The Fraudulent United States Federal Banking System is Crushing the Taxpayer Because Fractional Lending Has the American Economy Against the Wall.

The United States federal banking system is widely misunderstood by the public. The Federal Reserve is about as federal as Federal Express.

In fact, the Federal Reserve is nothing but an elaborate scam designed by the elite banking cabal.

The US government is reticent to increase taxes to pay for Medicare, Social Security and to expand the federal government.

Instead of going to taxpayers to raise money for new programs, what the government does is go to the Federal Reserve and ask them for money.

The Federal Reserve (a.k.a., the banking cabal) obliges and receives security on the loan to the government.

The government issues a bond for a specific period of time. The Federal Reserve then collects interest on the bond once it has created an entry in the bank account of the federal government.

So the federal government gets its money and the Federal Reserve gets an IOU from the government with an interest rate attached which is payable each year.

The government takes the money and goes off and buys the goods and services it requires.

Money for Nothing

Here’s the clever bit. The Federal Reserve has created the money out of thin air that it just loaned.

In exchange for creating this money it is able to get an interest payment and a capital payment back from the taxpayers of America at essentially no cost to itself.

It can use this money to go out and buy goods and services for itself in the real economy.

So by running a printing press or by making some entries on a computer, the federal banking system is able to buy houses, factories, shops, oil wells and whatever else it wants.

In addition, at some point in the future the government must pay back the principal amount borrowed from the Federal Reserve. Once it does this, it then cancels out the bond and the initial debt is paid.

In practice, this rarely happens because the government deficit seems to grow from decade to decade in an unstoppable fashion.

So what actually happens is that when the government debt to the Federal Reserve becomes due on the settlement date attached to the bond, the government simply borrows more money from the Federal Reserve in a new bond and uses the proceeds from the second bond sale to the Federal Reserve to pay off the first one to cancel the debt.

Money as Debt

The money flows in from the US Treasury’s bank account into deposits in the retail banking system.

These deposits are then subject to the miraculous law of fractional reserve banking in which they are multiplied by 10 and sent out into the retail banking system as debt.

This debt is then taken on by individuals and businesses secured on real assets and with an interest rate attached to them.

Therefore every injection into the treasury system by the United States federal banking system equals 10 times more debt, which is borne by American consumers and businesses.

The key secret of the US money-based system is that built into it are bankruptcies.

Everyone is Bankrupt

Since the money is created out of thin air with an immediate amount of interest attached, there is no way that all the money outstanding can ever be repaid.

If the Federal Reserve lends $100 to the US government at a 5% interest rate, there is only $100 in the system.

After one year, where does the money come from to pay the extra five dollars in interest?

The end result of this system is a mathematical certainty. It results in hyperinflation, bankruptcy and ruination.

The end of this game is that all property is owned by the United States federal banking system, since it is built into it that debts cannot be settled.

This is the part of the process we are witnessing now.

As bank and corporate balance sheets across the country plummet, the balance sheet of the United States federal banking system is exploding with trillions of dollars of taxpayer money flowing in.

As asset prices tumble, the government and the Federal Reserve between them are able to move in and buy up entire industries at a fraction of their worth with taxpayer money.

This was the intended consequence by the banking founders of the Federal Reserve System.

Their stated goal was to have control of the entire money system of America.

With the nationalization of the retail banking system, they are moving ever closer toward this goal.