Friday, March 15, 2013

The Federal Reserve System Is A Massive Wealth Redistribution Scheme

Michael Snyder
Activist Post

During fiscal year 2012, $359,796,008,919.49 that had been forcibly extracted from American taxpayers was transferred into other hands. Most of it ended up in the pockets of the global elite. So what did the American people get in return for that 359 billion dollars? Nothing at all. No roads were built, no schools were constructed, no teachers were paid and none of it went to national defense. It was simply interest that was owed on the national debt, and most of it just made the ultra-wealthy even wealthier. But this is exactly what the Federal Reserve system was designed to do when it was created back in 1913.

It was designed to get the U.S. government trapped in an endless spiral of debt that would systematically drain the wealth of the American people and transfer it to the ultra-wealthy and the international bankers. When most people think of a "wealth redistribution scheme", they think of a government raising taxes in order to give money to poor people. But the Federal Reserve system works in reverse. Money is taken from all of us and it is redistributed to the global elite. That is why a federal income tax was instituted the exact same year that the Federal Reserve was. Money is extracted from all of us through taxation, and then it is transferred from the federal government to the ultra-wealthy through debt payments.

So what role does the Federal Reserve system play in all of this?

Many critics of the Fed focus on how much money the Fed makes each year, but that is a mistake. The truth is that the Fed returns the vast majority of the money that it makes to the U.S. Treasury. The Fed is not a money making machine itself. Rather, it is a system that enables others to make hundreds of billions of dollars each year.

I think that it is easiest to think of the Fed as a "middle man" between the U.S. government and the global elite. It was designed by the international bankers for the benefit of the international bankers. The entire goal of the Federal Reserve system is to make the ultra-wealthy even wealthier.

The Fed is a privately-owned banking cartel that has a monopoly over money creation in the United States. Nobody else, including the U.S. government, can print money. So those that claim that "the U.S. government can print money" are just dead wrong.

When the U.S. government wants to spend more money than it has, it asks the Fed to make some more money. The Fed then creates money out of thin air that did not previously exist. Normally this money is not even printed up. It is just entered into a computer.

In return for the new money, the U.S. government gives the Federal Reserve some U.S. Treasury bonds. In essence, U.S. Treasury bonds are promises to pay back money. But the U.S. government always agrees to pay back more money than it receives. So a larger amount of debt is created than the amount of new money that is created.

When the Federal Reserve receives those U.S. Treasury bonds, most of the time they take them and auction them off to interested buyers. This is how they get into the hands of the ultra-wealthy and the international bankers.

So how is the U.S. government ever supposed to pay back all that debt if the amount of new debt being created is always larger than the amount of new money that is being created?

Well, the theory is that the money will be able circulate through the U.S. economy really fast and that the federal government will be able to tax it enough times and at a high enough rate to be able to pay off the debt plus the interest.

But that never seems to work out, does it?

Instead, the federal government always finds that it can't fund government activities and pay off the debt at the same time, so they always come back to borrow more. That is why it is called a debt spiral.

So the debt just keeps getting larger and larger. Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

And as the debt keeps getting larger and larger, so does the money supply. And that is why we have such a problem with inflation. Since the Federal Reserve was first created, the U.S. dollar has lost more than 96 percent of its value.

But the global elite are not just doing this in the United States. They have established similar systems in almost every nation on earth.

So every year, gigantic mountains of money are transferred from taxpayers all over the globe into their pockets.

And that is the primary reason why they have so much money.

It has been estimated that the global elite have up to 32 TRILLION dollarsstashed in offshore banks around the planet.

And that is just the money that we know about.

Are you starting to understand why people are so upset about this stuff?

Fortunately, people all over the world are starting to wake up to this massive wealth redistribution scheme.

The creation of money should belong to the people - not to the global elite.

Just consider a statement that Italian politician Beppe Grillo once made...
Whom does the money belong to? Who does its ownership belong to? To the State fine…then to us, we are the State. You know that the State doesn’t exist, it is only a legal entity. WE are the state, then the money is ours…fine. Then let me know one thing. If the money belongs to us…Why…do they lend it to us??
Doesn't that make sense?

If the currency of a nation belongs to the people of a nation, then why do we let the elite create our money out of thin air and lend it back to us?

