In a world where 1% of population earn 40% of the world's wealth, in a world where 34000 children die every single day of poverty and preventable diseases and 50% of the world population lives in less than 2U.S Dolar per day, one thing is clear, something is very wrong. Whether we are aware of it or not, the life blood of all our established institutions and thus society itself, is money. Therefore understanding this institution and the monetary policies is crital to answer 'why our lives the way they are'? But when people try to understand economics, they are quickly detered away by those mathematics, graphs and charts. This complexity is a mere mask to conceal the most paralyising structure humanity have ever endure.
A number of years ago the Central Bank of the United States, the Federal Reserves, produced a document entitled Modern Money Mechanics. This publication detailed the institutionalized practise of money creatition as utilized by the Federal Reserve and the web of global commercialized banks it supports. In the first page, the document states its objective. 'The purpose of this booklet is to describe the basic process of money creation in a 'fractional reserve' banking system'. It then proceed to describe the fractional reserve process through various banking terminology. The translation of which goes something like this.
The United States government decides it needs some money. So it calls up the Federal Reserve and states that it requires some amount of money. The Feds agrees that they will supply the money by buying government bonds. So the government takes some pieces of paper, paints some offical looking designs on them and calls them treasurey bonds. Then they put value on these bonds to the sum of amount they require and sends them over to the Feds. In turn, the people in the Feds draw up a bunch of pieces of paper themself. Only this time calling Federal Reserve notes and trades them with the bonds. After the trade is completed, the government takes the notes and deposits in a bank account. Upon the deposit, the paper notes become legal tender money and adding that sum of money in US money supply.
The money is used by the bank to give out loans to people like us. A certain amount of deposit is kept as the bank's reserve according to the percentage regulated by the central bank. The balance money is used for loans. The interesting part is yet to come. Bare in mind that the banks are using fractional reserve banking system. Therefore, the sum of the deposited amount is 'broken down' for loans by adding more money into it. Clearly breaking down is the wrong word as the right one is making money out of thin air. Let me explain this situation by giving an example. 1st, the government, let say deposits $10billion in a particular bank. The central bank decides that the bank should keep 10% of the sum as reserve in the bank. 10% out of $10 billion is $1billion and the rest $9billion is the basis for new loans. It is logical to assume that the $9billion comes from the $10billion deposit. Infact, the $9billion is created on top of the $10billion adding up to $19billion as the total amount of money in the bank just like that. And let say the bank loaned out the $9billion to a borrower whom then deposits in the bank account. The process then repeats. 10% of the $9 billion will be kept as reserve and a new $8.1 billion is created out of thin air. The total amount of money will be $27.1 billion. This process does not end here. It repeats itself until infinity. Approximately $90 billion can be created from$10 billion. This is how the money supply is expanded.
Now. you might be wondering where does the newly created money gets its value from. Well, it simply steals the value from the exsisting money supply. The total pool of money is increased irrespect to the demand of goods and services. As supply and demand meets at equilibrium, prices rise and causing the devaluevation of each dolar. The total money supply will increase and this will triger another headache that is, inflation. For example, 5 years back, a bowl of curry mee roughly cost around RM1.80. Now, for the same amount curry mee, it costs more than RM2.70. In other words, inflation is a kind of hidden tax slit in the structure of the society. Inflation cannot be taken away from the midst of the society because money is created out of debt. Every single dolar in your wallet is owed to somebody by somebody for money is circulated by loans. Therefore, if everyone pay up their debt including the government, there will not be a single dolar in circulation.
The bombshell is yet to drop. There is still one thing that we have not consider in this equation; and its this element that shows the fraudulent nature of the system itself. That element is the application of interest. When the government borrows money from the Feds, or when a person borrows money from a bank, it is almost certain that the loan has to be paid back with a crude interest. That means every single dolar that exsists, eventually need to be paid back to the banks with interest paid as well. But if all money is borrowed from the central bank and expanded by the comercial banks through fractional banking system, only what we refer to as the principal is being created. So where is the money to cover up the interest charged? no where. The money does not exsists. This is why inflation is constant in economy bacause the amount of money in circulation willl always be lower than debt or the money owed to the Feds. So new money is needed to cover the perpetual debt built into the system.
The fractional reserve banking system used by the Federal Reserves has spread in practise to the great majority of banks in the world is infact a system of modern slavary. Think about it. Money is created out of debt; and what do people do when they are in debt? They submit to employment to pay it off. But if money can only be created out of loans, how can society ever be debt free? It cannot; and thats the point. At the end of the day, who are you working for? The banks. Money is created in the bank and it ends up in the bank. They are the true masters along with the private corporate companies and government that they support. Physical slavary requires people to house and fed. Economic slavary requires people to house and fed themselves. It is an invisible war against the population as the weapon used is debt, and interest as the prime ammunition. As the society is unaware of this utter fraud, the banks and governments continue to perfect and expand their tactics of economic war by spawning new basis like the World Bank and International Monetary Fund (IMF). In the process of it, a new breed of soldier is also brought up. The birth of the economic hitmen.
These hitmen together with jackal do all sorts of things to make sure that the invasion of another country is done perfectly. These hitmen will go to mostly the third world countries to persuade or to corrupt the country's leaders to take loan from the available global funds so that their bosses will gain profit from the loan and oppress that particular country and prevent that country from coming up. If the leaders refuse to cooporate with them, they send in the jackals to take him out and appoint a new leader whom is from their own crony. After these elite groups or governments ges hold on the targeted country, they begin to utilize the natural resources and etc. For example, Venuezela' s oil is dirt cheap because it is controlled by another country's terms and conditions. The Philliphines still has the US navy base. These are the simplest examples and its just a tip of an iceberg.
All these headache and debt is because of money that is so idolized nowadays. If we take away money from our lives and society, the world would be a better place. I am not speaking metaphorically. We can demolish the whole monetary system for good and at the same time, enjoy world class technology besides having 0% poverty. This intelligent and yet mind blowing idea is The Venus Project. Let us all support The Venus Project and make the world a better place.