The Federal Reserve: Candid Admissions That The System Is Bullshit
DriftingByTheStorm
Posts: 8,684
Below are some quotes pulled from Chapter 10 of The Creature From Jekyll Island: A Second Look at the Federal Reserve
These are quotes sourced directly from Federal Reserve publications themselves, and speak to the nature of our fiat currency and what really backs it ... DEBT!
After these quotes, i'm going to post a couple of full pages from CFJI for ya'll to read. I think it will clear a good few things up. And probably get a few of you pretty pissed off.
quoteS:
"In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount.
What, then, makes these instruments -- checks, paper money, and coins -- acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so. This partly is a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted."
-- Modern Money Mechanics, The Federal Reserve Bank of Chicago, October 1982, Page 3
"Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets 'back' Federal Reserve notes has little but bookkeeping significance."
&
"Banks are creating money based on a borrower's promise to pay (IOU) ... Banks create money by 'monetizing' the private debts of businesses and individuals."
-- I Bet You Thought, Federal Reserve Bank of New York, pages 11 and 19
AND THIS ONE WHICH AT THE END REVEALS THE TRUE SCAM (at least the scam that creates false demand):
"Modern monetary systems have a fiat base -- literally money by decree -- with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as reserves. The decree appears on the currency notes: "This note is legal tender for all debts, public and private." While no individual could refuse to accept such money for debt repayment, exchange contracts could easily be composed to thwart its use in everyday commerce. However, a forceful explanation as to why money is accepted is that the federal government requires it as payment for tax liabilities. Anticipation of the need to clear this debt creates a demand for the pure fiat dollar.
-- Money, Credit and Velocity, Federal Reserve Bank of St. Louis, May 1982, page 25
And here is the testimony of Marriner Eccles, the 1941 Governor of the Federal Reserve System, called up to testify before the House Committee on Banking and Currency regarding an investigation in to whether the Fed caused the great depression ... questions posed by then Committee Chairman, Congressman Wright Patman:
Patman: And how did the Fed get the two billion dollars to purchase those government bonds in 1933?
Eccles: We created it.
Patman: Out of what?
Eccles: Out of the right to issue credit money.
Patman: And there is nothing behind it, is there, except our government's credit?
Eccles: That is what our money system is. IF THERE WERE NO DEBTS IN OUR MONEY SYSTEM, THERE WOULDN'T BE ANY MONEY.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Does that blow any ones mind?
EVERY SINGLE DOLLAR in circulation comes in existence ONLY because SOMEONE took out a loan.
That is 100% fact. Every single dollar is earning the banks interest. Interest they recieve on "money" that they never even had.
Interest is supposed to be compensation for the "time value" of money that someone else lends you, because in honest business, they could attract a comparable rate to the rate they loaned that money to you ... therefore it is fair ... but what if the money you are lent is created out of THIN AIR? What is the time value of THAT?
Think it over folks.
Digest it, then i will type out a full chapter on the history of the Bank of England ... the first central bank in the world ... it's a fucking great tragedy story.
These are quotes sourced directly from Federal Reserve publications themselves, and speak to the nature of our fiat currency and what really backs it ... DEBT!
After these quotes, i'm going to post a couple of full pages from CFJI for ya'll to read. I think it will clear a good few things up. And probably get a few of you pretty pissed off.
quoteS:
"In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount.
What, then, makes these instruments -- checks, paper money, and coins -- acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so. This partly is a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted."
-- Modern Money Mechanics, The Federal Reserve Bank of Chicago, October 1982, Page 3
"Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets 'back' Federal Reserve notes has little but bookkeeping significance."
&
"Banks are creating money based on a borrower's promise to pay (IOU) ... Banks create money by 'monetizing' the private debts of businesses and individuals."
-- I Bet You Thought, Federal Reserve Bank of New York, pages 11 and 19
AND THIS ONE WHICH AT THE END REVEALS THE TRUE SCAM (at least the scam that creates false demand):
"Modern monetary systems have a fiat base -- literally money by decree -- with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as reserves. The decree appears on the currency notes: "This note is legal tender for all debts, public and private." While no individual could refuse to accept such money for debt repayment, exchange contracts could easily be composed to thwart its use in everyday commerce. However, a forceful explanation as to why money is accepted is that the federal government requires it as payment for tax liabilities. Anticipation of the need to clear this debt creates a demand for the pure fiat dollar.
-- Money, Credit and Velocity, Federal Reserve Bank of St. Louis, May 1982, page 25
And here is the testimony of Marriner Eccles, the 1941 Governor of the Federal Reserve System, called up to testify before the House Committee on Banking and Currency regarding an investigation in to whether the Fed caused the great depression ... questions posed by then Committee Chairman, Congressman Wright Patman:
Patman: And how did the Fed get the two billion dollars to purchase those government bonds in 1933?
Eccles: We created it.
Patman: Out of what?
Eccles: Out of the right to issue credit money.
Patman: And there is nothing behind it, is there, except our government's credit?
Eccles: That is what our money system is. IF THERE WERE NO DEBTS IN OUR MONEY SYSTEM, THERE WOULDN'T BE ANY MONEY.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Does that blow any ones mind?
EVERY SINGLE DOLLAR in circulation comes in existence ONLY because SOMEONE took out a loan.
That is 100% fact. Every single dollar is earning the banks interest. Interest they recieve on "money" that they never even had.
Interest is supposed to be compensation for the "time value" of money that someone else lends you, because in honest business, they could attract a comparable rate to the rate they loaned that money to you ... therefore it is fair ... but what if the money you are lent is created out of THIN AIR? What is the time value of THAT?
Think it over folks.
Digest it, then i will type out a full chapter on the history of the Bank of England ... the first central bank in the world ... it's a fucking great tragedy story.
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
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