You are here: Home » Economics » The Central Bank Concept: The Never-Ending Debt

The Central Bank Concept: The Never-Ending Debt

Explains the concept of the central bank, our money system, and where our money comes from. Also explains the scam in our system and how deceiving the concept is.

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.” Henry Ford, founder of the Ford Motor Company.

1775, America formally declared their independence as a new nation, the United States of America. the Amercian Revolutionary War broke out between England and 13 colonies of England on the North America Continent. People stated out many reasons about the war, but one and particular stick out as the most important cause. King George III, under the influences of bankers, outlawed the interest fee, independent currency for the new continent, which forced the colonies to borrow money from the Central Bank of England. America won its freedom from Great Britain in 1783, but the battle with the bankers and their central bank concepts, had just begun.

A central bank is an insitution that produces currency for the entire nation. The system works by controlling the interest fee, and money supplies (inflation) to maintain the values of the currency being issued. The central bank does not just supply the government’s economy with money, it “loans” to them. As a result it only leaves the country in endless debt. It is critical to understand, that the entire structure of this system can only produce one thing in the long run, Debt. It doesn’t take a lot of brains to figure this scam out: every single dollar produced by the central bank is loaned at interest. That means every single dollar produced is actually the dollar plus a certain percentage of debt based on that dollar. Since the central bank has the monopoly over the production of the currency for the entire country, and may loan each dollar out with immediate debt attached to it, where does the money to pay for the debt come from? It can only come from the central bank again, which means the central bank has to perpetually increase its money supply to temporarily cover the outstanding debt created, which in turn, since that new money is loaned out at interest as well, creates even more debt.

So how does the central bank of USA, the Federal Reserve, produces money out of nothing?

1stThe Fed Open Market Committee approves the purchase of U.S. Bonds on the open market.

2nd The bonds are purchased by the New York Fed Bank from whomever is offering them for sale on the open market.

0
Liked it
Powered by Powered by Triond
-->