Pay no attention to the man behind the curtain

It’s really quite simple, but it’s a story we’re not encouraged to learn or to pass on.

Every year the world economy grows. Every year, the economy needs more currency to lubricate a larger volume of trade. Collectively, we need more money to be injected into the economy. This newly-created money is not earned. Nobody has earned it, but someone gets to spend it. It’s a boon, a windfall. Who gets to spend this new money into the economy?

Most people would answer, “It’s the people’s money. We the people should get to spend it.” Our Founding Fathers gave this answer when they empowered Congress with the exclusive right to coin money.

But that’s not the system we have at present. Since 1913, private banks create new money and private bankers get that boon. When you think about it that way, maybe “the rich get richer” isn’t a law of nature, but rather an artifact of the Federal Reserve Act of 1913.

It’s not a small amount. For most countries, the amount of new money corresponds to the growth in their GDP plus the inflation rate, a few percent a year. For the US, the amount is much larger because the US dollar is used as an international reserve currency. Almost all nations use US dollars for international trade even when they’re not trading with the US. So for the US, it amounts to about $1 Trillion per year, or $3,000 per year for every man, woman, and child in the country. Money that should belong to us that goes instead to the banks.

Worse than theft is murder. In order to maintain the status of the US dollar as the primary vehicle of international exchange, we have attacked any nation that threatens to use an alternative currency. We have subverted governments in Venezuela and Iran for this reason, and we have bombed Libya and fought a hot war in Iraq for the sake of the bankers.

Next time you see a bumper sticker that says ABOLISH THE FED, you know that that’s what they’re talking about.

— JJM

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