What The Federal Reserve Has Done to The United States of America

History

In the old days, money was gold and silver pieces. Banks were spread out all across the states, each a little different. When people traveled from one state to another, their money from the previous state was not used at the next state. So all the banks gathered together in a meeting and thought out how the idea of a nationalized banking system called The Federal Reserve, also called “The Fed”, would work. It turned out that this idea ended up being used.

The Federal Reserve printed money and called it the “Official U.S. Dollar” which is still used today. But those dollars were always backed up with REAL gold. Banks would lend money out to their customers but that money still was backed up by gold. The customers would be given an “I owe you” certificate so they would have to pay the banks back with gold or U.S. Dollars.

Over the years, the banks began to lend out more than they were able to, creating money out of thin air. The banks then realized the money that they had lent out was not backed up by gold. So, the banks started asking The Fed to “bail” them out; meaning to print money and lend the banks the money they needed to stay in business. The reason for the need for a bailout was that the banks lent money that they didn’t have.

When The Fed lent out that money, they were lending out U.S. Dollars, but these Dollars were meant to be paid back to The Fed. After many years of this lending from The Fed, all U.S. Dollars are simply debt owed to The Fed. To back this up, look on the front of a U.S. Dollar bill.

Evidence

As you see in the red circle, it states, “This note is legal tender for all debts public and private”. In blue, it reads “Federal Reserve Note”. A note is a record that you borrowed money. You could be anybody, but usually only Banks have access to borrow from The Fed. In this case, it is a Federal Reserve Note. So put simply, the money that is in your wallet is only debt created by The Fed. Another way of saying it is that debt is money! Before you freak out and riot, The Fed, this money system is actually a pretty good idea. How is it a good idea, you might wonder? Well, so far everybody has been alright living with this system of buying and selling. But remember that what you are trading is not money; it’s the debt that you owe to the bank, that the banks need to pay back The Fed. Remember, the banks have to pay back The Fed because they lent too much money to the people and needed a bailout.