FEDERAL  RESERVE


Have you ever played the game of Monopoly ? 
Imagine that one player can print all the money they want.
Before long, that one player will own everything, and everyone else is broke or in debt. 

The nation is swimming in debt:  about $57 Trillion nation-wide debt (as of the end of year 2007) has never been worse (ever), including as a percentage of the GDP (currently $13.86 Trillion).
The government and Federal Reserve (a quasi-government controlled / privately owned bank system) are printing fiat-funny-money (
7please watch the 47 minute video) out of thin air, and then try to lend it to everyone possible, flooding the mail with credit-card applications to everyone (and their pets and children too, literally).   Some people will fail to repay their loans and the banks then confiscate real assets, turning paper money printed out of thin air into real assets.  The value of the money erodes year after year.  A U.S. Dollar from year 1950 is now worth less than 10 cents.  Ever heard of compound interest?  It's the same for inflation.  At only 4.5% inflation, $100 becomes $81.75 in only 5 years.   Inflation is another contributing factor to falling median incomes and the shift of most wealth distribution to a mere 1% of the total U.S. population (with 40% of all wealth in the nation; up from 20% in 1976).
   

       

NOTE:  See how Bill Clinton almost balanced the budget ?
He printed a whole lot of money (between 1995 and 2000).
Some of the M3 increase was growth, but not all $2.5T of it (from 4.636T to $7.117T) !

YEAR MONTH M3 MONEY  Per Year
       
1995 12 $4,636 Trillion  $266.50
1996 12 $4,985 Trillion  $349.20
1997 12 $5,460 Trillion  $475.40
1998 12 $6,051 Trillion  $591.00
1999 12 $6,551 Trillion   $499.60
2000 12 $7,117 Trillion  $566.10

Look at year 2001/2002.   M3 Money supply increased by $917 billion in only 1 year !
Between year 1950 and 2005, M3 Money Supply increased from $135 billion to $10.15 trillion.
That's a factor of 75.2 !  
The nation did not become 75.2 times wealthier in 55 years.
The population grew from 152 million in 1950 to 298 million in year 2005.
That still does not explain the increase of the M3 Money Supply by a factor of 75.2 .
What happened was a whole lot of new money printed since 1950 (as indicated by CPI).
 
Our money system is a PYRAMID scheme, and all PYRAMID schemes collapse, eventually.
 
Here's how it works (they don't teach this in any public schools).
The Federal Reserve loans money (with interest) to member banks (which charge more interest).
Up to 90% of each new bank loan is money created out of thin air.
But it gets worse.
For each dollar re-deposited into the fractional (9:1 ratio) bank system (a closed loop monopoly bank system), 9 times more new money can be created out of thin air. 
Depending on the size of each loan, that PYRAMID scheme can continue until 90 times more money has been created out of thin air.  However, the bank is required to have 10% of their loans in reserves.

For example, let's say the bank has $1111.11 in reserves.
That means the bank can make a loan of 9 times that initial $1111.11, which is $10,000.00 .
90%
of each subsequent deposit can then be used for another loan of money created out of thin air . . .

(001) 90% of that $10,000.00 can be loaned again, to create a new loan of $9,000.00
(002) 90% of that $9,000.00 can be loaned again, to create a new loan of $8,100.00
(003) 90% of that $8,100.00 can be loaned again, to create a new loan of $7,290.00
:               :               :                :                  :                          :
(088) 90% of that $1.16 can be loaned again, to create a new loan of $1.045
(089) 90% of that $1.045 can be loaned again, to create a new loan of $0.94
:               :               :                :                  :                          :
(131) 90% of that $0.013 can be loaned again, to create a new loan of $0.011
(132) 90% of that $0.011 can be loaned again, to create a new loan of $0.01
_______________________
TOTAL SUM = $99,888.89 (of money created out of thin air from initial $1111.11 in reserves).

Thus, from the initial $1111.11 in the bank reserve, $98,888.89 (98.89% of $100,000.00) of more new money could be created out of thin air.
 
