We Say that money doesn't grow on trees but the truth is that the modern banking system creates currency far faster than trees can grow. Most people don't have a clue how currency is created Economist and bankers make it sound so complex that people think they can't understand it but I'm going to strip our monetary system down to it's essence so that you can see the scam behind the curtain and just how it affects you. Every modern society creates currency and pretty much the same way but since the US dollar is the majority of the world's currency I'm going to use the United States as our example.
It all starts when some politician says vote for me and I'll make sure the government provides you more free stuff than my opponent but there's no such thing as a free lunch. So to provide that supposedly free stuff the politicians vote for the country to spend more than its income.
This is called deficit spending to pay for that deficit spending.
How is currency created?
The governement goes to the central bank of it's country and borrows it with interest.
By issuing a bond. So what's going on if you think about it, a bond is really nothing but a glorified I owe you.
It's a pretty piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise over a 10-year period I'm going to pay you back that trillion dollars plus interest but what you need to understand is that treasury bonds are our national debt these glorified sheets of paper, They'll use are to be paid back by you and I and our descendants through future taxation therefore when the government issues a bond it steals Prosperity out of the future so that it can spend it today.
The treasury then holds a bond auction and the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest.
you'll notice that as we move through this process the big banks are there taking a cut every step of the way.
This isn't by chance as you'll see shortly then through a shell game called open market operations the banks get to sell some of those bonds to the FED Reserve at a profit to pay for the bonds the Federal Reserve opens up its big old checkbook and writes bad bogus counterfeit checks that should bounce because they're drawing account that always has a zero balance.
" There isn't one penny in there" to quote from the Boston Federal Reserve.
When you or I write a check there must be sufficient funds in our account to cover that check but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn when the Federal Reserve writes a check it is creating money the FED then hands those checks to the banks and at this point currency springs into existence.
The banks then take that currency and buy more bonds at the next treasury auction.
But what is a check?
A check is also an I owe you.
When you write a check you're making a note that says here's my I owe you for cash.
All you have to do is go to the bank and pick it up.
Is this the kind of society you want to be a part of?
Vote for Earth 2.0 coming soon.
Are you a BlockChain Dev?
Please contact me if you are. Let's make the world wealthy again.
like that you are awake for so many aren't. Cryptos are people losing confidence in the US dollar that is why they are going to the moon. They of course don't like it but at some point it will have to be backed by something tangible.
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