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What is the Federal Reserve and Why it is the Real Root Cause of Economic Collapse?

Updated on March 26, 2010

One Economic Collapse on it's Way... Hold on Tight!

The Fractional Reserve Monetary Banking System is reaching the Theoretical Limits of it’s Expansion

Most people when asked the question “Who Owns the Federal Reserve” would simply answer the Federal Government. And those people would be 100% incorrect. The Federal Reserve is a Privately Owned Bank Group. It’s shareholders are Private Banks and the shareholders in those Private Banks own the Federal Reserve! But who are these people? Due to Corporate Privacy laws we will never know! There are laws that protect the privacy of shareholders so these records do not EVER have to be made pulic!

"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."

The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

As we know from watching the business news, "oversight" basically means that Congress gets to see the results when it’s over. The Fed periodically reports to Congress, but the Fed doesn’t ask; it tells. The only real leverage Congress has over the Fed is that it "can alter its responsibilities by statute." It is time for Congress to exercise that leverage and make the Federal Reserve a truly federal agency, acting by and for the people through their elected representatives. If the Fed can demand AIG’s stock in return for an $85 billion loan to the mega-insurer, we can demand the Fed’s stock in return for the trillion-or-so dollars we’ll be advancing to bail out the private banking system from its follies.

If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves. Among other benefits to the taxpayers. a truly "federal" Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades.

You can learn more about Who Owns the Federal Reserve Here.

Why is the Central Bank - Federal Reserve a Problem?

The only way to keep the banks going is to create more money. The only way to create more money is to increase debt. The cycle is reaching it’s end. The ability to repay the National Debt is nearing an end. The “Economy” can not perpetually increase itself based on a “Debt” model. There is not going to be a sustainable recovery this time. The entire system has to be reworked; the Central Bank has to be abolished.

The United States Economy (And most of the World’s Economy’s) are in fact based on perpetual debt models. To think of a perpetual debt model in simpler terms you can use the analogy of a credit card debt model.

You obtain a credit card and you gradually spend it to it’s limit. In order to keep spending you need more money. You and I can only work and hope for a better job or more money from longer hours or other sources that are within our control If not we can not obtain additional debt. This is NOT true for the US Government for they have the ability to print money. But they don’t print the money they issue Treasury Bills. Then the Federal Reserve prints the money. The problem is this model requires that every time the Government prints more money there is a associated debt load attached to the money because the Federal Reserve (The “Central Bank”) must be repaid. When money is created it increases the supply of money overall which DEVALUES the currency.

When you understand that more currency equals less value per dollar you understand that this practice is by definition inflationary. Because there is more money in the system the value of that money diminishes. This is why a 50 cent loaf of bread in 1980 now costs $3! If the model were sustainable at some point we will need wheelbarrows full of money just to purchase our groceries! The model is NOT sustainable.

As individuals we can not go and get another credit card to pay off our first card. Credit Card Companies do not take “Credit” they take payment in the form of cash/checks. But the Federal Reserve System creates an environment where the Government is in effect using Credit to pay for Credit. And over time this model will collapse?

How much time do we have before there is Total and Irreversible Economic Collapse?

Months? Years? Who knows... but less than a Decade for Sure.

For People Who Would Rather “Watch” How the System is Collapsing than Read About It

I present a series of Videos taken from a movie called Zeitgeist. Now before you jump all over me about these videos and try to discredit them, or before you decide hey this is exactly right keep in mind these videos are for educational purposes. Just like Religion you can and will choose to take sides and believe whatever you want to believe. But it’s hard to deny the concise and clear message they bring into light. We as a country (USA) have some very serious economic problems that are not going to be solved by the Government Continually borrowing and spending. The American People can not sustain a perpetual debt model.

We really must take into account the totality, this isn’t just a human experience on this planet this is a total experience and we know we can’t survive without plants and animals, we know we can’t survive without the four elements, when are we really going to start taking that into account. That’s what it is to be successful; success depends on how well we relate to everything around us.

I’m very aware of the fact that my Grandson can not possibly hope to inherit a sustainable, peaceful, stable, socially just world unless every child today growing up in Ethiopia, Indonesia, Bolivia, Palestine and Israel also has that same expectation. You have got to take care of the whole community or you are going to have serious problems and now we have to see that the whole world is the community and we must all take care of each other that way and it’s not just a community of human beings it’s a community of plants and animals and elements and we really need to understand that and that is what is going to bring us joy and pleasure and that is what is missing in our lives right now. – Zeitgeist Movie Quote

Ahh the Federal Reserve Bank - Warm and Inviting

Come on into the Federal Reserve Bank... you as a tax payer own it right?  Wrong!
Come on into the Federal Reserve Bank... you as a tax payer own it right? Wrong!

Understanding our Economic Collapse Part 1

Understanding our Economic Collapse Part 2

Understanding our Economic Collapse Part 3

Understanding our Economic Collapse Part 4

Understanding our Economic Collapse Part 5

Understanding our Economic Collapse Part 6

Understanding our Economic Collapse Part 7

Understanding our Economic Collapse Part 8

Understanding our Economic Collapse Part 9

Understanding our Economic Collapse Part 10

Understanding our Economic Collapse Part 11

Understanding our Economic Collapse Part 12

Understanding our Economic Collapse Part 13

CIT files for Chapter 11 Bankruptcy Protection

If you do not believe the Total Economic Collapse as a result of the Federal Reserve Perpetual Debt Model... you may want to wake up. These huge Corporations are taking bankruptcy... and who foots the bill? You do!  And all the thousands of people whom they owe money too.  The Perpetual Debt Model is an outright failure!

November 30, 2009

CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed. CIT said in a statement that its bondholders have overwhelmingly approved a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.
The Chapter 11 filing is one of the biggest in U.S. corporate history. CIT's bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion. Its collapse is the latest in a string of huge cases driven by the financial crisis over the past two years, as bailed out industry heavyweights like General Motors and Chrysler both entered bankruptcy court. -- Associated Press


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