Why Debt?

The Federal Reserve System

Good or Bad?
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Debt

The question today, that is too often asked, is why are countries in so much debt?

The truth is that that is what was meant to be, the system is set up that there is no other way than for countries to be in debt.

What do I mean?

The Fed, like most central banks are privately owned, mostly by the same group of bankers.

Most western countries work on the same principle, so for ease I’ll use the USA as an example.

When the Government wants money, they ask the Fed to print it. The Fed do not give the Government the money, they loan it to them at interest.

So, let’s use 10% as an example.

The Government asks the Fed for $1000. Now the Government has to give the Fed $1100 but where does the $100 come from?

They have to ask the Fed to print $100 more in order to pay the interest, which of course will in turn require another $10 to be printed and so it goes on.

Tax

The income tax paid in the USA does not go to repair roads or any other kind of infrastructure. It doesn’t go towards health care or education. ALL the income tax collected in the US goes to pay back the interest to the Fed and that is all.

The Government doesn’t care about how many zeros are in the debt or how the people are doing, all they care about is making sure that the interest on the debt is paid. After all, the interest is paid to the same group of people that, through finance, ensure these politicians are elected and in order for the politicians to have any kind of future, they must ensure that this “elite” group is paid.

Now, don’t for one minute think that these elite bankers will accept their own worthless paper money for payment, after all: they know exactly how much it is really worth. No, they want payment in Gold or other really precious metals, commodities such as shares in any profitable Government ventures.

The Government, who supposedly promise payment on this paper money, eventually find themselves with a whole bunch of paper that is worthless, as they have nothing left to back it up with. All the real wealth and anything else of value would have already been given to the elite bankers.

New Wealth

This situation, of course requires that Governments, in order to try and stay stable, have to find new sources of real wealth.

In the days of old, in Europe, one country would go to war against the next in order to gain that country's wealth. Today it is different. All the western countries are now run by Governments who all owe to the same elite group; therefore no new wealth comes into play.

New wealth must be found and can be precious metals, ores, minerals or oil. Now the west must find new sources but it cannot come from any country that comes under the control of the same elite group.

Fortunately, this elite group of bankers also owns all the media, newspapers and TV stations.

When a country, not yet under the control of the elite, are seen to have assets that would be acceptable to the elite, a regime of continuous “bad press” is instigated. The western countries Governments eager to repay the interest to the elite willingly “buy” into the bad press and promote ill feeling in their countries populace.

War is the only outcome.

The elite don’t mind printing more money for the western country’s war, after all they will get real interest in return and they don’t mind lending the country that received the “bad press”. In fact the elite are happy, who ever do win the war or even if nobody does, it brings in new real wealth to their grasp.

This elite group of bankers came into being around the time of the WW11, “the war to end all wars”. Today there are more wars going on in the world than at any other time in our planets history. Why?

The western debts are higher and so more interest has to be sought.

New World Order

Now some people talk of the elite bankers seeking to ultimately become a New World Order where they control everything and everyone on the planet. Others say that that is just a conspiracy theory.

I do not know which is true but if this situation has not been carefully pre planned and orchestrated, then it is easy to fix. Abolish the Fed and Central Banks and resort back to Governments printing their own money and allowing income tax to again be used to help those that pay it.

If the situation has been planned, then it is not a case of whether or not this elite group will control everything that goes on in the world, it already does. It is only now for them to possess the rest of the planets wealth.

So, why is there so much debt?

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Comments 9 comments

daskittlez69 profile image

daskittlez69 4 years ago from midwest

I think you are on to something there. Seems that the rich like to stay rich ;)


rafken profile image

rafken 4 years ago from The worlds my oyster Author

daskittles69- You are right about Kennedy but isn't it odd that the only 2 other Presidents that tried to do something about the Fed, were also assassinated- coincidence?


daskittlez69 profile image

daskittlez69 4 years ago from midwest

Rafken, my Hub "The End of America as we know it" goes into a little more detail.


daskittlez69 profile image

daskittlez69 4 years ago from midwest

Back in the 1960’s one President tried to stand up to the Federal Reserve with executive order number 11110. That President was President John F. Kennedy. This order returned to the U.S. government the power to issue currency, without going through the Federal Reserve. This meant that for all of the silver that America had in it vaults it could issue silver coins or certificates. In all, Kennedy brought nearly 4.3 billion dollars in U.S. notes into circulation. This completed eliminated the need for anything from the Federal Reserve. The problem is Kennedy was assassinated a few short months later. The executive order was never repealed, but no other President has used it.


daskittlez69 profile image

daskittlez69 4 years ago from midwest

With the wonderful people we had in office at the time I wouldn't doubt it.


rafken profile image

rafken 4 years ago from The worlds my oyster Author

daskittlez69- I hope you are right and that it is used but when I checked Section 30, I don't see that. I noticed that it was amended in August 2008, do you think it was taken out?


daskittlez69 profile image

daskittlez69 4 years ago from midwest

There is a Section 30 of the Federal Reserve Act, which gives the U.S. a loophole to buy back the Federal Reserve Corporation for roughly $500 billion dollars. We can either do away with the Federal Reserve Corporation, or we can repeal the act.


diogenes profile image

diogenes 4 years ago from UK and Mexico

Monopoly used to be a game for happy familes and if little Brian won everything, well, it was all paper money and reverted to the game board at the end of the game. It seems the powerful countries are playing monopoly on a vast scale...eventually the whole conspiracy will choke from an excess of players...then the "board" will take over, or a clean slate, and we might engineer things differently next time with the few players left.

Excellent, eye-opener of an article

Bob


maxoxam41 profile image

maxoxam41 4 years ago from USA

Since governments will NEVER abolish the fed and the central banks, an attempt was made to encourage the people to place their money in other banks, and where were the people? They hid. What can a country do with a crowd of idiots?

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