There is no actual money. A Federal Reserve Note is an instrument of debt. It is created out of thin air when someone takes out a loan from a bank.
The problem with such a system is that the moment it goes into operation, more money is owed than actually exists. For each borrower to be able to repay their loans, new borrowers must be found whose loan applications will create new debt and creation of new money. It is a pyramid scheme, because it works only as long as there is an ever-increasing population of borrowers at the very bottom.
But nearly after 100 years of the Federal Reserve, the entire nation is up to the neck in debt, and there are no new borrowers taking out loans which can be used to create new money, even with near zero interest rates. So, the government has embarked on a program of massive borrowing on your behalf, $8.5 trillion of it so far which works out to about $100,000 per taxpayer, but this is a holding action that cannot last because the ability of the government to repay those loans rests on the American people, who are barely able to pay their own debts, let alone take on another $100,000 each that the government borrowed for them.
This is why the actual use and destination of the money is irrelevant and why it's not really a big deal when Wall Street companies throw huge parties and pay executives bonuses with the money; the purpose is to force the population to borrow more, to allow the Federal Reserve to create new money to put into circulation.
And in the long run, it cannot work, because the end result is the plunge in the dollar and in all those treasury certificates the US Government is printing up as part of the dog and pony show.
This is why Bernie Madoff is getting a free pass for his Ponzi scheme. The whole system; the entire Federal Reserve has been a giant Ponzi scheme, lasting almost a century.
And it is starting to come apart.
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