passking
Well-Known Member
Is the federal reserve act the biggest scam ever or is it merely a successful institution?
Say the US Government wants to borrow $1 million, the government does borrow every dollar it spends' they go to the FED to borrow the money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars.
The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest. Also the government has to create a bond for $1 million as security for the loan.
Today's banks are members of the Federal Reserve Banking System. This membership makes it legal for them to create money from nothing and lend it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash. Only about 3 or 4 percent of all the money that exists is in the form of currency. The rest of it is simply a computer entry,all this despite Article 1, Section 8 of the US Constitution specifically saying that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency
Interestingly Income tax was created the same year as the FED.
I am keen not to be swayed by conspiracy theory's about the federal reserve and i know there are some financial savvy rollitup memberwhose insight i would appreciate, so your opinion please
Say the US Government wants to borrow $1 million, the government does borrow every dollar it spends' they go to the FED to borrow the money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars.
The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest. Also the government has to create a bond for $1 million as security for the loan.
Today's banks are members of the Federal Reserve Banking System. This membership makes it legal for them to create money from nothing and lend it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash. Only about 3 or 4 percent of all the money that exists is in the form of currency. The rest of it is simply a computer entry,all this despite Article 1, Section 8 of the US Constitution specifically saying that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency
Interestingly Income tax was created the same year as the FED.
I am keen not to be swayed by conspiracy theory's about the federal reserve and i know there are some financial savvy rollitup memberwhose insight i would appreciate, so your opinion please
