This article was originally published by Michael Snyder at The Economic Collapse
Even though the nations of the world are very deeply divided on almost everything else, somehow virtually all of them have been convinced that central banking is the way to go. Today, less than 0.1% of the population of the world lives in a country that does not have a central bank. Do you think that there is any possible way that this is a coincidence? And it is also not a coincidence that we are now facing the greatest debt bubble in the history of the world. In Part I of this series, I discussed the fact that total global debt has reached 217 trillion dollars. Once you understand that central banks are designed to create endless debt, and once you understand that 99.9% of the global population lives in a country that has a central bank, then it finally makes sense why we have accumulated so much debt. The elite of the world use debt as a tool of enslavement, and central banking has allowed them to literally enslave the entire planet.
Some of you may not be familiar with how a “central bank” differs from a normal bank. The following definition of a “central bank” comes from Wikipedia…
A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency, which usually serves as the state’s legal tender.
Over the past 100 years or so, we have seen central banks steadily be established all over the planet. At this point, there are just 8 very small nations that still do not have a central bank…
-Federated States of Micronesia
When you add the populations of those 8 nations together, it comes to much less than 0.1% of the global population.
But even though central banking is nearly universal, only a very small fraction of the global population can tell you how money is created.
Do you know where money comes from?
Here in the United States, most people just assume that the federal government creates money. But that is not true at all.
Many are absolutely shocked when they discover that U.S. currency is actually borrowed into existence. The federal government gives U.S. Treasury bonds (debt) to the Federal Reserve in exchange for money that the Federal Reserve creates out of thin air. The Federal Reserve then auctions off those bonds to the highest bidder.
Since the federal government must pay interest on those bonds, the amount of debt that is created in these transactions is actually greater than the amount of money that is created. But we are told that if we can just circulate the money throughout our economy fast enough and tax it at a high enough rate, then we can eventually pay off the debt. Of course that never actually happens, and so the federal government always has to go back and borrow even more money. This is called a debt spiral, and at this point we will never be able to escape it until we do away with this horrible system.
But why does our government (or any government for that matter) have to borrow money that is created by a central bank in the first place?
Why can’t governments just create money themselves?
Oops. That is the big secret that nobody is supposed to talk about.
Theoretically, the U.S. government doesn’t actually have to borrow a single penny. Instead of borrowing money the Federal Reserve creates out of thin air, the federal government could just create money directly and spend it into circulation.
Yes, this could actually happen. Back in 1963, President John F. Kennedy signed Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were not created by the Federal Reserve. These debt-free notes began to be issued, and you can still find them for sale on eBay today. Unfortunately, President Kennedy was assassinated shortly after this executive order was issued, and the notes were not in production for long.
If we had ultimately fully adopted “United States Notes” and had phased out Federal Reserve notes, we would not be 20 trillion dollars in debt today.
The elite of the world love to get national governments deep into debt, because it enables them to enslave entire populations while making an obscene amount of money in the process.
Back in 1913, an insidious plan was rushed through Congress just before Christmas that was based on a blueprint that had been developed by very powerful Wall Street interests. Author G. Edward Griffin did an extraordinary job of documenting how all of this happened in his book entitled “The Creature from Jekyll Island: A Second Look at the Federal Reserve”. A central bank was established, and it was purposely designed to create a government debt spiral, and that is precisely what happened.
Since 1913, the size of the national debt has gotten more than 6,000 times larger, and the value of our dollar has declined by more than 98 percent. Many conservatives are still under the illusion that we could get out of debt someday if we just grow the economy fast enough, but I have shown in another article that we have gotten to the point where this is mathematically impossible.
And most people are also operating under the false assumption that the Federal Reserve is part of the federal government. But that is not accurate either. The following comes from one of my previous articles…
There is often a lot of confusion about the Federal Reserve, because a lot of people think that it is simply an agency of the federal government. But of course that is not true at all. In fact, as Ron Paul likes to say, the Federal Reserve is about as “federal” as Federal Express is.
The Fed is an independent central bank that has even argued in court that it is not an agency of the federal government. Yes, the president appoints the leadership of the Fed, but the Fed and other central banks around the world have always fiercely guarded their “independence”. On the official Fed website, it is admitted that the 12 regional Federal Reserve banks are organized “much like private corporations”, and they very much operate like private entities. They even issue shares of stock to the private banks that own them.
In case you were wondering, the federal government has zero shares.
According to the U.S. Constitution, a private central banking cartel should not be issuing our currency. In Article I, Section 8 of our Constitution, Congress is solely given the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
So why in the world has this authority been given to a central bank?
