by Michael Snyder, The Economic Collapse Blog:
Most Americans realize that the federal government is drowning in debt and that inflation is out of control. But very few Americans can coherently explain where money comes from or how our financial system actually works. For decades, bankers that we do not elect have controlled America’s currency, have run our economy into the ground, and have driven the U.S. government to the brink of bankruptcy. The Federal Reserve is an institution that was designed to drain wealth from U.S. taxpayers and transfer it to the global elite. Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone? Have you ever wondered why a sovereign nation such as the United States does not even issue its own currency? Have you ever wondered why we allow a group of unelected private bankers to run our economy?
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Those are some very important questions. Hopefully what you are about to read will open the eyes of many. The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs who oversee a constantly expanding debt spiral which could come crashing down at any time. If the American people truly understood how our system works, they would be protesting in the streets right now. The following are 11 reasons why the Federal Reserve is bad…
1 – The Federal Reserve was created as a way to enslave the U.S. government. In fact, the Federal Reserve system literally could not function without U.S. Treasury bonds. Government debt is at the very core of the system, and our federal government is now trapped in a debt spiral from which it can never possibly escape because the system is operating exactly as it was designed. Our national debt has been rising at an exponential rate, and that will continue to be the case until either the current system collapses or we adopt an entirely new system.
2 – The individual Federal Reserve Banks are not “federal” at all. In fact, on the official website of the Federal Reserve Bank of St. Louis, it is openly admitted that Federal Reserve Banks “are not a part of the federal government” and that private banks “hold stock in the Federal Reserve Banks and earn dividends”…
The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public. So is the Fed private or public?
The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends.
3 – Why does the Federal Reserve issue our currency? The U.S. Constitution explicitly gives Congress the power to issue our currency…
[The Congress shall have Power . . . ] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; . . .
4 – The Federal Reserve creates money out of thin air. I asked Google AI about this, and this is what I was told…
Yes, the Federal Reserve (Fed) creates money out of thin air by increasing the money supply. This process is called “creating money out of thin air” because it involves adding funds to the economy without printing currency.
5 – The Federal Reserve devalues our currency. Since the Federal Reserve was created in 1913, the U.S. dollar has lost more than 96 percent of its purchasing power. The truth is that just a two percent inflation rate will wipe out half of your purchasing power within a single generation. In the chart below, you can clearly see that the beginning of the rapid rise of inflation in the United States coincided with the creation of the Federal Reserve.
6 – The Federal Reserve manipulates the U.S. economy by setting interest rates. By moving rates higher or lower, the Federal Reserve has the power to create economic growth or to destroy it. They have the power to inflate massive economic bubbles and to pop them. Most Americans believe that our presidents “run the economy”, but the truth is that the Federal Reserve has far more control over the economy than the White House does. As you can see below, every recession since World War II has come after a period of rising interest rates.
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