- FRB: H.6 Release - Money Stock and Debt Measures, Historical
http://www.federalreserve.gov/releases/H6/hist/ 2-28-02
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- Argentina has paid over ten times the interest on credit
(created on paper by banks "investments") originally borrowed,
hence the inevitable bust, insufficient funds to service debt and public
needs. I use the term created credit instead of money as this is an accurate
representation of what we have been conned into thinking of as actual currency.
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- From the link above, our actual currency supply increased
from $28 billion in 1959 to $586 billion in 2002. The M3 money supply of
currency, checkbook deposits, travelers checks, savings and foreign currency
increased from $289 billion in 1959 to $8029 billion in 2002. Since fractional
reserve allows banks to create credit out of thin air and charge interest
on it, captured out of the existing money supply and funneled back into
the banking system, our debt load has increased from $643 billion to $19,400
billion in the same period while the US population has only increased from
177 million to 286 million, looks like this;
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- 1959 pop. 177,000,000
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- M3 $289,000,000,000
- Debt $643,000,000,000
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- 2002 pop. 286,000,000
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- M3 $8,029,000,000,000
- Debt $19,400,000,000,000
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- In short -
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- Population increased 50% in 40 years Actual money supply
increased 300% Debt (created credit) supply up 3000% thanks to the 10 X
fractional reserve multiple.
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- Why do we not experience the hyperinflationary effect?
Well, since today's $350,000 house only cost $12,000 in 1959, actually
we have, although at a slower pace than South America. Also, since most
of the circulating medium is checkbook credit issued by banks at usury,
the interest must soak up a lot of the continuously ever expanding credit,
(see Protocol 20, Elders/Zion) which is currently at a lower rate.
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- But the debt treadmill must continue or crash, unless
of course the system is changed, requiring Congress to buy back the Fed,
put it under Treasury control and phase out fractional reserve credit creation.
Increased reserve requirements would cause banks to call in current loans.
To prevent any shrinkage (deflation/ressession), a proportionate amount
of national debt would be extinguished by the Treasury's checkbook (creation),
maintaining an equilibrium of necessary bank reserves since this bond repurchase
would end up in bank accounts and held as reserve, not increased as loans
(hyperinflation X 10). Savings could still be loaned without reserve providing
circulation of otherwise dormant real money.
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- However, our government is hell-bent on maintaining the
current, true evil, private check kiting scheme that will cause eventual
ruin to the economy. This results in an Argentina style revolt, no confidence
in government and final bank ownership of the State under iron, bank-puppet
rule, which is what we have behind the scenes, although few realize it.
As our jobs go to China and Mexico we could end up under greater financial
stress and eventual collapse. Then the curtain opens and the true rulers
come out in the open jailing dissenters as in China today. Freedom therefore
must be fought for, a continuous struggle against those that intend to
enslave us.
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