But it still gets worse, because a LOAN = PRINCIPAL + INTEREST.
But the bank creates only the PRINCIPAL for each new loan.
So, where does the INTEREST come from?
One of several things must happen:

  1. create more new money to delay the collapse of the PYRAMID (such as the recent government $152 Billion economic stimulus package in FEB-2008). However, this creates more inflation.
  2. those with money must spend more money to allow more new money to be created out of thin air.
  3. increase productivity.
  4. increase products and/or natural resources (e.g. oil, steel, etc.) to sell to other nations to bring money back.
  5. the wealthy share their wealth (not likely to any significant extent).
  6. increase taxes on the wealthy (however, if the wealthy are taxed too much, they might up and move their wealth and businesses to another country).
  7. increase productivity via increased population.
  8. increase productivity via illegal immigration (cheap labor).
  9. reduce taxes to encourage more spending.
  10. reduce interest rates to encourage more spending (but this creates more debt).
  11. the government prints up more new money and gives it back to people to stimulate more spending (such as the $152 Billion proposed in FEB-2008).
  12. foreclosures.
  13. plunder pensions and other systems (e.g. Social Security surpluses).
  14. the PYRAMID finally collapses when there is finally too much debt and inflation to delay the inevitable collapse. 

It is a PYRAMID scheme, and all pyramid schemes eventually collapse.
As time goes on, this problem can only get bigger and bigger.
The only thing stopping the collapse of this pyramid is a short time-lag by creating more debt and printing more money.
But that time-lag is shrinking every day, as the ability to repay debt becomes more difficult.
Debt will grow larger and larger.
The time it takes to finally collapse fools people.
Printing more money to delay the collapse will make inflation get worse and worse.
It could take decades or centuries, but the inevitable collapse is a mathematical certainty.
Eventually, the debt and inflation will become impossible to deal with.
We will not be able to create more debt to create more money.
We will not be able to spend our way out of the collapse.
We will not be able to print (money) our way out of the collapse (due to inflation).
We will not be able to immigrate our way out of the collapse.
We will not be able to procreate our way out of the collapse.
We will not be able to increase productivity enough to avoid the collapse.
We will not be able to tax (or un-tax) our way out of the collapse.
Look at our current situation and results of this PYRAMID scheme:

For anyone who thinks it is bad now, they haven't seen anything yet.
But none of this will ever be taught in public schools (see 47 minute video), and probably not in any universities either.
All of the above are the many manifestations of unchecked greed, and there will eventually be painful consequences for most people when the PYRAMID scheme finally collapses, as all PYRAMID schemes always do.
 
The SOLUTION - Reform the Monetary System:

  1. The federal government controls the monetary system.  It shall create the money it needs, interest free.  It shall control the money-supply.
     
  2. The federal government shall prohibit usury (interest) by government and member banks (under-cutting anyone else who lends money with interest).  If a lot of interest is bad (i.e. usury is immoral), how can a little interest be good? If inflation is bad, how is a little inflation good?
      
  3. This creates a stable money supply with the flexibility for small fluctuations.  If inflation is too high, some money in circulation can be removed. If there is deflation, or the population increases, the government can create and spend some money.  If they do a bad job of it, the voters know exactly who to hold accountable. Currently, the Federal Reserve is a quasi-government controlled / privately owned bank, and the voters have little (if any) control over it.  Why would people borrow from a bank (with interest) when they can borrow from the government, interest free?  Thus, there would be little (if any) usury.  Usury, predatory lending, and other manifestations of unchecked greed and the other numerous negative side effects would be greatly reduced.  If properly managed, without profit and usury as a motive, the U.S. currency would become superior to any other world currency.
     
  4. Theoretically, if managed responsibly, with the central bank in control of the monetary policy (instead of a quasi-government controlled/privately owned bank system), there may be no need for any tax system.  That is, inflation and deflation would affect everyone's money an equal percentage.  Of course, such a vast change in the monetary and tax systems would require new ways of thinking about money, interest, borrowing, taxation, and monetary policy, and there are many (e.g. politicians and bankers; a.k.a. puppets and puppeteers) that will resist such changes.  Since this way of funding the federal government is unlikely any time soon, the least we can do now is to greatly simplify the current, ridiculously complex and regressive tax system (e.g. make it fairer flat 17% income tax on all types of income above the poverty level). 
      

