The Great Economic Unraveling
Every boom cycle ends in a bust cycle. The United States has been in a boom cycle from the early 1980s until about now. So, at some point the trend changes, and due to massive amounts of debt around the globe we have reached a point of unsustainability. We are at the tipping point. The great unraveling will be a global unraveling that will effect all of us.
Every boom cycle ends in a bust cycle. The United States has been in a boom cycle from the early 1980s until about now. So, at some point the trend changes, and due to massive amounts of debt around the globe we have reached a point of unsustainability. We are at the tipping point. The great unraveling will be a global unraveling that will effect all of us.
experience
What are you saying? Are you unaware of the fact that the Federal Reserve Bank is a private for profit corporation that loans Our country the currency We use in it at interest and that the “money”/Federal Reserve Notes that the Federal Reserve Bank “loans” Our country comes into existence by book entry only? Are you also unaware of the fact that Our country’s borrowing of the Fed’s currency for Our commerce means that We could never repay all of Our debt’s because if We did We would not have any currency in it to circulate Our economy? Are you unaware of the fact that the “interest” portion of the Fed loans are never put into the money supply therefore making it a mathematical certainty that foreclosures, repossessions, and alike are going to occur? Also because of the lack of “interest money” in Our money supply, We must toil against one another in order to procure enough funds to payoff Our fraudulent debt, thereby creating the dog-eat-dog society We have right now.
And it’s fraud! The current debt is fraudulent! You can read all about it in the first eleven pages of the Federal Reserve’s workbook, “Modern Money Mechanics.” As a matter of fact, I wrote a book and my second chapter in that book serves as a study guide to Modern Money Mechanics. I’m going to post it underneath this paragraph to help you understand it. Hopefully it fits. I pray that you are really a god guy and not a Rothschild agent.
Ch 2: How The Federal Reserve System Works And What It Has Been Created To Do
The Federal Reserve Bank of Chicago published a workbook describing how the Federal Reserve System works titled, “Modern Money Mechanics.” That workbook is truly the best source for understanding how their fraudulent monetary system operates. It is however, written very deceptively, in an attempt to hide the destructive nature of their monetary system.
The first sentence of the Federal Reserve’s Modern Money Mechanics reads, “The purpose of this booklet is to describe the basic process of money creation in a “fractional reserve banking system.” From its onset the book “broods of serpents.” This sentence is purposely deceiving in an attempt to deter anyone from trying to understand how money is created in a “fractional reserve system.” It strongly implies that you would have to read the entire workbook in order to understand the money creation process. The truth is that a complete and thorough explanation of the process, intertwined with many distracting issues, is given in the first eleven pages of the workbook.
Amidst all of the distracting issues that are talked about in the first eleven pages, page two has a sentence that reads, “The money creation process takes place primarily through transaction accounts.” Page three has a sectioned titled, “Who Creates Money?” Scattered in that section it says, “The actual process of money creation takes place primarily in banks. They (the banks) increase deposits when the proceeds of loans made by the banks are credited to borrowers accounts. Banks can build up deposits by increasing loans. Bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way banks began to create money. Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers.” Page five says, “From the stand point of money creation.” In the footnote at the bottom of page five it reads that, “All depository institutions, not just commercial banks, have the potential for creating money.” At the bottom of pages six and seven it reads, “The banks do not really payout loans. If they did this, no additional money would be created. Loans are made by crediting the borrower’s account, by creating additional deposit money.”
Pages six through ten explain how ninety thousand dollars is created out of a nothing just because someone asked for a loan or the bank purchased government securities. Page eleven is the chart that accompanies the explanation given from pages six through ten. I suggest that when you are studying pages six through ten that you pullout the chart on page eleven and place it next to what you are reading because it makes it easier to understand.
At the bottom of page eight and on through page nine, Modern Money Mechanics explains that banks make money out of nothing when they purchase government securities. It states, “Suppose that the demand for loans at some banks is slack. These banks would then probably purchase securities. The banks would make payments by crediting accounts just as if loans had been made. The net effect on the banking system are identical with those resulting from loan operations.”
With regards to the chart you see on page eleven, the ten thousand dollars reserve that you see on the left-hand column is re-presented in the “reserves required” and “reserves excess” columns and also in the “deposits” column. In the first row of “required” and “excess” reserves you have one thousand and nine thousand. That is your ten thousand dollars of untouched reserves. On the row underneath that one you have one thousand nine hundred dollars, and eight thousand one hundred dollars. Again, it is the original ten thousand dollars. It is that way all the way down the entire two columns. On the deposits column take note that the deposits is the money created plus the original untouched reserves.