Why do we continue to use a debt-based currency system that is making the global elite far wealthier at the expense of all the rest of us?

For much more on how the Federal Reserve works, please see my previous article entitled "10 Things That Every American Should Know About The Federal Reserve".

Please share this article with as many people as you can. I have tried to simplify things as much as possible.

So what do you think about the Federal Reserve?

Are you angry that hundreds of billions of dollars are being transferred from U.S. taxpayers to the global elite every single year?

Are you disgusted that money that is created out of thin air by the Federal Reserve is being used to bankrupt our nation and enslave future generations of Americans to trillions of dollars of debt?

Please feel free to post a comment with your thoughts below...

This article first appeared here at The Truth. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.


This article may be re-posted in full with attribution.


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buelahman said...

Let's see: "ultra-wealthy", "international bankers", "global elite", "banking cartel"... everything except naming the very ones who invented usury. Who make up the vast majority of "global elite" and other "ultra-wealthy" "international bankers" and their "banking cartels"? Yet they only make up less than 2% of the population of the USA (and less worldwide)?

Of course they have dupes and others who realize that they can have a minute share of the wealth and serve Big Money to slurp up the crumbs allowed them (which is far more than what is allowed to me). The useless idiots get more (now), but they will lose in the long run.

But WHO makes up the real wealth? Who owns all of those banks and gigantic corporations? Who owns and runs the tv, movies and newspapers that brainwashes us? Who controls the US Government? WHO has their tentacles completely intertwined in the control of this planet?

For Christ's sake.

What are you afraid of? The truth?

Anonymous said...

Hi Michael, nice article, the essence of which is absolutely true. However, there isa technicality that isn't quite accurate.

The interest due is also created, but it is created in the account of the lender, not the borrower. So long as the lender(s) have any money at all, the debt owed by society external to the lenders is always larger than the money available to pay off said debt.

A picture is worth a thousand words, so here you go:

Debt Money Tyranny

[Note – there are positive solutions listed on the second page]

One corollary to the Debt Money Tyranny system imposed upon us through criminal elements that have covertly hijacked our government (BOTH parties allow this system to operate and keep it a secret from the masses – even Ron Paul pretends the people who run this criminal operation are just “misguided”) is that one person or group’s asset money (physical money or bank credit) is another person’s or group’s inextinguishable debt!

This might be a bit abstract for some folks, so let’s go over a real world example – the Gates Foundation. The Gates Foundation claims to be a charity for the good of humankind. Well, all of its asset money is inextinguishable debt to other people – the debt is impossible to pay off unless the Gates Foundation liquidates all of its asset money to pay off the debt that created the asset money in the first place!

What I’ve just described is a Debt Slave Master. That’s right, the Gates Foundation is one of the largest Debt Slave Masters on Earth as it forces others into Debt Slavery and poverty.

Even worse, anyone with a positive monetary net worth is also a Debt Slave Master, BY DEFINITION.

What a wicked, wicked system hidden in plain view.

As bad as this system is, the criminals running it added some fractional reserve fuel to it and criminally blew the world’s largest credit bubble in broad daylight… and broke Section 2A of the Federal Reserve Act to do it!

Weapons of Mass Debt

Not that the Federal Reserve Act doesn’t have any penalties, so it is basically propaganda for the masses and not even a “law.”


Anonymous said...

cont'd from previous post...

It’s all a big hoax engineered to hurt you and yours very, very badly so that others can “gain” from your losses.

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain [by subtracting from everyone outside their cabal].”
~Napoleon Bonaparte, Emperor of France, 1815

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt [the play book].”
- Henry Ford

“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
- Ezra Pound

"If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
- Robert Hemphill, Credit Manager of Federal Reserve Bank, Atlanta, Ga.
Source: In the foreword to a book by Irving Fisher, entitled 100% Money (1935)

“You can avoid reality, but you cannot avoid the consequences of avoiding reality.”
~Ayn Rand

Nicole Foss and the Automatic Earth try to understand and deal with reality while avoiding almost all of its very real conspiratorial aspects .

How to Build a Lifeboat

40 Ways to Lose your Future

A Tribute to the Automatic Earth (a reference to Paul Simon’s song A Boy in the Bubble)

Anonymous said...