The truth is that we do not need a central bank.
From 1872 to 1913, there was no central bank and no income tax, and it turned out to be the greatest period of economic growth in all of U.S. history.
But since the Fed was established, there have been 18 different recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.
Abolishing the Federal Reserve is one of the core issues of my platform, and I have been writing about these things for the last seven years.
As I discussed yesterday, the elite use debt to enslave all of the rest of us, and central banking allows them to literally dominate the entire planet.
Until we abolish this debt-based system and go to a currency that is debt-free, we are never going to permanently solve our very deep long-term economic and financial problems.
But because they are so immensely wealthy, the elite are able to wield extraordinary influence in our society. They control the mainstream media, our politicians and even global institutions such as the United Nations. Anyone that would dare to question the validity of the current system is marginalized, and for a long time very few politicians around the world were even willing to speak out against central banking.
However, that is starting to change. A new generation of leaders is rising up, and they are absolutely determined to break the stranglehold that the elite have on our society. It won’t be easy, but if we are able to wake enough people up, I believe that we will eventually be able to free ourselves from this insidious system.
Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream.
If you want to know what is coming and what you can do to prepare, read his latest book [amazon text=Get Prepared Now!: Why A Great Crisis Is Coming & How You Can Survive It&asin=150522599X].
Snyder, another good article. You’re improving.
China and Russia: Full Steam Ahead Towards a Cashless Society
“We reported back in November 2016 – Cashless World: 1 out of 3 People Never Use Cash – fewer and fewer people understand the importance of using cash to protect themselves from an overarching government warlord.
At the time, China’s use of digitized currency was growing at about 40% per annum. This means millions of people each year freely hand over their cash and opt to use their cell phone, online currency transfers or a plastic debit/credit card to make 100% of their purchases. We see this as nothing short of happily going into the gulag of digital enslavement.”
“Today we learned China is taking another step toward being a cashless society. Not just any cashless society, but the largest populated nation on the planet. Please keep in mind this announcement is coming on the heels of China’s closest ally, Russia, announcing she would be issuing a crypto-ruble – Which is a digitized currency as well.
Once these two nations go cashless that will be a huge blow to hard currency in circulation around the world.”
“If the people want to enslave themselves through the use of digital currency why wouldn’t the government be on board with that idea and fully assist the citizens in their desire to willingly hand over their sovereignty?”
Michael Snyder, thank you for clearly exposing the farce that we call the Federal Reserve. Many of our countries Founders were adamantly against ceding the coining of our coin (currency) to an agent outside our government. Leave it to the stupid politicians of later generations (thank you Wilson & pals) to deviate from the Constitution again. You are not running for office from my state, but if you were from here – you would get my vote.
Asking, not telling, those in power that they are to relinquish power is futile.
I have two of those crisp $2 bills issued by a JFK order in 1963. $5 bills were issued also, marked across the top United States Notes. Those not in circulation were destroyed right after LBJ took office. Those non Federal Reserve notes, Israel refusing to declare its nuclear arsenal and refusing to allow inspection of those weapons are the major reason JFK was shot. He demanded that they allow inspections. So why does the US government remain committed to Federal Reserve Notes? The best answer I can come up with is they like living better than death, also the riches that came their way.
it’s a SHAME you didn’t collect 4 bucks worth of SILVER coins back then…..THEY would be worth around FIFTY BUCKS now.
buttcrackofdoom.. at 14 I didn’t have any money to gather silver coinage. I’ve thought about that a lot since then. Those coins were cleaned out quickly although some were found in circulation a decade later, still on a rare occasion today. Anyway I have collected some since 1980 at far cheaper than they sell for today.
Ever notice the countries that don’t have a rothschild central bank are the same ones that are the “axis of evil?”
The federal reserve…. spreading death and debt since 1913…
aljamo, when you were 14 they were still using pine tree schillings lol. Just kiddin man. I had a bunch of silver coins when I was a kid and spent them on 5 cent candy uuuhhggggg.
The biggest pusher of the latest epoch of central bank rule is former British prime minister Gordon Brown. He repeatedly called for a “New World Order”, he deliberately ramped up debt in the UK in order to not only bring down the British economy but also the world economy (the UK is home to the world’s financial capital, London). Once he sparked off bank runs he knew he could push through total state support to the banking sector, signing up the British population to financial servitude in perpetuity. It was a genius move only a total scumbag could pull off; and Brown is a massive scumbag.
