viernes, 4 de abril de 2014

Federal reserve banking system

Have you aver wondered how money its created? In the US the money is created by the national reserve, this money is the result of debt that the government acquire with the reserve. This is because the government needs cash so it asks it from the national reserve. The national reserve then creates this amount of money out of "thin air" it just invents this money. This money (that does not really exist) is then exchanged with the government by government bonds. Then the government puts this money into several banking account. That money that is stored in the bank then is loaned by other people or organizations. The money that they can loan out the original money is 90 percent of the amount which can be later stored into another account and be loaned again. This process can be repeated up to increase the initial amount of money by 9.

This means that our whole society and banking system is based on the loans. Loans also mean that after the money you have taken from the moneylender, you have to pay back that money plus the interest. There is only one problem with this system, how would be everyone to be able to pay the debt plus the interest if all the money that is created is only the loan? It is not possible for everyone to pay their interest to the loaners because there would have to be created more money to satisfy the interest rates, but that would only create more debt, returning to the original problem. 

The only way a person can satisfy the debt plus the interest would inevitably provoke someone's bankruptcy in the system. This system is designed to literally make bankruptcy to other people in order for everyone to maintain their payments. There have to be someone sacrificed in order for the rest to take his money and pay the interest. This system also creates a life of economical submission because people are obligated to work in order to pay their debts.

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