Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Toddsterpatriot; Talisker; Sherman Logan; Fungi

So all of us “conspiracy theorists” then wonder... what is the deal with the Fed... what is the “conspiracy” that we don’t like.

We ask ourselves:

Is is creating money out of thin air ? Is the Fed money printing the problem ? What’s the big new world order conspiracy ?

There are folks who are anti-conspiracy and think the Fed is ok, and there are folks who think the Fed is bad.

So who’s right ?

Answer:

Both and neither.

The fractional reserve thingy was explained in the prior post.

By changing the reserve requirement, the Fed can push banks to lend more or less.

There’s no money creation - there is an increase or decrease in money “on account”.

Well, economists include checkable deposits in the “money supply”.

I don’t.

Cuz it’s just “on account”. It’s a statistic, that’s all, IMHO.

Because amounts deposited are offset by liabilities. Every “Lent Out” amount in fractional reserve - means a bank customer OWES a bank that much. Again, the Green boxes are the actual money.

The whole thing creates confusion and distraction, which works nicely for new world order.

They key point to focus on (like when you’re trying to figure out how an illusionist does a trick)...

the Federal Reserve is in charge of “monetary policy”.

There’s one very simple, basic alternative to that: a government is in charge of its own “monetary policy”.

The establishment people would have you believe that this would be insanity. But that is exactly why new world order got the whole conversation rolling the way they did: a great fear of mass money creation by the government, and how that would greatly decrease the value of the dollar.

Well... what have we now ?

We have a Federal Reserve that has had a dramatic “easy money” policy, using the various methods at their disposal, even if they are largely related to borrowing.

Business borrowing is generally a good thing, because businesses generally are putting the borrowed capital to work by expanding, which stimulates the economy and creates jobs. Business revenue is not confiscated from citizens (well, it shouldn’t be), business revenue is a result of a transaction where the business customer receives something they wanted or needed in exchange for the sale price.

The real pain for the citizen is when the government borrows. That’s because the government’s only source of revenue is taxation, which is money confiscated from citizens, in most cases without the citizen receiving anything in return directly (just the indirect benefits of government). Ergo, taxes are generally an overhead expense - just something you have to pay out of what you earn, just for the privilege of... existing.

And that is the key feature that new world order wants: a lot of government spending (which new world order controls and benefits from), a lot of taxes on working people to pay for it all (programs, buildings, planes, etc., etc., etc.), and the elites of finance, diplomacy, espionage, government planning, etc., are the ones government goes to for, well, pretty much every step government takes.

What happens when a government - instead of borrowing dollars - which are “US” dollars, mind you - simply prints its own dollars ?

In other words, if government spends say $4 trillion on vendors and employees... and is a little short on tax revenue, maybe needs $100 million (just 2.5% shortfall), if they make an entry on their books, “Dollars Created, $100 million”, and they pay their bills...

there’s one missing piece of the puzzle.

The government did not have to have a Treasury bond auction and sell $100 million of bonds that it would have owed interest on.

The government would not have had to sit down with the international banks and say, “ok, what rate is it gonna be this month, can we float $100 million” ?

The banker’s phone would not ring.

So what of the government going mad and creating way to much and spending way too much ?

Well...

What’s going on right now ?

Government spend hundreds of Billions more than we collect in taxes.

And they borrow these hundreds of Billions (of US dollars)...

So taxpayers have to pay back... at this point... $18 trillion or so.

That’s how much more they’ve spent than they took in.

They borrowed “out in front” of tax revenue - and the interest is running into the hundreds of Billions.

Clearly, the idea of having to run to bankers to borrow - instead of printing dollars - rather than constrain spending - has always allowed it to run wild.

The “conspiracy” part kicks in when you realize the happy little world of cozy links between:

government
high finance
espionage
diplomacy
government consulting
military
defense contractors
news and entertainment media
politics

etc.

This is where the “establishment” supporters fall short - they fail to want to do their homework and just for a lark, check out some of the links.

Whenever someone gets curious, and really keeps researching, and keeps ignoring all the wacky claims and keeps just looking for key links... they find some scary-@ss links that make them say - OH CR@P ! I’ve been lied to from the moment I was born. This is all a huge, gigantic scam.

It takes a long time and a lot of effort to start catching on. After you do, you’ll become very disenchanted, very negative, unless you realize that it’s better to know than not know. At least you’ll know what hit you, and be able to start planning your own personal moves a little better, and hopefully avoid winding up on the losing end of the stick.


100 posted on 04/03/2015 12:27:58 AM PDT by PieterCasparzen (Do we then make void the law through faith? God forbid: yea, we establish the law.)
[ Post Reply | Private Reply | To 99 | View Replies ]


To: PieterCasparzen

.
>> “It takes a long time and a lot of effort to start catching on. After you do, you’ll become very disenchanted, very negative, unless you realize that it’s better to know than not know. At least you’ll know what hit you, and be able to start planning your own personal moves a little better, and hopefully avoid winding up on the losing end of the stick.” <<

.
Yes!

Friedman’s “Money Mischief” is a good start at learning what has been done to us.

.


107 posted on 04/03/2015 9:54:47 AM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
[ Post Reply | Private Reply | To 100 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson