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How the Fed works. A must Read

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chris geo:
I had a few questions about credit so I asked at http://creditboards.com. The moderators were very nice to me, treated me with respect but censored this information from getting out to the public. I wanted to contribute something as a new member so I wrote a short essay. I figured I'd post it here so my work doesn't go to waist.




Hello all. I wanted to contribute something to the board since I am new here. I'd like to talk a little bit about the Federal Reserve, who's behind "credit" and why the interest rates are so ridiculous.

The best documentary on the matter is America: From Freedom To Fascism by the late great Aaron Russo (Trading Places, The Rose etc). You can buy the DVD anywhere on the internet but you can watch for FREE on google video or youtube.

Another great resource is Zeitgeist: The Movie. The first part discusses religion, the second part discusses 9-11 but the third part discusses the Federal Reserve system and our currency. If you watch only one, please watch the third part. Zeitgeist: Addendum is a great movie too, but the second half goes more into "philosophy" than real life usefulness but the first half is VITAL.


OK. So what is credit? Credit is slavery. They send you credit cards at age 18 in order to get you to be a slave to the system. You don't understand, you've never been educated in the matter and you are a naive child. The point is to get you in the exact point to where you are overwhelmed in debt but still able to pay it off. As a matter of fact, I know a gentleman who works for Wells Fargo who's job is to figure out how much debt you are capable of handling without topping you over to the point of non-repayment. So they want ALL of your money for a little bit of theirs (which doesn't even exist in the first place, I'll explain further on down).

Ever wondered why a $200,000 house costs $600,000 by the time you pay it back? Does that really seem fair? "Well yes, it's a 30 year loan, they have to make their money". Well you are going to be shocked with this! Nope! It's not fair! Because of "the fractional reserve system".

Our banking system is a "Fractional Reserve System". This means the banks are only required to carry 10% of their reserve and they are allowed to loan out 90%. So when you make a $500 deposit into your bank account they are now able to loan out $5,000 based on that $500 deposit. That is why 10% down is the magic number that will pretty much guarantee you a secured loan. With 20% down (they LOVE that!) you can have a credit score of 400, no job and buy a $20 million dollar mansion with 20% down. Think about it. If you give them 20% of 20 million dollars they can now loan out 40 million dollars to other people who WILL pay it back. And they've just stolen a 20 million dollar house for 2 million dollars.

But wait! It get's deeper!

They repo your home or car and auction it well below value. Let's say they get 10 million for it. Well, now another bank gives them 10 million dollars and from that 10 million they just added 100 million to their lending power.

See, in today's society of credit, you never actually take out the money. It doesn't even exist aside from the computer screen. You buy a house for $100,000, Bank Of America funds the home and gives it to Chase who is the loan holder. Now Chase has $1,000,000 of loaning power based on that. So Chase pays $100,000 of the loaning power to fund a home that Bank of America owns. So now Bank of America has an additional $1,000,000 loaning power. 

Fractional lending began in the early 1900's (in the United States anyway but it's an ancient scam) just before we were taken off of the gold standard in 1913 by bankers such as the Rothchilds and J.P. Morgans. It began as a "margin loan". The Federal Reserve was implemented and all gold was recalled under penalty of imprisonment and exchanged for useless "Federal Reserve Notes". If you look at a dollar bill before 1913 it says "redeemable in gold (or silver)" and after 1913 "this is legal tender". This means the only thing regulating the money is the amount in circulation.

But the Federal Reserve (which is about as Federal as Federal Express) not only supplies the money to the United States government but does so at INTEREST. So every dollar in circulation comes with a % of INTEREST that must be paid back to the Federal Reserve. In a central banking system there is and can NEVER be enough money in circulation to pay back the interest because where are we going to get the money to pay back the interest? We have to borrow more money from the Federal Reserve.

Back to margin loans. Everyone in the 20's seemed to be making money in the stock market and you can own $100 worth of stock with $10. But the catch was the loan could be called in at any time and had to be paid back within 24 hours. This resulted in the selling of the stock. And in 1929 Morgan, Rothchild and his buddies quietly exited the market and began calling in every single margin loan causing a panic.

As you probably know when a mass amount of stock is sold the value drops enormously. This allowed Morgan and his buddies to buy up rival banks at pennies on the dollar and caused a bank rush because people were afraid of losing their deposits to closing banks. And since there was only 10% of the reserve, the people were not able to get their deposits. So instead of increasing the money supply to help level off the playing field the Federal Reserve actually DECREASED the money supply and caused us to spiral into the greatest depression in history.

It was orchestrated with perfection "in the same way you would calculate a mathematical equation".

Benjamin Franklin said "If there is one specific reason for the American Revolution it would be the Kings refusal to allow the colonies to operate an honest money supply". Of course high taxes had something to contribute but the King outlawed the "Greenbacks" the colonies were using and forced them to borrow money from the Central bank of England, with each note attached a percentage of debt.

Thomas Jefferson said "If the people ever allow a central bank to control the money supply they will wake up homeless in the land their forefathers conquered".

And it's 100% true. 550,000 jobs lost in November. Foreclosures are at an all time high and people are getting kicked out of their homes because of the fraudulent credit system. With home loans, car loans etc. you are set up to FAIL. With credit cards you are set up to pay the minimum payment for 30 years and pay $30,000 on a $3,000 purchase.

Because of the "credit crunch" our interest rates went up to 27%. We pay around $800/month in INTEREST ALONE and about $200 in principal. It's a never ending cycle of debt.


Now the same thing that happened in 1929 is happening today. They orchestrated a panic in the stock market and put several companies and banks out of business. They get EIGHT AND A HALF TRILLION (YES TRILLION) dollars in "bail out money" and give each other bonuses, go on million dollar "team building retreats" and buy up rival banks, corporations etc. while you and I sit homeless in the country our forefathers conquered.

So they print 8.5 TRILLION out of thin air that the tax payers are obligated to pay back. Now they buy up foreclosed homes and SELL IT BACK TO US! They sell off our infrastructure to foreign corporations and turn highways paid for by the tax payers into TOLL ROADS.

I am a victim of foreclosure and I've never had a mortgage. I had a sheriff knock on my door one day and say I had 72 hours to vacate the home I was renting and paid up in rent on.

It's time for us to stop worrying why we are drowning in debt and start finding out the REASON! Why our homes are being stolen from under us.



End of Part 1.

[Mod Edit:  The united states didn't officially go off the gold standard until 1971.  FDR did change the price of gold from 20.83 to 35 an ounce so he could print more money]

Freeski:
That was an excellent read, sir!

Elvis:
So now post it everywhere - with intro. Excellent - looking forward to Part2 ...

Freeski:
Fix the typo before it goes viral, for the love of God!

Thomas Jefferson said "If the people ever allow a central bank to control the money suppley they will wake up homeless in the land their forefathers conquered".

Freeski:

--- Quote from: chris geo on December 31, 2008, 05:31:22 pm ---yea, I know. That's what you get for TRYING to type 150 words per minute :P


can we get a mod in here please? :P

--- End quote ---

We should ask the mods to clean up all of the typos on the forum! Do a global spellcheck and select "Yes To All" to make it go faster!

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