take a look at the Depression: when people stopped taking out loans because they couldn’t afford to pay them back, the supply of money in the country dropped drastically.

A Solution?

The Federal Reserve has been, for the most part, working in secret with very little information about its operations reaching American citizens.

One president understood the pitfalls of having the control of money in the hands of a few:

“Whoever controls the volume of money in our country is absolute master of all industry and commerce… when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

– President James Garfield, Assassinated 1881.

Americans need to become much more economically and politically literate to understand how the money and banking system works in this country.