On November 3, 2010, the Federal Reserve made an announcement that it plans to infuse 600 billion dollars into the economy. Does this do more harm than good? If I were to ask average Americans what this means, many would say that the government is trying to revitalize the economy by giving us a jump start. Others would say that the government is trying to create jobs by putting citizens back to work. These would all be fair answers, nevertheless far from the truth. Through propaganda and media outlets we have been led to believe that the Federal Reserve is a part of the United States government, and its main premise is to monitor the economic barometer.
The truth shall be said that the Federal Reserve is neither federal, nor does not have any reserves. It is a private (printing press) company controlled by 12 banking companies in the United States and abroad. In a brief description, the Federal Reserve was initiated by JP Morgan, the Rockefeller family, Kuhn Loeb & Company of Germany and by the powerful Rothschild family from England. In history, these fellows where known as the “money trust” or the tycoons of lending. They understood that by controlling the money supply in any country they can control its laws and make the people of a country its personal servants. Mayer Rothschild (Patriarch of the Rothschild family) is quoted as saying: “Give me control of a government’s money supply and I care not who makes its laws.” The FED came into existence on December of 1913 under President Woodrow Wilson. Now, Congress has given the authority to the FED to regulate the money supply. Through the printing of continuous paper currency or stimulus programs it devalues the currency of this country and causes cyclical market booms, busts, and depressions. This is what we are facing in our government today. The United States actually pays the FED to print money, and in turn the United States government pays interest on the money printed, and that is the issue that lies at the root of why we have debts in the trillions of dollars. Our federal income tax does not go towards paying social programs as we are led to believe, but to pay the interest to these powerful bankers that control the FED. It is this reason why the government bails out only a few banking companies when they lend far beyond their limits. Causing widespread crisis like the one we are currently experiencing. This issue is not only seen in the US but in the entire world.
When the FED, initiates a stimulus program, I cringe because I understand what the government is doing is devaluing our currency. Our money has not been sustained or valued by gold since President Nixon took us off the gold standard in 1971: making our currency just a mere piece of paper. No longer is it a tangible asset, such as gold or silver. We now operate on what is known as a fiat currency, which represents only the value that people place on it by the economic strength of a government. What is a fiat currency? The meaning of fiat currency derives from the word current, like the current in an electrical light bulb. When the bulb ceases to illuminate it is because the current has been turned off to the bulb. In similar fashion our money is a currency, and if it does not move it loses value. Those that save money are penalized because while their money is sitting idle, it loses purchasing power through inflation. One important side note: no fiat currency system throughout history has ever survived. Each has failed, and ruined its own country. A few examples of financial collapses are Germany, which led to the ascension of Hitler, and most recently Argentina. My concern for America is this system of fiat currency will yield our ultimate demise.
I listen to friends and family members reminisce about times past when gas was twenty cents a gallon or a bottle of coke was a nickel, etc. It is not the price to produce these items has gone up, but that our money is losing value. Our currency is decreasing in value because of all the new money being printed by the FED. It is vital for us to understand the importance of financial literacy. Financial literacy is more than learning the importance of balancing a checkbook, but to comprehend how our financial system works and how to thrive in it. What you don’t know is what’s hurting you. Our public officials gain social programs for its constituents through deficit spending, which means borrow now and let the next generation pay for the bill. A downward spiral continues into the future. The problem of our great-grandparents has been passed to our grandparents, and they just passed it to our parents who are now passing it on to us. The promises of Social Security and other socialistic programs are going to be the doom of this nation. Many have been open critics of the FED such as Congressmen Ron Paul, but most fail to fully heed to his concerns.
The question posed in the title, is how the printing of an additional 600 billion dollars does by the FED effect or affect us? It just means that we are going to be paying higher prices for goods, such as food, gas and other daily products. Our money will not hold the same value that it once held. A nation that was once a strong economic country has now become a debtor nation. We cannot continue to live on deficit spending. Many of us experienced the devastating results of this type of spending in the last few years. We wanted to live the glamorous life and take everything on credit, believing that prosperity was going to continue. This is why many of us are in debt up to our eye balls.
The new form of slavery in society is not in the form of bond servants with chains around their necks. This new slavery enslaves people monetarily. When you are in debt, you become a slave to the lender as seen in the book of Proverbs 22:7. We are becoming a servant to the lender (The FED) through financial illiteracy. I’m committed to shedding a light on the social issues that affect you and your family, but you must be willing to educate yourself: understand the policies and powers of the FED, Congress, Senate and the office of the President. On November 2, 2010 we experienced the electoral process in our country. It does not matter whether you are a democrat or republican as long as the FED is in power, it makes no difference who makes its laws.
I must say that I get tickle when people debate which political party needs to be in control. If society would understand what the Federal Reserve truly does, there would be rioting on the streets by morning. The Federal Reserve was implemented to enslave and control the money supply of every country, and they have succeeded. My goal is to keep my readers abreast of the economic conundrums that are happening and enlighten or perhaps sway your thinking. I don’t profess to have all the answers but what I do know and understand through observing the economic history, is what I share with you. Gain wisdom and get understanding.
What do you see by the FED printing new money? Does it help or hurt our government? What is your understanding of the FED? I would like your feedback.
Felix R Garcia
Debtnation.org
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