Truth Frequency Radio


Mar 19, 2013

By Chris & Sheree Geo

Truth Frequency Radio Network

Just a day after the people of Cyprus woke up to find their bank account balances 10% lighter, Chase Manhattan customers woke up to find zero balances. Many could not get even get online to access their accounts! We at Truth Frequency cannot help but wonder if this is a test to see how people will react to a bank holiday or a sudden collapse of the economy. Just a few weeks ago Bank of America customers were also unable to access their accounts.

Bank runs are a very touchy subject. We have to realize that the banks only hold 10% of all money in their reserves thanks to the fractional reserve system. One must only peruse Modern Money Mechanics to realize how money is created and handled. First, it’s noteworthy to mention that only 3% of all money actually exists in paper or metal form. The rest is nothing but digits in a computer system. But it’s even more chilling to think about the fractional reserve system and how banks only have 10% of their money on hand. Therefore if only 10% of the money was withdrawn, the economy would crash. Factor in the very fact that only 3% exists in paper form and disaster is imminent! It’s really a catch-22 situation: Withdraw all of your money from the bank and crash the economy, or leave your money in the bank where it’s sure to be stolen.

However, we have to realize that money in any form is not actually yours. It belongs to the Federal Reserve. It was loaned out to the US government with interest attached and then given to you for use as a promissory note that one day you will pay back to debt. So let’s do some simple math here. If you borrow 10 dollars from me and the interest is a dollar and I create that ten dollars out of thin air, you have to pay me back eleven dollars. So you do what you need to do, come back to me and you’re ready to pay back the $10. However since I’ve only created $10, you have to borrow another $10 to pay me back the dollar. So you borrow another $10 making your loan $20, you pay me back the $10 plus $1 and you’re left with $9. So you’ve paid back the original $10 plus interest but you’re still stuck with the second $10 loan plus $1 interest. But you only have $9!! So what are you going to do? Borrow another $10, which gives you $19 in your hands. You pay back the $10 loan plus $1 interest and you’re now left with $8 in your hand. But you still owe me for the recent $10 loan plus $1 interest.

Does this sound crazy? This is EXACTLY what the Federal Government does with the Federal Reserve. The Federal Reserve prints up some fancy looking pieces of paper called “dollars” and the Federal Government prints up fancy pieces of paper and they call them treasury bonds.  And through that exchange, We The People work 1/3rd of the year to pay the “income tax” which goes directly into the pockets of the Federal Reserve Bankers to pay back the interest accumulated from this transaction (According to the Grace Committee – Ronald Reagan). So considering a third of your income goes to pay back the interest, the interest is more like 30% rather than 10% as used in the example above.

So now you realize why we have to constantly borrow money to keep the economy going. Now let’s get back to the fractional reserve system. Banks do not actually loan out money but rather they loan out “credit”. This credit is based on their “fractional reserves”. So let’s say you put $1000 in the bank. Because the bank is only required to hold 10% of their reserves then they now have $9,000 worth of new lending power. So then your neighbor goes to the bank and asks for a loan for a $9,000 car. The bank takes the credit they created based on your deposit and pays the financing company for your friend’s loan. But this money never actually leaves the bank or even given in cash. What happens instead? The financing company receives a check for the amount then deposits it into their bank. So now that they deposited $9,000 into their bank, that bank now has $81,000 worth of lending power based on that $9000 deposit ($9,000 times 10 equals $90,000 minus 10% for the reserve equals $81,000). And the system keeps going and going and going.

If you don’t understand yet why inflation is an inevitable factor, let me explain. The value of money is based on the same principle as any other commodity and that is on its scarcity or availability. So the less money in circulation, the more money is worth. So when the banks are bailed out with 700 billion dollars, the Federal government borrows 700 billion dollars from the Federal Reserve and gives it to the banks. This adds 700 billion dollars to the money supply, making the value of the dollar lower and prices go up. However because of the fractional reserve system, 700 Billion isn’t entered into the money supply but rather 700 TRILLION (ten times as much).  And so your dollar is worth much less and prices have gone up.

So let’s go back to example where you borrowed a ten dollars from me and I created it out of thin air but it’s the only $10 in existence. So let’s say there is $10,000 in existence and you need to buy a house. You come to me and ask for a $90,000 loan for your house. I say “ok” and I give you $90,000 worth of “credit” based on the $10,000 I previously created out of thin air (with interest attached by the way). So you work and work and make your monthly payments of $1000 but ten months later you don’t have any money. Why? Because only $10,000 exists and you’ve exhausted all of the money supply. But you still owe me $80,000 of the principle and this is STILL not factoring in the home loan interest. You just can’t figure out why you can’t make anymore money and you can’t come up with $1,000, even though it’s obvious (because it doesn’t exist!). So I say “it’s OK, I’ll just take your house and we’ll call it even. So now you know why foreclosures and repossessions are INEVITABLE! There simply isn’t enough money to pay back the debts! What just happened? I just took your real property in exchange for money I created out of thin air.

OK, so let’s say we want to be debt free as a nation. We want to pay back ALL of the money that’s in circulation. We’re still left with the interest from the original dollar that was borrowed when the Federal Government and the Federal Reserve made their paper exchange. But now there is no money in circulation and we’re STILL in debt as a country. That’s not to mention that all property has been foreclosed on because without money in circulation, no one can pay their loans and even if you don’t have a loan you still don’t have any currency in circulation to pay your property taxes. So what happens? It ALL goes back into the pockets of the Federal Reserve Bankers.

Feel cheated yet? Feel Bamboozled? Hopefully with knowing what you know now, you won’t have a heart attack when you wake up with a zero balance and instead realize that this was the plan from the very beginning.

 

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