For many, the US dollar is the nation’s fiat currency. It all starts off with the US Treasury whom creates bonds which are government IOU’s that are paid back for a specific time period with curiosity.
Once again nothing backs these dollars except IOU’s. Furthermore, for the hard work each individual US citizen does to make sure you earn his or her salary, a portion of it eventually ends up at the Treasury in the form of income taxes. This is exactly what pays the principle and interest on the bond of the fact that Fed bought with a verify from nothing. US citizens will be forced into paying taxes for the use of our recent money supply system.
Thereby actually leaving your account with only $10. 00 or ten percent of your 100 % deposit. However your lender statement will still show the entire $100. 00 funds or one hundred percent of your deposit, on deposit in your bank account.
The next person consequently comes along, and borrows revenue. Once the new borrower pays off the seller for what that they bought the money again is re-deposited into the bank and now there is $271 dollars with deposit. This creation in money through deposits and loans (fractional reserve lending) keeps re-occurring to where at some point your original $100. 00 deposit has grown to make sure you $1000. 00 (ten times the amount of your original deposit) in fiat currency constructed from the bank.
The entire system of getting money from nothing is a ready-made scam. It all starts with the Federal Reserve and the US Treasury exchanging IOU’s. Your check is an IOU for cash and a relationship is an IOU to be reimbursed with interest at several later date. Cash has existence once the Fed issues someone a check.
Which is consequently spend on wars, military, governing administration salaries, social programs, public work projects and other deficit spending that keeps with re-occurring. Next all those government employees and military workers take their salaries and deposit them into various bank accounts throughout the country. This is how the fiat money now enters the financial banking sector.
This is the Ultimate Government backed and sponsored pyramid scheme, where only the banking high level who own the Given and other central banks all over, massively profit by stealing from generations of innocent locals.
Finally over time, there becomes too much bonds at the Fed and cash in the Treasury. The Treasury now takes that excess cash and stores it into the various branches of government.
The person who received your cash from the bank as a mortgage will use it to buy an item such as a car. Then see your face will pay the car dealer along with the money he borrowed. Now the car dealer will bank this money into your partner’s own account at the lender. Now there is $190. 00 on deposit and the bank can legally steal 90 percent again or $81. 00 and lend that out.
Once again the banks go back to the US Treasury auctions the next month obtaining more bonds and providing them to the Federal Preserve. And every month this action of buying and selling preserves on getting repeated.
The Treasury holds monthly auctions to sell off her bonds to primary merchants, who are the major loan companies. Then the US Federal Park enters the game by investing in all the bonds from the mortgage lenders through something called « open market operations ».
Nevertheless it’s important to note, that when any Fed writes and difficulties a check, there is no capital what so ever on the account to cover the amount of which usually check. The account these checks are written out of will always carry some zero balance. Therefore every single dollar that exists, is in fact borrowed and must be paid back.
Within the industrial banking sector we now have everything that I refer to as « magic money creation » which is definitely called « Fractional Reserve Lending ». Here is an example of how fractional reserve lending works. As an example someone deposits $100. 00 into a bank account, the bank which usually received that deposit has become legally allowed to remove $90. 00 or ninety percent of your deposit and re-lend it to someone else.