Its all a loony conspiracy theory and I'm a loon like Jefferson
"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied."-Thomas Jefferson
Does anyone reading this thread not think that a debt fueled economy and constant cycles of inflation and deflation is not a problem and a hidden tax on us all?
Lets consider the Great Depression.
In 1930 America did not lack industrial capacity, fertile farmland, skilled or willing workers, or industrious families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilizing telephone, teletype, radio, and a well-operated mail system. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land.
The creation of the Federal Reserve System increased the bankers' ability to inflate the currency supply sixfold. During 1923 to 1929 the bankers did inflate the currency supply enormously. Such an artificial inflation inevitably brings about a subsequent need for deflation. Federal Reserve bankers, the source of America's currency and credit, reduced the currency supply by refusing loans to stable and growing industries, stores, and farmers. At the same time they demanded payment on existing loans. They also increased interest rates. Currency was rapidly taken out of circulation and was not replaced. America was put in a depression and in deep trouble. Goods were available to be purchased, jobs waiting to be done, but little currency was available. Twenty-five percent of workers were laid off. Banks took possession of tens of thousands of farms and businesses through foreclosure. Gloom settled over America.
The contraction of the currency supply caused the stock market to collapse and the ensuing depression. Seven months before the collapse, Paul Warburg, the main architect of the Federal Reserve System, in his annual report to the stockholders of his International Acceptance Bank, wrote:
"If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country."
Both the inflation and the deflation, causing the depression, had been planned - as predicted by Jefferson in 1791!
Is it that complicated or is the process by which the banks gather wealth just too simple to be believed.
The only way new currency goes into circulation in America under this system is when someone borrows it from a banker. When people are confident of success, they borrow more currency, which increases the currency supply, and all seem to prosper for a while. Then, as they pay off their loans, the available currency supply shrinks and currency becomes "scarce." Borrowers must always take more currency out of circulation when they repay their loans, than they put in circulation when they receive their loans. Interest and charges make the repayment total larger than the loan. This means that only more people borrowing still more can keep the medium of exchange available to the nation.
This example may aid understanding. When a citizen goes to a banker to borrow $100,000 to purchase a home or a farm, and the loan is granted, the banker gives the borrower a check for $100,000 or credits the borrower's account with $100,000. The borrower, in turn, writes the necessary checks to the builder, seller, subcontractors, etc. (who, in turn, write more checks), thereby putting $100,000 of "checkbook currency" into circulation. However, on a 30-year mortgage with 10% interest, the banker wants $828 per month, or a total of $316,080. The buyer must take that $316,080 out of circulation, reducing the overall amount in circulation by $216,080.
The banker has not really produced anything of value, except the slip of paper called a check or deposit slip. Yet the banker ends up having $216,080 more than he had before, minus a few hundred dollars of clerical and office costs. But the people, as a whole, have $216,080 less.
Can you not see what this process is doing to and has done to the country?
Let us consider something as simple an auto loan for only three years. Step one: citizen borrows $6,000 and pays it into circulation (to the dealer, factory, etc.). Citizen agrees to repay the banker $7,200. Step two: Citizen pays $200 per month. In 36 months citizen has taken $7,200 out of circulation and paid it to the bank. Net result? $1,200 less currency in circulation.
Since currency requirements increase with expanding population, industry, and commerce, and paying off any loan decreases the available currency supply, it is clear that we would quickly run out of currency, unless more and more people borrow more and more currency to keep currency in circulation!
Multiply the above examples by hundreds of millions of times since 1913, and you can see why America has fallen from a prosperous debt-free nation to the most debt-ridden country in the world. Practically every home, farm, and business is heavily mortgaged to the bankers. Practically all our cars, furniture, and clothes are purchased with borrowed currency. The interest to the bankers on personal, state, and federal debt totals more than 25% of the combined earnings of the working population!
Can you not see that it is the bankers who are the prime beneficary of our current system and that the losers are all the rest of the country?
In 1910 the U.S. federal debt was $1,147,000,000 - $12 per citizen. State and local debts were practically non-existent, and government was small and not oppressive.
By 1920, after only six years of the Federal Reserve handling our currency, the federal debt had jumped to $24 billion - $228 per citizen. The Federal Government began to grow like an invisible cancer in its early stages.
By 1968 the federal debt had jumped to $347 billion - $1,717 per citizen. Ten years later, by 1978 it had doubled again to $763 billion - $3,500 per citizen. That is a debt of $17,500 for every family of five in America. Federal debt has been growing faster and faster since. And the Federal Government has become a debilitating cancer rapidly sapping and weakening its victim.