The Scots have form in this sort of financial manipulation in order to enslave people. In the 18th century a Scot did this to France and sparked off the French revolution. Today’s Brits are the most digitally monitored people in the world so a revolution is very unlikely.
Islamic finance is quietly taking over and it won’t be long before we all live under a digital caliphate.
hmmmm……any relation to the S.O.B. that’s runnin’ california, i wonder? their stories are eerily similar.
Scot John Law and the Mississippi bubble:
There were higher denominations being prepared to print under JFK also. I saw a video from Dallas that showed the Secret Service detail being pulled away from the presidential limousine before turning onto the kill zone street. There were two stand on the rear of the car spots above the bumper that were left open as the agents were waved off. One threw his hands in the air shrugging as he was waved off. There are a few videos of this action.
For the facts hidden by the gvmnt surrounding JFK’s death, read Dr. Mary’s Monkey: How the Unsolved Murder of a Doctor, a Secret Laboratory in New Orleans and Cancer-Causing Monkey Viruses are Linked to Lee Harvey … Assassination and Emerging Global Epidemics
VERY well researched book with much more information about gvmnt ops, including why we have a cancer epidemic today. Should be required reading, but won’t find its way into the current gvmnt-controlled school libraries.
You know what I do,Sarge? Libraries LOVE hard back books. Buy some and donate. I have tracked some I have donated (e.g., I donated a book by Michelle Malkin, then called back a few days later, and was told there were FOURTEEN holds on it already).
what difference does any of it make when dumb sheep allow tyrannts to rule over them and even vote for them, the dumb sheep are getting exactly what they deserve
That’s the commie way – manufacture the pre-planned problem, create a solution to the problem for gvmnt control, then sell the solution to the sheeple.
Yep and they graze it up too.
The intrinsic value of any fiat currency is zero. You will feel the heft of digital currency alright but it won’t be in your pocket. The unconstitutional NSA, CIA, FBI, Federal Reserve and Hillary all know the value of digits. Their term is the Special Drawing Right for this digital farce to replace hard currency which replaced constitutional money. You feeling special these days? Didn’t think so. Too bad sound money went the way of a sound upbringing. One can use both to survive without electricity. Snyder correctly identifies the root cause of our problems. We have been out maneuvered by the banking elite and I fear we will just succumb to our fate with nary a whimper as the elocution of Thomas Jefferson so clearly states.
“Prudence … will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security”. Or as Gerald Celente states somewhat more succinctly “When people have nothing left to lose, they lose it”. Duty is calling, you listening? We could start with the triple jeopardy Bundyville trials. Pretrial prison with solitary confinement for the third time. Paraded into previous trials in chains, no Constitution allowed in her Court and defendants not allowed to mount a defense. It will be your turn soon now that you have awoken homeless.
The Chinese discovered 6,000 years ago that currency creates efficient markets and we shouldn’t be surprised that it caught on. We’ve had many fiat currencies issued by individual states and the Continental Currency. It’s nothing to fear, but something to plan around. Dollar denominated debts could be paid off with new digital dollars before switching to another currency – probably global. Self-sufficiency reduces reliance on currency and diversification through alternative currency reduces risk.
I see the government is planning on pushing through warrantless searches in the upcoming USA Liberty Act which replaces another expiring piece of legislation in 2018. This said to be a reaction to the Vegas incident. Create the problem in order to implement the solution.
That’s the commie way – manufacture the pre-planned problem, create a solution to the problem for gvmnt control, then sell the solution to the sheeple.
It’s been around forever. It’s known as the hegelian dialect.
And it continues to work well since mankind is pretty stupid.
Even insects will change patterns to protect themselves, humans not so much.
This is how the elite setup everything up.
A system of fiat money,usury,and perpetually increasing taxation through inflation.
The Rothschild stooge Paul Warburg simply brought the European central banking system to the United States.
Read The Creature from Jekyll Island.
Going back to the Weinstein story, CS Lewis wrote:
“We make men (and now boys) without chests (hearts, morals) and expect of them virtue and enterprise. We laugh at honour and are shocked to find traitors in our midst. We castrate, then bid the geldings be fruitful.”
It is not even just debt creation (though that is a big part of it). There is also a hidden economy where billions and billions are traded and laundered through international institutions such as the UN. They have many guises – carbon trading, ‘green’ investments, ‘social’ supports etc. – but they all have one thing in common: cash transfers to crooked government officials and international bureaucrats. The FBI knows this but rarely ever upholds the law and pursues this large-scale money laundering. The UN uses Macau to transfer these funds, as it did for many years with North Korea.