Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs.
But they are the biggest scroungers of public money of our time.
#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging By allowing a centralized authority such as the Federal Reserve to dictate interest rates, it creates an environment where financial bubbles can be created very easily.
The way our system works, whenever more money is created more debt is created as well. According to the results of the limited Fed audit mentioned above, a total of .1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010. The amount of “excess reserves” parked at the Fed has gone from nearly nothing to about 1.5 trillion dollars since 2008….They don’t even have to make clever investments to make huge profits.That is a pretty good little scam they have got going, wouldn’t you say?Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. #5 The Federal Reserve Is Paying Banks Not To Lend Money Did you know that the Federal Reserve is actually paying banks not to make loans? Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U. Unfortunately, the Federal Reserve is not working for us. Sadly, most Americans have no idea what is going on.According to the GAO, the Federal Reserve shelled out an astounding 9.4 million in “fees” to the very financial institutions which caused the financial crisis in the first place. Another example of this is the government debt carry trade. The Federal Reserve lends gigantic piles of nearly interest-free cash to the big Wall Street banks, and in turn those banks use the money to buy up huge amounts of government debt.Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. government lets the Federal Reserve create it out of thin air and then the U. He plans to try to keep the inflation rate at about 2 percent in the coming years. The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years.So it would be accurate to say that the Federal Reserve is partially foreign-owned. So where does the Federal Reserve get the Federal Reserve Notes? Wouldn’t you like to be able to create money out of thin air? The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.Most Americans are content with believing that the Federal Reserve is just another stuffy government agency that sets our interest rates and that is watching out for the best interests of the American people. The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt.During this election year, the economy is the number one issue that voters are concerned about.Most of these have been the result of the Federal Reserve keeping interest rates artificially low.If the free market had been setting interest rates all this time, things would have never gotten so far out of hand.