So then, according to the Federal Reserve’s Modern Money Mechanics, banks can create money out of nothing simply because there is a demand for a loan, or a desire by a commercial bank to purchase a government debt. This is why our entire county, man, woman, child, government and corporation is in debt to a bank. Ultimately, our entire country is indentured to the Federal Reserve Bank though, including the commercial banks because all of this debt was created using the Federal Reserve’s Federal Reserve Notes.
There is more evil to this fraud than the mere subtleties of what is being admitted to in Modern Money Mechanics. One thing to note is that we borrow the currency we use in our economy from the Federal Reserve Bank. If one day they decide to stop loaning us money, then we will run out of money in our economy as we continue to repay our loans and taxes and fees and fines.
Another issue of their evil plot is the interest they charge on their money. First off, they have no justification to charge any interest at all because interest can only be merited, arguably, on a loan. Advocates for interest lending say that the “time value” of money and the “lender’s risk” justifies interest charges. When someone saves their money and sacrifices its use and pleasure for 30 years, and risk loaning their money, they are entitled to a reasonable return for their sacrifice and risk. However, Federal Reserve money no one saved, sacrificed, or worked for. There is nothing being risked. Fed money was created out of nothing and interest on nothing is “robbery.”
Another issue with regards to the “interest charges” on debt money is the fact that when debt money is created it is only created when it is produced as a “loan,” in which only the “principal” portion of the “loan” is ever created. The interest portion is never created, it never exists so then all loans can never be paid off simultaneously. This lack of money leaves us struggling against each other because there is never enough money to go around for everybody.
Another issue against interest charges is basic legitimacy. Let’s imagine that moneylenders must have existing money to lend. If some people within the money supply begin systematically lending money at interest, their share of the money supply will grow. If they continually re-loan at interest all the money that gets paid back to them, whether it is gold, fiat, debt or whatever kind of money, it does not matter, the money lenders will end up with all the money and after all the foreclosures and bankruptcies are all filed, they will get all the real property too.
Such a detrimental monetary system to the United States of America is treasonous and unconstitutional. This monetary system exists in our country because of the Federal Reserve Act of 1913 making the Federal Reserve Act itself unconstitutional and the Supreme Court has ruled; “An unconstitutional act is not law; it confers no rights; it imposes no duties; affords no protections; it creates no office; it is in legal contemplation, as inoperative as though it had never been passed.” Norton vs. Shelby County, 118 US 425 p.442, and “All laws which are repugnant to the constitution are null and void.” Marbury vs. Madison, 5 US (2 Cranch) 137, 174, 176, (1803) and “Where rights secured by the Constitution are involved, there can be no rule making or legislation which would abrogate them.” Miranda vs. Arizona, 384 US 436 p.491.
The fact here is that the Federal Reserve Act is unconstitutional and the Supreme Court has ruled that an unconstitutional act is null and void. This means that our debt to the Federal Reserve should be null and void according to the laws of our country. It also means that all our debts should be null and void because we have incurred them while under the unconstitutional Federal Reserve System.
Why is it a good idea to buy gold for example at such a high price? And what is anyone going to do with gold and how to trade it? Can’t go to a market and trade a gold piece for food… the store cashier wouldn’t know what to do with it. I think buying food and equipment people need would be a better idea for me. I really don’t want to buy gold or silver at such high prices. Whose to say when the ceiling for these metals would bust themselves. Your answer is always gold. Why? Don’t you have other answers and do you have stock in gold shares?
Hi Cindy. Great question. In a barter economy ANYTHING of value is going to work. Whether its gold, silver, bullets, cigarettes, etc. Gold and silver are not high priced right now though. Compared to their historical values, (i.e. gold longstanding historical high of $850 in 1980), gold should be over $2400 per ounce right now when compared with inflation adjusted numbers. Silver is a similar case. As currencies collapse and the political/geopolitical situation unravels, gold and silver should soar to new heights. Gold $5000+, Silver $300+ over the next few years.
Gold shares are not gold. View them as just another stock. Paper, could rise and fall with the economic tide. Therefore WAY TOO RISKY!