(Concluded from Part 2, yesterday.)
The Purpose of the Federal Reserve Banking System Is Quite Clear
Madhava Setty, MD, Collective Evolution, August 27, 2019
Let us briefly review
The Federal Reserve has united most banks to accept universal lending practices.
This effectively prevents individual banks from defaulting on their obligations, but creates a situation where a nationwide or global banking crisis can occur.
When (not if) that occurs, the Fed has an understanding with the government that it will infuse the system with money by “buying” government debt (in the form of government bonds) that will be used to “salvage” the system.
The public will eventually pay for this in two ways.
First, through the obligation to repay the debt and interest and second, through inflation as money floods the system.
It should be clear then that this maneuver is designed to keep lending institutions in perpetual business aggrandizing their wealth.
Central Banks make money by doing nothing
It is important at this point to look more closely at the money making machine the banks use for generating profit.
Recall that banks are only required to hold no more than ten percent of their deposits (assets) on hand and are free to loan out the rest.
However, there is a greater harm they can exact through our banking system’s definition of an “asset.”
Let us say that a bank holds $1,000,000 in deposits. It can write $900,000 worth of loans on that money keeping $100,000, or 10% of it on its books as “reserves.”
That money loaned out does not exist, it is created the moment the loan is written.
Once written, that loan, effectively the promise of the borrower to pay it back, is now considered an asset of the bank too!
This means that the bank can subsequently write loans of 90% of that “asset” (or another $810,000) as well.
Once the second round of loans go out, they too are considered assets.
This iterative process effectively allows the bank to “loan” out $9 for every $1 it was given as a deposit.
The bank uses the one million dollars in deposits (reserves) to “create” nine million dollars in debt and, of course, earn interest on it.
The term “earn” is highly questionable in this scheme.
The bank provides no real service, creates no tangible product, does no labor and assumes little risk yet is able to collect a continuous stream of money from assets that never existed until the moment someone agreed to borrow from them.
This is called “fractional reserve banking” and as shocking as it seems, it exists wherever an economy has abandoned a commodity (gold or silver) backed currency.
The Fed makes the most when we are at War
Turning back to Mr. Griffin’s assertion that the system has been designed to create instability, we can see that the banking system reaps the greatest benefit when needs exceed resources.
The Federal Reserve (and any central bank) has the sole authority to create money when the need for debt arises.
Is it unreasonable that central banks, functioning without accountability to any authority, government or otherwise, would welcome every opportunity to exert this power, especially when it is so lucrative to them?
If we were to examine the situation from a central banker’s perspective we would regard global events in the context of debt.
What kind of event creates the greatest and most urgent need for resources?
War.
War requires a nation to redirect their youth away from the creation of goods and services and into military service.
There is the cost of munitions, fuel, care for the wounded and ultimately reparations. The bigger and the longer the war the better …if you were a central banker.
The Greatest Conspiracy in our history is still in play today
Could there really be an unholy alliance between central banking and governmental war machines?
This may be obvious to some, but to many this approaches absurdity.
A government for and by the people seems too powerful to be influenced by financiers and monetary policy makers.
If banking insiders had any influence over our elected officials, the media would bring immediate public attention to it, right?
In order for this kind of treachery to take place it would require the hidden collaboration of a very small group of extremely influential persons in government, central banking and the media.
This would be a conspiracy, which many believe would be impossible today.
There is no question that it has happened in the past.
As detailed in “The Creature from Jekyll Island,” the United States entered WWI after The Lusitania, a massive British liner with 195 American civilians on board, was sunk by a German U-boat attack.
Prior to setting sail from New York, The Lusitania was loaded with tons of weaponry including six million rounds of ammunition purchased with funds raised for England through JP Morgan’s investment house.
This was done in broad daylight with the ship’s manifest a matter of public record.
The German government protested that using such a ship to transport weapons was in direct violation of international neutrality treaties.
The American government denied this was taking place.
The German embassy then appealed to the American people directly, placing ads in newspapers urging them not to book passage on The Lusitania as it represented a strategic target that would fall under German attack.
The U.S. State Department prevented these warnings from being run.
At this time J. P. Morgan, one of the chief architects of the newly created Federal Reserve, was profiting from selling English and French bonds to American investors to raise money for their war effort against Germany.
In addition, the two countries spent significant sums on products purchased from companies in Morgan’s control.
When it became clear that Germany was nearing victory through their control of shipping lanes in the Atlantic with their U-boats, Morgan’s income stream was threatened.
England, France and the American investing house knew their causes would only be saved if the United States entered the war against Germany.
At the time this seemed a practical impossibility as Woodrow Wilson, approaching reelection, was riding a broad anti-war sentiment sweeping the country.
This all changed when the The Lusitania sank.
Morgan had, in the meantime, purchased control over major segments of the media and flooded the public with pro-war editorial.
The media, the banks and our government worked together to see that America entered WWI on April 6, 1917.
War expenditures, as always, were fueled by monetary expansion engineered by the Fed.
Between 1915 and 1920 the monetary supply doubled and the value of our currency dropped by nearly 50%.
WWI is one of many examples in our planet’s history where the spoils of war went largely to the inner circles of the banking system that often finance both sides of conflicts.
If this version of history still seems too incredible to believe, consider this:
How often would a nation engage in war if it didn’t have the money to pay for it?
Nations rarely do, unless they have a central banking system.
Conventional history books paint our species long tradition of conflict as good vs. evil or liberty vs. tyranny while characterizing dictators and their ideologies as threats to the greater good.
The real threat is hidden in plain sight and is far more diabolical, as it is not confined by borders or allegiance to governments that inevitably rise and fall.