The nation is facing many pressing problems, now culminating simultaneously.  
But 
irresponsible incumbent politicians within government are ignoring the voters and our many pressing problems as they grow in number and severity.  
One major problem is a dishonest fiat-funny-money-system (please watch the 47 minute video). 
Education is required.
No  reforms are  possible  until  there  is,  first,  a  fundamental  change  in  government:

RECOMMENDATION:


01 Banking / Federal Reserve System: http://www.fdrs.org/federal_reserve_notes_history.html 
02 The Federal Reserve System - A Parasite:  http://home.hiwaay.net/~becraft/VieiraMono4.htm 
03 Federal Reserve - Is it a good thing?  http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=Federal+Reserve+pyramid 
04 Monetary System:  http://www.newswithviews.com/Vieira/edwin3.htm
05 PREDATORY MONETARY POLICIES & PONZI ECONOMIES:  http://www.moneyfiles.org/centralbanking.html
06 Federal Reserve does not have any reserves: http://www.apfn.org/apfn/reserve2.htm
07 Ownership of the Federal Reserve:  http://land.netonecom.net/tlp/ref/federal_reserve.shtml
08 While we were sleeping somebody stole America: http://www.maxexchange.com/ybj/chapter_1.htm
09 Education is Required: http://www.newswithviews.com/Vieira/edwin14.htm
10 The Facts: http://www.freerepublic.com/focus/news/699768/posts
11 Monetary Crisis?  http://www.fame.org/PDF/WILL%20THE%20COMING%20MONETARY%20CRISIS%20PROVIDE%20OPPORTUNITY%20FOR%20RE..pdf
12 Wikipedia - Ponzi-Scheme: http://en.wikipedia.org/wiki/Ponzi_scheme
13 Secrets of the Federal Reserve:  http://www.apfn.org/apfn/reserve.htm
14 LOOMING BANKING CRISIS?  http://www.eldoradogold.net/Edwin%20Vieira/vieira_bank_crisis.htm
15 Return to Constitutional Money: http://www.supremelaw.org/authors/vieira/vieira.htm
16 Facts About the Federal Reserve and the National Debt:  http://www.apfn.net/Doc-100_bankruptcy13.htm
17 Manipulation by the Federal Reserve: http://www.safehaven.com/showarticle.cfm?id=976
18 Cheating Laboring Classes:  http://home.columbus.rr.com/rossl/gold.htm
19 What is Money?  http://www.apfn.org/apfn/money.htm
20 Phasing Out the Federal Reserve: http://www.lizmichael.org/federal.htm
21 Abolish The Fed Ponzi Scheme: http://housingbubble.blogspot.com/2005/04/abolish-fed-ponzi-scheme.html

22

Problems Caused by the Federal Reserve:  http://ebtx.com/economy/fedresrv.htm

23

How Much Will You Take?  http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=19570
24 American "New Economy" -- a giant Ponzi pyramid: http://www.mit.edu/people/fjk/essays/greenspan2.html

25

The United States Is In Deep Doodoo: http://www.whatreallyhappened.com/ARTICLE2/doodoo.html

26

The Social Security Game:  http://www.jewishworldreview.com/cols/greenberg020999.asp

27

The Federal Reserve is a Scam:  http://portland.indymedia.org/en/2005/06/319265.shtml

28

Social Security - Another PONZI scheme:  http://www.socialsecurity.org/reformandyou/faqs.html


Notable Notes and Quotes:


  •   What you should know about fiat-funny-money (47 minute video)
      Pressing Problems Facing the U.S. (growing quickly in number and severity)
      The Growing Disparity Trend (these did not all come about by mere coincidence over the last 30+ years)
      Irresponsible Incumbents (what irresponsible incumbent politicians do while troops risk life and limb)
      PROs and CONs (why to stop re-electing irresponsible incumbent politicians)
      National Debt (and growing fast)
      Massive $Loading...  National Debt (growing fast)
      Interest on the National Debt (it will take hundreds of years to pay off the National Debt)
      Consider the Following Scenario and these existing factors (must we always learn the hard way?)
      Plunder of the Environment (population, arable land, over-fishing)
      Solutions ; Help Educate Others (peacefully force government to be responsible and accountable too!)
      Badly-Needed, Common-Sense Reforms (that can never be passed until voters make it happen)
      The Cheater's Philosophy (learn to recognize their manipulative techniques)
    Frequently Asked Questions

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