"Yet they only make up less than 2% of the population of the USA"

Indeed, in the Bolshevik revolution in Russia they were less than 4% of the Russian population but accounted for about 64% of the Bolshevik organization.

According to long time London Times Russia correspondent Robert Wilton in his book "The Last Days of the Romanovs":

"According to the data furnished by the Soviet press, out of 556 important functionaries of the Bolshevik State there were in 1918-1919: 17 Russians, 2 Ukrainians, 11 Armenians, 35 Lets, 15 Germans, 1 Hungarian, 10 Georgians, 2 Poles, 2 Finns, 1 Karaim, 457 Jews."

From 'The Jewish Chronicle' (London), April 11, 1919, p.10 -

Percentage of Jewish Bolsheviki in Petrograd -


"On the trustworthy authority of the well-known Zionist leader M. Idelson (of Petrograd), I am in a position to state that only two and a-half per cent of the Jews in Petrograd have declared themselves in sympathy with Bolshevism. Although sixty pert cent of the Bolshevik leaders are Jews, and although a declaration against Bolshevism involves serious sacrifices, the Jews of Petrograd have fearlessly stated their attitude towards the movement. We are, therefore, confronted with the anomaly of the Jews furnishing for the Bolsheviki the majority of their leaders, although a smaller percentage of Jews than of any other nationality approve of Bolshevism."

It's odd how they always end up in dominant positions despite being such a small and supposedly heavily persecuted group.

Of course as I've said many times before the biggest problem in the world today are those "chosen few" who follow Jewish mysticism, which are only a small percentage of the total Jewish population.

But if the majority of Jews won't deal with this minority in a proper fashion and end their global crime spree themselves it will fall to non-Jews to "clean up" their mess, yet again.

It makes you wonder if letting them out of the Ghetto's in the 1600's and 1700's was the right move.

Most of them may have assimilated quite well into non-Jewish society and pose no problems, but that minority "chosen few" has sought to subvert and destroy non-Jewish society, either out of vengeance or just greed.

I just hope the Jews come around and decide to deal with it themselves, I truly would hate to see a return to the "Jewish ghettos" of the past, or perhaps worse.


Anonymous said...

ISRAEL. That's who.

Anonymous said...

Go Galt. Quit. Stop. Desist.

Nobody deserves to live luxuriously because the gullible public pays income taxes to the government so the government can then give that money to a few people. That's wealth redistribution from the 'poor' (impoverished by the wealthy) to the wealthy, who refuse to pay people the wages they deserve for their labor. Corporate persons such as Facebook and GE pay zero in income taxes. Are you a person at the same level of sovereignty as a corporation, or are you a slave/consumer called an "American citizen"? We are all born naked into this world. Nobody deserves to live a more comfortable life than another human being, no matter how much they insist that they deserve it. The sooner we rid the earth of the control of the highest-level predatory parasites, the sooner we can get to work on improving our standards of living.

Anonymous said...

Repeal the Federal Reserve Act of 1913, nationalizing the Central Bank and restoring monetary authority to the U.S. Treasury to create and extinguish honest debt free money based on a 3 legged stool of a market basket of precious metals, barter exchange contracts and labor treasury certificates for goods produced, services rendered and work performed.

International trade could be conducted with barter exchange contracts. Thus no trade deficit, no debt.

The private state banks would be required to be state and federally chartered and come under the authority of central bank and the regulations of the U.S. Treasury Department.

Than the newly creatd national central bank of the U.S. would than loan money to the privately held state banks at the discount rate.

Pass a Revaluation bill limiting paper currency debts to 1% of their gold dollar value of $2,000 and ounce, reevaluating the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices, incomes, debts, and charging a 10% exchange rate fee to pay down the legitimate debt, cancelling all debts owed to the Federal Reserve and calling in all debts owed to the U.S. by foreign governments. All other debts could be assumed by the U.S. Treasury.

usurykills said...

The only real solution was proposed as early as 1979.

Mathematically Perfected Economy(TM.) Real, honest money.

The current monetary scam is just rule by compound interest. The rich will get richer, the poor poorer. Guess where that ends?

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